The global Vertical Farming market was valued at USD 3,218.7 million in 2020, growing with CAGR of 24.9% during the forecast period, 2021-2027.
Global population growth and urbanization have raised the need for food, and food security has become a priority for governments throughout the world. Traditional farming is resource-intensive, both in terms of accessible arable area and production volume. Vertical farming is a better alternative to traditional farming since it generates more output while requiring less land, herbicides, and other chemicals. With the reduction in water levels and the severity of the drought crisis, this form of farming has gained favor in recent years.
Vertical farming is a way of preparing food in vertically stacked layers, such as in a skyscraper, a repurposed factory, or a shipping container. Modern vertical farming concepts employ indoor farming methods and controlled-environment agriculture technologies to regulate all environmental conditions. Pollution has significant economic repercussions in terms of health, productivity, health-care expenses, and environmental disturbance; hence, rising concerns about pollution-free environments are propelling the vertical farming industry forwards. Due to the restricted range of crops used in vertical farming, economic viability is hampered, limiting the vertical farming market’s growth. The growing use of IoT sensors in agricultural production has created several chances for the vertical farming sector to expand. The increasing cost of maintaining air circulation in vertical farming is posing a significant challenge to the vertical farming industry.
Vertical farming is projected to become a more viable alternative to traditional farming, as it produces 70% more food and consumes nearly 90% less water. Growing urbanization, population growth, diminishing water supplies, and ongoing climate change have all contributed to the scarcity of arable land. According to research by the Economic League Organization, 80 percent of global arable land is currently occupied, and by 2050, an additional 109 million arable hectares would be required to meet rising food demand. Similarly, the globe is on the verge of a water crisis. Water scarcity is projected to grow as a result of future climate change, which will likely have an impact on the food chain. According to the United Nations, by 2050, more than 60% of the world’s population would be living in water-stressed areas.
Spring Valley Acquisition Corp., a special-purpose acquisition company, has entered into a merger agreement and plan with AeroFarms, an indoor vertical farming business (SPAC). Aero Farms’ equity needs, which include growing retail distribution and market penetration, establishing additional farms, introducing future generations of proprietary farming technology, and entering new product categories, are expected to be fully funded by the newly merged business.
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