|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 1774.16 million
|
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CAGR (2023-2028)
|
10.24%
|
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Fastest Growing Segment
|
Residential
|
|
Largest Market
|
United States
|
Market Overview
North America Agritecture Market has
valued at USD 1774.16 million in 2022 and is anticipated to project robust growth
in the forecast period with a CAGR of 10.24% through 2028. The North America
Agritecture Market represents a dynamic and rapidly evolving sector at the
intersection of agriculture, architecture, and technology. This innovative
market seeks to revolutionize food production by integrating agriculture into
urban environments, buildings, and controlled environments.
The North America Agritecture Market has
experienced significant growth in recent years, driven by factors such as
increasing urbanization, rising demand for sustainable and locally sourced
food, and advancements in agricultural technologies. The market encompasses a
wide range of applications, including indoor vertical farming, rooftop gardens,
greenhouses, and aquaponics systems.
Key Market Drivers
The
Evolution of Agritecture
In the dynamic landscape of the North
America Agritecture Market, evolution is the cornerstone of progress.
Agritecture, a fusion of agriculture and architecture, has undergone a
remarkable transformation over the years. Initially, agritecture was synonymous
with traditional farming practices, often limited to rural areas. However, the
burgeoning need for sustainable and localized food sources, driven by factors
such as urbanization, environmental concerns, and the desire for fresh produce,
prompted a significant shift. Agritecture today embraces innovative solutions
that bring farming into urban spaces. This evolution has given rise to concepts
like vertical farming, rooftop gardens, and hydroponics, all designed to
maximize space and resources. The objective is to bridge the gap between urban
demand and rural supply while minimizing the environmental footprint. From
greenhouses perched on skyscrapers to aquaponic systems integrated into city
buildings, agritecture has become a symbol of sustainable urban development.
Businesses operating inthis space capitalize on this evolution by offering
scalable and efficient solutions that cater to the demands of a rapidly urbanizing
North America.
Sustainability
and Environmental Awareness
Sustainability stands as a prominent
driver in the North America Agritecture Market. Environmental awareness,
coupled with the pressing need to address climate change, has propelled
sustainability to the forefront of business strategies. In agritecture,
sustainability manifests through various practices:
Sustainable agritecture practices
prioritize energy-efficient systems, reducing greenhouse gas emissions
associated with traditional agriculture. Efficient Resource Usage: Precise
resource management, including water and nutrients, minimizes waste and
enhances productivity. Localized Production: The emphasis on local food
production reduces the carbon emissions generated by long-distance transportation.
Integration of renewable energy sources, smart irrigation systems, and waste
recycling further align agritecture with sustainability goals. Sustainability
translates into a competitive advantage. Companies that adopt sustainable
agritecture practices not only contribute to a greener world but also appeal to
environmentally conscious consumers. Moreover, regulatory incentives and
consumer preferences favor sustainability, making it a strategic choice for
businesses in the North America Agritecture Market.
Technological
Advancements
Technological advancements represent
another crucial driver of growth in the North America Agritecture Market. The
integration of technology into agritecture practices has revolutionized the
industry, enhancing efficiency and scalability.
Automated systems for planting,
harvesting, and monitoring crop health reduce labor costs and increase
precision. Sensors and data analytics provide real-time insights into crop
conditions, enabling data-driven decision-making. AI algorithms optimize
resource allocation, leading to higher yields and resource conservation. Utilizing
stacked trays and controlled environments, vertical farming maximizes space and
reduces the need for vast agricultural land. Soilless cultivation methods allow
for year-round crop production and efficient nutrient delivery. Agritecture
businesses that embrace these technologies gain a competitive edge by reducing
operational costs, increasing productivity, and staying ahead of market trends.
