Commercial Greenhouse Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Commercial Greenhouse Market size was estimated at USD 41.5 billion in 2023 and is projected to reach USD 72.2 billion in 2030 at a CAGR of 10.9% during the forecast period 2024-2030.

The commercial greenhouse market is experiencing robust growth driven by a confluence of factors centered around sustainability, technological advancements, and the need for reliable food production in changing environmental conditions. These greenhouses offer controlled environments that optimize growing conditions for a variety of crops, including fruits, vegetables, flowers, and herbs.

Key drivers of market expansion include increasing global population coupled with decreasing arable land per capita. This trend necessitates more efficient agricultural practices to meet food demand sustainably. Commercial greenhouses provide a solution by enabling year-round cultivation unaffected by external weather constraints, thus ensuring consistent and reliable crop yields.

Technological innovations play a pivotal role in shaping the market landscape. Automation, smart controls, and precision farming technologies have revolutionized greenhouse operations. These advancements improve efficiency, optimize resource use, and enhance crop quality and yield. Integration of systems such as heating, cooling, ventilation, LED grow lights, and sophisticated irrigation systems further augment productivity and operational efficiency.

Environmental considerations also drive market preferences. Consumers increasingly prioritize environmentally friendly and energy-efficient solutions. Commercial greenhouses, with their ability to minimize water usage, reduce pesticide applications, and control carbon footprints, appeal to environmentally conscious consumers and regulatory bodies alike.

Regionally, the Europe market is poised for significant growth, fueled by rapid urbanization, population growth, and shrinking cultivable land. Countries like Germany and France are leading this expansion due to increasing food demand and government initiatives supporting agricultural modernization.

Challenges persist, particularly concerning high initial investment costs associated with greenhouse setup and maintenance. However, advancements in materials and technologies are gradually lowering these barriers, making greenhouse farming more accessible to a broader range of growers.

Looking forward, the commercial greenhouse market is expected to continue its upward trajectory, driven by technological innovation, environmental sustainability goals, and the imperative to meet global food security challenges. As demand for fresh produce grows and land availability declines, commercial greenhouses represent a vital component of future agricultural systems, offering efficient, sustainable, and scalable solutions to feed a burgeoning global population.

Delvens Industry Expert's Standpoint

The commercial greenhouse market continues to thrive due to several key factors. High crop yield rates, irrespective of climatic challenges, drive adoption, particularly as global population growth and shrinking arable land intensify food demand. Consumers' preference for year-round access to fresh, locally sourced produce further boosts market growth, supported by rising disposable incomes and health-conscious choices.

Government initiatives, such as funding and grants for greenhouse expansion and R&D, bolster market dynamics. Rapid urbanization and changing weather patterns also propel the adoption of commercial greenhouses in traditional farming practices.

Looking ahead, the market is poised for substantial expansion. Increasing global population and urbanization trends will sustain demand for efficient food production solutions. Emerging economies, with rising disposable incomes and a growing appetite for fruits, vegetables, and ornamental plants, will drive further market growth. Technological advancements in automation, smart controls, and sustainable practices will continue to enhance productivity and operational efficiency.

Overall, the commercial greenhouse market is expected to see robust growth as it addresses food security challenges while aligning with sustainable agriculture practices globally.

Market Portfolio

Key Findings

• On the basis of Type, Plastic greenhouses offer a cost-effective alternative to traditional glass structures, making them accessible to a wider range of producers, including small and medium-sized businesses. Their affordability stems from lower construction and material costs, facilitating broader market adoption. Additionally, plastic's superior insulation properties help retain heat efficiently, reducing energy expenses associated with temperature control. These advantages contribute significantly to market expansion, with plastic greenhouses emerging as the fastest-growing segment due to their ability to enhance thermal efficiency and operational cost-effectiveness.

• On the basis of Crop-type, Greenhouse environments provide meticulous regulation of temperature, humidity, light, and nutrients, optimizing conditions for robust crop growth and yielding high-quality produce. This precision is crucial as consumer demand grows for nutritious and aesthetically pleasing vegetables, staples in global cuisine. The perpetual need for vegetables across various culinary applications underscores their consistent market demand, positioning greenhouse farming to thrive in the years ahead.

• On the basis of Equipment, The hardware segment is anticipated to lead the commercial greenhouse market, essential for constructing and sustaining greenhouse structures. These components are designed to withstand diverse environmental challenges like wind, snow, rain, and extreme temperatures. High-quality hardware ensures durability and reliability, reducing maintenance costs and enhancing overall savings for greenhouse operators. As commercial greenhouse farming expands into diverse climates and agricultural settings, there is a growing demand for adaptable and dependable hardware solutions to support operational needs effectivel.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Europe held the largest Commercial Greenhouse Market share. Factors such as reduced shipping costs, and a focus on sustainable farming. Automation and robotics optimize productivity, while hydroponics, aeroponics, and vertical farming enhance resource efficiency.

Regional Analysis

Europe to Dominate the Market

• Europe dominates the greenhouse installation market, led by Germany, known for its advanced smart greenhouse horticulture techniques. In 2021, Germany cultivated 1191 hectares under greenhouses, primarily for tomatoes (397.74 hectares) and cucumbers (217 hectares). Key regions include North Rhine Westphalia, Rhineland Palatinate, and Lower Saxony. Subsidies covering up to 60% of expenses for energy-efficient greenhouses support cost reduction initiatives. The United Kingdom has also seen substantial growth, with companies like Tomtech introducing advanced control and monitoring systems in April 2022. These systems automate management of light, heat, air circulation, irrigation, fertigation, and fertilizer dosing, optimizing growth conditions effectively.

Competitive Landscape

• Berry Global
• Signify Holding
• Heliospectra AB
• Plastika Kritis
• Everlight Electronics
• Richel Group
• Argus Control Systems
• Certhon
• Logiqs BV
• LumiGrow
• Agra-tech, Inc
• Rough Brothers, Inc
• Hort Americas
• Top Greenhouses
• Stuppy Greenhouse
• The Glasshouse Company
• DeCloet Manufacturing Ltd
• Europrogress
• Luiten Greenhouses
• Sotrafa
• Nobutec BV
• Ammerlaan Constructions
• Ludy Greenhouse
• Saveer Biotech Ltd
• Harford

Recent Developments

• In September 2023, Richel Group has entered a three-year exclusive strategic partnership to enhance its capabilities in designing, manufacturing, and constructing advanced greenhouses in demanding climates and remote regions such as the Middle East and Asia.

• In June 2023, Certhon and Living Greens Farm have formed a strategic partnership to advance and expand globally Living Greens Farm's innovative aeroponic growing technology. Certhon will contribute its technological know-how and international network to develop and promote the aeroponics technology worldwide, excluding North America.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
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• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope