New York, April 10, 2023 (GLOBE NEWSWIRE) -- The Global Controlled Environment Agriculture Market size was USD 74.4 Billion in 2022. It is expected to grow at a CAGR of 18.13% and is predicted to reach a valuation of USD 377.6 Billion by 2032. It is usually adopted to raise agricultural productivity, and controlled environment agriculture, using a technology-based technique. Throughout the crop's growth, CEA protects it from damaging elements and creates ideal growth conditions, i.e., fast and responsive, inside a covered growing space, such as greenhouses and other covered growing areas.
CEA is the creation of wholly controlled settings for plant development. Vertical farming is also another name for it. This indicates that every one of such facilities is separated from its surroundings. Plants often need specific resources, like artificial water and temperatures. The global market for CEA is expected to grow rapidly as a result of the increased demand for fresh and healthy food, particularly in urban areas, as well as the need for crop production all year long.
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Key Takeaway:
- By the growing method, in 2022, the hydroponics segment dominated the largest market share in growing method analysis.
- By components, the lighting segment dominated the largest market share at 39% in components analysis.
- By crop type, the tomato segment dominated the largest market share in crop type analysis
- In 2022, Europe dominated the market with the highest revenue share of 27%.
- APAC is anticipated to have the highest CAGR among all the regions.
Factors Affecting the Growth of the Controlled Environment Agriculture Market
There are several factors that can have an impact on the growth of the Controlled Environment Agriculture Market. Some of these factors include:
- Growing demand for locally produced, fresh products: As customers become more aware of the advantages of eating healthy, fresh food, they are turning more and more to local farmers for their produce. Using CEA, producers can efficiently grow crops in a contained environment all year, regardless of the weather, producing a fresh, high-quality product.
- Scarce arable land: Due to a lack of arable land, it isn't easy to plant crops using conventional farming techniques. By reducing their dependence on conventional farming methods, CEA enables growers can produce crops in smaller locations, including urban areas.
- Technological advancements: CEA has been more efficient and cost-effective due to technological developments, including LED lighting, automation, and farming techniques.
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Market Growth
The growing demand for fresh and hygienic food, the lack of arable land, the unpredictable weather caused by climate change, and technological improvements are among the drivers boosting the CEA industry. In addition, vertical farming's growing popularity and the usage of hydroponic and aeroponic methods are other factors driving the Controlled Environment Agricultural Market. Due to its capacity to produce crops in a smaller area and with higher yields than conventional farming techniques, the indoor vertical farming market is anticipated to develop faster throughout the projected period. The market is also driven by the rising use of technologies, including automation, precision farming, and LED lighting, which lower labor and energy costs related to CEA.
Regional Analysis
The market share lead in 2022 was Europe, which accounted for 27% of the global Controlled Environment Agricultural Market. This is due to the huge selection of cutting-edge techniques offered by reputable manufacturers like SP ZO Co. and Fresh Box for CEA farming. Because of their expanding populations and urbanization, analysts predict that the markets in North America and Asia-Pacific will develop the highest. North America and Asia-Pacific are expected to anticipate the largest market expansion due to their growing populations and urbanization, prompting them to invest in these regions to ensure adequate food product supply and demand.
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| Report Attribute | Details |
| Market Value (2022) | USD 74.4 billion |
| Market Size (2032) | USD 377.6 Billion |
| CAGR (from 2023 to 2032) | 18.13% |
| Europe Revenue Share | 27% |
| Historic Period | 2016 to 2022 |
| Base Year | 2022 |
| Forecast Year | 2023 to 2032 |
Market Drivers
As people become more aware of the benefits of eating fresh, healthy food and are willing to pay more for it, demand for it is increasing. CEA enables the year-round production of fresh, nutritious food, regardless of climate conditions or geographic location. As the world's population rises, less arable land is becoming available for agriculture. If conventional agriculture is not possible, CEA makes it possible to plant and harvest. The industry needs a technique to produce crops without the usage of pesticides and herbicides because consumers are becoming more interested in organic and non-GMO products. CEA provides that solution.
