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The commercial greenhouse market size is estimated to increase by USD 10.57 billion and grow at a CAGR of 10.72% between 2022 and 2027. Market expansion hinges on various factors, including advancements in CO2 extraction technologies within greenhouses, the growing importance of LED growth lights in commercial greenhouse operations, and a surging global population driving up food demand. However, the market faces hurdles such as the exorbitant costs linked with establishing commercial greenhouses, inadequate water resources for irrigation, and the substantial initial investment required. Overcoming these challenges necessitates innovative solutions and strategic investments to enhance efficiency and sustainability in greenhouse operations. Despite these obstacles, the market's potential for growth remains significant, driven by technological advancements and the imperative to meet the escalating food requirements of a burgeoning population. Adaptation and resilience are key in navigating the complexities of the industry and capitalizing on its promising prospects for expansion.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Market Customer Landscape
This report extensively covers market segmentation by type (plastic greenhouse and glass greenhouse), product (fruits and vegetables, flowers and ornamentals, and nursery crops), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The plastic greenhouse segment will account for a major share of the market's growth during the forecast period.?Plastics are generally made from polycarbonate, acrylic, polyethylene, or fiberglass. Polycarbonates and acrylics are plastic materials that are hail without breaking as well as they have high impact strength. They also protect crops from snow as well as hail without breaking. The inadequate use of these materials is high combustibility, resulting in higher insurance costs. Polyethylene transmits less light than glass and is resistant to the impact of hail.
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The plastic greenhouse segment was valued at USD 7.50 billion in 2017 and continued to grow until 2021.? Plastic lacks standardization in size and can be made into various sizes. Automated machinery for washing plastic roofs is in the development phases, and washing plastic greenhouses requires manual effort, resulting in high costs. However, the adoption of plastic greenhouses is rising in developing countries such as India and China due to lower initial investment costs compared with glass greenhouses. Hence, due to such advantages, the plastic segment of the global market is expected to boost during the forecast period.
Based on product, the market has been segmented into fruits and vegetables, flowers and ornamentals, and nursery crops. The fruits and vegetables?segment will account for the largest share of this segment.?Fruits and vegetables are an important part of the human diet as they are a rich source of essential nutrients that are needed to maintain good health. Mexico is the major producer and exporter of fruits and vegetables globally, which include fruits like citrus and melons, tomatoes, cucumbers, and tropical fruits. The demand for fruits and vegetables from commercial greenhouses is due to the rising disposable income of the population and the growing demand for fresh fruits and vegetables. Vegetables can be available to customers through retail distribution channels, both offline and online. There has been increased adoption of online channels such as Naturebasket and Fresh Produce Shoppe for purchasing vegetables. Hence, these factors will boost the growth of the market during the forecast period.
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North America is estimated to contribute 35% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. In North America most greenhouses are designed for heavy snow and wind conditions, Hence, having numerous structural components blocking sunlight. For instance, large greenhouses in the Americas are the Metrolina greenhouse for the growth of perennials (US) and Mucci farms for growing strawberries (Canada and US). It is estimated that in 2021, the horticulture business in the US was worth about USD 14 billion. This was more than an 18% increase since 2009.
Moreover, factors such as the legalization of cannabis or marijuana in Canada and some US states are also contributing to driving the growth, as cannabis is primarily grown under greenhouses. The US shows a high adoption rate owing to the rising demand for fruits and vegetables with minimized use of pesticides. Vendors such as Industries Harnois and Priva are in Canada and have installations of greenhouses at multiple locations. The legalization of cannabis in Canada for recreational purposes is contributing to the growth of the market.
In the ever-evolving market, consumer awareness drives innovation to overcome critical concerns like water scarcity and unfavorable weather. Hydroponic and aeroponic systems, along with multiple layers of cultivation, maximize efficient land utilization and spatial efficiency, catering to the needs of smaller scale farmers. Operational expenses are optimized through advanced irrigation systems, including drip and recirculation systems, while precise control over irrigation ensures reliable crop harvests. Advanced infrastructure, such as HVAC systems and LED grow lights, enhances control systems for vertical farming, resulting in higher crop yields. With sensors and LED grow light units providing precise environmental control, the market addresses challenges like water scarcity, ultimately promoting sustainable practices and higher productivity for the future of agriculture. Consumer awareness is a critical concern driving the growth of the commercial greenhouse market. Hydroponic systems offer efficient cultivation in compact areas, utilizing drip systems to nourish plant roots. LED grow light unit optimize growth conditions, enhancing productivity and sustainability. As demand for fresh produce rises, these technologies revolutionize agriculture, meeting consumer needs while conserving resources.
