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The greenhouse market size is projected to increase by USD 21.89 billion, at a CAGR of 9.65% between between 2023 and 2028.
North America's market experiences robust growth rates propelled by diverse climatic conditions and shifting consumer preferences. The region's varied climates and evolving consumer trends drive demand for locally grown, premium produce year-round. Greenhouses provide controlled environments, extending growing seasons and safeguarding crops from adverse weather. This market offers convenience and benefits to consumers while aligning with global consumption trends and forecasts. Analysis indicates a thriving market with promising growth opportunities.
The market shows an Accelerated CAGR during the forecast period.
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The growing requirement for fresh food is the key factor driving the market. The increasing requirement for fresh food stems from the growing urban population, which leads to an increased demand for fresh food. A growing urban population implies increasing affluence. As a result, there is an increase in the intake of fresh fruits and vegetables by people. While traditional farming in rural areas can meet this increasing demand, poor logistics hinder sourcing fresh fruits and vegetables from these places. For customers to consume fresh fruits and vegetables, these products must be sourced from areas near the cities. Consequently, farmers are adopting horticulture in smaller areas. Greenhouses can produce tomatoes, peppers, cucumbers, melons, watermelons, and strawberries, depending on the region's climatic conditions.
Additionally, urban supermarkets provide a range of fresh produce of varying qualities to customers all year round. This is made possible by a combination of domestic production and imports. As supermarkets become the preferred place for buying fresh produce for people in cities, the supply chain for fresh produce is changing into a hyper-local model. In addition, to retain these urban customers, supermarkets price these products competitively. Competitive pricing can be possible when supermarkets control the supply chain, thereby reducing their costs. This can happen when they integrate backward with or directly buy from the farms. Thus, as supermarkets provide an increasing number of customers with fresh produce, the market will witness a gain during the forecast period.
The adoption of automation technologies is one of the primary market trends. The adoption of automated technologies such as water sensors and sunlight monitors allows greenhouse growers to monitor and manage the requirements in a precise manner, which eases the task of humans and controls various indoor climate situations such as ventilation, plant nutrition level, water intake, and the level of sunlight required by particular plants.
Moreover, greenhouse automation also helps in determining agricultural yield. Thus, the market in focus is expected to grow during the forecast period owing to the adoption and implementation of greenhouse automation technologies.
The high vulnerability of plants to animal and pest attacks is a challenge that affects the market. Such practices provide a controlled environment for plant growth, allowing for increased productivity and protection against adverse weather conditions. However, this concentrated and enclosed space also attracts various pests and animals that can cause severe damage to the plants. This vulnerability poses a threat to the overall success and profitability of operations.
Moreover, pests, such as insects, mites, and fungi, can swiftly multiply within the controlled environment, taking advantage of the favorable conditions available. Moreover, pests can also introduce diseases that further compromise plant health. One example is the infestation of whiteflies in tomato crops. Hence, the high vulnerability of plants to animal and pest attacks will hinder the expansion of the market during the forecast period.
The plastic greenhouse segment is a significant part of the market. These are structures made primarily of plastic materials, such as polyethylene, polycarbonate, or PVC, which are used to create a controlled environment for cultivating plants. These structures are widely used due to their cost-effectiveness, durability, and versatility. Additionally, the rising demand for year-round crop production, particularly in regions with unfavorable climates, has fueled the adoption of plastic conservatories. Additionally, the increasing focus on sustainable agriculture practices and the need for higher crop yields have further contributed to the market expansion, which, in turn, will drive the growth of the segment in the market during the forecast period.
The market share by the commercial greenhouses segment will be significant during the forecast period. The segment is a significant component of the market, catering specifically to the needs of commercial agriculture and horticulture industries. Commercial are large-scale structures designed to provide controlled environments for the optimal growth of crops, enabling year-round cultivation and ensuring higher productivity. These greenhouses are equipped with advanced technologies and systems that allow for precise control of temperature, humidity, light intensity, and ventilation. These factors play a crucial role in creating optimal growth conditions for crops, extending growing seasons, increasing crop yield, and maintaining consistent quality.
The commercial greenhouses segment was valued at USD 25.88 billion in 2018.