Food Security
and Urbanization
Food security and urbanization are
intrinsically linked drivers in the North America Agritecture Market. As cities
expand and populations soar, the need for localized and sustainable food
sources becomes paramount. The relentless pace of urbanization in North America
is a primary reason for the importance of food security and urbanization as a
driver in the Agritecture Market. As cities expand, so does their population,
increasing the demand for food in urban areas. Traditional rural agriculture
struggles to keep up with this growing demand. Urbanization has led to the
conversion of fertile agricultural land into urban developments, reducing the
available arable land for traditional farming. This shrinking agricultural
footprint necessitates innovative solutions that can maximize food production
in urban environments. Urban agriculture, facilitated by agritecture, offers a
solution to the inefficiencies of traditional long-distance food
transportation. Producing food closer to urban centers reduces transportation
emissions and energy consumption, contributing to sustainability goals. Urbanization
and the demand for consistent food supply throughout the year drive the need
for controlled environment agriculture, such as vertical farming and
hydroponics. Agritecture systems allow for year-round production of fresh
produce, reducing dependency on seasonal harvests. The COVID-19 pandemic
highlighted vulnerabilities in global food supply chains. By promoting
localized food production, agritecture enhances food security by reducing
reliance on distant suppliers and minimizing the impact of supply chain
disruptions. Urban agritecture projects often engage communities, fostering a
sense of connection to food production. This engagement raises awareness about
the importance of food security, leading to increased support for local and
sustainable food sources. Agritecture introduces innovative methods like
vertical farming, aquaponics, and rooftop gardens, diversifying the food
production landscape. This diversification enhances food security by ensuring a
variety of food sources.
The North America Agritecture Market is
driven by the evolution of agritecture, sustainability and environmental
awareness, technological advancements, and food security due to urbanization.
These drivers, when viewed through the lens of business English, underscore the
industry's potential for competitive advantage, innovation, market stability,
and investor attraction. As the industry continues to evolve, agritecture remains
at the forefront of sustainable and localized food production in urban
environments.
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Key Market Challenges
Regulatory
Hurdles
One significant challenge facing the
North America Agritecture Market is regulatory hurdles. The complex web of
regulations governing agriculture, land use, and building codes can pose
obstacles to the implementation of agritecture solutions.
Many municipalities have zoning laws
designed for traditional agriculture or urban development. Agritecture often
doesn't fit neatly into these categories, leading to zoning conflicts. Building
codes may not account for the unique structures and systems used in
agritecture. Compliance with existing codes can be costly and time-consuming. The
safety of urban-grown produce is a concern. Agritecture ventures must navigate
a complex web of food safety regulations, which can be particularly challenging
for startups. The need for compliance with various regulations can increase
costs, extend project timelines, and create uncertainty for investors.
Addressing these challenges often requires advocacy, dialogue with regulatory
bodies, and industry-wide standards to streamline the adoption of agritecture
solutions.
High
Initial Investment Costs
Another challenge in the North America
Agritecture Market is the high initial investment costs associated with setting
up and maintaining agritecture systems. While these systems offer long-term
benefits, the upfront expenses can be a barrier for many businesses.
Agritecture often involves advanced
technology, specialized infrastructure, and automation systems, all of which
require significant capital investment. Employing skilled personnel, such as
agronomists, engineers, and data analysts, adds to labor costs. Controlled environment
agritecture systems require substantial energy for lighting, climate control,
and irrigation. While agritecture offers long-term returns, businesses must
secure funding, manage cash flow, and demonstrate a clear path to profitability
to attract investors and overcome this challenge.
Consumer
Education and Acceptance
Agritecture practices, such as vertical
farming and aquaponics, may be unfamiliar to consumers, leading to skepticism
or reluctance to embrace these new food sources.
Lack of Awareness: Many consumers may
not be aware of the benefits and safety of agritecture-grown produce. Some
consumers may question the quality and taste of urban-grown produce compared to
traditional farming. Agritecture products may be perceived as more expensive
due to their innovative nature. Businesses must invest in marketing,
transparency, and product quality to build consumer trust and convey the value
of agritecture-grown produce. Building relationships with consumers and
educating them about the benefits of these sustainable, locally sourced options
is essential to overcoming this challenge.
Key Market Trends
Sustainable
Farm-to-Table Initiatives
Consumer Demand for Sustainability:
Increasing environmental awareness and concerns about the carbon footprint of
food production have led consumers to seek more sustainable and locally sourced
options. Agritecture allows for year-round, localized production, reducing
transportation emissions. Recent food safety incidents have highlighted the
importance of knowing the origin of food products. Agritecture offers
transparency and traceability, assuring consumers of safe and responsibly
produced food. Restaurants and retailers are increasingly partnering with
agritecture ventures to secure a consistent supply of fresh, locally grown
produce. This trend aligns with consumer demand for farm-to-table dining
experiences.
Integration
of AI and Data Analytics
The use of AI and data analytics enables
precise monitoring and management of agritecture systems. This leads to
optimized resource allocation, reduced waste, and higher crop yields, making
agritecture more economically viable. AI-powered predictive maintenance systems
help prevent equipment breakdowns, reducing downtime and operational
disruptions. This technology lowers maintenance costs and improves system
reliability. Agritecture businesses are leveraging data analytics to make
informed decisions about crop selection, planting strategies, and resource
management. This enhances overall efficiency and profitability.
