The global vertical farming market size is estimated to be USD 5.1 billion in 2023, and it is expected to reach USD 15.3 billion by 2028, growing at a CAGR of 24.7% from 2023 to 2028. Various factors are fueling the growth of the vertical farming market share. One of the key drivers is the decreasing availability of land for agriculture, which is happening due to urbanization, deforestation, and climate change. This trend poses a challenge to traditional farming methods, but vertical farming offers a solution by utilizing space more efficiently to produce food.
Vertical farming, a method of growing crops in vertically stacked layers, is gaining momentum globally as a sustainable solution to food production. In North America, the United States is set to dominate the vertical farming market due to its significant number of vertical farms compared to other countries in the region.
Understanding Vertical Farming Market Size
Vertical farming represents a shift towards more efficient and sustainable agricultural practices. By utilizing indoor environments and advanced technologies such as hydroponics, aeroponics, and LED lighting, vertical farms can produce higher yields of crops while using less land, water, and pesticides compared to traditional farming methods.
Vertical Farming Market Size Dynamics
The US is positioned as the leader in the North American vertical farming market size for several reasons:
Technological Innovation: The US boasts a strong culture of innovation and entrepreneurship, leading to the development and adoption of cutting-edge technologies in agriculture. This includes the use of automation, data analytics, and artificial intelligence to optimize crop growth and maximize yields in vertical farming systems.
Urbanization and Population Growth: With its rapidly growing urban population, the US faces increasing pressure to secure a sustainable food supply. Vertical farming offers a solution by enabling food production in urban areas, reducing the need for long-distance transportation and minimizing the environmental impact of food production.
Investment and Government Support: The US government, along with private investors, has been actively supporting the vertical farming industry through funding initiatives, research grants, and incentives. This support has accelerated the growth of the sector and encouraged the establishment of a large number of vertical farms across the country.
Consumer Demand for Locally Grown Produce: There is a growing consumer preference for locally grown, fresh produce, which aligns well with the goals of vertical farming. By producing food closer to urban centers, vertical farms can deliver fresher, more nutritious produce with shorter transportation times and reduced carbon footprint.
Related Reports:
Vertical Farming Market by Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), Structure (Building-based and Shipping container-based), Crop Type, Offering (Lighting, Sensors, Climate Control, Software, Services) & Region - Global Forecast to 2028
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