Cannabis Technology Market Size and Trends

Global cannabis technology market is estimated to be valued at USD 4.10 Bn in 2024 and is expected to reach USD 20.01 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 25.5% from 2024 to 2031.

Cannabis Technology Market Key Factors

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The market is witnessing huge growth due to growing awareness regarding the health benefits of cannabis and relaxing regulations related to marijuana in numerous countries. Advent of innovative technological solutions for cannabis cultivation and processing can also drive the market growth. Automated cultivation and processing system are gaining popularity among cultivators and manufacturers with an aim to improve production efficiency. Advancements in AI and IoT can also drive the market growth. For example, AI and IoT based sensors are being used to carry out environment and soil monitoring for optimum cultivation.

Top Strategies Followed by Global Cannabis Technology industry Players

Established players in the global cannabis technology industry focus extensively on research and development to introduce innovative products. Companies like Canopy Growth and Aurora Cannabis invest over 10% of their annual revenues in R&D to develop higher quality, more effective cannabis products. These also form strategic partnerships with leading biotechnology and pharmaceutical companies. This allows them to leverage advanced research while strengthening their positions in pharmaceutical and medical applications of cannabis technology.
Mid-sized companies in the cannabis technology market focus on delivering cost-effective solutions. These introduce affordable hardware and software products to target price-conscious consumers. For example, MediPharm Labs offer generic cannabis oils and extracts at competitive prices. These players also form collaborations with local manufacturers to improve production capabilities. This helps boost overall volumes and market shares.
Small players in the cannabis technology market focus on niche segments, offering specialized products and services. They often target specific consumer needs, such as organic cultivation methods, custom extraction processes, or localized solutions.

Emerging Startups in the Global Cannabis Technology Market

Many startups are pioneering innovative cannabis technologies. Anthropic develops AI-powered tools to enhance plant cultivation and oil production. Its neural networks analyze vast datasets to optimize growing environments and yields. Startups like Phylos Bioscience apply genomics to classify and track cannabis strains, ensuring product quality and consistency.
Small, innovative companies focused on environmentally friendly practices are achieving success and contributing positively to the cannabis technology market. Kusch+Co launched compostable packaging and vape products made from renewable hemp cellulose, reducing waste and the environmental impact of the cannabis industry. Canopy Growth's CraftGrow program supports small farmers using eco-friendly regenerative farming methods.
Startups address niche market needs through collaboration, supported by initiatives like the Canadian Cannabis Technology Incubator, which helps them commercialize innovations via funding and industry partnerships.