Controlled Environment Agriculture (CEA) is an approach to creating a fully controlled environment for growing plants within a closed ecosystem. In a CEA facility, water, temperature, light, CO2, & anything plants require during their different growth phases are given artificially.
Eliminating the possibilities of pests, enhancing yield & sustainability, and reducing the overall operational costs are the prime reasons behind the mounting popularity of CEA worldwide, and entwined with existing farming methods, it holds immense potential to revolutionize the agricultural sector.
The Global Controlled Environment Agriculture Market is anticipated to grow at a CAGR of around 25.71% during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven primarily by the rising food requirements and gradually reducing arable land worldwide, i.e., leading to the growing need for a controlled environment for agriculture. Various technological advancements & their adoption in the agricultural sector have led to emergence of more innovative farming solutions & equipment to attain healthy crops & higher output.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: The US, Canada, Mexico|
|South America: Brazil, Argentina, Rest of South America|
|Europe: Germany, The UK, France, Spain, Italy, Rest of Europe|
|Asia-Pacific: China. Japan. India. South Korea. Rest of Asia Pacific|
|Middle East & Africa: Israel, Turkey, South Africa, Rest of Middle East & Africa|
|Key Companies Profiled||Aerofarms AGX Ltd., American Hydroponics (Amhydro), Bowery Farming, BrightFarms, CropOne, Everlight Electronics Co. Ltd., Freight Farms, Inc., Fresh Box Sp. z o.o., Green Sense Environment Solution LLC., Grow Pod Solutions, LLC, Illumitex Inc., Innovation Agri-Tech Group, Nelson & Pade, Inc., Plenty Unlimited Inc., Signify, Others|
|Unit Denominations||USD Million/Billion|
The reducing arable & fertile land globally due to rapid urbanization and soil erosion is the most prominent issue in the agricultural sector. As a result, it has become highly challenging for farmers to sustain sufficient yields. With this, CEA methods have emerged globally, which can help them produce abundant food year-round, more efficiently, and with only a few resources.
CEA promises a more sustainable & profitable future of the agricultural sector by minimizing water consumption and the need for pesticides, land usage, & transportation. Hence, the mounting awareness about the significance & benefits of growing plants in a controlled environment, as issues like less available arable land & unfavorable climate are well-addressed, is boosting the Global Controlled Environment Agriculture Market.
Impact of Covid-19 on the Global Controlled Environment Agriculture Market
The onset of Covid-19 in 2020 led to an economic slowdown and severely impacted various sectors worldwide, including the agriculture sector. It was mainly due to disruptions in logistics services & supply chain, unavailability of raw materials, food supply shortage, & banned imports & exports, owing to nationwide lockdowns & movement restrictions.
The pandemic underscored the significance of locally & organically-grown food and modern agricultural practices like indoor farming. As a result, the accelerated requirements for healthy & year-round available food provided a notable boost to the Global Controlled Environment Agriculture Market amidst the crisis.
Many countries took several initiatives in deploying rooftop farms to improve food security & enhance agricultural output and meet the burgeoning consumer requirements worldwide, which, in turn, promoted the overall growth of the global market amidst the crisis.
Furthermore, massive investments by AgriTech start-ups in developing sustainable & innovative farming methods to reduce waste, boost yield, & eliminate the risks of diseases are projecting remunerative growth prospects for the Global Controlled Environment Agriculture Market in the coming years.