Controlled Environment Agriculture Market Report 2026

The controlled environment agriculture market size has grown rapidly in recent years. It will grow from $103.33 billion in 2025 to $118.2 billion in 2026 at a compound annual growth rate (CAGR) of 14.4%. The growth in the historic period can be attributed to rise in urban food demand, limited arable land availability, growth of greenhouse farming, increased focus on food safety, early adoption of hydroponics.

The controlled environment agriculture market size is expected to see rapid growth in the next few years. It will grow to $200.07 billion in 2030 at a compound annual growth rate (CAGR) of 14.1%. The growth in the forecast period can be attributed to increasing investment in vertical farming, rising adoption of smart automation systems, growing demand for sustainable food production, expansion of climate-resilient agriculture, rising energy-efficient lighting integration. Major trends in the forecast period include rising adoption of high-yield indoor farming, growing demand for pesticide-free crop production, increased use of energy-efficient lighting systems, expansion of urban vertical farming facilities, growing preference for year-round controlled crop cultivation.

The increasing demand for organic food is expected to drive the growth of the controlled environment agriculture market going forward. Organic food is produced using methods that avoid synthetic pesticides, fertilizers, genetically modified organisms, and artificial additives, focusing instead on natural processes and sustainable practices. The popularity of organic foods is rising as consumers become more aware of health benefits, environmental sustainability, and the appeal of natural, chemical-free products. Controlled environment agriculture supports organic food production by offering a regulated setting that eliminates the need for synthetic pesticides and fertilizers, enabling year-round cultivation of organic crops under optimized conditions with precise control over light, temperature, and nutrients. For example, in May 2024, according to the Organic Trade Association, a U.S.-based business association, U.S. sales of certified organic products reached a record $69.7 billion in 2023, reflecting a 3.4 percent increase and bringing the sector close to the $70 billion milestone. Therefore, the rising demand for organic food is fueling the growth of the controlled environment agriculture market.

Leading companies operating in the controlled environment agriculture market are focusing on developing innovative solutions, such as transformative initiatives to enhance crop productivity, resource efficiency, and sustainable food production. Transformative initiatives refer to groundbreaking programs or strategies designed to bring significant positive change, such as improving efficiency, sustainability, or innovation within an industry. For instance, in October 2025, the University of Wyoming, a US-based public land-grant research university, launched the Controlled Environment Agriculture (CEA) Network to accelerate research, innovation, and workforce development in indoor and sustainable farming systems. The initiative aims to foster collaboration between academia, industry, and technology partners to advance climate-resilient food production methods. Through this network, the university seeks to enhance hands-on training, promote technology testing, and support the growth of Wyoming’s emerging controlled-environment agriculture sector.

In September 2023, Agrinam Acquisition Corporation, a Canada-based agribusiness company, acquired Freight Farms, Inc. for an undisclosed amount. This acquisition is intended to support Freight Farms' transition to a publicly traded company while boosting its growth and scalability in the Controlled Environment Agriculture (CEA) sector. Freight Farms, Inc., based in the US, is an agriculture technology company specializing in modular CEA systems.

Major companies operating in the controlled environment agriculture market are Siemens AG, Bowery Farming Inc., Priva Holding BV, Infarm, Gotham Greens Holdings LLC, BrightFarms Inc., AgriCool SAS, Terra Firma Capital Partners Limited, Lufa Farms Inc., Freight Farms Inc., AeroFarms LLC, Certhon, Vertical Harvest Farms, Green Sense Farms Holdings Inc., Sky Greens Pte Ltd., Urban Crop Solutions NV, Agrilution GmbH, Agritecture Consulting LLC, GreenTech Agro LLC, Kalera Inc., CubicFarm Systems Corp., Heliospectra AB, Hort Americas LLC, Mirai Co. Ltd.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on imported climate control equipment, LED lighting systems, and sensor technologies are increasing overall setup costs for controlled environment agriculture, slowing adoption in cost-sensitive markets across Asia-Pacific and Latin America. These tariffs particularly affect components such as HVAC units, lighting modules, and automated monitoring systems used in greenhouses and vertical farms. However, they may stimulate domestic manufacturing and localized supply chains, encouraging innovation in cost-effective CEA technologies while reducing dependency on foreign equipment.

The controlled environment agriculture market research report is one of a series of new reports that provides controlled environment agriculture market statistics, including the controlled environment agriculture industry global market size, regional shares, competitors with an controlled environment agriculture market share, detailed controlled environment agriculture market segments, market trends and opportunities, and any further data you may need to thrive in the controlled environment agriculture industry. This controlled environment agriculture market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Controlled environment agriculture (CEA) refers to farming systems that are designed to optimize growing conditions for plants by controlling variables such as temperature, humidity, light, and nutrient levels. These systems are typically used in enclosed or semi-enclosed environments, including greenhouses, vertical farms, and indoor farms, where environmental factors can be precisely managed to improve plant growth and yield.

The key components of CEA include lighting, climate control, nutrients, and other supporting technologies. Lighting plays a vital role in CEA systems, providing the energy needed for plant growth and development. Advanced lighting technologies, such as LED grow lights, allow for precise control over light spectrum, intensity, and duration, enabling optimized growth conditions for specific crops. The primary growing methods used in CEA are hydroponics, aeroponics, aquaponics, and others, which are employed for a variety of crops, including tomatoes, leafy greens, strawberries, cucumbers, peppers, cannabis, and more.Europe was the largest region in the controlled environment agriculture market in 2025. The regions covered in the controlled environment agriculture market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the controlled environment agriculture market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The controlled environment agriculture market includes revenues earned by entities by providing services such as nutrient management, pest and disease management, and automation and monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The controlled environment agriculture market consists of sales of lighting systems, climate control equipment, irrigation and fertigation systems, sensors and monitoring devices, and automated systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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