According to The Insight Partners’ research, the global vertical farming market was assessed at US$ 3,550.4 million in 2020 and is projected to be worth US$ 19,864.8 million by 2028, growing at 24.4% CAGR between 2021 and 2028. Benefits of vertical farming over conventional farming and rise in popularity of organic food are expected to be the prime drivers for the vertical farming market.

Vertical farming is one of the modern farming practices, wherein plants are cultivated in a closed environment without the use of soil. Vertical farming does not depend on weather conditions, thereby allowing farmers to achieve a consistent annual crop production. Despite small area, it enables farmers to yield more, i.e., nearly 240 times than conventional farming while requiring 99% less land and 98% less water. AI-powered vertical farming technologies have been a noticeable help in reducing the consumption of land and water. In the near future, the vertical farming market will likely gain from the increasing demand for creating a sustainable agricultural ecosystem. Ascending focus on recapturing evaporated water and recycling products to reduce wastage is also projected to add to the market’s rise in the coming years.

Another important factor expected to support the vertical farming market is the high yield of fresh local crops. Along with expanding agricultural operations, the increasing demand for organic and healthy produce among urban consumers, especially in the wake of the COVID-19 pandemic, is likely to pave the way for this market’s rise over the upcoming years.

On the other hand, high initial investment and maintenance cost are the prime factors hindering the vertical farming market augmentation.

Based on growth mechanism, the global vertical farming market is segmented into hydroponics, aeroponics, and aquaponics. Of these, the hydroponics segment held 52.0% of the market share in 2020. The segment was assessed at US$ 1,846.2 million in 2020 and is projected to reach US$ 9,839.2 million by 2028, growing at 23.7% CAGR during the forecast period. In 2021, Eden Green Technology, based in Cleburne, began constructing the first commercial iteration of its modular, vertical hydroponic greenhouse idea. According to the company, the 83,000-sq.ft plant will employ 30 people and produce up to 600 tonnes of leafy greens yearly.

As per component, the market is divided into lighting, sensor, climate control, irrigation component,
building material, and others. Of these, the lighting segment held 39.8% of the market share in 2020. The segment was evaluated at US$ 1,414.0 million in 2020 and is slated to amass US$ 7,407.7 million by 2028, expanding at 23.4% CAGR between 2021 and 2028.

From the regional frame of reference, North America led the vertical farming market; the regional market was valued at US$ 1,219.9 million in 2020 and is projected to reach US$ 6,523.6 million by 2028; it is expected to grow at a CAGR of 23.7% during 2021–2028. APAC is anticipated to have the highest recorded CAGR of 25.5% during the forecast period to reach US$ 5,580.0 by 2028. AeroFarms announced it has partnered with Hortifrut S.A. to contribute to the R&D of caneberry and blueberry production in indoor environments and vertical farms.

Leading players profiled in the global vertical farming market report are Agrilution Systems GmBh; Aerofarms, LLC; Eden Green Technology; Elevate; iFarm; OSRAM; Plenty Unlimited Inc.; Square Mile Farms Ltd.; Sky Greens; and Vertical Farm Systems.

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