The global controlled environment agriculture market is experiencing significant growth and is expected to grow considerably in the next few years. Controlled environment agriculture is a modern method of crop production inside a controlled environment such as greenhouses, vertical farms, and growth chambers. Moreover, it assists in minimizing any danger to the crop from outdoor pests, pollution, and extreme weather conditions. In addition, there are various technologies that are used in this technique of crop production, such as hydroponics, aeroponics, and aquaponics. These advanced farming techniques are effective in preventing wastage of water and optimal use of nutrients.
Furthermore, high yield and ability to produce crops all year round are the major factors driving the demand for controlled environment agriculture. It is commonly used for crops such as flowers, mushrooms, strawberries, peppers, and tomatoes. Moreover, controlled environment agriculture is a relatively new method of crop production, and major players in the controlled environment agriculture industry have introduced advanced technologies in their products to sustain the competition in the controlled environment agriculture market.
Market Scope and Structure Analysis
Description
Controlled environment agriculture is an indoor crop production method that allows farmers to keep humidity, temperature, and other aspects of the crop’s environment in control. It is a soilless method in which the roots of plants are exposed to air or water. The nutrients are either sprayed onto the roots or introduced into the water. It is a cost-effective method that utilizes resources in an optimal manner. In a controlled environment, the plants have better health and faster growth, which reduces the need for pesticides and other supplements.
COVID-19 Impact analysis
- The COVID-19 pandemic ceased the production of various products in the controlled environment agriculture industry, which is attributed to the global lockdown. This has hampered the growth of controlled environment agriculture market in the years, and a similar trend is expected to be seen in the first half of 2022.
- The major demand for controlled environment agriculture was previously noticed from giant developed and developing countries, including the U.S., Germany, Italy, the UK, India and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand for controlled environment agriculture.
- Further, the long-term impact of the lockdown is currently vague and financial recovery of companies is totally based on their cash reserves. Controlled environment agriculture manufacturers can afford a lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce their expenses. On the contrary, few players adopted employee lay-offs to sustain themselves during the COVID-19 health crisis
- Controlled environment agriculture manufacturers are expected to focus on protecting their workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
Top Impacting Factors
For instance, around 40% of the global population has agribusiness as their core occupation, and to increase the productivity of their crops, farmers use the latest technologies such as controlled environment agriculture techniques, thus boosting demand in the controlled environment agriculture market. The global population is set to increase to 9.5 billion in 2050 from 7.8 billion in 2021. This trend is expected to increase the demand for agricultural products, thereby increasing the demand for controlled environment agriculture markets. Moreover, the liberty offered by the controlled environment agriculture method to grow a crop all year-round without the fear of extreme weather conditions is driving the growth of controlled environment agriculture market. Furthermore, controlled environment agriculture techniques enable the farmer to optimally use the scarce resources while keeping productivity higher. This factor is anticipated to boost demand in the controlled environment agriculture market. However, the high setup cost is one of the restraining factors, hindering the growth of the controlled environment agriculture market. Contrarily, technological developments in controlled environment agriculture products such as adoption of the low-energy glasshouse concept, technological advancement in liquid desiccant cooling, and use of the internet of things (IoT) is expected to boost the productivity of the equipment. This is anticipated to create lucrative opportunities for the growth of the controlled environment agriculture market during the forecast period.
Market Trends
- New products that contain improved capabilities are launched by leading market players. They take the necessary steps to improve the overall functionality of the products. For instance, in August 2020, the UAE-based controlled environment agriculture systems manufacturer Smart Acres launched a vertical hydroponics system in the UAE. This system uses IoT-based technology to help the growers with monitoring and growing crops while using fewer resources.
- Similarly, businesses in the agrobusiness market adopted acquisition as their key developmental strategy to expand their geographical foothold and upgrade their product technologies. Suumaya Industries Ltd, an Indian textile and agri-commodity company, for example, acquired a 51 percent stake in a new agri-tech startup, payAgri Innovations Pvt Ltd, a tech-driven agri and Food Company, in August 2021.This move will assist Suumya Industries to expand its farm business.
- Moreover, collaboration strategies assist in leveraging the strengths of other market players in similar businesses to help in gaining significant market share for controlled environment agriculture products. For instance, in August 2021, Cargill, a business in agriculture technology, entered into a multi-year research agreement with AeroFarms, a business in vertical farming. This collaboration is aimed at improving the yield of cocoa beans and developing better farming practices.
Key Benefits of the Report
- This study presents the analytical depiction of the controlled environment agriculture industry along with the current trends and future estimations to determine the future investment pockets.
- The report presents information related to key drivers, restraints, and opportunities, along with detailed analysis of the controlled environment agriculture market share.
- The current market is quantitatively analyzed to highlight the controlled environment agriculture market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed controlled environment agriculture market analysis based on competitive intensity and how the competition will take shape in coming years.
Controlled Environment Agriculture Market Report Highlights
| Aspects | Details |
 By Growing Method |
|
 By Technology Type |
|
 By Crop Type |
|
 By Region |
|
 Key Market Players | CEA Fresh Farms, Green Sense Farms Holdings, Inc., Lufa Farms Inc., Sky Greens, Growing Greens, Gotham Greens, Bright Farms, Plenty, AeroFarms, Upward Farms |
Loading Table Of Content...
