State of the Controlled Environment Agriculture Market A Qualitative Evaluation of Market Development and Operating Actors’ Needs

Abstract

The purpose of this thesis was to assess the current state of the Controlled Environment Agriculture (CEA) market. It aimed to identify the factors that drive or hinder the market’s development and explore how Ericsson can offer solutions that address the specific needs and challenges faced by industry participants. The study employed an inductive approach, utilizing qualitative data collection methods through interviews with CEA market actors, to identify underlying needs, obstacles, and drivers. The analysis yielded three key results: the current state of the market, actors’ needs and requirements, and implications for Ericsson. Environmental, financial, and political factors were identified as significant factors influencing the development of the market. Among the identified factors, environmental considerations, such as land use, water consumption, and climate change, were found to be key drivers for market development. However, challenges related to energy consumption and financial barriers emerged as obstacles hindering market growth. Furthermore, the study also identified 11 core needs among actors, grouped into 6 main categories: data collection, automation, parameter control, data transfer, financial, and energy. The implications for Ericsson indicate that the current market phase prioritizes product innovation over process efficiency, rendering Ericsson’s existing solutions such as 5G less relevant for actors operating in the market. Rather actors are currently focused on developing their own products as opposed to adopting advanced automation or IoT systems. CEA systems holds promise as potential solutions to global food production challenges, both in terms of yield efficiency and environmental impact. However, obstacles related to energy consumption, financial viability, consumer acceptance, and regulatory frameworks impede progress and must be addressed before the potential benefits can be obtained. A comprehensive approach involving policymakers, industry actors, technology providers, consumers, and research institutions is essential to fully unlock the potential of CEA in addressing the global food production crisis.