Over the past few years, this innovative method of vertical farming has been gaining momentum as a solution to the growing demand for sustainable and locally sourced produce.
The vertical farming industry has been rapidly expanding, with several companies investing in this futuristic approach to farming. The North American region is at the forefront of this trend, with a valuation of $1.37 billion in the vertical farming market.
As per the BIS Research report, the global vertical farming market was valued at $5.50 billion in 2020 and is projected to reach $19.86 billion in 2026, following a CAGR of 24.3% during 2021-2026.
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Geographical Distribution of Vertical Farming Market
The regional vertical farming market is expected to see growth due to multiple factors, including an increasing demand for food and population growth, as well as a growing interest in digital technology within the agriculture industry.
This growth in the agriculture sector is expected to drive the development of the regional vertical farming market.
North America: During the forecast period (2021-2026), it is anticipated that the global vertical farming market will be dominated by the North American region.
The U.S. and Canada are the major contributors to the market growth in North America, with the U.S. dominating the market with a total of $1.37 billion in 2020 due to the presence of major players in the region.
Major players in vertical farming, such as AeroFarms, Plenty Unlimited Inc., Bowery Farming, and Gotham Greens, among others, dominate the market in the U.S.
Europe: The Europe region, valued at $1.35 billion in 2020, is another prominent market for vertical farming, driven by the increasing demand for fresh, pesticide-free, and locally grown produce. The region is witnessing significant investments in vertical farming technologies, which is expected to drive market growth. The Netherlands is one of the leading countries in vertical farming technology and innovation in Europe.
Asia-Pacific: The Asia-Pacific region is expected to witness significant growth in the vertical farming market with a $1.25 billion market valuation in 2020 due to the increasing population, food security concerns, and government initiatives to promote sustainable agriculture practices. Japan, China, and Singapore are some of the leading countries in the region that are investing in vertical farming technologies.
Middle East & Africa: The Middle East & Africa region is witnessing significant growth in the vertical farming market ($852.5 million in 2020) due to the increasing demand for food and the scarcity of arable land and water resources. The region is also investing in innovative technologies to promote sustainable and efficient farming practices. This can be attributed to the region's significant agricultural growth and increasing focus on smart farming and digitalization in agriculture, which are expected to foster the advancement of vertical farming in this area.
Conclusion
With a total valuation of $5.5 billion, the global vertical farming market is expanding rapidly and is projected to achieve a CAGR of 24.3% during the forecast period from 2021 to 2026. The growth of the market is significantly influenced by various factors, including the migration of the population from rural to urban areas and the reduction in arable land size, among other factors.
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