Global Vertical Farming Market to reach $9.9 billion by 2025
Jun. 2, 2017
The increased use of Internet of Things (IoT) sensors, for producing crops, is likely to spur the market demand over the forecast period. The information obtained from the sensors is stored on the cloud and analyzed to perform the required actions. The growing automation in agriculture and increasing use of big data & predictive analytics, for maximizing yields, are also likely to drive the market.
Genetically modified organisms and environmental & health effects of pesticides & other non-natural substances that are used for increasing agricultural production have encouraged the consumers to adopt organic foods. According to the Organic Trade Association, the U.S. organic industry sales increased by 11% in 2015, owing to the increased investment in infrastructure and education. As per the Organic Foods Production Act of 1990 the handlers and growers of organic products need to comply with the regulations
Artificial lighting helps in extending the hours of the natural daylight which further increases the health, growth rate and yield of the plants. Artificial lighting, such as high-pressure sodium lighting, LED lighting can extend the availability of crops (throughout a season). LED lighting systems produce dual-band color spectrum and generate low heat. They are anticipated to witness significant growth over the forecast period.
Hydroponic system is a method of growing plants without soil. A hydroponic system eliminates the need for pesticides and artificial ripening agents and helps in producing nutritionally-rich vegetables. However, factors, such as high initial investment and fewer crop varieties, are likely to restrain the market growth.
In terms of revenue, the Asia Pacific region dominated the industry in 2015 and is expected to remain dominant over the forecast period. Growing awareness regarding the importance of alternative farming, owing to the less availability of fertile agricultural land and increasing population, are the key factors anticipated to spur the industry demand.
Europe regional market is anticipated have significant growth over the projected period owing to the growing expansion of genetically-modified crop technology. Furthermore, increasing adoption of nanotechnology and robotics for farming further enhances the regional market demand. The use of nanotechnology helps in improving food packaging and enhancing disease and pest control.
The European environmental agency has carried out several initiatives to build vertical farms for the purpose of overcoming challenges of continuous population growth and climate change as well as producing food in an environment-unfriendly way. This has resulted in the rising demand for market in the region.
Growing urban population and commercialization of indoor farming is anticipated to drive the African regional demand. However, lack of financial resources to build modern vertical farms and limited access to water and land is expected to restrain the Africa regional growth. To overcome such challenges various models followed in the region include vertically stacked wooden crates and sack gardens.
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