Research and Markets Report Sets a $28B Target on Cannabis Tech

DUBLIN – The Cannabis industry has transformed from plant cultivation to infrastructure development. Today, institutional-grade technologies reshape the way the global supply chain works, and the numbers behind this evolution are capturing the attention of sectors far beyond Cannabis.

A new report from Research and Markets places the global Cannabis technology sector on track to reach approximately $28 billion by 2032, growing at a CAGR close to 25% through the end of the decade, up from a baseline of around $6.2 billion in 2024. The figures align broadly with projections from other research firms, Grand View Research and Coherent Market Insights, that peg similar growth trajectories, with some models running the market considerably higher depending on scope and methodology.

What’s driving the numbers? Increasing legalization, tightening compliance requirements, and pressure to optimize yields and cut costs are the primary forces behind investment in Cannabis-specific technologies, ranging from automation and AI-powered cultivation systems to seed-to-sale tracking and digital retail infrastructure. Operators increasingly turn to these solutions to manage tight regulations, control costs, and maintain consistent quality as markets develop.

The hardware segment [think controlled-environment grow systems, sensor arrays, and automated processing equipment] is projected to reach $16.8 billion by 2030, growing at a 28.5% annual clip. The software component is advancing more modestly, at 18.3% annually, but represents a stickier, recurring-revenue business that many investors tend to find more attractive over the long run.

Geographically, North America remains the dominant region. Separate Research and Markets data on the region shows it valued at $12.7 billion in 2023, with forecasts pointing to $71.07 billion by 2030 at a 28.3% CAGR. This outpaces broader global figures, reflecting the concentration of legal markets and operator investment in the U.S. and Canada. China, by contrast, is forecast to reach $3.6 billion by 2030, advancing at a 23.4% annual rate. Japan and Canada are each projected to grow north of 20% annually through the end of the decade.

The report covers growth trends across Europe and the broader Asia-Pacific region – a geographic scope that reflects how far regulatory acceptance of Cannabis technology has spread beyond its North American origins. Germany’s medical Cannabis market, now open to a growing roster of licensed suppliers, is drawing particular attention from technology vendors building compliance and traceability infrastructure suited to the EU regulatory framework.

The analysis also highlights surging venture capital interest as a distinct accelerant, with institutional money beginning to treat Cannabis technology as a standalone vertical rather than a subset of either Cannabis or general agritech. That framing shift, subtle as it sounds, has practical consequences for how deals get structured and how technology companies in this space are valued.

Additionally, incorporating global tariff developments and their impact on the Cannatech market, the report provides revised forecasts that account for supply chain disruptions and geographic realignment tied to ongoing trade tensions. It’s a detail that most sector-level reports omit, and one that matters for hardware-heavy businesses with complex international supply chains.

Reading between the lines, 26% CAGR sustained over six years would represent one of the more durable growth stories in the broader tech sector, not just in Cannabis. The Research and Markets figures suggest that as legal markets mature and consolidation pressure forces operators to compete on efficiency rather than novelty, the companies supplying the tools to run leaner, more compliant operations stand to capture meaningful value, regardless of which brands, strains, or retail formats ultimately dominate the shelf.