Industry Overview
The Asia-Pacific vertical farming market is predicted to grow at 22.1% CAGR during the forecast period with the market size reaching USD 2,103.0 million by 2027.
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The Vertical farming technique uses a (controlled-environment agriculture) CEA technology to preserve the environment and produce the crops even in densely populated areas of the city. This eliminates the excessive expenditure to be incurred on a rain-forest and helps in fulfilling the ever-increasing demand for crops amongst the increasing population of Asia-Pacific.
Market Segmentation
Insight by Offering
Hardware and software are the offerings provided by the vertical farming market. Of both the categories, the demand for hardware is larger in the market and is also anticipated to grow at a higher CAGR during the forecast period. The hardware type is further segmented into lighting, hydroponics component, climate control, and sensors. Lighting type is further segmented as grow lights, grow light reflectors and grow light ballasts. Similarly, the hydroponics component is further segmented as pumps and irrigation, meters and solutions, water filtration and others. The climate control hardware type is further categorized as ventilation fans, air purification, and others. Additionally, the sensors are further categorized as temperature sensors, CO2 sensors, nutrient sensor, PH sensor, crop sensors, and others.
Insight by Growth Mechanism
On the basis of growth mechanism, the Asia-Pacific vertical farming market is categorized into aeroponics, hydroponics, and aquaponics. Of all, hydroponics holds the largest share in the European vertical farming market.
Insight by Structure
Based on the structure, the Asia-Pacific vertical farming market is categorized into building-based vertical farms and shipping container vertical farms. The technique is largely used for growing several crops such as lettuce, pepper, broccoli, cucumber, spinach, tomato, and others.
Insight by Crop Type
Based on crop type, the vertical farming market is categorized into broccoli, pepper, tomato, spinach, cucumber, lettuce, and others. Lettuce is the most grown crop in vertical farm and the demand for vertical farm products is anticipated to be the highest for this crop type during the forecast period.
The use of vertical farming in Asia-Pacific is helping the commercial growers to automate tasks such as nurturing seedlings that help in essentially reducing labor costs that further helps in enhancing the profitability of the manufacturers. The use of this technique is helping the region to reduce the use of water at the minimum threshold. The vertical farming technique is used for developing leafy green vegetables in this region. The technique is helping the region to develop adequate produce in order to satisfy the huge number of population.
Industry Dynamics
Growth Drivers
The increasing demand for environmentally friendly production of fresh fruits and vegetables with no use of pesticides is driving the demand for the vertical farming market in Asia-Pacific. The consumption of organic food is helping people to lessen their symptoms if they are suffering from allergies to foods or chemicals.
Moreover, the geographical opportunities of vertical farming in Asia-Pacific are creating enhanced opportunities for the vertical farming market to grow exponentially. The region of Asia-Pacific is providing various opportunities to develop such building-based vertical farms and shipping container vertical farms. The region aims at supplying large pounds of pesticide-free crops and also saves the water consumption of the region since the vertical farming technique requires less water than the customary farming system.
Challenges
The high initial investments in vertical farming and limitations on the variety of crops grown are the major restraints observed in the growth of the vertical farming market in Asia-Pacific.
ASIA-PACIFIC VERTICAL FARMING MARKET HIGHLIGHT
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Geography Insight
Asia-Pacific is observed to witness the fastest growth in the market. As the region comprises of largest population and they require a technique to meet the demand of this ever-increasing population. Moreover, this region is considered to be very adaptive in implementing the vertical farming technique and any new technology in the region. Thus, the demand for vertical farming in the region will expand significantly in the near future.
Competitive Insight
Some of the key players operating in the Asia-Pacific vertical farming market are Koninklijke Philips N.V., OSRAM GmbH, Illumitex, GE, Valoya Oy, Everlight Electronics Co. Ltd., Epistar Corporation, LumiGrow Inc., LEDHydroponics, Fionia Lighting, NET LED Limited, Apollo Horticulture, Grow LED Hydro, California LightWorks, Kessil, Kind LED Grow Lights, Spectrum King LED Grow Lights, Sunprou Opto-Technology Co. Ltd. and Shenzhen Jing Chuang Xing Technology Co., Ltd.
PRIMARY RESEARCH INTERVIEWS – BREAKDOWN
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