Market Restraints
Insufficient Awareness & Reduced Adoption Rate: CEA promotes year-round quicker plant development, resulting in higher yields. CEA production is a high-risk, low-margin business similar to all forms of agriculture. A CEA hydroponics plant enterprise demands a significant investment that might reach USD 10 million. Growers and controlled environment agriculture faces significant challenges due to the high necessary risk, capital, and operating costs.
Market Opportunities
Increasing demand for locally planted produce: People are becoming more interested in locally grown food because it is frequently more wholesome and less harmful to the environment than food that has been sent long distances. The CEA permits year-round production of locally grown food in order to meet this growing demand.
Vertical farming: Growing crops vertically is a type of CEA that involves growing them on stacked layers, which allows for even higher agricultural yield densities. This could increase the productivity of the CEA system and provide urban agriculture with new opportunities.
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Report Segmentation of the Controlled Environment Agriculture Market
Growing Method Insight
It is predicted that among all growing methods, hydroponics is anticipated to continue to lead the global controlled environment agriculture market among all growth methods, largely as a result of customers' growing knowledge of the negative effects that pesticides have on plants and the growing demand for increased tastes and sustainability in diverse fruits & vegetables. Without using soil, plants are grown hydroponically in mineral solutions. It is the greenest method for decreasing the damaging effects that soil-borne pests and pesticides have on plants. Since it takes significantly less work, is easily implemented, and uses less water, hydroponics offers a significant return on investment. When nutrients are managed properly, plants grown hydroponically yield significantly more than plants grown on soil. In the upcoming years, it is anticipated that the need for aquaponics will be rising too.
Components Insight
Lighting components have dominated the global Controlled Environment Agricultural Market in recent years. This is mainly because the CEA system depends on artificial lighting, which stands in for sunlight and provides the light intensity required for crop development. These artificial lights' intensity can be easily adjusted in terms of luminous efficacy, spectrum, and temperature to meet the needs of the plant and its growth. Also, there is a growing need for LED systems to reduce operating costs and power consumption levels because they generate less heat than conventional lights, which is a major driver of the growth of the lighting component market overall.
Crop Types Insight
Tomato is the market's dominant segment, representing the highest revenue worldwide. These CEA is expected to grab 45% of revenue in 2022 and is anticipated to grow over the predicted period. The major drivers of the rise are the fact that it works well both indoors and outdoors and helps to increase yield. The tomato is mostly utilized in food processing and has significant exports. Given their high domestic and abroad demand, strawberries are also the market leader in this sector.
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Market Segmentation
Based on Growing Method
- Hydroponics
- Aeroponics
- Aquaponics
- Other Growing Method
Based on Components
- Lighting
- Climate Control
- Nutrients
- Other Components
Based on Crop Types
- Tomato
- Leafy Greens
- Strawberries
- Cucumber
- Pepper
- Cannabis
- Other Crop Types
By Geography
- North America
-
- The US
- Canada
- Mexico
- Western Europe
-
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
-
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
-
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
-
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Competitive Landscape
The CEA market's competition is really dynamic. The Controlled Environment Agriculture (CEA) market has a number of significant competitors as well as lots of smaller companies. To deal with increasing demand for CEA, the firms are making significant investments in R&D to create new technologies and broaden their product lines. To improve their market positioning, they are also focusing on strategic partnerships and collaborations. Some of the major players include:
- Aero Farms
- Gotham Greens
- Plenty
- Lufa Farms
- IDEA Protected Horticulture
- Green Sense Farms
- Metro Farms
- Mirai
- Sky Greens
- Greenland
- Scafil
- Jingpeng
- Metropolis Farms
- Garden Fresh Farms
- Infinite Harvest
- Other Key Players
Recent Development of the Controlled Environment Agriculture Market
- June 2021 - AeroFarms declared their intentions to go public through a merger with Spring Valley Acquisition Corp., an SPAC.
- February 2021- AeroFarms and Target announced a collaboration to bring fresh produce to select stores throughout the northeastern United States.
- February 2021 - Plenty announced a collaboration with Driscoll's to grow strawberries in its vertical farms.
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