The Global Controlled Environment Agriculture Market size is expected to grow from USD 81.74 billion in 2022 to USD 195.27 billion by 2030, at a CAGR of 10.5% during the forecast period (2023-2030).
Controlled Environment Agriculture (CEA) is an indoor technology-based crop production system where crops are grown under a highly conditioned & modified environment. The greenhouse sector along with vertical farming and hydroculture are the major forms of CEA used in horticultural production. CEA production is quite labor intensive, and requires a labor force for a vast range of critical production tasks such as propagation, movement, planting, and management of plants, along with pest management, cleaning, pruning, harvesting, sorting, and packaging of the produce.
Top Key Players for Controlled Environment Agriculture Market:
Pentair Aquatic Eco-Systems, Inc., Everlight Electronics Co. Ltd., Illumitex Inc., Aerofarms AGX Ltd., American Hydroponics (Amhydro), Innovation Agri-Tech Group, Green Sense Environment Solution LLC, Fresh Box SP ZO. Co, Grow Pod Solutions, LLC, Nelson and Pade, Inc, Gotham Greens, Plenty (Bright Farms), Lufa Farms, IDEA Protected Horticulture, Green Sense Farms, Metro Farms, and other major players.
Market Dynamics and Factors for Controlled Environment Agriculture Market:
Drivers:
Rising Global Demand for Healthy Food
Consumers all across the world increasingly demand a diet that includes fresh, high-quality vegetables, and food products free of pesticides & added chemicals. Consumers are widely changing their diet preferences from regular food to nutritious and healthy food, and with this switch, it becomes a challenge for the producers to sustain themselves in the market. In many regions across the world, especially in the United States, the climate makes it difficult to meet the growing healthy food need year-round with only local produce. Henceforth, controlled environment agriculture is vastly used, and is also suggested by many government bodies to fulfill the rising demand.
Opportunities:
Technological Advancements Offer Potential Opportunities
One of the current biggest priorities for the CEA industry is to drive down costs and the best way of doing so is through the implementation of modern cooling technologies. These upcoming controlled environment agriculture designs are much more cost-effective than the present systems or designs. Along with this, there are various advancements and emerging technologies that are projected to offer profitable opportunities for the growth of the controlled environment agriculture market. The use of seawater cooling and evaporative technology also provides growth opportunities as it is a lower energy alternative and can be used for onsite desalination.
Segmentation Analysis of the Controlled Environment Agriculture Market:
- By Growing Methods, the hydroponics segment dominates the market and is expected to attain a huge demand in the forecasted period. The key factor contributing to the growth of this segment is the popularity of the technique of cultivation
- By Components, the nutrients segment market is covering most of the market share and is estimated to grow rapidly in the forecasted period. The factors attributing to the growth are leading to having the highest revenue-generating segment and also having the maximum yield of crops on different farms.
Regional Analysis of the Controlled Environment Agriculture Market:
European region is anticipated to dominate the CEA market over the forecasted period due to the rise in the adoption of CEA technologies for indoor farms. The presence of key players such as Fresh Box, SP ZO Co., and continuous advancements in technologies are also supporting the development of the market. Increasing focus on adopting technologies, such as active heat systems and LEDs, to enhance crop yield is also driving the CEA market growth in the European region. Several initiatives are undertaken by the regional government for constructing CEA plants to overcome challenges, such as climate change, growing population, and food production in an unsustainable way. Farm owners in the European region are also investing in technologies, such as LED lighting and crop monitoring sensors, which are expected to lower labor costs, and further, propel regional growth.
Key Industry Development:
- In January 2022, Trimble announced the expansion of its mixed-reality offerings with the addition of the Trimble® Connect® AR app. Connect AR is an augmented reality app that gives building construction workers even greater accessibility to 3D models in the field. The app runs on Android and iOS tablets and smartphones. With Connect AR, users can leverage augmented reality, field-oriented construction workflows, and constructible 3D models from different sources to transform daily work such as assembly and inspections.
