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The global vertical farming market size reached USD 3.47 billion in 2021. The market value is estimated to increase from USD 4.16 billion in 2022 to USD 20.91 billion in 2029 at a CAGR of 25.9% in 2022-2029. This information is published by Fortune Business Insights™, in its report, titled, “Vertical Farming Market Size, Share & COVID-19 Impact Analysis, By Type (Hydroponics, Aeroponics and Aquaponics), By Structure (Building-Based Vertical Farm and Shipping-Container Vertical Farm), By Component (Lighting System, Irrigation & Fertigation System, Climate Control, Sensors, and Others), and Regional Forecast, 2022-2029”
Government Imposed Lockdowns to Slow Market Growth during Pandemic
COVID-19 pandemic shorted the growth of vertical farming during the forecast period due to a variety of factors including disruptive supply chains, shortages of food supplied worldwide, suspended trade routes and government-imposed lockdowns. Lack of labor forces across various countries further decreased the market share. For instance, in June 2020, Singapore announced rapidly progressing rooftop farms for improving food security including aquaponics and hydroponics for saving real estate.
However, the market is expected to pick up the pace as the pandemic looms due to rising demand for locally produced vegetables & foods, increasing investments for risen consumer demand towards organic fruits & vegetables and rapid innovations in building efficient supply chains. The growth of vertical farms was hampered for a shorter duration, however, the market will exhibit signs of picking up the pace during the latter part of the pandemic.
Signify Expands Collaborations for Building a Substantial Vertical Farming Resource
Signify and Planet Farms were collaborating since 2018 for constructing Italy’s first vertical farm research lab in Milan. Recently, Signify expanded its collaboration with Planet Farms by providing horticultural LEDs to Europe’s largest farm and five more facilities across all of Europe. Signify will aim to assist Greenpower LED production modules that were managed by Philips GrowWise Control for providing the best quality, taste, and yield.
This collaboration will include support for aromatic herbs and lettuces that will be sold to consumers all around the world. This facility is completely automated, which ensures that the consumer will be the first to handle the crop. Furthermore, Signify also reached an agreement for providing horticultural LED grow lights for five vertical farms in Switzerland and the U.K.
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Rising Inclination towards Climate Control Technology & Increasing Water Crisis to Augment Growth
Factors such as increasing demands for lower water usage and enhancing efficiency regarding productivity, rising food security activities, and resistive weather and environmental concerns will boost the vertical farming market growth during the forecast period. In February 2021, McCain Foods announced investing around USD 65 million in GoodLeaf Farms and TruLeaf Sustainable Agriculture towards increasing innovative approaches in Canada. This investment will further establish a network of vertical farms across Canada.
Additionally, factors such as rising challenges for land availability for food production coupled with rising adoptive measures regarding vertical farms will increase the footprint of the market during the forecast period. According to the World Bank, agriculture accounted for 70% of freshwater usage worldwide.
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Value (USD billion)