Top Factor Driving Controlled Environment Agriculture Market Growth in 2025: Rising Demand for Organic Food Fuels Growth In Controlled Environment Agriculture Market

What market dynamics are playing a key role in accelerating the growth of the controlled environment agriculture market?
The controlled environment agriculture market is expected to grow as organic food consumption increases. As consumers become more health-conscious and aware of environmental sustainability, the demand for organic food is rising. Controlled environment agriculture provides optimal growing conditions for organic crops, ensuring year-round production without the use of synthetic pesticides or fertilizers. The Organic Trade Association and The Organic Research Centre reported record sales in the U.S. and the U.K., indicating a growing market for organic food and the controlled agricultural practices required to meet this demand.

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How will the growth rate of the controlled environment agriculture market shape industry trends by 2034?
The controlled environment agriculture market has expanded rapidly, projected to grow from $90.25 billion in 2024 to $103.33 billion in 2025 at a CAGR of 14.5%. Market expansion is fueled by the rise of vertical farming, urban agriculture projects, consumer demand for high-value crops, heightened awareness of food security, and a preference for organic, pesticide-free food.

The controlled environment agriculture market is set to grow rapidly in the coming years, with its value projected to reach $175.59 billion by 2029 at a CAGR of 14.2%. Key growth drivers include increasing urbanization, rising global populations, the need for higher food production, growing food demand, and a shift toward fresh, locally grown produce. Key market trends include technological advancements in controlled environment agriculture, innovations in packaging, the rise of vertical farming, the development of advanced climate control systems, and improvements in energy-efficient technologies.

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What trends are poised to drive the future success of the controlled environment agriculture market?
In the controlled environment agriculture market, companies are creating vertical hydroponic farms to improve agricultural sustainability. FarmBox Foods LLC launched a Hydroponic Fodder Farm in September 2022, designed to efficiently grow livestock feed using hydroponic technology and automation to ensure high-quality production.

Which primary segments of the controlled environment agriculture market are driving growth and industry transformations?
The controlled environment agriculturemarket covered in this report is segmented -

1) By Components: Lighting, Climate Control, Nutrients, Other Components
2) By Growing Method: Hydroponics, Aeroponics, Aquaponics, Other Growing Methods
3) By Crop Types: Tomato, Leafy Greens, Strawberries, Cucumber, Pepper, cannabis*, Other Crop Types

Subsegments:
1) By Lighting: LED Grow Lights, High-Pressure Sodium (HPS) Lights, Metal Halide (MH) Lights, Fluorescent Grow Lights, Light Emitting Diodes (LED) For Spectral Control
2) By Climate Control: Temperature Control Systems, Humidity Control Systems, Air Circulation And Ventilation Systems, CO2 Enrichment Systems, Dehumidifiers And Humidifiers, Air Filtration And Purification Systems
3) By Nutrients: Organic Nutrient Solutions, Synthetic Nutrient Solutions, Hydroponic Nutrient Solutions, Fertilizers For Controlled Environments
4) By Other Components: Irrigation Systems, Automation And Monitoring Systems, Sensors For Environmental Monitoring, Grow Mediums, Pumps And Water Treatment Systems

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Which geographical regions are pioneering growth in the controlled environment agriculture market?
Europe was the largest region in the controlled environment agriculture market in 2024. The regions covered in the controlled environment agriculture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the influential players reshaping the controlled environment agriculture market landscape?
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.

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What Is Covered In The Controlled Environment Agriculture Global Market Report?

•Market Size Forecast: Examine the controlled environment agriculture market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the controlled environment agriculture market for a structured understanding.
•Key Players Overview: Analyze major players in the controlled environment agriculture market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the controlled environment agriculture market.
•Segment Contributions: Evaluate how different segments drive overall growth in the controlled environment agriculture market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the controlled environment agriculture market.
•Industry Challenges: Identify potential risks and obstacles affecting the controlled environment agriculture market.
•Competitive Landscape: Review strategic developments in the controlled environment agriculture market, including expansions, agreements, and new product launches.

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