Commercial Greenhouse Market

Global Commercial Greenhouse Market Size

The global commercial greenhouse market was valued at USD 28.8 billion in 2023. The global market size is further anticipated to reach USD 60.02 billion by 2032 from USD 31.25 billion in 2024, growing with a CAGR of 8.5% from 2024 to 2032.

The increasing demand for floriculture and ornamental horticulture is expected to provide growth opportunities for the greenhouse market. The rising disposable incomes of the people are allowing them to invest in urban agriculture products as they are developed using advanced technology, augmenting the market growth opportunities. The increasing investments by manufacturers in the research and development activities of agriculture, where greenhouses are viable options for research purposes, are increasing the revenue of the greenhouse market. Rising concerns regarding food security and self-sufficiency are propelling the growth of the greenhouse market. The increasing possibility of growing transplants is expected to drive market revenue in the forecast period. A greenhouse is a plant that regulates conditions such as humidity and temperature, which are essential for the development of plants. Greenhouses provide excellent control over the plant's environment for the development of the people. Greenhouses are mainly used to cultivate fruits, vegetables, and flowers. Some greenhouses are built explicitly for cultivating tomatoes, which are generally used for commercial production. Greenhouses are widely used to cultivate transplants where the plants are grown in late winter and early spring and then transplanted outside when the weather gets warmer. 

MARKET DRIVERS

Growing Demand for Organic Food

According to the United States Department of Agriculture, in 2021, the U.S. lost 1.3 million acres of farmland for real estate. The rising demand for healthy and organically grown crops among people is propelling the growth of the commercial greenhouse market. The increasing prevalence of various health issues due to people's unorganized lifestyles is influencing them to adopt the consumption of organic and healthy-grown crop products, driving the adoption of greenhouse farming practices by raising market revenue. Greenhouse farming helps maintain the standard climatic conditions for plant development by increasing the crop yield and quality, which attracts consumers. Controlled agriculture technology is used in greenhouse farming, which helps cultivate numerous year-round grown crops such as tomatoes, lettuce, broccoli, and allium family, which reduces food wastage, disease, and pest prevention. The greenhouse is widely implemented for adequate cultivation in limited space. The decline in arable land due to the increasing construction of buildings and new developments is destroying the farmland. Greenhouse farming is an excellent choice for cultivating crops in limited space using modern agricultural techniques. Hydroponics and aquaponics are widely used in greenhouse farming, which is enhancing the growth of the greenhouse market size.

The increasing population is impacting land utilization, which is demanding higher crop yields in the limited space cultivation. The demand for crops grown hydroponically and by aquaponics aquaponics is increasing as the crops are grown without pesticides, boosting the greenhouse market growth. The rising advancements in agriculture technology with markable benefits such as smart control systems, hydroponics, aquaponics, and others are fuelling the growth of the greenhouse market. Increased yield results by greenhouse farming are propelling the global greenhouse market revenue. 

MARKET RESTRAINTS

High Initial Investments

The initial high investments in the greenhouse setup are the primary factor hampering the global market growth. Maintenance of the greenhouse includes installing LEDs for lighting, active heat systems, and hydroponic technology for plant development, which is expected to hinder the expansion of the greenhouse market. Complete dependency on non-renewable energy sources and fossil fuels is restraining greenhouse adoption across the globe. The absence of standard greenhouse setup regulations may lead to oversight in specific cases, which may restrain the market revenue. Some regions need more scalability, and crop diversity may hinder market growth. To practice greenhouse farming methods, skilled personnel must know traditional farming methods. More skilled personnel for developing greenhouse plants is a significant challenge for farmers. Farmers with low economic backgrounds need help adopting greenhouse farming due to expensive maintenance systems. The potential for pests and disease outbreaks is high as infection of one plant can lead to overall crop yield as the same water system connects all plants. Preventing crops from disease outbreaks is challenging as thorough observation is required, which limits the expansion of the greenhouse market. 

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Type Insights

The plastic type segment accounted for the largest market share of 56% in 2022 and is expected to maintain domination over the forecast period due to the low installation costs of the plastic greenhouse. In the plastic greenhouse segment, the polycarbonate segment held the largest share in 2022 as polycarbonate materials have longer lifespans and are shatter-resistant than glass materials. The polycarbonate greenhouse is highly flexible and can be bent without any breakage, driving the growth of the greenhouse market. 

The glass segment is expected to grow significantly over the forecast period as glass greenhouse is considered the strongest of all materials due to appearance, durability, and strength in the significant years. The glass greenhouse can be maintained for years by maintaining it correctly as it is trendy. All these factors expected the glass greenhouse to grow significantly in the forecast period.

