What are the latest figures on the controlled environment agriculture market’s size and projected CAGR?
The controlled environment agriculture market size has grown rapidly in recent years. It will grow from $90.25 $ billion in 2024 to $103.33 $ billion in 2025 at a compound annual growth rate (CAGR) of 14.5%. The growth in the historic period can be attributed to rise in the popularity of vertical farming, growth in the number of urban agriculture projects, rise in consumer demand for high-value crops, increasing awareness of food security, and increasing consumer preference for organic and pesticide-free food.
The controlled environment agriculture market size is expected to see rapid growth in the next few years. It will grow to $175.59 $ billion in 2029 at a compound annual growth rate (CAGR) of 14.2%. The growth in the forecast period can be attributed to growing populations, rising urbanization, increasing food production, rising food demand, and increasing demand for fresh and locally grown produce. Major trends in the forecast period include advances in controlled environment agriculture technology, advanced packaging technologies, vertical farming techniques, climate control systems, and energy-saving technologies.
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Which Market drivers have played a significant role in driving the controlled environment agriculture market?
The rising demand for organic food is expected to propel the growth of the controlled environment agriculture market going forward. Organic food is produced using methods that avoid synthetic pesticides, fertilizers, genetically modified organisms, and artificial additives, emphasizing natural processes and sustainable practices. Organic foods are increasing in popularity due to growing consumer awareness of health benefits, environmental sustainability, and the desire for natural, chemical-free products. Controlled environment agriculture is used for organic food by providing a controlled environment that eliminates the need for synthetic pesticides and fertilizers, allowing organic crops to be grown year-round in optimized conditions with precise control over light, temperature, and nutrients. For instance, in May 2023, according to the Organic Trade Association, a US-based organization for protecting the organic trade, sales of organic food in the US surpassed $60 billion for the first time in 2022, and when non-food items are included, total organic sales hit a record $67.6 billion. Moreover, in February 2023, according to The Organic Research Centre, a UK-based non-profit organization, sales from the production of organic food and beverages in the United Kingdom grew from £3.05 billion ($3.88 billion) in 2021 to £3.11 billion ($3.95 billion) in 2022. Therefore, rising demand for organic food is driving the growth of the controlled environment agriculture market.
What are the key segments within the controlled environment agriculture market?
The controlled environment agriculturemarket covered in this report is segmented –
1) By Components: Lighting, Climate Control, Nutrients, Other Components
2) By Growing Method: Hydroponics, Aeroponics, Aquaponics, Other Growing Methods
3) By Crop Types: Tomato, Leafy Greens, Strawberries, Cucumber, Pepper, Cannabis, Other Crop Types
Subsegments:
1) By Lighting: LED Grow Lights, High-Pressure Sodium (HPS) Lights, Metal Halide (MH) Lights, Fluorescent Grow Lights, Light Emitting Diodes (LED) For Spectral Control
2) By Climate Control: Temperature Control Systems, Humidity Control Systems, Air Circulation And Ventilation Systems, CO2 Enrichment Systems, Dehumidifiers And Humidifiers, Air Filtration And Purification Systems
3) By Nutrients: Organic Nutrient Solutions, Synthetic Nutrient Solutions, Hydroponic Nutrient Solutions, Fertilizers For Controlled Environments
4) By Other Components: Irrigation Systems, Automation And Monitoring Systems, Sensors For Environmental Monitoring, Grow Mediums, Pumps And Water Treatment Systems
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Which key players are shaping the controlled environment agriculture market?
Major companies operating in the controlled environment agriculture market are Siemens AG, Bowery Farming Inc., Priva Holding BV, Infarm, Gotham Greens Holdings LLC, BrightFarms Inc., AgriCool SAS, Terra Firma Capital Partners Limited, Lufa Farms Inc., Freight Farms Inc., AeroFarms LLC, Certhon, Vertical Harvest Farms, Green Sense Farms Holdings Inc., Sky Greens Pte Ltd., Urban Crop Solutions NV, Agrilution GmbH, Agritecture Consulting LLC, GreenTech Agro LLC, Kalera Inc., CubicFarm Systems Corp., Heliospectra AB, Hort Americas LLC, Mirai Co. Ltd.
Which transformative trends will shape the controlled environment agriculture market landscape?
Major companies operating in the controlled environment agriculture market are focused on developing innovative technologies, such as vertical hydroponic farms, to enhance efficiency and sustainability in agricultural practices. Vertical hydroponic farms are a type of indoor farming system where plants are grown in vertically stacked layers, or towers, using a hydroponic growing method. For instance, in September 2022, FarmBox Foods LLC, a US-based producer of solutions for container farming, launched the Hydroponic Fodder Farm, a vertical hydroponic system designed to grow livestock feed efficiently. The system uses cutting-edge hydroponic technology to provide a nutrient-rich water solution straight to the roots of the plants, guaranteeing quick and consistent growth. It incorporates monitoring and automation technologies to guarantee the production of high-quality feed and to improve growing conditions.
How do regional factors impact the controlled environment agriculture market, and which region is the largest contributor?
Europe was the largest region in the controlled environment agriculture market in 2024. The regions covered in the controlled environment agriculture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Controlled Environment Agriculture Market Report 2025 Offer?
The controlled environment agriculture market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Controlled environment agriculture (CEA) refers to farming systems that are designed to create optimal growing conditions for plants by controlling factors such as temperature, humidity, light, and nutrient levels. These systems are used for growing crops in enclosed or semi-enclosed environments, such as greenhouses, vertical farms, and indoor farms, where environmental conditions can be precisely managed to enhance growth and yield.
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