Vertical Farming Market Trends

Growth Drivers

• Growing Production of LED Lights - Between 2012 and 2019, LED sector penetration grew, and it is anticipated that by 2025, it would have reached a penetration of almost 75 percent. Hence, with the growing adoption of LED lights, the production of LED lights is estimated to increase. Further, with the rise in production, the use of LED lights in vertical farming is also growing. LEDs are able to provide light at the best intensity and for a very long period since of their remarkable energy efficiency. Compared to alternative lighting options, these efficient lighting solutions could endure for almost six years. Given their low heat output and ability to fit in small places with vertically piled crops, LEDs are ideal for vertical farming.

• Rise in Urban Population - Around 4.4 billion people, or 56% of the world's population, reside in cities. By 2050, approximately 7 out of 10 people would live in cities, with the urban population predicted to more than double from its current level. Owing to this population pattern, food would be more in demand in locations where land is more scarce. Vertical farming provides a solution to address this rising requirement for food without the need for big fields in these densely populated metropolitan areas.

• Surge in Abounded Buildings - In the United States, there were more than 15 million empty homes in 2022. The greatest vacancy rates were in Vermont, Maine, and Alaska, which range from about 23% to 20%. Hence, such abounded buildings or houses could be converted into spaces to carry out vertical farming further, boosting the vertical farming market growth.
• Growth in Government Policy to Encourage Vertical Farming - The Kerala State Horticultural Mission (SHM) launched a vertical garden programme where the recipient would receive an about 74% subsidy on the overall cost of building up the vertical garden and approximately 24% of the cost would be borne by the beneficiary.
• Upsurge in Reduction of Carbon Foot Print - Vertical farming leaves a smaller carbon footprint. This is owing to the fact that vertical farms rely on sustainable energy sources including solar and wind power. Conventional farming uses a lot of fossil fuels, which cause the atmosphere's damaging greenhouse gases to be released. Moreover, food waste could be significantly decreased with the help of green vertical farming. The enclosed aspect of the growing arrangement, which greatly reduces the likelihood of contamination resulting in crop failure, and the near proximity to the customers, which greatly minimizes transportation emissions, could cut food losses by up to 98% and the associated emissions by up to about 69%.

Challenges

• High Cost to Set Vertical Farming - The high start-up costs for indoor vertical farms provide the first obstacle for any farmer or business interested in vertical farming. Setting up a vertical farming infrastructure involves significant upfront costs as well as substantial ongoing expenses. Vertical farming is therefore more expensive than conventional farming. Moreover, an ideal vertical farm should have control over the internal environment, including lighting, temperature, pollination, and plant arrangement. The instruments and equipment needed for vertical farming require a significant initial investment from the farmers.

• Lack of Awareness Among People

• Lack of Well Equipped System