Smart Greenhouse Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, India, US, Germany, France - Size and Forecast 2024-2028

Smart Greenhouse Market Size 2024-2028

The smart greenhouse market size is forecast to increase by USD 1.7 billion at a CAGR of 11.54% between 2023 and 2028. Market expansion hinges on multiple factors, including the increased demand for fresh food driven by changing consumer preferences and dietary habits. Compared to traditional methods, the higher yield offered by modern agricultural practices attracts both farmers and investors, driving further adoption of these technologies. Additionally, rapid urbanization and the limited availability of arable land intensify the need for innovative greenhouse farming techniques such as vertical farming and hydroponics. These methods enable efficient use of space and resources, contributing to sustainable agriculture amidst urban expansion. The convergence of these factors underscores the importance of technological advancements in agriculture to meet the growing food demand sustainably, ensuring food security and environmental stewardship.

Market Forecasting and Size

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Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Type Outlook 
  • Hydroponic
  • Non-hydroponic

• Component Outlook 
  • HVAC systems
  • LED grow lights
  • Control systems and sensors
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

By Type 

The hydroponic segment will account for a major share of the market's growth during the forecast period. The market is driven by the adoption of productivity-enhancing fruit and vegetables agricultural technologies to address food production challenges brought about by climate change, urbanization, and change in lifestyle. Hydroponic systems, which utilize a water-based nutrient solution and sustainable agriculture methods and supply chain, dominate this market. There are several health concerns regarding the frozen food products. Soil erosion is mitigated as hydroponics substitutes soil with aggregate substrates like vermiculite, perlite, and coconut coir. There are various soil treatment methods employed by several companies. Multinational corporations and small farmers alike invest in these systems to improve farming efficiency and crop quality under controlled environments.

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The hydroponic segment was valued at USD 932.30 million in 2018 and continued to grow until 2022. Technological advancements, such as cloud technology, unmanned aerial vehicles (UAVs), drones, and industrial automation, are integrated into these systems. LED lights, light control systems, and drip irrigation optimize resource usage, reducing greenhouse gas emissions and healthcare expenditure. Capital equipment, such as actuators and energy-efficient systems, are essential components of these smart greenhouses. The installed base continues to grow, with lifeline curves indicating a steady increase in demand. Regulatory scenarios and modern technology enable the integration of healthcare regulatory scenarios, temperature, humidity, and light control systems to create optimal plant development conditions. Thus, the hydroponic segment is expected to grow, fueling the global market during the forecast period.

Regional Analysis

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APAC is estimated to contribute 48% to the growth during the forecast year.  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.  In 2022, APAC had a dominant share of the global market. The region is home to more than half of the world's population. The region's growing population and farmland are shrinking due to poor land management and natural disasters. At the same time, the demand for fresh, clean, pesticide-free food is increasing.

Moreover, compared with the rest of the country's sectors, such as manufacturing and services, agriculture has a lot to learn. Agricultural logistics increases retail prices, resulting in low income for farmers. These factors have led to an increase in the adoption of smart greenhouses in the country, fueling the regional market during the forecast period.

Market Dynamics

The Market is experiencing significant growth in the agricultural sector, driven by the integration of advanced technologies such as Artificial Intelligence (AI), Indoor Farming, and Modern Technology. Farmers and Agriculturists are increasingly adopting smart greenhouses to optimize crop production and improve environmental parameters. These advanced structures employ various technologies like air conditioning systems, Hydroponic and Non-Hydroponic systems, Lighting Systems using LED grow lights, and Climate Control Services for Temperature and Humidity regulation. Smart greenhouses also incorporate an Irrigation System, Communication System, Control System, HVAC System, and Material Handling Services to ensure efficient crop management. Sensors and Actuators are essential components of these systems, monitoring and controlling the required environmental conditions for optimal Food Production. Commercial Growers are leveraging these smart solutions to enhance Crop Quality and maintain consistent yields, making them a vital investment in the evolving agricultural landscape. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. 

