Controlled Environment Agriculture Market

Controlled Environment Agriculture Market

Controlled Environment Agriculture Market Forecasts to 2028 - Global Analysis By Product Type (Flower, Mushroom, Strawberries, Leafy Greens, Tomato, Cucumber, Cannabis, Pepper and Other Product Types), Component (Lighting Systems, Heating Systems, Growing Media, Nutrients and Other Components), Technology (Hydroponics, Aeroponics, Aquaponics and Other Technologies), Application, End-User and By Geography

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4.1 (45 reviews)
Published: 2023 ID: SMRC23155

This report covers the impact of COVID-19 on this global market

Years Covered


Estimated Year Value (2022)

US $83.23 BN

Projected Year Value (2028)

US $162.53 BN

CAGR (2022 - 2028)


Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market


Highest Growing Market

Asia Pacific

According to Stratistics MRC, the Global Controlled Environment Agriculture Market is accounted for $83.23 billion in 2022 and is expected to reach $162.53 billion by 2028 growing at a CAGR of 11.8% during the forecast period. Controlled Environment Agriculture is a modern technique of crop production that takes place in controlled environments such as greenhouses, vertical farms, and growth chambers, it aids in the reduction of crop risk from external pests, pollution, and harsh weather conditions. Furthermore, several crop production technologies, such as hydroponics, aeroponics, and aquaponics, are utilized in this methodology. These modern farming practices are great at reducing water waste and making the best use of nutrients.

According to the report of the Economic Times, in the pandemic and after the pandemic the lifestyle as well as eating behavior of humans are also changing and the consumption of food items or local foods are increased by 40-45% from the year 2021 to 2022.

Market Dynamics:


Rising global food consumption

The world's population is expected to grow to almost 10 billion by 2025. It is getting increasingly difficult to meet the world's escalating food demand in a sustainable manner. As a result, in order to fulfill the growing population's food needs, the government and farmers are implementing more complex farming techniques such as hydroponics, aquaponics, aeroponics, solid-based systems, and other hybrid systems. The growing popularity of controlled environmental agriculture techniques is increasing the number of small and large indoor farms across the world, and these farms are also boosting the use of other supplies such as nutrients, growing media, and so on. Due to their proximity to urban centers, CEA producers around the world are establishing production facilities near urban consumers to capitalize on this trend.


High Initial Investment

The capital investment needed for infrastructure, equipment, technology, and operational costs can be substantial, and it may pose a barrier to entry for potential investors or limit the expansion plans of existing players. The significant upfront costs involved in establishing CEA facilities can deter potential investors, especially small-scale farmers or new entrants with limited financial resources. It can be challenging for these stakeholders to secure the necessary funding to set up and operate a CEA system effectively. Additionally, the ROI for CEA facilities may take a relatively longer time to realize due to the high initial investment. It can impact the decision-making process for potential investors, as they need to carefully evaluate the financial viability and payback period of their investment.


Strong Demand for Local Foods

The world's population is rapidly increasing, as is the demand for local food. According to an Economic Times article, during and after the pandemic, humans' lifestyles and eating habits change, and consumption of food items or local cuisines increases by 40–45% from 2021 to 2022. The CEA market is expanding because farmers are focused on production centers that are close to metropolitan areas, which is advantageous and will allow them to stay current with farming methods in the agricultural industry.


Lack of Awareness and Education

Many consumers, particularly those outside the agricultural industry, may have limited knowledge or understanding of controlled environment agriculture. They may be unaware of the benefits, processes, and technologies involved in CEA. This lack of awareness can create a barrier for CEA companies in terms of consumer acceptance and market penetration. Furthermore, without proper education, consumers may have misconceptions or misperceptions about CEA. They may associate it with artificial or unnatural farming practices, leading to concerns about food safety, nutritional quality, and taste. These misconceptions can create resistance or reluctance to accept CEA-grown produce. Thus, it is anticipated that the aforementioned factors will limit market growth throughout the forecast period.

Covid-19 Impact:

The COVID-19 epidemic interrupted the manufacturing of several items in the controlled environment agriculture business, resulting in a global lockdown. The major demand for controlled environment agriculture was previously observed in giant developed and developing countries such as the United States, Germany, Italy, the United Kingdom, India, and China, which are negatively impacted by the spread of the corona virus, thereby decreasing demand for controlled environment agriculture. Environment under control Agriculture manufacturers can only afford a lockdown for a few months before having to change their investment plans. For example, numerous market participants paused manufacturing for several weeks in order to cut costs. On the contrary, few players used employee layoffs to survive the COVID-19 health crisis.

The tomatoes segment is expected to be the largest during the forecast period

The Tomato segment is expected to account for largest share in the automotive market. Tomato is the leading segment in these markets and also accounted for the largest in the global market based on both traditional and CEA farming. The factors that are propelling the growth are that it is suitable for both outdoor and indoor use and helps fetch more value with a higher yield. Tomato is widely used, mostly in food processing, across the globe, and it also has larger exports. The tomatoes grown in the CEA often have better flavor profiles due to optimized nutrient availability and regulated growth conditions.

