Vertical farming is a relatively new and unfamiliar term for the common populace. It is one of the alternative techniques in which food products are grown in vertically stacked layers with the help of artificial lighting. This method is sustainable as it uses less space to give more produce. It uses different type of growth mechanism, such as Hydroponic and Aeroponics, combined with its components and fixtures. These components are lighting components, hydroponic components, climate controls, and sensing devices.

The vertical farming industry gives certain alternatives, in terms of growth mechanism, to its users, such as keeping the roots of the plant in a nutrient solution (hydroponic) or just misting them at regular intervals (aeroponics). Hydroponic is the most commonly used mechanism and it generated the maximum revenue in the year 2015. Europe is the largest market for Hydroponic at present, followed by North America and Asia-Pacific respectively. Aeroponics is an alternative to Hydroponic and is expected to grow at the highest rate.

There have been debates about the productivity and credibility of vertical farming among researchers. The primary shortcoming of this method is that there isn’t an economic model yet in the industry to sustain vertical farming. This can result in the concentration of this industry in the hands of a few rich investors. Also, the limited number of food species that can be grown in vertical farming, mainly leafy vegetables, is another disadvantage. However, this is one of the alternatives we have, to meet the surplus demand of food in the present as well as in the future.

The global vertical farming market is expected to grow over $6.81 billion by 2022 at a double digit CAGR from 2016 to 2022. The option to customize the growing environment, year round food supply, and minimum overheads and costs are some of the factors responsible for the growth of this market. However, challenges such as, high initial investment cost, limited market scope, are inhibiting its growth in the market.

Besides these challenges, there has been advancement in the techniques of vertical farming. The replacement of traditional lighting with LED light has led to the domination of lighting components in the market. However, the climate control devices, used for customisation of growing environment, are estimated to grow at the highest CAGR, primarily because these devices are one of the vital requirements for the system.

The vertical farming market is currently dominated by the Asia Pacific region, mainly because of the increasing population ratio and a perpetual decrease in cultivable land. However, it is expected that Europe will grow at the highest CAGR through 2015-2022. North America, with U.S in the lead, will continue to generate significant amount of revenue through the forecast period.

The present landscape of vertical farming is competitive, and this suggests companies’ inclinations towards collaborations, product launches, mergers, and contracts among others. Some of the key players in the industry are Aerofarms, Everlight Electronics, Illumitex, FarmedHere, Koninklije Philips N.V., and American Hydroponics. It is debatable whether it will produce enough to meet the total surplus demand, but it is certain that it can meet the demand of the cumulative urban populace.

Vertical farming will see a surge, in terms of revenue and popularity in the future, and hence, our analysts at BIS Research have predicted a rapid growth in this industry. BIS Research has done an extensive report on the future of ‘Global Vertical Farming’. The report provides an in-depth analysis of the key development strategies and market trend dynamics which includes drivers, restraints and opportunities prevailing in the industry. For further queries, please write to us at sales@bisresearch.com or call us at : +1 650 228 0182