Controlled Environment Agriculture Market to Reach USD 271.01 Billion by 2032 as Climate Volatility and Urban Food Demand Redefine Modern Farming
AUSTIN, Texas and TOKYO, Jan. 9, 2026 /PRNewswire/ -- According to DataM Intelligence, the global Controlled Environment Agriculture (CEA) Market reached USD 87.19 billion in 2024 and is projected to expand to USD 271.01 billion by 2032, growing at a strong CAGR of 15.23% during the forecast period 2025–2032. Driven by climate volatility, urbanization, and advances in automation and smart farming technologies, CEA is reshaping how food is grown, distributed, and consumed worldwide.
This rapid expansion reflects a structural shift in global food production. Traditional open-field agriculture is increasingly constrained by climate uncertainty, water scarcity, land availability, and supply-chain disruption. In contrast, controlled environment agriculture enables year-round, high-yield, resource-efficient food production independent of external weather conditions.
By 2030, CEA will move beyond being an alternative farming model and emerge as a core pillar of global food security, urban resilience, and sustainable agriculture.
Why Controlled Environment Agriculture Is Becoming Strategic, Not Optional
The acceleration of the CEA market is driven by three converging forces reshaping the global agri-food system.
- Climate volatility is disrupting conventional agriculture at scale. Extreme heat, droughts, floods, and unpredictable growing seasons are reducing yields and increasing price volatility. Controlled environments mitigate these risks by maintaining optimal growing conditions regardless of external climate.
- Urbanization and proximity to consumer demand are reshaping food supply chains. Cities increasingly require local, fresh, and traceable food sources. CEA facilities-especially vertical farms and indoor plant factories-enable production close to consumption centers, reducing logistics costs and spoilage.
- Technology has matured rapidly. Advances in LED lighting efficiency, hydroponics, aeroponics, IoT-enabled automation, and AI-driven crop management have significantly improved productivity, cost control, and scalability.
As a result, CEA is transitioning from niche innovation into mainstream agricultural infrastructure.
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Market Segmentation Analysis
By Facility Type
Greenhouses represent the largest share of the CEA market, accounting for approximately 41% of global market value in 2024, equivalent to around USD 35.7 billion.
Their dominance reflects widespread adoption across commercial agriculture due to relatively lower capital costs, scalability, and suitability for a wide range of crops.
Vertical farms account for approximately 27%, or USD 23.5 billion.
This segment is growing rapidly, driven by urban farming initiatives, high-density production, and integration with automation and robotics. According to DataM Intelligence analysis, vertical farms will be one of the fastest-growing facility types through 2032.
Container farms represent around 12%, or USD 10.5 billion, particularly attractive for decentralized and modular food production in remote or space-constrained locations.
Indoor plant factories account for approximately 14%, or USD 12.2 billion, supported by high-value crop production and pharmaceutical-grade cultivation environments.
By Crop
Leafy greens dominate the crop segmentation, accounting for approximately 38% of market value, or USD 33.1 billion in 2024. Their short growth cycles, high yield per square meter, and strong urban demand make them ideally suited for controlled environments.
Herbs and microgreens together represent around 22%, or USD 19.2 billion, driven by premium pricing and foodservice demand.
Tomatoes and berries account for approximately 19%, or USD 16.6 billion, benefiting from greenhouse and vertical farm expansion.
Mushrooms represent about 11%, or USD 9.6 billion, supported by their natural compatibility with controlled environments.
According to DataM Intelligence analysis, leafy greens will remain the primary revenue driver, while fruit crops will deliver strong incremental growth as technology improves.
By Technique
Hydroponics is the most widely adopted technique, accounting for approximately 36% of total market value, or USD 31.4 billion in 2024. Its efficiency, scalability, and compatibility with multiple crops make it the backbone of most CEA operations.
LED lighting systems represent around 24%, or USD 20.9 billion, reflecting continuous investment in energy-efficient, spectrum-optimized lighting.
IoT and automation account for approximately 18%, or USD 15.7 billion, enabling real-time monitoring, predictive analytics, and labor optimization.
Aeroponics contributes about 12%, or USD 10.5 billion, particularly in high-density vertical farming.
According to DataM Intelligence analysis, automation-driven techniques will gain increasing importance as labor costs and scale requirements rise.
By End User
Commercial agriculture dominates the market, accounting for approximately 52% of global value, or USD 45.3 billion in 2024.
