What are the Historical Developments and Current Growth Metrics of the Controlled Environment Agriculture Market?
The controlled environment agriculture market has seen considerable growth due to a variety of factors.
• Over the past few years, the market size for controlled environment agriculture has witnessed significant growth. It is projected to increase from $90.25 billion in 2024 to $103.33 billion in 2025, escalating at a compound annual growth rate (CAGR) of 14.5%.
The historical growth of this market can be linked to factors such as the growing interest in vertical farming, an increase in urban agriculture initiatives, a surge in consumer demand for high-value crops, heightened awareness about food security, and a rising preference among consumers for organic and pesticide-free food.
What Does Future Hold for The Controlled Environment Agriculture Market By 2029?
The controlled environment agriculture market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for controlled environment agriculture is projected to experience swift expansion in the coming years, escalating to $175.59 billion in 2029 with a compound annual growth rate (CAGR) of 14.2%.
This projected growth during the forecast period can be associated with an increasing population, burgeoning urbanization, augmented food production, escalating food demand and the heightened requirement for fresh and locally sourced produce. Significant trends for the forecast period incorporate developments in controlled environment agriculture technology, advanced packaging methods, vertical farming strategies, climate regulating systems, and technologies that save energy.
What Are The Primary Growth Drivers In The Controlled Environment Agriculture Market?
The surge in interest for organic food is set to fuel the expansion of the controlled environment agriculture market. Organic Foods, which are grown devoid of synthetic pesticides, fertilizers, genetically modified organisms, and artificial enhancers, prioritize natural methods and sustainability. The escalating demand for these nutrient-rich, environment-friendly, and untreated products is a testament to the increasing consumer knowledge about their health perks. Controlled environment agriculture facilitates the production of organic food by offering a conditioned environment that bypasses the necessity for synthetic pesticides and fertilizers. This enables the cultivation of organic crops throughout the year under regulated light, temperature, and nutrients. For example, the Organic Trade Association, a US-based entity championing organic trade, revealed in May 2023 that the sales of organic food in the US breached the $60 billion mark for the first time in 2022, pushing the total organic sales, including non-food items, to a record-breaking $67.6 billion. In addition, in February 2023, The Organic Research Centre, a UK-based philanthropic organisation, reported an increase in revenue from the production of organic food and beverages in the United Kingdom from £3.05 billion ($3.88 billion) in 2021 to £3.11 billion ($3.95 billion) in 2022. Hence, the escalating interest for organic food is contributing to the growth of the controlled environment agriculture market.
What Is The Segmentation Of The Global 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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How Are New Trends Impacting The Size Of The Controlled Environment Agriculture Market?
Leading companies in the controlled environment agriculture market are making concerted efforts to create cutting-edge technological solutions, like vertical hydroponic farms, in order to improve agricultural sustainability and efficiency. Vertical hydroponic farms represent a novel form of indoor farming, where plants are cultivated in vertically arranged layers, or towers, leveraging hydroponic growing techniques. In a relevant development in September 2022, FarmBox Foods LLC, a US-based provider of container farming solutions, introduced the Hydroponic Fodder Farm. This vertical hydroponic system is innovatively designed to grow livestock feed in a resource-efficient manner. This advanced system utilizes state-of-the-art hydroponic technology to deliver a rich blend of water and nutrients right to the plant roots, facilitating rapid and consistent growth. The inclusion of automation and monitoring technologies ensures the production of top-quality feed while also enhancing the overall growing conditions.
Who Are the Key Players In 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.
What Are The Regional Insights Into The Controlled Environment Agriculture Market?
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.
