The rise in investments in vertical farming and the growing adoption of modern techniques in the agriculture industry are driving the demand for vertical farming in UAE in the forecast period, 2023-2027. According to TechSci Research report, “UAE Vertical Farming Market By Region, Competition Forecast & Opportunities, 2027”, the UAE vertical farming market is expected to register an impressive CAGR in the forecast period, 2023-2027.
The Important Factors of the UAE Vertical Farming Market
Vertical farming represents a technique of processing food, including in a skyscraper utilized factory or shipping container, which is done in vertically stacked layers. Indoor farming methods and controlled-environment agriculture (CEA) technologies are utilized for modern vertical farming methods in which the environmental conditions can be controlled. It makes the land more useful for crop production as it is a non-traditional technique of crop cultivation that offers advantages like the negligible effect of climate, better yield, use of fewer pesticides, minimal area requirement, and limited water consumption.
Vertical farming offers a higher yield than conventional farming, which is one of the major reasons for its growing popularity. The utilization of micro-climate technology within the container or greenhouse helps the plant to receive the optimal heat, humidity, and light as per the requirement of the crop. Moreover, plants are stacked in trays on a vertical farm, enabling farmers to produce enough food in a confined space.
However, the high cost set up of vertical farming systems and lack of awareness regarding alternative farming practices in underdeveloped regions may create challenges for the market growth in the forecast period.
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The UAE vertical farming market is segmented into the structure, growth mechanism, application, regional distribution, and competitive landscape.
Based on structure, the market is bifurcated into building-based vertical farms and shipping container vertical farms. The shipping container vertical farms segment is expected to hold the largest market share in the forecast period, 2023-2027. It helps grow various vegetables and fruits such as leafy green vegetables, mushrooms, gourmet, and strawberries.
Based on the growth mechanism, the market is divided into hydroponics, aeroponics, and aquaponics. The hydroponics segment dominates the vertical farming market on account of its utilization in vertical farming. Hydroponics refers to the technique of growing plants that are free of soil. It utilizes water, which infuses it with nutrients and minerals. Hydroponics enables the inflow of water, sunlight, and air into plants. It uses hollowed pipes for the cultivation of crops. These pipes are known as gullies, which assist in the maximization of crop production. The rise in awareness among farmers about the benefits of using hydroponics in the UAE is the segment growth over the forecast period.
Based on application, the market is segmented into outdoor and indoor. The indoor segment is expected to share the largest market from the application segment in the vertical farming market. The modern ideas of vertical farming utilize indoor farming techniques and controlled-environment agriculture technology where all environmental factors can be controlled.
The major market players operating in the UAE vertical farming market are:
- AS Agri and Aqua LLP
- Sarya Holdings
- Crop One Holdings & Emirates Flight Catering
- Madar Farms
- GreenFactory Emirates
- UNS Vertical Farms
- AeroFarms AgX LTD
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“The decreasing food import dependency in the Middle Eastern countries and the enhancing focus on various ways to fuel their domestic food production by participating in modern agriculture practices such as vertical farming. In addition to this, the extreme climatic conditions and the escalating consumer demand for locally produced green vegetables are propelling market growth. Vertical farming is aiding in improving food security, which makes it the most preferred approach for food production across UAE. The demand for hydroponics techniques is increasing as plant-growing with the help of hydroponic mechanisms can survive for a longer time since it can constantly provide water and nutrients, which is accelerating the agriculture industry are projected to drive the UAE vertical farming market growth till 2027” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
“UAE Vertical Farming Market By Structure (Building-Based Vertical Farms v/s Shipping Container Vertical Farms), By Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), By Application (Outdoor v/s Indoor), By Region, Competition Forecast & Opportunities, 2027”, has analyzed the future growth factors of UAE vertical farming market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with significant drivers, limitations, and opportunities in UAE vertical farming market.
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