Market Research Report

Global Controlled Environment Agriculture Market Research Report: Forecast (2023-2028)

By Growing Method (Hydroponics, Aeroponics, Aquaponics), By Crop Type (Vegetables, Fruits), By Component (Lighting, Sensors, Nutrients), By Region (North America, South America, Eu...rope, Middle East & Africa, Asia-Pacific), By Company (American Hydroponics[AMHYDRO], Ponics Technologies, Vertical Future, Nelson & Pade Inc., Innovation Agritech Group, The Aquaponic Source, Go Green Aquaponics, V-plus Agritech Pte Ltd, Ponic Greens, Rise Hydroponics, Everlight Electronics Co., Ltd, Freight Farms, ams-OSRAM AG, Heliospectr) Read more

  • Environment
  • May 2023
  • 217
  • PDF, Excel, PPT

Market Definition

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.

Market Insights & Analysis: Global Controlled Environment Agriculture Market

The Global Controlled Environment Agriculture Market is projected to grow at around 25.71% CAGR during the forecast period, i.e., 2023-28. The growth of the market would be propelled mainly 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 advancements in technologies as well as their rising adoption in the agricultural sector have led to emergence of more innovative farming solutions & equipment to attain healthy crops & higher output.

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.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 25.71%
Regions Covered North America: The US, Canada, Mexico
South America: Brazil, Rest of South America
Europe: Germany, The UK, France, Spain, Italy, The Netherlands, Rest of Europe
Asia-Pacific: China. Japan. India. South Korea. Rest of Asia Pacific
Middle East & Africa: UAE, Israel, Saudi Arabia, South Africa, Rest of Middle East & Africa
Key Companies Profiled American Hydroponics[AMHYDRO], Ponics Technologies, Vertical Future, Nelson & Pade Inc., Innovation Agritech Group, The Aquaponic Source, Go Green Aquaponics, V-plus Agritech Pte Ltd, Ponic Greens, Rise Hydroponics, Everlight Electronics Co., Ltd, Freight Farms, ams-OSRAM AG, Heliospectra, Others,
Unit Denominations USD Million/Billion

 

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 aiding in enhancing the Global Controlled Environment Agriculture Market size.

Market Dynamics

Key Driver: Rising Demand for Chemical-Free, High-Quality, & Sustainably-Produced Food

As more & more consumers are becoming increasingly aware of the potential health risks associated with chemicals & other contaminants in food, there are growing concerns over the quality, safety, & sustainability of the food they consume, i.e., leading to a large number of people adopting food products free from harmful residues, grown using sustainable practices, and available year-round. CEA provides a controlled environment where crops can be grown without using pesticides, herbicides, or fungicides, which results in safer & higher-quality produce that meets stringent food safety regulations.


Global Controlled Environment Agriculture Market Research Report: Forecast (2023-2028)

Moreover, it is a more sustainable alternative to conventional farming practices as it minimizes the need for large amounts of water, reduces soil erosion, and optimizes resource utilization. With the use of vertical farming techniques, CEA maximizes land efficiency & minimizes land degradation while reducing the carbon footprint associated with traditional agriculture practices. Hence, these aspects are augmenting the popularity of CEA worldwide and spurring growth in the Global Controlled Environment Agriculture Market.

Growth Restraint: High Initial Investments and Operational & Maintenance Costs

Establishing a CEA facility requires significant capital investment in the construction of buildings as well as installation of specialized equipment like lighting components, climate control systems, irrigation, & automation technologies, along with the cost of land. In addition, CEA facilities also require substantial energy inputs to regulate temperature, humidity, & lighting, particularly artificial lighting, which can be a substantial energy expense, especially for indoor vertical farms.

Furthermore, operating a CEA facility involves ongoing expenses associated with labor, maintenance, and regular replacement of components, such as HVAC systems, lighting fixtures, irrigation systems, & sensors. Hence, these high costs associated with the setup & maintenance of CEA facilities are the major growth restraints for the Global Controlled Environment Agriculture Market.

Market Segmentation

Based on Growing Method:

  • Hydroponics
  • Aquaponics
  • Aeroponics

By capturing the substantial share, Hydroponics is projected to continue dominating the Global Controlled Environment Agriculture Market during 2023-28, primarily due to the rising awareness among consumers regarding the adverse effects of pesticides on plants and the mounting requirements for enhanced flavors & sustainability of various fruits & vegetables.

