Vertical Farming: How Far Can It Expand?
In recent years, vertical farming has emerged as a globally recognized sustainable agricultural model, with advancements in technology and government support increasing its potential for growth. To accurately assess the global market outlook, it is essential to formulate strategic approaches that enable nations to bridge the technological gap and remain competitive. This article examines the current industry outlook and explores the national efforts required to accelerate vertical farming technology in South Korea.
The market value of indoor hydroponic vertical farming is expected to rise significantly in the coming years, largely due to major societal shifts in the 21st century. Among the most pressing concerns related to vertical farming are the declining agricultural workforce and global food security challenges.
The aging agricultural population and workforce reduction is not unique to South Korea but a global phenomenon. Despite ongoing digitalization efforts, agriculture remains subject to long-standing societal perceptions that view it as physically demanding and economically unsustainable. This view persists even as climate change exacerbates farming difficulties, while medical advancements stabilize population decline, increasing food demand.
A viable solution to break this cycle is smart farming and vertical agriculture. Vertical farming enables complete environmental control through technological advancements, making it an ideal platform to encourage younger generations to enter agriculture while simultaneously reducing the physical burden on the older workforce. Furthermore, the multi-layer cultivation system within vertical farming maximizes land efficiency, directly addressing food shortages by increasing agricultural productivity without requiring additional farmland.
The expansion of vertical farming will drive advancements in various industries, ranging from structural engineering, multi-tier bed designs, environmental control systems, artificial lighting, and hydroponic solution development. Beyond core vertical farming technologies, industries related to automation, AI-driven data analytics, integrated farm management solutions, and smart agricultural infrastructure will see accelerated innovation.
In a broader scope, advancements in renewable energy research will enhance energy efficiency in vertical farming operations, further stimulating manufacturing, software development, and automation-related industries. If vertical farming becomes widely adopted, it could expand urban agriculture, enabling traditional farmland to transition into digitized farms that boost crop yields while increasing public accessibility to agriculture.
Global market projections indicate strong upward trends in vertical farming investments, reinforcing the industry’s bright outlook. However, South Korea currently lags at leading smart farming nations such as the United States, the Netherlands, and Japan in terms of agricultural digitalization. To close this gap, continued government support and strategic policies are required, particularly in securing protected horticulture facilities, agricultural ecosystem development, and talent cultivation initiatives.
For South Korean vertical farm businesses, launching operations through B2B models rather than B2C may be more effective, allowing the industry to scale efficiently before entering consumer markets. Additionally, global expansion efforts should be meticulously planned, ensuring thorough market analysis and targeted strategies that align with the needs of potential international buyers.
The aging agricultural population and workforce reduction is not unique to South Korea but a global phenomenon. Despite ongoing digitalization efforts, agriculture remains subject to long-standing societal perceptions that view it as physically demanding and economically unsustainable. This view persists even as climate change exacerbates farming difficulties, while medical advancements stabilize population decline, increasing food demand.
A viable solution to break this cycle is smart farming and vertical agriculture. Vertical farming enables complete environmental control through technological advancements, making it an ideal platform to encourage younger generations to enter agriculture while simultaneously reducing the physical burden on the older workforce. Furthermore, the multi-layer cultivation system within vertical farming maximizes land efficiency, directly addressing food shortages by increasing agricultural productivity without requiring additional farmland.
The expansion of vertical farming will drive advancements in various industries, ranging from structural engineering, multi-tier bed designs, environmental control systems, artificial lighting, and hydroponic solution development. Beyond core vertical farming technologies, industries related to automation, AI-driven data analytics, integrated farm management solutions, and smart agricultural infrastructure will see accelerated innovation.
In a broader scope, advancements in renewable energy research will enhance energy efficiency in vertical farming operations, further stimulating manufacturing, software development, and automation-related industries. If vertical farming becomes widely adopted, it could expand urban agriculture, enabling traditional farmland to transition into digitized farms that boost crop yields while increasing public accessibility to agriculture.
Global market projections indicate strong upward trends in vertical farming investments, reinforcing the industry’s bright outlook. However, South Korea currently lags at leading smart farming nations such as the United States, the Netherlands, and Japan in terms of agricultural digitalization. To close this gap, continued government support and strategic policies are required, particularly in securing protected horticulture facilities, agricultural ecosystem development, and talent cultivation initiatives.
For South Korean vertical farm businesses, launching operations through B2B models rather than B2C may be more effective, allowing the industry to scale efficiently before entering consumer markets. Additionally, global expansion efforts should be meticulously planned, ensuring thorough market analysis and targeted strategies that align with the needs of potential international buyers.
Korea Institute of Planning and Evaluation for Technology in Food, Agriculture and Forestry, 「Domestic and International Trends and Development Directions of Vertical Farms」, 『2024-02, Industry, Technology, and Policy Trend Report』