Controlled Environment Agriculture Market Report 2024

This Controlled Environment Agriculture market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The controlled environment agriculture market size has grown rapidly in recent years. It will grow from $79.03 billion in 2023 to $90.25 billion in 2024 at a compound annual growth rate (CAGR) of 14.2%. The growth during the historic period can be attributed to the increasing popularity of vertical farming, the expansion of urban agriculture projects, rising consumer demand for high-value crops, growing awareness of food security, and a heightened preference for organic and pesticide-free food among consumers.

The controlled environment agriculture market size is expected to see rapid growth in the next few years. It will grow to $153.93 billion in 2028 at a compound annual growth rate (CAGR) of 14.3%. The growth projected for the forecast period can be attributed to expanding populations, rising urbanization, increased food production, growing food demand, and a higher demand for fresh, locally grown produce. Key trends expected during this period include advances in controlled environment agriculture technology, the development of advanced packaging technologies, innovations in vertical farming techniques, improvements in climate control systems, and the adoption of energy-saving technologies.

The growing demand for organic food is expected to drive the expansion of the controlled environment agriculture market in the coming years. Organic food is produced using methods that avoid synthetic pesticides, fertilizers, genetically modified organisms, and artificial additives, focusing instead on natural processes and sustainable practices. The popularity of organic foods is rising due to increasing consumer awareness of their health benefits, environmental sustainability, and the preference for natural, chemical-free products. Controlled environment agriculture supports organic food production by providing a controlled setting that eliminates the need for synthetic pesticides and fertilizers. This allows organic crops to be grown year-round under optimized conditions with precise control over light, temperature, and nutrients. For example, according to the Organic Trade Association, a US-based organization advocating for organic trade, sales of organic food in the US exceeded $60 billion for the first time in 2022, with total organic sales, including non-food items, reaching a record $67.6 billion. Additionally, The Organic Research Centre, a UK-based non-profit organization, reported in February 2023 that sales from organic food and beverage production in the United Kingdom increased from £3.05 billion ($3.88 billion) in 2021 to £3.11 billion ($3.95 billion) in 2022. Therefore, the rising demand for organic food is fueling the growth of the controlled environment agriculture market.

Leading companies in the controlled environment agriculture market are developing innovative technologies, such as vertical hydroponic farms, to improve efficiency and sustainability in agricultural practices. Vertical hydroponic farms involve growing plants in vertically stacked layers or towers using a hydroponic method. For instance, in September 2022, FarmBox Foods LLC, a US-based producer of container farming solutions, introduced the Hydroponic Fodder Farm, a vertical hydroponic system designed for efficient livestock feed production. This system uses advanced hydroponic technology to deliver a nutrient-rich water solution directly to plant roots, ensuring rapid and consistent growth. It also incorporates monitoring and automation technologies to maintain high-quality feed production and optimize growing conditions.

In September 2023, Agrinam Acquisition Corporation, a Canada-based agribusiness company, acquired Freight Farms, Inc. for an undisclosed amount. This acquisition is intended to support Freight Farms' transition to a publicly traded company while boosting its growth and scalability in the Controlled Environment Agriculture (CEA) sector. Freight Farms, Inc., based in the US, is an agriculture technology company specializing in modular CEA systems.

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.

Europe was the largest region in the controlled environment agriculture market in 2023. The regions covered in the controlled environment agriculture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the controlled environment agriculture market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Controlled environment agriculture (CEA) refers to farming systems that are designed to optimize growing conditions for plants by controlling variables such as temperature, humidity, light, and nutrient levels. These systems are typically used in enclosed or semi-enclosed environments, including greenhouses, vertical farms, and indoor farms, where environmental factors can be precisely managed to improve plant growth and yield.

The key components of CEA include lighting, climate control, nutrients, and other supporting technologies. Lighting plays a vital role in CEA systems, providing the energy needed for plant growth and development. Advanced lighting technologies, such as LED grow lights, allow for precise control over light spectrum, intensity, and duration, enabling optimized growth conditions for specific crops. The primary growing methods used in CEA are hydroponics, aeroponics, aquaponics, and others, which are employed for a variety of crops, including tomatoes, leafy greens, strawberries, cucumbers, peppers, cannabis, and more.

The controlled environment agriculture market research report is one of a series of new reports that provides controlled environment agriculture market statistics, including the controlled environment agriculture industry global market size, regional shares, competitors with an controlled environment agriculture market share, detailed controlled environment agriculture market segments, market trends and opportunities, and any further data you may need to thrive in the controlled environment agriculture industry. This controlled environment agriculture market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The controlled environment agriculture market includes revenues earned by entities by providing services such as nutrient management, pest and disease management, and automation and monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The controlled environment agriculture market consists of sales of lighting systems, climate control equipment, irrigation and fertigation systems, sensors and monitoring devices, and automated systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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