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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 11,021.23 million. The growth of the market depends on several factors, including increased urban demand driving horticultural production, government support for greenhouse horticulture in developing economies, and improvements in CO2 extraction technologies for greenhouses.
This report extensively covers market segmentation by product (plastic and glass), crop type (fruits and vegetables, nursery crops, flowers and ornamentals, and others), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The improvements in CO2 extraction technologies for greenhouses is notably driving the market growth, although factors such as high costs associated with greenhouses may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the improvement in CO2 extraction technologies for greenhouses. Plants need CO2 to produce glucose during the process of photosynthesis. The amount of CO2 available in the air is only 0.04% by volume. Greenhouses require additional CO2 to be given to the plants for increasing the yield, even with proper ventilation. CO2 can be extracted from the air using different techniques.
A recent technique called direct air capture captures CO2 directly from the atmosphere. Companies are coming up with advanced technology to extract CO2. For instance, Climeworks has recently launched the world's first commercial plant for CO2 capture from the atmosphere. This plant aims to capture about 900 tons of CO2 per annum and distribute it to greenhouses for better vegetable cultivation. As CO2 becomes cheaper, farmers can pump it into their greenhouses to improve the yield, thus enhancing their margins. The adoption of this method of farming will catch up speed as greenhouse horticulture becomes more profitable.
Improvement in materials for retaining heat in greenhouses is the key trend in the market. In passive thermal management for a greenhouse, the walls and floors can be made of materials that can store heat during hotter temperatures and release heat during colder temperatures. PCMs are such materials helping in the passive thermal management of greenhouses.
The market for PCM is growing with applications in building and construction, cold chains, refrigeration, and textile industries besides greenhouses. These materials are provided by leading vendors such as Henkel, Salca, Sasol, BASF, and The Dow Chemical Company. The latest advances in these materials can help in reducing the high operating costs associated with electrical heating systems in greenhouses. This is mainly for the small and medium-sized greenhouse owners for whom installation and maintenance of electrical heating systems are costly.
High costs associated with greenhouses are one of the major challenges hindering the market growth. Building high-quality greenhouses for the best yields can incur high capital and operating expenses. Maintaining the characteristics of a greenhouse for desired plant growth requires a recurring expenditure on items such as plastic/glass roofing as well as climate control equipment such as vents, fans, heaters, and lighting systems. These will be treated as capital expenditures, which is a one-time expense.
On the other hand, the average cost of erecting 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. Maintenance costs for a greenhouse can include costs of cleaning and repairing faulty equipment, heaters, ventilation and irrigation systems, screens, fans, and glasshouses. Therefore, high costs will continue to hamper the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Greenhouse Horticulture Market Customer Landscape
Vendors 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.
Top Greenhouses Ltd. - The company offers greenhouse horticulture solutions such as Top Nethouses, Top Koren, and Top Tropical. The company offers tailor-made solutions for the growth of crops using the indoor crop growth method which neutralizes the impact of weather hazards and enables year-round growth.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the plastic segment will be significant during the forecast period. Plastic greenhouses are generally made from polycarbonate, acrylic, polyethene, or fibreglass. Polycarbonates and acrylics are plastic materials having high impact strength and protecting crops from snow as well as hail without breaking. Hence, the use of plastic greenhouses will increase during the forecast period.
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The plastic segment was valued at USD 16,991.87 million in 2017 and continued to grow until 2021. The adoption of plastic greenhouses is increasing in developing countries due to lower initial investment costs compared with glass greenhouses. Materials such as polyethylene are being used extensively by farmers due to their cost advantage. Another advantage of plastic coverings for greenhouses is that they can be modified according to requirements such as light transmission, impact strength, and dust or water resistance.
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Europe is estimated to contribute 56% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Characteristically, the greenhouses in Europe are designed to allow higher passage of light due to their location at a higher latitude than other regions. At higher latitudes, the daytimes are shorter during winter, which requires greenhouses to be made such that they allow maximum sunlight during the day. The Netherlands is one of the leading countries in producing greenhouse products and exports of greenhouse components and technologies. In terms of horticultural products, it has a market share of more than 10% globally in those products. Various free trade agreements in the Eurozone with countries such as Iceland and Norway have helped the country become a large exporter of greenhouse products and technologies. Furthermore, the market for greenhouse horticulture in the Netherlands is growing at a fast pace due to the presence of many vendors.
The outbreak of COVID-19 had a negative impact on the regional market. However, owing to the removal of lockdown restrictions, the supply chains were restored, and manufacturing units of key vendors of greenhouse horticulture in Europe resumed operations. Such factors are expected to boost the growth of the regional market during the forecast period.
The 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.
Greenhouse Horticulture Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.69% |
Market growth 2023-2027 |
USD 11,021.23 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.58 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 56% |
Key countries |
US, China, India, Germany, and Spain |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Asian Perlite Industries Sdn Bhd, Batenburg Techniek NV, Beijing Kingpeng International Hi-tech Corp., Beijing Orient View Technology Co. Ltd., Ceres Greenhouse Solutions, Certhon Build B.V., CMF Groupe, Dalsem Greenhouse Projects BV, Europrogress Srl, Industries Harnois Inc., Novavert GmbH and Co. KG., Orbia Advance Corp. SAB de CV, Priva Holding BV, Richel Group SAS, Ridder Drive Systems BV, Rough Brothers Inc., Tapex Group Pty Ltd., Top Greenhouses Ltd., Trinog xs Xiamen Greenhouse Tech Co. Ltd., and Van der Hoeven Horticultural Projects BV |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Crop Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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