It is estimated that the global controlled environment agriculture market will be worth more than USD 1,42,222.6 Million by 2024. The market of global controlled environment agriculture will be receiving an opportunity of USD 76,977.5 Million between 2019 & 2024. In addition to this, global controlled environment agriculture market value is projected to witness a Y-O-Y growth of 19.9% in 2024 as compared to previous years. Global controlled environment agriculture market is likely to be driven by a number of factors such as market demand for local food, advancements in greenhouses and others.
Market Insights
Growth Drivers – Controlled Environment Agriculture Market
Increasing Global Demand for Food
The world’s population is expected to grow to almost 10 billion by 2050. It is becoming increasingly difficult to satisfy the rising global demand for food in a sustainable manner. Due to this, in order to meet the food demand of an increasing population, the government and farmers are adopting more advanced farming techniques such as Hydroponics, Aeroponics, Aquaponics, soiled based and other hybrid methods. The farmers are majorly growing leafy greens, tomatoes, cannabis, flowers, microgreens, strawberries, herbs, cucumbers, peppers, mushrooms, onions, leeks, hops, figs, sweet corn, eggplant, fish, insects, carrots, and shrimp. This rising popularity of controlled environmental agriculture techniques is resulting in an increase in the number of small and large indoor farms across the globe and these farms are also encouraging the consumption of other supplies such as nutrients, growing media, and others.
Strong Demand for Local Foods
Today, 55% of the world’s population lives in urban areas, a proportion that is expected to increase to 68% by 2050. Yet, the population living in urban areas are demanding locally grown foods such as fruits, vegetables, meat, etc. CEA producers across the globe are setting up their production centers near to urban consumers to take advantage of this trend due to their close proximity to urban centers. Other advantages of CEA such as the requirement of less time and expense in the transportation of crop products and better product quality are also expected to strengthen the growth of global controlled environment agriculture market in upcoming years.
Remarkable Advantages of CEA
Conservation of water and nutrients is one of the many advantages of controlled environment agriculture over conventional farming methods. These advanced farming techniques such as hydroponics, aquaponics, and other soilless farming methods are effectively preventing wastage of water and overuse of nutrients. In a controlled environment, the plants have better health and faster growth, which reduces the need for pesticides and other supplements. Owing to their good health, CEA grown produces are noticeably better in both size and quality then soil-grown crops.
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Barriers – Controlled Environment Agriculture Market
The high cost of Nutrients used in Hydroponics
Although, CEA allows faster plant growth throughout the year, allowing larger yields. In order to do this, like any form of agriculture, CEA production is a high-risk, low margin enterprise. Establishing a CEA hydroponic vegetable operation requires considerable capital investment. Depending on the size of the operation and the level of technology involved, the investment can run into the tens of millions of dollars. This high required investment, high operating cost and high risks a huge challenge for growers and for the controlled environment agriculture market.
Market Trends – Controlled Environment Agriculture Market
Technological Advancements
There are a lot of potential technologies coming out right now and CEA farmers are using them to their full potential in order to maximize efficiency from a grow. Hydroponics lighting has seen more advancements in recent years. HID lights are getting popular as hydroponic grow lights, these lights have revolutionized indoor gardening owing to their ability to supply the proper spectrum to crops.
Segmentation Analysis
The controlled environment agriculture crop market is segmented into lettuce & leafy greens, cucumber, tomato, peppers, cannabis, strawberries, and others. In this segment, the tomato segment will contribute a market share of 44.9% in 2018. In terms of value, the global controlled environment agriculture market for tomato segment was valued at USD 21,316.0 Million in 2018. Further, this segment is anticipated to flourish at a CAGR of 16.5% over the forecast period. Further, the global controlled environment agriculture market for tomato segment is expected to achieve the absolute $ opportunity of USD 27,537.6 Million between 2019-2024.
In the growing methods segment, the controlled environment agriculture market is sub-segmented into hydroponics, aquaponics, aeroponics, and others. In this segment, the controlled environment agriculture market for hydroponics segment is expected to expand at a CAGR of 13.2% in terms of value over the forecast period i.e. 2019-2024. The global controlled environment agriculture market for hydroponics segment accounted for USD 6,422.4 Million in 2018 and is predicted to reach USD 13,100.5 Million by the end of 2024.
