Controlled Environment Agriculture Market size was valued at USD 59.2 billion in 2024 and is expected to reach USD 333 billion by the end of 2037, expanding at a CAGR of 14.2% during the forecast period, i.e., 2025-2037. In 2025, the industry size of controlled environment agriculture is assessed at USD 67.6 billion.
The market is expanding at a rapid pace as food security has become a global priority. This growth has been further driven by increasing demand for sustainable and high-yield agricultural solutions that are independent of seasonal changes in weather. One of the recent developments in this sector includes the launch of CEAg World by Meister Media Worldwide in March 2024. This launch targets controlled environmental food production, with most initiatives currently focused on vertical farms and greenhouses, representing increased specialization and scale in the industry. Various incentives and initiatives for ensuring all-year-round fresh produce supplies, reducing food miles, and enhancing food security are promoted by governments all over the world.
Government initiatives are focused especially on education and infrastructural development of controlled environment agriculture. For instance, Richmond Hill High School partnered with New York Sun Works in April 2024 to develop a Hydroponics Lab, an educative environment integrating advanced technology in agriculture. Such initiatives emphasize the importance of current developments, ensuring that companies can cope with the technologies of urban farming and be able to serve during times when food production in urban areas becomes an even bigger issue. Furthermore, the rising investments in sustainable farming technologies by governments are likely to open lucrative opportunities for players in the market.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
14.2% |
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Base Year Market Size (2024) |
USD 59.2 billion |
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Forecast Year Market Size (2037) |
USD 333 billion |
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Regional Scope |
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Component (Hardware, Software, Services)
Hardware segment is anticipated to account for more than 55% controlled environment agriculture market share by the end of 2037. This segment dominance is due to the increased adoption of advanced farming systems, including specialty LED lighting and climate control hardware for maintaining optimal growth conditions within crops. For example, in July 2023, Fifth Season, a vertical farming company, opened a research and development center in Pittsburgh, Pennsylvania. This new center focuses on advancing technology and innovation in the vertical farming sector.
Technology (Hydroponics, Aeroponics, Aquaponics)
By 2037, hydroponics segment is projected to hold more than 43% controlled environment agriculture market share. The demand for hydroponics is rising since it uses minimal water with high yield percentages of crops, which can be used in urban farming. For example, Plenty Unlimited Inc. opened Plenty Compton Farm in California in December 2023. The company will supply Walmart stores using hydroponic techniques. This development represents how the efficiency of resource utilization, along with the reliability of hydroponic systems, keeps it continuously in favor of large-scale retail supply.
Our in-depth analysis of the global market includes the following segments:
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Component |
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Technology |
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Crop |
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End use |
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North America Market Analysis
North America in controlled environment agriculture market is expected to dominate around 36.5% revenue share by the end of 2037. The presence of large-scale operations in the region contributes to this leading position, along with technological advancements regarding vertical and hydroponic farming. Governmental support, like the new crop insurance program that the United States Department of Agriculture (USDA) introduced in October 2023, further enables the growth and stability of CEA operations through financial security for producers in controlled environments.
The U.S. remains a leading market in North America driven by the presence of several key players boosting their production with new facilities. For instance, Bowery Farming's latest facility opened in September 2023 in Arlington, Texas. The facility was designed to supply the Dallas-Fort Worth area to meet the growing demand for fresh produce on a continual basis. Such developments reflect the ongoing efforts to enhance food security and sustainability within the country.
The market is also witnessing growth in Canada, mainly due to the expansion of greenhouses and new projects focused on sustainability enhancement. The significant importance of regional solutions and sustainability in agriculture, particularly greenhouse produce, drives the market growth. Additionally, advancements in agricultural technologies and increased government initiatives supporting eco-friendly practices further propel this sector.
Asia Pacific Market Analysis
Asia Pacific controlled environment agriculture market is expected to showcase around 15.5% growth rate between 2025 and 2037, largely driven by technological innovations and supportive government policies. Rapid urbanization and the need for sustainable food production have made CEA an attractive option for many countries in the region. Additionally, increasing investments in vertical farming and advancements in automation are further enhancing productivity.
China is also growing as a considerable player in Asia Pacific CEA market. In February 2023, AeroFarms partnered with the Public Investment Fund of Saudi Arabia to set up one of the largest vertical farms in China. It is estimated to produce 1.1 million kilograms of crops per year. Such moves underline the ambitions of China to reach productivity and food security through technology while attempting to meet urban food needs.
Growth in the India CEA market is driven both by public and private companies' efforts to improve agricultural yields. For example, the Krishi 24/7 initiative by the government of India in November 2023 stresses the integration of technology into agriculture, becoming an ideal way to increase crops and overcome the problem of food insecurity. This showcases the proactive outlook of India toward integrating advanced technology in controlled agriculture and enhancing the overall food production capabilities of the country.
Competition in the controlled environment agriculture market is getting very fierce, and a number of leading companies set the pace for innovation and expansion. Some of the leading players are AeroFarms, Bowery Farming, Plenty, AppHarvest, Gotham Greens, and Freight Farms. These companies are scaling up operations and heavily investing in R&D to achieve optimal levels of crop yields, resource use, and overall sustainability in controlled environment settings. The competition lies in technological advances, efficient use and deployment of resources, and increased geographical presence to address local requirements.
One recent development that further reflects the move by players to gain a competitive advantage includes Kalera's announcement in June 2023 about a merger with Agrico Acquisition Corp. This merger made Kalera a publicly traded company trading under the ticker KAL. Furthermore, the deal brings increased visibility to Kalera while also providing more financial resources to take over a greater market share in the domestic CEA footprint. This strategic shift by players is an indication that they are positioning themselves to maximize the increased demand for sustainable and scalable food production systems.
Here are some leading players in the controlled environment agriculture market:
Author Credits: Nilanjana Ray
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