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Moreover, the commercial segment utilizes drip irrigation systems, automated climate control, and solar energy utilization, among other advanced techniques. Technological advancements, improved crop varieties, and the adoption of eco-friendly practices are driving the expansion of this segment. Additionally, the integration of artificial intelligence and automation is revolutionizing commercial operations, further enhancing efficiency and productivity. Thus, the increased benefit will drive the growth of the segment in the market during the forecast period.
North America is estimated to contribute 33% to the growth of the global market during the forecast period
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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. One of the key drivers of the market in North America is the rising emphasis on sustainable and organic farming practices. Consumers are becoming more aware of the environmental impact of traditional agriculture, leading to a surge in demand for pesticide-free and locally sourced produce. Greenhouses provide the opportunity to grow crops without relying on harmful chemicals, contributing to a greener and more sustainable food system. Furthermore, another factor driving market growth is the increasing popularity of urban farming. As urbanization continues, land available for traditional farming is decreasing. Greenhouses offer a viable solution for cultivating crops in urban areas, using vertical farming techniques to optimize space. Hence, such factors are expected to drive the market in this region 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 forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
AGC Inc., Agra Tech Inc., Berry Global Inc., Controlled Environments Ltd., DeCloet Greenhouse Mfg. Ltd., Europrogress Srl, Hort Americas LLC, LOGIQS B.V., Ludy Greenhouse Mfg. Corp., Luiten Greenhouses BV, Orbia Advance Corp. SAB de CV, PLASTIKA KRITIS SA, Poly Tex Inc., Prospiant Inc, Richel Group SAS, Saveer Biotech Ltd., Stuppy Greenhouse, The Glasshouse Company Pty Ltd., Top Greenhouses Ltd., FarmFluence, HOKLARTHERM GMBH, Karmens Garden and Greenhouse, Redwire Corp., Sichuan Baolida Metal Pipe Fittings Manufacturing Co. Ltd., and Venlo AP HOLLAND Group
The market analysis and report of qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is experiencing rapid growth thanks to advancements in Modern farming techniques and the pressing need to meet the demands of a Rising population. With traditional Arable land becoming scarce, Indoor agricultural practices have gained traction, aided by Government interventions promoting Greenhouse farming. Extreme weather conditions highlight the importance of Controlled environment agriculture technology and Climate control systems for Increased production and reducing Food wastage. These systems also help in Disease & pest prevention and mitigate Agricultural run-off. Given Limited space, techniques like Hydroponics & aquaponics are employed, supported by organizations like the United States Department of Agriculture (USDA). Technologies like LEDs and Active heat systems optimize Greenhouse design and structure, benefiting even Low-income farmers. Profitable and medicinal crops, facilitated by materials like Polymethyl-methacrylate and Horticulture glass, are driving growth in the Hardware segment.
Moreover, the lighting systems and software segment (both Web-based and Cloud-based) are integral parts of AgriTech 4.0, revolutionizing the cultivation of Fruits, vegetables & herbs, including Lettuce, Bell and chili pepper, Strawberry, Leafy greens (excluding lettuce), and various Herbs. This transformation benefits Commercial growers and encourages Research and educational institutes to incorporate STEM education into agricultural practices
Greenhouse Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.65% |
Market Growth 2024-2028 |
USD 21.89 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.21 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGC Inc., Agra Tech Inc., Berry Global Inc., Controlled Environments Ltd., DeCloet Greenhouse Mfg. Ltd., DENSO Corp., Europrogress Srl, Gibraltar Industries Inc., Hort Americas LLC, LOGIQS B.V., Ludy Greenhouse Mfg. Corp., Luiten Greenhouses BV, Orbia Advance Corp. SAB de CV, PLASTIKA KRITIS SA, Poly Tex Inc., Prospiant Inc, Richel Group SAS, Saveer Biotech Ltd., Stuppy Greenhouse, The Glasshouse Company Pty Ltd., Top Greenhouses Ltd., FarmFluence, HOKLARTHERM GMBH, Karmens Garden and Greenhouse, Redwire Corp., Sichuan Baolida Metal Pipe Fittings Manufacturing Co. Ltd., and Venlo AP HOLLAND Group |
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. |
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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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