Controlled Environment Agriculture Market Landscape 2025: Forecast Data and Growth Strategy Insights

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What Is the Expected CAGR for the Controlled Environment Agriculture Market Through 2025?
In recent years, the market size for controlled environment agriculture has seen rapid expansion. The market, valued at $90.25 billion in 2024, is predicted to increase to $103.33 billion in 2025, showing a compound annual growth rate (CAGR) of 14.5%. This growth during the historical period can be linked to the increased interest in vertical farming, a rise in urban agriculture initiatives, a growing consumer demand for high-value crops, enhanced awareness surrounding food security, and a growing consumer tendency towards organic and non-pesticidal food.

What's the Projected Size of the Global Controlled Environment Agriculture Market by 2029?
The market size of controlled environment agriculture is predicted to witness a swift expansion in the upcoming years, reaching a value of $175.59 billion by 2029 with a compound annual growth rate of 14.2%. The expected growth during the forecasted period is due to factors like increasing population, escalating urbanization, growth in food production, higher food demand, and a boost in the need for fresh and locally grown goods. Key trends projected during this period comprise advancements in controlled environment agriculture technology, progress in packing technologies, the introduction of vertical farming methods, the development of climate control mechanisms, and the rise in energy-saving technologies.

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Top Growth Drivers in the Controlled Environment Agriculture Industry: What's Accelerating the Market?
The controlled environment agriculture market is anticipated to flourish due to the rocketing demand for organic food. Organic food, which is cultivated without using synthetic pesticides, fertilisers, genetically modified organisms, and artificial additives, focuses on natural processes and sustainable practices. The popularity of organic foods is soaring due to heightened consumer awareness about their health benefits, environmental sustainability, and the preference for natural, chemical-free products. Controlled environment agriculture facilitates organic food production by providing an environment free from synthetic pesticides and fertilisers, enabling the cultivation of organic crops year-round under regulated conditions for light, temperature, and nutrients. As per the Organic Trade Association, an organization committed to protecting organic trade in the US, the sale of organic food surpassed $60 billion in the US for the first time in 2022, and including non-food items, the total organic sales peaked at a record $67.6 billion in May 2023. Furthermore, The Organic Research Centre, a UK-based non-profit entity, revealed that sales from the UK's production of organic food and beverages had risen from £3.05 billion ($3.88 billion) in 2021 to £3.11 billion ($3.95 billion) in 2022 as of February 2023. Hence, the escalating demand for organic food is fuelling the expansion of the controlled environment agriculture market.

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What Trends Will Shape the Controlled Environment Agriculture Market Through 2029 and Beyond?
Leading organizations engaged in the controlled environment agriculture sector are turning their concentration on unpacking groundbreaking technologies like vertical hydroponic farms. They aim to up their effectiveness and endorse sustainability in executing agricultural operations. Vertical hydroponic farms are a distinct form of indoor farming technique where plants sprout within vertically organized levels or towers via a hydroponic growth procedure. An example may be seen in FarmBox Foods LLC, a US corporation dedicated to creating container farming solutions, which unveiled their Hydroponic Fodder Farm in September 2022. This vertical hydroponic arrangement aims to efficiently produce feed for livestock. With a state-of-the-art hydroponic technology giving a nourishing water solution directly to the plant roots, this system ensures rapid and steady growth. The inclusion of supervision and automation mechanisms guarantees high-standard feed production and augments growing conditions.

What Are the Main Segments in the Controlled Environment Agriculture Market?
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 Top Companies are Driving Growth in the Controlled Environment Agriculture Market?
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.

Which Regions Will Dominate the Controlled Environment Agriculture Market Through 2029?
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.

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