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.
Author Credits: Nilanjana Ray
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