Key Market Driver - Growing requirement for fresh food 

The expanding urban population's need for fresh produce results in a heightened demand for efficient food production systems. Traditional farming practices face challenges from changing climate patterns, weather events, and waste output.

Moreover, smart greenhouse technology, which includes automation systems and controlled climate environments, offers potential solutions. However, compatibility problems with existing greenhouse infrastructure, slow adoption rates, and a lack of knowledge among producers hinder widespread implementation.  The growing requirement for fresh food is expected to fuel the global market during the forecast period.

Significant Market Trends - The emerging trend of rooftop farming

The urban population's dietary preferences are shifting towards fresh produce, leading to a rise in urban agriculture. Smart greenhouses, built on rooftops without soil, are a promising solution due to limited land availability. These structures employ hydroponics and aeroponics for irrigation, increasing plant coverage in cities. However, challenges such as chemical use and waste output, compatibility problems with traditional farming practices, and regulatory obstacles hinder widespread adoption.

Moreover, government support through subsidies, grants, and incentives can help overcome these hurdles. Smart greenhouse technology, including automation systems and controlled climate, offers potential for increased crop yields.  The emerging trend of rooftop farming will drive the growth of the global market during the forecast period.

Major Market Challenge - High initial cost of smart greenhouse setup

The market encompasses advanced infrastructure, including automation systems, irrigation systems, and controlled climate technology. However, the high initial investment, driven by the cost of chemicals, HVAC systems, LED grow lights, sensors, and other components, restricts its use primarily to large-scale urban farming operations. Changing climate patterns, weather events, and the need for higher crop yields have led growers to consider this technology.

Moreover, government support, in the form of subsidies, grants, and incentives, can help offset these costs. Despite the potential benefits, the adoption rate is slow due to compatibility problems with existing greenhouse infrastructure, lack of knowledge among producers, and regulatory obstacles. Data security and privacy concerns, energy use, and environmental impact are also critical factors This is expected to negatively impact the growth of the global market during the forecast period.

Key Companies & Market Insights

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.

Ag Leader Technology- The company offers smart greenhouse solutions such as InCommand and AgFiniti.

We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including:

AGCO Corp., Agra Tech Inc., Ceres Greenhouse Solutions, Certhon Build B.V., CLAAS KGaA mBH, CNH Industrial NV, Controlled Environments Ltd., Cultivar Ltd., Deere and Co., Gibraltar Industries Inc., Green Automation Group Oy Ltd., Heliospectra AB, LOGIQS B.V., Orbia Advance Corp. SAB de CV, Phonetics Inc., Richel Group SAS, Signify NV, Sollum Technologies inc., and TSI Inc. 

Technavio report provides 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.  

Market Analyst Overview

Smart Greenhouses have gained significant attention in the agricultural sector due to their ability to optimize plant growth through automated climate control systems. The market for smart greenhouses is driven by the increasing demand for sustainable farming practices and the need to increase agricultural productivity. Farming in greenhouses allows for year-round production and protection against harsh weather conditions. Smart greenhouses utilize advanced technologies such as sensors, automation systems, and data analytics to monitor and regulate temperature, humidity, light, and nutrient levels. This results in improved crop yields, reduced water usage, and decreased reliance on chemical fertilizers and pesticides. The global market for smart greenhouses is expected to grow at a steady rate due to the increasing adoption of technology in agriculture and the rising trend towards vertical farming. The market is also driven by government initiatives to promote sustainable farming practices and the growing demand for locally grown produce. Smart greenhouses offer farmers the ability to grow a wider variety of crops, including those that are not traditionally grown in their region. This can lead to increased revenue and improved food security. Additionally, smart greenhouses can be used for research and development purposes, making them an essential tool for agricultural innovation. In conclusion, the market is poised for growth due to the increasing demand for sustainable farming practices, the need to increase agricultural productivity, and the adoption of advanced technologies in agriculture. Smart greenhouses offer farmers the ability to grow a wider variety of crops, improve crop yields, and reduce water usage and reliance on chemical fertilizers and pesticides.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, Europe, North America, South America, and Middle East and Africa
• A thorough market analysis and report of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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