The hydroponics segment is expected to have the highest CAGR during the forecast period

During the anticipated period, the hydroponics segment market is expected to have the greatest CAGR. Hydroponics allows for precise control and efficient utilization of resources such as water, nutrients, and space. The closed-loop system in hydroponics minimizes water wastage, as the nutrient solution is recirculated and reused. It also allows for the precise delivery of nutrients to plants, optimizing their uptake and minimizing nutrient waste. Moreover, Hydroponics is highly adaptable to various environments, making it suitable for both urban and rural settings. Its ability to operate in a controlled environment enables year-round production and reduces reliance on traditional agricultural practices that may be limited by factors such as climate or soil conditions. These are the factors that propelling the segment in the market over the forecast period.

Region with largest share:

The Europe region market is estimated to witness the largest share of the global controlled environment agriculture market during the forecast period because of the leading key players such as Fresh Box and SP ZO Co., which also provide a wide variety of leading techniques for CEA farming. In this region, every farmer is adopting these techniques, such as intensive, conventional, and organic farming. Moreover, Europe places a strong emphasis on sustainability and environmental stewardship. The CEA market aligns well with this focus, as it enables resource-efficient farming practices, reduces chemical use, and minimizes the environmental impact of agriculture.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period due to the rising demand for fresh produce, limited agricultural land, and increasing investment in sustainable farming practices. China, Japan, and Australia are key markets in the region. The Asia-Pacific region is home to a large and rapidly growing population. As urbanization increases and arable land decreases, ensuring food security becomes a significant concern. CEA offers a solution by enabling year-round production in controlled environments, reducing dependency on weather conditions and traditional farming methods.

Key players in the market

Some of the key players in Controlled Environment Agriculture Market includes AeroFarms, Alegria Fresh, Beijing IEDA Protected Horticulture, Everlight Electronics Co. Ltd., FarmedHere, Garden Fresh Farms, Gotham Greens, Green Sense Farms, Green Spirit Farms, Greenland, Grow Pod Solutions, IDEA Protected Horticulture, Indoor Harvest, Infinite Harvest, Jingpeng, Lufa Farms, Metropolis Farms, Mirai, Nelson and Pade, Inc., Nongzhong Wulian, Pentair Aquatic Eco-Systems, Inc., Plantagon, Sanan Sino Science, Scafil, Sky Greens, Sky Vegetables, Sundrop Farms, TruLeaf, Urban Crops and Vertical Harvest.

Key Developments:

In February 2023, AeroFarms and International Center for Biosaline Agriculture announced a collaboration wherein both firms will work towards R&D in the CAE systems, including AI, ML, and robotics.

In September 2022, Gathom Greens, in the Series E round, raised USD 310 Million. The organization plans to use this budget to help greenhouses under construction in Georgia, Texas and Colorado. There is also a plan for facility expansion in Illinois and Rhode Island. The organization also acquired FresH2O Growers Inc, which was the producer of leafy green salad products. The acquisition also includes a 540,000-square-foot hydroponic greenhouse which supplies grocery stores in the mid-Atlantic region. This helps the organization in expanding productivity and reach.

In August 2020, Lufa Farms announced the launch of their fourth commercial rooftop greenhouse at Saint-Laurent, the world's largest greenhouse. It helped the organization as the production capacity become doubled. This would help the organization expand its market share in the controlled environment agriculture market.

Product Types Covered:
• Flower
• Mushroom
• Strawberries
• Leafy Greens
• Tomato
• Cucumber
• Cannabis
• Pepper
• Other Product Types

Components Covered:
• Lighting Systems
• Heating Systems
• Growing Media
• Nutrients
• Other Components

Technologies Covered:
• Hydroponics
• Aeroponics
• Aquaponics
• Other Technologies

Applications Covered:
• Vegetable Cultivation
• Fruit Planting
• Other Applications

End Users Covered:
• Equipment Manufacturer
• Consultancy
• Retail Food Product Seller
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Product Analysis
3.7 Technology Analysis
3.8 Application Analysis
3.9 End-User Analysis
3.10 Emerging Markets
3.11 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Controlled Environment Agriculture Market, By Product Type
5.1 Introduction
5.2 Flower
5.3 Mushroom
5.4 Strawberries
5.5 Leafy Greens
5.6 Tomato
5.7 Cucumber
5.8 Cannabis
5.9 Pepper
5.10 Other Product Types

6 Global Controlled Environment Agriculture Market, By Component
6.1 Introduction
6.2 Lighting Systems
6.3 Heating Systems
6.4 Growing Media
6.5 Nutrients
6.6 Other Components

7 Global Controlled Environment Agriculture Market, By Technology
7.1 Introduction
7.2 Hydroponics
7.3 Aeroponics
7.4 Aquaponics
7.5 Other Technologies

8 Global Controlled Environment Agriculture Market, By Application
8.1 Introduction
8.2 Vegetable Cultivation
8.3 Fruit Planting
8.4 Other Applications

