The cannabis cultivation market constitutes products such as irrigation systems, lighting systems, cultivation software, sensors, climate control systems and more that enable effective cultivation of cannabis plants. These products help in creating optimal conditions for cannabis plant growth by regulating and controlling factors like temperature, humidity, nutrients, water, lighting and carbon dioxide. The advanced cannabis cultivation technologies available today help cultivators maximize crop yields while maintaining high quality.
The Global Cannabis Cultivation Market is estimated to be valued at US$ 18.53 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the cannabis cultivation market are IMBiotechnologies Ltd., ABK Biomedical Inc., EmboMedics, Guerbet, Boston Scientific Corporation, Medtronic Plc., Varian Medical Systems, Inc., Terumo Corporation, Merit Medical Systems, Inc., Cook Group, and Johnson & Johnson.
The growing legalization of cannabis for medical and recreational use across various countries is fueling the demand for cannabis cultivation products. Various states in the U.S. and countries like Canada have legalized adult-use of cannabis which is positively impacting the market.
Major cultivators are expanding globally to capitalize on the accelerating commercial opportunities. Cannabis companies are undertaking mergers and acquisitions to enhance their international presence. Such strategic moves are helping cultivators serve the rising global demand.
Market key trends
One of the major trends gains traction in the Cannabis Cultivation Market Demand is the increasing adoption of artificial intelligence and IoT. Cultivators are implementing AI and IoT enabled sensors, cameras, hydroponic systems for real-time monitoring of growing conditions. This allows them to dynamically adjust environments for optimal plant growth. Other emerging technologies like genome editing and gene modification are also being explored to develop cannabis varieties with tailored cannabinoid profiles.
Porter’s Analysis
Threat of new entrants: High capital requirements for infrastructure like greenhouses and equipment pose barrier for new players.
Bargaining power of buyers: Many provincial regulators control wholesale prices thus limiting buyer power.
Bargaining power of suppliers: Large cultivators can squeeze input costs due to economies of scale and negotiating power.
Threat of new substitutes: None currently as cannabis is unique product but hemp/CBD products may emerge as substitutes.
Competitive rivalry: Intense among cultivators to supply major distributors leading to price competition.
Geographical Regions
North America currently dominates cannabis cultivation for value due to legalization in Canada and some US states. Canada alone accounted for over 50% of global value in 2021 supported by sizable cultivation areas in provinces like Ontario and British Columbia.
The Asia Pacific region is forecasted as the fastest growing for cannabis cultivation between 2024-2031. Countries like Thailand, Australia, South Korea and others legalizing medical use will drive value growth higher than other regions. Supportive regulations for research and emerging patient populations make Asia Pacific an important emerging market for cannabis cultivation.