Improvements in CO2 extraction technologies for greenhouses serve as a pivotal driver for the global market's growth. In photosynthesis, plants require CO2 to produce glucose, but the atmospheric concentration of CO2 is merely 0.04% by volume, necessitating additional CO2 for optimal plant growth and higher yields in greenhouses. Advanced techniques, including direct air capture, biomass utilization, and geological engineering, are enhancing CO2 extraction efficiency. Market leaders like TNO, Climeworks, and Carbon Engineering are pioneering technologies to make CO2 extraction more affordable. With the cost of CO2 decreasing, farmers can enhance their operations by pumping in more CO2, ensuring precise control over irrigation and maximizing crop yields. As consumer awareness of sustainable farming practices grows and arable land becomes increasingly scarce, the adoption of advanced CO2 extraction technologies will play a crucial role in meeting rising food demands while optimizing spatial efficiency and resource utilization in commercial operations.
Government support for commercial greenhouses in developing economies is the primary trend in the global market. Developing economies such as India and China show multiple initiatives and promotions by their governments for the promotion. These initiatives aim to raise the efficiency and productivity, resulting in energy conservation and improving food sufficiency. For instance, in February 2022, the Government of Canada announced an investment of USD 75,000 in funding through the AgriRisk initiatives to enable Flowers Canada Growers to conduct a feasibility study to find long-term solutions that address insurance challenges in the floriculture greenhouse sector.
In addition, in December 2022, the Dutch Greenhouse Delta and the Municipality of Westland signed a partnership agreement for raising healthy and safe food sustainably and efficiently. This partnership will help to make a substantial contribution during the forecast period by providing sufficient healthy, affordable, and safe food that is produced sustainably and locally. Hence, such initiatives by the government to promote commercial greenhouse is expected to drive the growth of the global market during the forecast period.
High costs associated with commercial greenhouses is the key challenge for the growth of the global market. For building high-quality greenhouses for the best yields requires high capital and operating expenses. Maintaining the characteristics for desired plant growth requires a recurring expenditure on items such as climate control equipment such as vents, fans, heaters, and lighting systems as well as plastic roofing. These will be forcing and making high capital expenditures. The average cost of building a greenhouse can vary from USD 5,000 to USD 25,000 for a low-end basic greenhouse or a high-end technology-equipped greenhouse.
However, these can vary between regions. Greenhouses can have either active or passive climate control. The climate control for greenhouses is generally passive, which means accumulating solar heat through materials such as bricks, water, compost, or phase change materials (PCM). In addition, maintenance costs for a greenhouse also include costs of cleaning and repairing faulty equipment, heaters, ventilation, irrigation systems, screens, fans, and glasshouses. Hence, high costs associated with commercial greenhouses will impede the growth of the global market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Agra Tech Inc.: The company offers commercial greenhouses such as PlantCentrics.
Argus Control Systems Ltd.: The company offers commercial greenhouse solutions with a high-clarity tri-layer film that combines maximum protection with ease of installation to ensure long-term product quality, whatever the season.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
Greenhouse Horticulture Market- The greenhouse horticulture market is estimated to grow at a CAGR of 7.69% between 2022 and 2027. The size of the market is forecast to increase by USD 11.02 billion.
The commercial greenhouse market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market thrives amidst challenges like unfavorable weather and water scarcity, emphasizing reliable crop harvests and efficient land utilization. Critical concerns such as water scarcity necessitate advanced irrigation systems, including drip and recirculation systems, ensuring precise control over irrigation for optimal plant growth. Advanced infrastructure, including HVAC systems and LED grow lights, enhances operational efficiency despite energy-intensive climate control.
Additionally, automation systems mitigate elevated utility bills while meeting the increasing demand for aesthetically pleasing ornamental horticulture. Greenhouse farming shields sensitive plants from harsh weather, pests, and illnesses, ensuring greater aesthetic appeal and higher crop yields. With innovative farming techniques like hydroponics and vertical farming, the market addresses land use pressures and enhances food security through higher yields of nutritious, visually appealing vegetables, catering to evolving consumer demands.
Commercial Greenhouse Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.72% |
Market growth 2023-2027 |
USD 10.57 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.5 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, The Netherlands, Germany, and Spain |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agra Tech Inc., Argus Control Systems Ltd., Berry Global Inc., Certhon Build B.V., DeCloet Greenhouse Mfg. Ltd., Europrogress Srl, Gibraltar Industries Inc., Heliospectra AB, International Greenhouse Contractors LLC , LOGIQS B.V., Ludy Greenhouse Mfg. Corp., Luiten Greenhouses BV, PLASTIKA KRITIS SA, Prospiant Inc, Richel Group SAS, Saveer Biotech Ltd., Signify NV, Stuppy Greenhouse, The Glasshouse Company Pty Ltd., and Top Greenhouses Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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