Hydroponics involves growing plants in mineral solutions that are without soil. It is the most sustainable method that aids in eliminating the severe effects of soil-borne insects & pesticides on plants. The significantly less labor requirement, low installation costs, and reduced water usage associated with Hydroponics provide substantial return-on-investment.

Moreover, hydroponically grown plants generate a much greater yield than those grown in soil since there is proper control over the nutrients. Hence, these aspects contribute to the burgeoning demand for Hydroponics, further upscaling the Global Controlled Environment Agriculture Market share through 2028.

On the other hand, the rising demand for Aquaponics is anticipated to contribute significantly to the market growth over the forecast years. Aquaponics is the combination of Hydroponics & aquaculture, which provides more oxygen in roots to help plants grow better and eliminates the need for harmful chemicals for cultivation. The wastes produced by fishes grown in one tank are nutrient-rich & directed to the plants growing in another tank, which creates a sustainable ecosystem. Lettuce, peppers, mint, & cucumbers, among others are a few plants grown extensively worldwide through Aquaponics.

Based on Components:

  • Sensors
  • Lighting
  • Nutrients

Here, lighting components held the largest share in the Global Controlled Environment Agriculture Market in the previous few years, and the same trend is likely during 2023-28. It attributes primarily to the dependence of CEA methods on artificial lighting that acts as a substitute for the sunlight and provides sufficient light intensities required for crop growth. The intensity of these artificial lights in terms of luminous efficiency, spectrum range, & color temperature is easily adjustable as per the plant & its cultivation requirements.

Moreover, the burgeoning need for LED systems to reduce operational costs & power consumption levels since they generate lower heat than conventional lights is another crucial aspect contributing to the overall market growth of lighting components.

On the other hand, sensors are also gaining significant traction in the global market, primarily due to the surging adoption of Artificial Intelligence, the Internet of Things, and Big Data analytics in the agricultural sector. These advanced technologies help understand different crop conditions using the data collected by sensors. Light sensors, nutrient sensors, & humidity sensors are used extensively for monitoring crop health and the external environment.

Regional Projection

  • North America
  • South America
  • Europe
  • Middle East & Africa
  • Asia-Pacific

Of all regions globally, Europe is projected to be the major contributor to the growth of the Controlled Environment Agriculture Market through 2028. It attributes primarily to the extensive presence & utilization of various farming methods, including intensive, conventional, & organic, across the region, coupled with increasing expenditure by AgriTech startups on expanding their product offerings & business presence.

Countries like the United Kingdom, Spain, the Netherlands, and Germany are the leading markets across Europe owing to favorable policies & subsidies for promoting the use of CEA methods & more environmentally conscious land management and, in turn, overcoming challenges like rapidly growing population & climate changes. Moreover, the rapidly expanding genetically modified crop technology, coupled with the mounting adoption of nanotechnology & robotics in farming that facilitates better food packaging & more efficient disease & pest control, are also driving the regional market.

On the other hand, Asia-Pacific also projects notable growth prospects for the Controlled Environment Agriculture Market during 2023-28. It owes to the rapidly declining arable land in countries like China & India, which has created an immense need for innovative & efficient farming practices like CEA. Besides, the growing water scarcity & food requirements for the swiftly rising population of India, China & Japan are other crucial aspects projected to fuel the market growth across Asia-Pacific in the coming years.

Recent Developments in the Global Controlled Environment Agriculture Market

  • On 1 February 2023, AeroFarms & PIF (Public Investment Fund) joined forces to build & operate the largest indoor vertical farm in Saudi Arabia by utilizing the latest technologies with an annual production capacity of up to 1.1 million kgs of crops, which would boost regional food supply through increased production of sustainable & locally produced high-quality crops.
  • On 11 January 2023, the leader announced the expansion of its Community Farm program with the launch of 9 new farms to provide additional 2 tons of fresh & nutritious leafy greens to local schools, corporate cafeterias, & community centers.
  • In September 2022, GrowGeneration Corp., the largest chain of specialty hydroponic & organic garden centers with 60 locations across 15 states, announced the opening of a new 9,000-square-foot hydroponic store in Richmond, Virginia.

