The ability to instantly adapt to changes and achieve favorable results by implementation of IOT sensors in vertical farming is anticipated to drive the North America vertical farming produce market during the forecast period 2021-2026. North America Vertical Farming Produce Market generated revenue of $741.2 million in 2020 and is projected to grow at a CAGR of 21.2% during the forecast period 2021-2026.
The North America vertical farming produce market growth rate is attributed to the implementation of IOT sensors in vertical farming, professional farmers are gaining a holistic view of their farm and pinpoint actionable insights and they also have the ability to instantly adapt to changes and achieve favorable results by adjusting operations is anticipated to bring new opportunities. Vertical farming is a process of planting or growing the plants in horizontal stacked layer. Vertical farming uses various techniques such as hydroponics, aeroponics and aquaponics. Vertical farming is highly beneficial to cultivate crops in bare, arid land etc. it is difficult to grow plants in such places, hence vertical farming. Vertical farms ensure crop production all year in difficult conditions, such as where arable land is scarce or inaccessible. Furthermore, it guarantees a consistent yield and crop production throughout the year, as well as climate protection and no external environmental factors such as diseases, pests, or predator attacks. Some of the key factors attributed to market expansion include increased investments from key investors and various smart agriculture government initiatives through subsidies and grants.
Besides, the Food and Agriculture Organization (FAO) has been implementing hydroponic farming technology in the areas of the North America region that suffer from food shortages and is also working on various projects to establish large hydroponic farms to mitigate impending food shortages, which is creating a positive impact on the growth of the North America vertical farming produce market. However, the lack of skilled workforce is estimated to affect the growth of the market as most of the farmers in the North America region are not aware of the advanced tools and equipment used in vertical farming.
United States is the major region dominating the North American vertical farming produce market occupying 70% of the market revenue. U.S. in North America region is dominating the vertical farming produce market owing to the growing demand for reducing the intervention of machines required for conventional farming, increasing popularity of organic crops, and rise in the external funding opportunities for stakeholders and researchers are the major factors that are driving the vertical farming produce market in the country.
Also, on the basis of crop type, vegetable segment is analyzed to hold significant share and is the fastest growing segment by crop type during the forecast period of 2021-2026 owing to rise in vertically grown vegetables that has the benefit of avoiding the common issue of fruit rot. Furthermore, vegetables are grown using conventionally technology in soil using climate-controlled conditions of a vertical farming facility, as these produce can be grown throughout the year. However, allowing cucumber vines to grow vertically increases air circulation around the plant, which helps to keep fungal diseases at bay.
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North America Vertical Farming Produce Market Growth Drivers:
Rise in The Adoption Of Hydroponic Technology:
The Food and Agriculture Organization (FAO) has been implementing hydroponic farming technology in the areas of the North America region that suffer from food shortages and is also working on various projects to establish large hydroponic farms to mitigate impending food shortages, which is creating a positive impact on the growth of the North America vertical farming produce market. The National Aeronautics and Space Administration (NASA) is also experimenting with growing crops on the International Space Station using hydroponics farming technology as it requires less resources and space than conventional farming. The eco-friendly start-up companies are increasingly adopting hydroponic technology to produce crops on a large scale in an indoor and controlled temperature environment, which is propelling the growth of the market. The key players in the region are increasing their investment in hydroponic farming technology owing to its potential to mitigate the threats posed to the agricultural system as the crops were grown in optimal conditions using controlled environment agriculture (CEA) technology, which is driving the growth of the market.
Increase in the grants and funding for vertical farming:
The United States Department of Agriculture (USDA) has been administering grants for vertical farming through a variety of organizations, such as the sustainable agriculture research and education program, nonprofit educational organizations, and community groups to produce more organic food per acre than conventional farms and to reduce the emission of greenhouse gases while allowing more plants to grow, which is propelling the growth of the market.
The Californian start-up Plenty has raised $200 million in a funding round led by SoftBank Vision Fund to expand its growing facilities and to create the perfect environment that reduces the unpredictability of changing climates to grow flavorful, fresh, and clean produce throughout the year, which is creating a positive impact on the growth of the market.
AeroFarms has entered into a partnership with Hortifrut, a Chilean producer of fresh berries to research and develop blueberry and caneberry production in fully controlled indoor vertical farms and to further expand the knowledge in sustainable farming.
Major Players in this Market Include
The major companies in the North America vertical farming produce market include Infarm, AeroFarms LLC, Plenty Unlimited Inc., Vertical Roots, Living Earth Farm, Local Leaf Farms, Beanstalk - Robotic Vertical Farms, Altius Farms and TRULEAF. In March 2021, Bowery Farming has entered into a partnership with Albertsons to put vertically grown greens into several grocery stores owing to the growing demand for more local and traceable food. The products include a few different lettuce varieties and basil and all the crops are grown in vertically stacked trays using a hydroponic system.
Although there has been product withdrawals and low demand for the product, companies are conducting research and development for the perfecting the products. Manufacturers are rooting for the comeback of North America vertical farming produce with effective products. There are the major factors set to buoy the North America vertical farming produce treatment market during 2021-2026.
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