Large-scale operators are investing in CEA to stabilize supply, improve margins, and meet retailer sustainability requirements.
Urban farming represents around 26%, or USD 22.7 billion, driven by city-based production models and retail partnerships.
Community-supported agriculture (CSA) accounts for approximately 14%, or USD 12.2 billion, reflecting localized food systems and consumer engagement.
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Regional Analysis
United States
The United States is the largest CEA market globally, accounting for approximately 37% of global revenue, or USD 32.3 billion in 2024.
Key Drivers:
- Strong investment in ag-tech and automation
- High urban demand for fresh produce
- Retail partnerships and private-label growth
- Water scarcity concerns in key agricultural regions
By 2032, the U.S. CEA market is expected to exceed USD 95 billion, maintaining leadership in technology adoption and scale.
Europe
Europe accounts for approximately 30% of global market value, supported by sustainability mandates, energy-efficient greenhouse systems, and strong consumer demand for local produce.
Competitive Landscape
The major global players in the market include Hydrofarm Inc., Illumitex, Virgo Technologies Inc., Heliospectra AB, Green Automation Group Oy, Kryzen Biotech, Agroz Group, Cultiveat, Boom Grow Farms, Gotham Greens, and others.
Hydrofarm Inc.
Hydrofarm is a prominent supplier of controlled environment agriculture inputs, supporting commercial indoor growers with hydroponic systems, grow lighting, climate control, nutrients, and cultivation accessories. The company plays a key enabling role in scaling indoor and vertical farming operations across North America.
Illumitex
Illumitex has been recognized for its horticulture-focused LED lighting technologies designed to enhance plant growth in indoor and controlled environments. Its solutions have supported vertical farms and greenhouse growers by optimizing light spectrum and energy efficiency across global markets.
Virgo Technologies Inc.
Virgo Technologies operates in the controlled environment and vertical agriculture space, focusing on sustainable indoor farming systems. The company supports modern agricultural practices in Canada, addressing yield stability and resource efficiency through CEA-based approaches.
Heliospectra AB
Heliospectra AB is a specialist in intelligent LED lighting and light control systems for greenhouses and controlled environments. Its advanced, data-driven lighting solutions help growers optimize crop quality, energy use, and operational efficiency, with a strong presence in Europe and expanding global reach.
Green Automation Group Oy
Green Automation Group delivers highly automated hydroponic greenhouse solutions, particularly for large-scale leafy green production. The company enables commercial growers to achieve consistent yields, reduced labor dependency, and efficient operations through advanced automation technologies.
What will define the Market by 2031–2032
By 2031, the controlled environment agriculture market will approach USD 245 billion, driven by:
- Increasing climate-resilient food production
- Expansion of vertical and indoor farming
- Greater automation and AI-driven crop management
- Rising urban and peri-urban demand
According to DataM Intelligence analysis:
- Greenhouses will remain the largest facility type
- Leafy greens will continue to dominate crop demand
- Hydroponics and automation will anchor technology adoption
- The U.S. will retain the largest regional share
By 2032, CEA will be recognized as essential infrastructure for sustainable, resilient, and scalable food systems.
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Executive Takeaway
For agribusiness leaders, investors, and policymakers, controlled environment agriculture represents a high-growth, technology-enabled solution to global food system challenges.
- Integrate automation and data-driven cultivation
- Optimize energy and water efficiency
- Align production with urban and retail demand
- Scale sustainably while controlling operational costs
Related Report:
- Smart Greenhouse Market Set to 10.1% CAGR Through 2031, Driven by IoT-Enabled Precision Agriculture: DataM Intelligence.
- Horticultural Greenhouse Market Set to Expand at a Robust 17.2% CAGR Through 2031 Amid Rising Demand for Controlled-Environment Farming - DataM Intelligence.
- Regenerative Agriculture Market Poised for Explosive Growth at an 18.2% CAGR to Reach USD 48.1 Billion by 2032 - DataM Intelligence.
- Climate-Resilient Agriculture Market to Reach USD 61.50 Billion by 2032, Expanding at an 11.23% CAGR - DataM Intelligence.
- AI in Agriculture Market to Skyrocket from USD 2.57 Billion in 2024 to USD 15.90 Billion by 2032 with a 25.60% CAGR - DataM Intelligence.
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