Gain a Competitive Edge with Global Controlled Environment Agriculture Market Report

  1. Global Controlled Environment Agriculture Market Report by Markntel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
  2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
  3. Global Controlled Environment Agriculture Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

Frequently Asked Questions

   A. The Controlled Environment Agriculture Market is expected to record around 25.71% CAGR during 2023-28.

   A. The ever-increasing demand for high-quality & reliable food production, coupled with the need for sustainable agricultural practices, are the prime factors projected to drive the Controlled Environment Agriculture Market during 2023-28.

   A. 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., and Signify are the key players operating in the Controlled Environment Agriculture Market.

   A. The high initial investments as well as operational & maintenance costs associated with CEA facilities are the major factors that might hinder the growth of the Controlled Environment Agriculture Market in the forecast period.

   A. Lighting components would create lucrative prospects for the leading companies in the Controlled Environment Agriculture Market during 2023-28.

   A. Europe is expected to emerge as a promising region for the Controlled Environment Agriculture Market to witness profitable opportunities over the forecast years.

  1. Introduction
    1. Research Process
    2. Assumption
    3. Market Segmentation
    4. Market Definition
  2. Executive Summary
  3. Impact of Covid-19 on Global Controlled Environment Agriculture Market
  4. Global Controlled Environment Agriculture Market Trends & Insights
  5. Global Controlled Environment Agriculture Market Dynamics
    1. Growth Drivers
    2. Challenges
    3. Impact Analysis
  6. Global Controlled Environment Agriculture Market Policies & Regulations,
  7. Global Controlled Environment Agriculture Market Hotspot & Opportunities
  8. Global Controlled Environment Agriculture Market Outlook, 2018- 2028F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Growing Method
        1. Hydroponics
        2. Aeroponics
        3. Aquaponics
      2. By Crop Type
        1. Vegetables
        2. Fruits
      3. By Component
        1. Lighting
        2. Sensors
        3. Nutrients
      4. By Region
        1. North America
        2. South America
        3. Europe
        4. Middle East & Africa
        5. Asia-Pacific
      5. By Company
        1. Revenue Shares
        2. Strategic Factorial Indexing
        3. Competitor Placement in MarkNtel Quadrant
  9. North America Controlled Environment Agriculture Market Outlook, 2018- 2028F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Growing Method
      2. By Crop Type
      3. By Component
      4. By Country
        1. The US
        2. Canada
        3. Mexico
  10. South America Controlled Environment Agriculture Market Outlook, 2018- 2028F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Growing Method
      2. By Crop Type
      3. By Component
      4. By Country
        1. Brazil
        2. Rest of South America
  11. Europe Controlled Environment Agriculture Market Outlook, 2018- 2028F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Growing Method
      2. By Crop Type
      3. By Component
      4. By Country
        1. Germany
        2. The UK
        3. France
        4. Italy
        5. Spain
        6. The Netherlands
        7. Rest of Europe
  12. Middle East & Africa Controlled Environment Agriculture Market Outlook, 2018- 2028F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Growing Method
      2. By Crop Type
      3. By Component
      4. By Country
        1. UAE
        2. Israel
        3. Saudi Arabia
        4. South Africa
        5. Rest of Middle East & Africa
  13. Asia-Pacific Controlled Environment Agriculture Market Outlook, 2018- 2028F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Growing Method
      2. By Crop Type
      3. By Component
      4. By Country
        1. China
        2. Japan
        3. India
        4. South Korea
        5. Rest of Asia-Pacific
  14. Global Controlled Environment Agriculture Market Strategic Imperatives for Success & Growth
  15. Competitive Outlook
    1. Competition Matrix
      1. Application Portfolio
      2. Brand Specialization
      3. Target Markets
      4. Target Applications
      5. Research & Development
      6. Strategic Alliances
      7. Strategic Initiatives
    2. Company Profiles (Business Description, Application Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. American Hydroponics(AMHYDRO) 
      2. Ponics Technologies
      3. Vertical Future
      4. Nelson & Pade Inc.
      5. Innovation Agritech Group
      6. The Aquaponic Source
      7. Go Green Aquaponics
      8. V-plus Agritech Pte Ltd
      9. Ponic Greens
      10. Rise Hydroponics
      11. Everlight Electronics Co., Ltd
      12. Freight Farms
      13. ams-OSRAM AG
      14. Heliospectra
      15. Others
  16. Disclaimer


Controlled Environment Agriculture Market segmentation