Worldwide vertical farming market to "increase rapidly"
The global vertical farming market is projected to reach over US$12.7 billion by 2026, growing at a CAGR of 24.6 percent from 2019 to 2026, according to a report published by Allied market research.
The demand for vertical farming is expected to increase rapidly during the forecast period, owing to rise in popularity of organic food.
"It facilitates huge quantity of nutritious and quality fresh food without relying on favorable weather, high water usage, skilled labor, and high soil fertility," the report stated.
It is also becoming more prominent due to a reduction of construction activity and land use as well as technologies that enable precise crop monitoring.
However, a high initial investment is required for setting up the structure and necessary lighting as well as irrigation systems.
The technologies involved are also just in the beginning stages, which is expected to have negative impact on market growth.
Although rise in urban population and surge in technology-driven agriculture are expected to provide lucrative growth opportunities.
In the report, trends were analyzed across various segments and building-based structure is expected to dominate the global vertical farming market during forecast period.
The regional segmentation of the market in the report includes North America, Europe, Asia-Pacific, and LAMEA.
The European vertical farming market is expected to grow at the highest CAGR owing to growth in concern over availability of water in certain parts, rise in demand of organic food and requirement of ensuring urban food security.
The key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, geographical expansion, and collaborations to enhance their position in the market.