Moreover, based on the components, the controlled environment agriculture market is further sub-segmented into lighting, growing media, nutrients, and others. The global controlled environment agriculture market for nutrients segment is projected to brandish an average growth opportunity of USD 3,198.9 Million from the period of 2019-2024. The nutrients segment is expected to grow at a CAGR of 15.4% over the forecast period i.e. 2019-2024. The Y-o-Y growth rate is projected to rise by 18.5% over 2024 as compared with previous years.
Geographical Analysis
Geographically, the report offers an analysis of North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In the controlled environment agriculture market, Europe is projected to capture a large market share over the forecast period. Europe controlled environment agriculture market reached USD 28,903.5 Million in 2018 and is expected to witness a CAGR of 14.9% over the forecast period. In addition to this, Europe controlled environment agriculture market value is projected to witness a Y-O-Y growth of 17.9% in 2024 as compared to previous years. Europe controlled environment agriculture market represented a market share of 50.1% in 2018 and is likely to account for a notable market share by the end of 2024.
Competitive Analysis
The report also covers detailed competitive analysis of major market players of the global controlled environment agriculture market, such as Pentair Aquatic Eco-Systems, Inc., Everlight Electronics Co. Ltd., Illumitex Inc., Aerofarms, Amhydro (American Hydroponics), Innovation Agri-Tech Group, Green Sense Farms, Fresh Box Farms, Grow Pod Solutions, LLC, Nelson and Pade, Inc. and others prominent players. The controlled environment agriculture market is witnessing a wide range of industry activities such as product launch, acquisition, advancement, joint venture and expansion across the globe. For instance, on 16th March 2018, Green Sense Farms announced the transformation of Portage, Indiana farm into research and development center. Further, the opening of new research & development center is enabling the company to discover new techniques in vertical farming.
Segmentation
By Crop:
- Lettuce & Leafy Greens
- Cucumber
- Tomato
- Peppers
- Cannabis
- Strawberries
- Others
By Growing Method:
- Hydroponics
- Aquaponics
- Aeroponics
- Others
By Components:
- Lighting
- Growing Media
- Nutrients
- Others
By Geography:
- North America (U.S. & Canada)
- Europe (Germany, United Kingdom, France, Italy, Spain, Russia and Rest of Europe)
- Asia Pacific (China, India, Japan, South Korea, Indonesia, Taiwan, Australia, New Zealand and Rest of Asia Pacific)
- Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
- Middle East & Africa (GCC, North Africa, South Africa and Rest of Middle East & Africa)
Competitive Landscape
The report profiles various major market players such as
• Pentair Aquatic Eco-Systems, Inc.
• Everlight Electronics Co. Ltd.
• Illumitex Inc.
• Aerofarms
• Amhydro (American Hydroponics)
• Innovation Agri-Tech Group
• Green Sense Farms
• Fresh Box Farms
• Grow Pod Solutions, LLC
• Nelson and Pade, Inc.
• Other Major & Niche Players
Competitive landscape analysis provides detailed strategic analysis of the company’s business and performance such as financial information, revenue breakup by segment and by geography, SWOT Analysis, key facts, company overview, business strategy, key product offerings, marketing and distribution strategies, new product development, recent news (acquisition, expansion, technology development, research & development and other market activities).
The study also provides a company’s positioning and market share in the controlled environment agriculture market.
Timeline Considered for Analysis:
- 2018: Base Year
- 2019: Estimated Year
- 2019 to 2024: Forecast Period
Research Scope and Deliverables
Overview & Executive Summary
Market Drivers, Trends, Challenges and Opportunities
Market Size and Forecast Projections
Macroeconomic Indicators of Various Countries Impacting the Growth of the Market
Extensive Coverage of Industry Players including Recent Product Launches and Market Activities
Porter’s Five Force Analysis
Market Segmentation Analysis:
Industry report analyzes the global controlled environment agriculture market by the following segments:
- Crop
- Growing Method
- Components
Customization: We also offers customization’s in the industry report as per the company’s specific needs.
Key Questions Answered in the Global Controlled Environment Agriculture Industry Report
• What is the overall market size in 2018? What will be the market growth during the forecast period i.e. 2019-2024?
• Which region would have a high demand for the product in the upcoming years?
• What are the factors driving the growth of the market?
• Which sub-market will make the most significant contribution to the market?
• What are the market opportunities for existing and entry-level players?
• What are various long-term and short-term strategies adopted by the market players?
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