9 Global Controlled Environment Agriculture Market, By End-User
9.1 Introduction
9.2 Equipment Manufacturer
9.3 Consultancy
9.4 Retail Food Product Seller
9.5 Other End Users

10 Global Controlled Environment Agriculture Market, By Geography
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 Italy
10.3.4 France
10.3.5 Spain
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.1 Japan
10.4.2 China
10.4.3 India
10.4.4 Australia
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.1 Argentina
10.5.2 Brazil
10.5.3 Chile
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Qatar
10.6.4 South Africa
10.6.5 Rest of Middle East & Africa

11 Key Developments
11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.4 Expansions
11.5 Other Key Strategies

12 Company Profiling
12.1 AeroFarms
12.2 Alegria Fresh
12.3 Beijing IEDA Protected Horticulture
12.4 Everlight Electronics Co. Ltd.
12.5 FarmedHere
12.6 Garden Fresh Farms
12.7 Gotham Greens
12.8 Green Sense Farms
12.9 Green Spirit Farms
12.10 Greenland
12.11 Grow Pod Solutions
12.12 IDEA Protected Horticulture
12.13 Indoor Harvest
12.14 Infinite Harvest
12.15 Jingpeng
12.16 Lufa Farms
12.17 Metropolis Farms
12.18 Mirai
12.19 Nelson and Pade, Inc.
12.20 Nongzhong Wulian
12.21 Pentair Aquatic Eco-Systems, Inc.
12.22 Plantagon
12.23 Sanan Sino Science
12.24 Scafil
12.25 Sky Greens
12.26 Sky Vegetables
12.27 Sundrop Farms
12.28 TruLeaf
12.29 Urban Crops
12.30 Vertical Harvest

List of Tables
1 Global Controlled Environment Agriculture Market Outlook, By Region (2020-2028) ($MN)
2 Global Controlled Environment Agriculture Market Outlook, By Product Type (2020-2028) ($MN)
3 Global Controlled Environment Agriculture Market Outlook, By Flower (2020-2028) ($MN)
4 Global Controlled Environment Agriculture Market Outlook, By Mushroom (2020-2028) ($MN)
5 Global Controlled Environment Agriculture Market Outlook, By Strawberries (2020-2028) ($MN)
6 Global Controlled Environment Agriculture Market Outlook, By Leafy Greens (2020-2028) ($MN)
7 Global Controlled Environment Agriculture Market Outlook, By Tomato (2020-2028) ($MN)
8 Global Controlled Environment Agriculture Market Outlook, By Cucumber (2020-2028) ($MN)
9 Global Controlled Environment Agriculture Market Outlook, By Cannabis (2020-2028) ($MN)
10 Global Controlled Environment Agriculture Market Outlook, By Pepper (2020-2028) ($MN)
11 Global Controlled Environment Agriculture Market Outlook, By Other Product Types (2020-2028) ($MN)
12 Global Controlled Environment Agriculture Market Outlook, By Component (2020-2028) ($MN)
13 Global Controlled Environment Agriculture Market Outlook, By Lighting Systems (2020-2028) ($MN)
14 Global Controlled Environment Agriculture Market Outlook, By Heating Systems (2020-2028) ($MN)
15 Global Controlled Environment Agriculture Market Outlook, By Growing Media (2020-2028) ($MN)
16 Global Controlled Environment Agriculture Market Outlook, By Nutrients (2020-2028) ($MN)
17 Global Controlled Environment Agriculture Market Outlook, By Other Components (2020-2028) ($MN)
18 Global Controlled Environment Agriculture Market Outlook, By Technology (2020-2028) ($MN)
19 Global Controlled Environment Agriculture Market Outlook, By Hydroponics (2020-2028) ($MN)
20 Global Controlled Environment Agriculture Market Outlook, By Aeroponics (2020-2028) ($MN)
21 Global Controlled Environment Agriculture Market Outlook, By Aquaponics (2020-2028) ($MN)
22 Global Controlled Environment Agriculture Market Outlook, By Other Technologies (2020-2028) ($MN)
23 Global Controlled Environment Agriculture Market Outlook, By Application (2020-2028) ($MN)
24 Global Controlled Environment Agriculture Market Outlook, By Vegetable Cultivation (2020-2028) ($MN)
25 Global Controlled Environment Agriculture Market Outlook, By Fruit Planting (2020-2028) ($MN)
26 Global Controlled Environment Agriculture Market Outlook, By Other Applications (2020-2028) ($MN)
27 Global Controlled Environment Agriculture Market Outlook, By End-User (2020-2028) ($MN)
28 Global Controlled Environment Agriculture Market Outlook, By Consultancy (2020-2028) ($MN)
29 Global Controlled Environment Agriculture Market Outlook, By Retail Food Product Seller (2020-2028) ($MN)
30 Global Controlled Environment Agriculture Market Outlook, By Other End Users (2020-2028) ($MN)

Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.

Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.

For more details about research methodology, kindly write to us at

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