Vertical
Farming and Modular Systems
Vertical farming and modular systems
maximize space utilization, making them ideal for urban environments with
limited available land. This trend addresses the challenge of urbanization and
the need for localized food production. Modular systems are easily scalable,
allowing agritecture ventures to start small and expand as demand grows. This
flexibility reduces the financial risk associated with large-scale investments.
Vertical farming systems typically use less water and fewer pesticides than
traditional agriculture. This aligns with sustainability goals and reduces
operating costs.
Segmental Insights
Integration Insights
Based on the category of Integration,
the indoor segment emerged as the dominant player in the North America market
for Agritecture in 2022. the primary reasons behind the
indoor segment's dominance are its ability to offer year-round production.
Controlled environments, such as greenhouses and vertical farms, provide a
consistent climate and light conditions regardless of external weather. This
results in a continuous and predictable supply of fresh produce, which is
highly appealing to consumers and businesses alike. Indoor agritecture systems
are designed for maximum space utilization. Vertical farming, for instance,
stacks trays of crops vertically, allowing for a higher crop density per square
foot compared to traditional farming. This space efficiency is crucial,
especially in densely populated urban areas where land is scarce and expensive.
Indoor agritecture systems are engineered for resource efficiency. They often
use less water than traditional farming and can recycle and reuse nutrient-rich
water. Additionally, the controlled environments reduce the need for pesticides
and herbicides, contributing to sustainability goals. The controlled conditions
in indoor agritecture systems enable the cultivation of a wide variety of
crops, including those that might not thrive in outdoor environments. Moreover,
these systems often produce crops of exceptional quality, appealing to
consumers and chefs who demand premium ingredients.
Additionally, Indoor agritecture systems
are shielded from external factors such as pests, extreme weather events, and
pollutants. This protection results in lower crop losses and ensures a
consistent supply, which is especially valuable in regions prone to natural
disasters or environmental challenges. Consumers in North America increasingly
seek locally grown produce due to concerns about food safety, traceability, and
sustainability. Indoor agritecture allows for the production of local, fresh,
and safe food, aligning with consumer preferences and fostering trust. Indoor
agritecture often integrates cutting-edge technologies, such as IoT sensors,
data analytics, and automation. These technologies enhance efficiency, reduce
operational costs, and enable data-driven decision-making, making indoor
systems an attractive investment. These factors are expected to drive the
growth of this segment.
Structure
Insight
Based on the category of Structure, the new
building segment emerged as the dominant player in the North America market for
Agritecture in 2022. New building structures can incorporate agritecture
solutions from the ground up. Architects and developers can design buildings
with integrated features like rooftop gardens, vertical farming systems, or
aquaponics setups. This seamless integration ensures that agritecture is an
integral part of the building's design and function. New buildings offer the
advantage of optimized space utilization. Architects can design spaces
specifically tailored to agritecture needs, maximizing the efficiency of crop
production. This level of planning is often challenging to achieve in existing
structures. New buildings can be designed with energy-efficient features that
benefit agritecture systems. For instance, they can incorporate
energy-efficient HVAC (heating, ventilation, and air conditioning) systems, LED
lighting, and advanced insulation techniques. These energy-saving measures
lower operational costs for agritecture ventures. New buildings provide a
sturdy and structurally sound environment for agritecture systems. This reduces
the risk of structural issues that older buildings may face, ensuring the
safety and longevity of the agritecture infrastructure. New buildings can
seamlessly integrate advanced technologies like IoT sensors, automation
systems, and data analytics. These technologies enhance the precision and
efficiency of agritecture operations, making them more productive and
cost-effective. These factors are expected to drive the growth of this segment.
Application
Insights
Based on the category of Application,
the commercial segment emerged as the dominant player in the North America
market for Agritecture in 2022 Commercial applications, such as
restaurants, supermarkets, and foodservice providers, require a consistent and
year-round supply of fresh produce to meet customer needs. Agritecture
solutions provide a reliable source of local, fresh produce, which is a
significant selling point for these businesses. Commercial businesses demand a
steady and predictable supply of fresh produce. Agritecture systems, especially
indoor and controlled environment solutions, offer consistent crop yields
throughout the year, reducing supply chain disruptions and ensuring a constant
flow of ingredients for commercial kitchens and retail shelves. Restaurants and
retailers place a premium on the quality and safety of the produce they offer
to customers. Agritecture systems provide optimal growing conditions, resulting
in high-quality, pesticide-free, and contamination-free produce, which is
particularly appealing to commercial buyers. Commercial applications often
require a compact and efficient use of space. Vertical farming and other
agritecture systems are well-suited for this purpose, as they maximize crop
production within a limited footprint. This efficient use of space aligns with
the needs of commercial establishments. There is a growing trend among
commercial businesses to source locally and emphasize sustainability.
Agritecture solutions, especially those located within or near urban areas,
provide a source of locally grown, sustainable produce that aligns with the
values and preferences of consumers. These factors collectively contribute to
the growth of this segment.
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Regional Insights
United States emerged as the
dominant player in the North America Agritecture market in 2022, holding the
largest market share in terms of value. There are several reasons for
California's leadership in this market. Firstly, its favorable climate allows
for year-round outdoor and indoor crop production. Secondly, the state has a long
history of agricultural innovation, making it a hub for agritecture research
and development. Additionally, California's commitment to sustainability and
environmental awareness aligns with the core values of agritecture, attracting
businesses and investors seeking eco-friendly solutions. California boasts a
well-established agritecture ecosystem that includes startups, research
institutions, and established businesses. This ecosystem fosters innovation,
collaboration, and the sharing of best practices, making it an attractive
destination for agritecture ventures. The state's robust economy and access to
venture capital make it easier for agritecture businesses to secure funding for
research, development, and expansion. The availability of capital accelerates
market growth and innovation. California's population is known for its
preference for locally sourced, sustainable, and organic products. This aligns
with the principles of agritecture, which places it in a strong position to
meet consumer demand for fresh and eco-friendly produce.
According to the National Institute of
Health, total dietary supplement sales in the United States reached an
estimated USD 55.7 billion in 2020, with USD 21.2 billion attributed to
supplements containing vitamins, minerals, or both. Of this total, USD 8.0
billion was spent on multivitamins/minerals and multivitamins. Furthermore, the
region's abundant presence of leading market players, growing industrial
development and infrastructure, and favorable government initiatives aimed at
enhancing the quality of life through dietary supplements are expected to
further drive regional growth.
The Pacific Northwest region,
comprising Washington and Oregon, is poised to witness the fastest market
growth in the North America Agritecture Market. The region offers a diverse
climate, ranging from coastal areas to inland regions. This diversity allows
for a wide variety of crops to be grown year-round, making it an ideal location
for agritecture systems. Like California, the Pacific Northwest places a strong
emphasis on sustainability and environmental consciousness. This aligns with
the principles of agritecture and attracts businesses and consumers seeking
eco-friendly solutions. The region is home to several tech hubs, including
Seattle and Portland. These hubs are hotbeds of innovation, providing access to
advanced technologies and skilled professionals that can enhance agritecture
practices. There is a growing trend among businesses and consumers in the
Pacific Northwest to prioritize local sourcing. Agritecture systems can provide
a consistent supply of fresh, locally grown produce that caters to this demand.
The presence of renowned research institutions in the region fosters
agritecture research and development, driving innovation and market growth.
Recent Developments
- In September 2022, AeroFarms, a leading
vertical farming company, opened a new facility in Danville, Virginia. The
facility is one of the largest vertical farming facilities in the world and is
expected to produce over 1 million pounds of leafy greens annually.
- In February 2023, Bowery
Farming, another leading vertical farming company, opened a new facility in
Chicago, Illinois. The facility is expected to produce over 100,000 pounds of
leafy greens annually.
- In March 2023, Gotham Greens, a vertical
farming company that focuses on urban areas, opened a new facility in Brooklyn,
New York. The facility is expected to produce over 200,000 pounds of leafy
greens annually.
Key Market Players
- Eden
Green Technology
- Elevate
Farms Inc.
- iFarm
Corp
- OSRAM
GmbH
- Plenty
Unlimited Inc.
- Agrilution
GmbH
- AeroFarms
LLC
- Sky
Greens Inc
- Altius
Farms Corp
|
By Integration
|
By Structure
|
By Application
|
By Region
|
|
|
- Retrofitting
- Extension
- New Building
|
|
- United States
- Canada
- Mexico
|
Report Scope:
In this report, the North America Agritecture
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Agritecture Market, By Integration:
o Indoor
o Outdoor
- Agritecture Market, By Structure:
o Retrofitting
o Extension
o New Building
- Agritecture Market, By Application:
o Residential
o Commercial
- Agritecture Market, By Country:
o United States
o Canada
o Mexico
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the North America Agritecture Market.
Available Customizations:
North America Agritecture market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
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