Vertical farming or indoor farming offers advantages like less-water consumption, low-transportation cost, and minimized washing and processing of food products. These have led to the increasing adoption of this farming technique, in recent years.
Moreover, the soaring focus on healthy lifestyle will also support the market growth during the forecast period. Indoor farming helps in the production of organic foods, which are cultivated without the use of genetically modified organisms, pesticides, and artificial fertilizers. People across the world are preferring organic foods over non-organic foods, as the former is perceived as more nutritional than the latter. Vertical farming allows for the development of organic products that are effective in creating natural organic micro-greens.
Currently, the world is witnessing a surge in the migration from rural to urban areas, on account of the booming population. This has led to robust change in lifestyle, increase in per capita income, and growth in health consciousness among customers. Owing to these changes, consumption of organic foods, produced through vertical farming, have increased significantly. Besides, rising focus on reliable cultivation methods, irrespective of climatic conditions, is encouraging farmers to undertake eco-friendly production methods. This has led to the widescale adoption of vertical farming for the production of fresh vegetables and fruits.
Another growth driver of the vertical farming market is the expansion of the pharmaceutical industry across the globe. In recent years, the production of pharmaceutical products has tremendously increased, on account of the high prevalence of diseases and high demand for personal care products. Pharmaceutical companies are opting for indoor farming to produce a range of medicinal plants, which are required for the production of pharmaceutical products. These companies are producing their patented products from raw seeds and offer proprietary goods to the cosmetic, nutraceutical, and medicinal sectors.
In recent years, companies and individuals are using internet of things (IoT) sensors in indoor farming to enhance their productivity. IoT allows commercial cultivators to store information detected via sensors in cloud storage or any other medium of storage. The farmers are utilizing complex sensors to screen the plants entirely, without manual support. Information gathered from the IoT sensors is stored in cloud platform for analyzing and performing appropriate actions, thereby, improving the productivity of farms with better monitoring in real time and less wastage.
Globally, the Asia-Pacific vertical farming market is expected to display the fastest growth in the forecast period. This can be attributed to the reducing fertile agricultural land in the region, on account of the surging population among APAC nations. The fertile farm lands in India and China are reducing at a rapid pace, on account of the huge population base and rapid urbanization in these countries. Moreover, the rising per capita and disposable income across the region will facilitate the market growth in the coming years.
With the increasing shift toward organic food and the environment-friendly cultivation methods, individuals and corporates are switching toward vertical farming, globally.