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The greenhouse horticulture market size is forecast to increase by USD 11.46 billion at a CAGR of 7.53% between 2023 and 2028. The greenhouse horticulture market is experiencing significant expansion, driven by multiple factors. Urbanization fuels this growth through increased demand for fresh produce, particularly in densely populated areas. In developing economies, government initiatives bolster the sector, providing financial and regulatory support for greenhouse cultivation.
Technological advancements, specifically in CO2 extraction methods, enhance the efficiency and productivity of greenhouse operations, further contributing to market expansion. These elements collectively shape the dynamic landscape of the greenhouse horticulture industry. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
Market Forecast 2023-2027
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In the context of global food production, the market has emerged as a reliable solution to ensure demand for high-quality, year-round crop production in unfavorable weather conditions and during extreme weather events. This market caters to various crop types, including vegetables, fruits, and ornamentals, using advanced greenhouse systems such as Plastic greenhouses, Glass greenhouses, Grow bags, Greenhouse films, and Horticulture twines. The market is gaining traction in emerging markets due to consumer's increasing awareness of the provenance and quality of greenhouse-grown products. However, environmental factors such as Carbon dioxide levels and water scarcity concerns pose challenges to this industry. Rapid urbanization and land constraints further necessitate the adoption of greenhouse solutions. Heating systems are an essential component of these advanced greenhouses, ensuring optimal growing conditions throughout the seasons. Overall, the Greenhouse Horticulture Market plays a crucial role in addressing the food security challenges of the 21st century while minimizing the impact on the environment. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
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.
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 companies 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.
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 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 17.82 billion in 2018. 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 by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout 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 companies.
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.
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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
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, Prospiant Inc, Richel Group SAS, Ridder Drive Systems BV, Tapex Group Pty Ltd., Top Greenhouses Ltd., Trinog xs Xiamen Greenhouse Tech Co. Ltd., and Van der Hoeven Horticultural Projects BV
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In the realm of modern agriculture, it stands out as a significant sector. This innovative farming approach utilizes controlled environments to grow a wide array of plants, including fruits, vegetables, flowers, and ornamentals. Greenhouse technology offers several advantages, such as extended growing seasons, increased yields, and protection against harsh weather conditions. Marketing these products requires a strategic approach. Producers must highlight the benefits of their produce, such as year-round availability, superior quality, and reduced environmental impact. Consumers are increasingly interested in locally grown, sustainable, and healthier food options. Greenhouse Horticulture fits perfectly into this trend, as it allows for the production of fresh, high-quality produce throughout the year. Moreover, the use of advanced technologies, such as hydroponics and aeroponics, can be a powerful marketing tool. These methods enable the production of crops with enhanced nutritional value and improved resistance to pests and diseases. In summary, the marketing focuses on the benefits of controlled environment agriculture, including year-round availability, superior quality, and sustainability. Producers can also leverage advanced technologies to differentiate their products and cater to the growing demand for healthier, locally-grown produce.
Industry Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.53% |
Market growth 2024-2028 |
USD 11462.1 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.86 |
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 Companies, Market Positioning of Companies, 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, Prospiant Inc, Richel Group SAS, Ridder Drive Systems BV, 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 analysis, 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 market 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 Product
7 Market Segmentation by Crop Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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