By Offering Insights

The hardware segment dominated the global greenhouse market revenue, with the most significant market share of about 60% in 2022. The increasing demand by the farmers for hardware to maintain a suitable environment for greenhouse farming is propelling this segment in the market growth. The climate control systems maintain the suitable specific environment required for plant growth, making hardware a necessary tool in greenhouse farming—the growing adoption of intelligent agriculture among the farmers for innovative technology providing high-yield production. The climate control systems segment held the largest share and is anticipated to have a significant CAGR over the forecast period. The climate control system works according to the greenhouse requirement for crop development. This system helps control the climate of the greenhouse with chillers, heaters, humidifiers, and others, making the segment crucial for the greenhouse market expansion.

The software segment is anticipated to grow at a significant CAGR in the forecast period. The greenhouse software helps plan and track crops, reducing manual work. Software incorporation benefits farmers by providing adequate and environment-friendly farming methods. The web-based segment witnessed the largest share in the greenhouse software market. 

By Crop Type Insights

The fruits and vegetables segment dominated the greenhouse market with a significant share of 55% in 2022 and is estimated to maintain the domination during the forecast period. The rising cultivation of fruits and vegetables, commonly used by the people in the greenhouse segment, propels the market growth. Tomatoes, lettuce, and other vegetables and fruits can be grown year-round without any concerns regarding climatic conditions. Tomatoes are highly grown in greenhouse farming as they maintain the required temperature. 

The flowers and ornamentals segment is expected to grow significantly in market value over the forecast period as flowers are becoming the most attractive part of people's lives. 

By End-User Insights

The commercial growers segment dominated the greenhouse market revenue share of about 38% in 2022. Greenhouse farming is gaining popularity due to its benefits, increasing the adoption among commercial growers. The rising technological advancements are helping commercial growers maintain industry trends and pest control techniques, boosting market growth. 

Research and educational institutes are gaining traction in the greenhouse market as the greenhouse is a viable option for research activities. The increasing investments in research are fuelling greenhouse adoption by raising the market revenue. 

REGIONAL ANALYSIS

Europe held the largest share, 31%, of the greenhouse market revenue in 2022 and is estimated to dominate during the forecast period. The growing European population and decreasing land availability have influenced farmers to adopt the greenhouse farming technique, raising market revenue. The rising technological advancements in agriculture are augmenting the growth of market value. 

Asia Pacific region is second in the greenhouse market revenue and is expected to grow significantly over the forecast period. The rising concerns regarding food security and the growing population influence farmers to choose high-yield farming techniques. The rising health concerns of people are allowing them to choose healthy and organically grown plants for consumption to avoid pesticide-related health issues. The emerging countries in the region, such as Australia, India, Singapore, and others, are adopting greenhouse farming techniques, which is anticipated to propel the market revenue. 

KEY MARKET PLAYERS

Sotrafa, Berry Global, NETAFIM, Certhon, Richeal Group SA, Stuppy Greenhouse, Argus Control Systems Ltd., The Glasshouse Compan, Luiten Greenhouse BV and Agra Tech, Inc. are some of the major key players involved in the global commercial market.

RECENT HAPPENINGS IN THE MARKET

• In August 2023, Certhon announced its acquisition of DENSO to provide solutions to the greenhouse problem. The primary aim of the acquisition is to accelerate the global expansion of agricultural production by developing modern horticulture techniques. 
• In June 2023, Agrotech Armenia and Richeal Group organized the Yerevan Greenhouse Forum to launch greenhouse horticultural in Armenia. This conference mainly focused on developing high technology-based greenhouses by attracting local and international growers, governmental authorities, and research institutes. 
• In August 2022, the Republic Polytechnic Singapore Institute built a greenhouse project with research facilities for a naturally growing climate-controlled environment. This research project is built to provide training for the agricultural students. 
• In May 2022, Signify Holding acquired Fluence's rights to expand its product offering in indoor farming lighting solutions, which increased Signify Holding's position in the North American horticulture lighting market. 
• In February 2022, UbiQD, Inc., a Mexican technology in nanomaterials, launched quantum dot technology in the greenhouse business for creating a greenhouse layer of lights. 

MARKET SEGMENTATION

This research report on the global commercial greenhouse market is segmented and sub-segmented into the following categories.

By Type

• Glass Greenhouse
  • Horticulture Glass
  • Others
• Plastic Greenhouse
  • Polyethylene
  • Polycarbonate
  • Polymethyl-methacrylate

By Offering

• Hardware
  • Climate Control Systems
  • Lighting Systems
  • Irrigation Systems
  • Sensors
  • Others
• Software
  • Cloud-based
  • Web-based
• Services
  • System Integration & Consulting
  • Managed Services
  • Assisted Professional Services

By Crop Type

• Fruits and Vegetables
  • Tomato
  • Lettuce
  • Bell and Chilli Pepper
  • Strawberry
  • Cucumber
  • Herbs
• Flowers and Ornamentals
  • Perennials
  • Annuals
  • Ornamentals

By End-User

• Commercial Growers
• Research and Educational Institutes
• Retail Gardens
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa