Economic models of smart farming integration into urban ecosystems

Abstract

The aim of the study was to analyse the economic models of smart farming integration into urban ecosystems and their impact on the recovery of territorial communities in Ukraine and the European Union. In the process, a detailed review of modern smart farming technologies and models, such as hydroponics, aquaponics, vertical farms, as well as Internet of Things systems for agricultural management, rooftop farms and agro-industrial parks, was carried out. The main results included a comparative analysis of the productivity of traditional and vertical farming. It showed that vertical farms outperform traditional agriculture in terms of yield (150.23 kg/m2 versus 4), water consumption (20 l/kg versus 250), and land use efficiency (0.0066 m2/kg versus 0.25). In turn, the forecast for the IoT market in Europe showed a steady increase from USD 196.85 billion in 2025 to USD 284.26 billion in 2029, representing a compound annual growth rate of 9.62%. The results also indicated that investments in agricultural projects in the EU exceeded EUR 150 billion between 2015 and 2024, with Poland, the Czech Republic and Romania receiving the most funding, indicating a great potential for smart farming in these countries. Additionally, it was determined that regions in Ukraine with a high gross regional product (GRP), such as Kyiv (USD 9,268.5 million), Dnipro (USD 16,550.2 million) and Kharkiv (USD 10,494.4 million), have a greater potential for the introduction of smart farming technologies due to their high economic potential and infrastructure development. The practical significance of the study is to substantiate the effectiveness of the introduction of smart farming technologies to increase agricultural productivity, optimise resource use and promote the economic development of urban agro-systems.