(MENAFN- GlobeNewsWire - Nasdaq) Key market opportunities in controlled environment agriculture include urban food demand, organic food growth, investment in vertical farming, and adoption of smart automation. Trends like pesticide-free crop production and energy-efficient systems are notable. Global trade changes and tariffs on equipment impact cost-sensitive areas, while promoting domestic innovation.Dublin, Feb. 26, 2026 (GLOBE NEWSWIRE) -- The "Controlled Environment Agriculture Market Report 2026" report has been added to ResearchAndMarkets's offering.
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.
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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.
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.
Scope
Markets Covered:
Components: Lighting; Climate Control; Nutrients; Other Components Growing Method: Hydroponics; Aeroponics; Aquaponics; Other Growing Methods Crop Types: Tomato; Leafy Greens; Strawberries; Cucumber; Pepper; Cannabis; Other Crop Types
Subsegments:
Lighting: LED Grow Lights; High-Pressure Sodium (HPS) Lights; Metal Halide (MH) Lights; Fluorescent Grow Lights; Light Emitting Diodes (LED) For Spectral Control Climate Control: Temperature Control Systems; Humidity Control Systems; Air Circulation And Ventilation Systems; CO2 Enrichment Systems; Dehumidifiers And Humidifiers; Air Filtration And Purification Systems Nutrients: Organic Nutrient Solutions; Synthetic Nutrient Solutions; Hydroponic Nutrient Solutions; Fertilizers For Controlled Environments Other Components: Irrigation Systems; Automation And Monitoring Systems; Sensors For Environmental Monitoring; Grow Mediums; Pumps And Water Treatment Systems
Key Attributes:
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