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The smart greenhouse market size is estimated to grow at a CAGR of 9.31% between 2022 and 2027. The market size is forecast to increase by USD 1,203.77 million. The growth of the market depends on several factors, such as the growing requirement for fresh food, the higher yield than traditional methods, and the rapid urbanization and low availability of arable land.
This report extensively covers market segmentation by type (hydroponic and non-hydroponic), component (HVAC systems, LED grow lights, control systems and sensors, and others), and geography (APAC, Europe, North America, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Smart Greenhouse Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The growing urban population's rising requirement for fresh foods leads to an increased demand for fresh food. According to World Bank data, the urban population will be 6 billion by 2045. In urban supermarkets, customers are provided all year with a wide variety of fresh fruit and vegetables at various quality levels. This is made possible by a combination of domestic production and imports.
Moreover, 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. Furthermore, to retain the customers of these cities, supermarkets charge their products at a price competitive with each other. The growing requirement for fresh food is expected to fuel the global smart greenhouse market during the forecast period.
Dietary preferences of the urban population are changing, and they are developing a high preference for increasing fresh manufacture in their diets. Due to the growing urban population and people's reluctance to eat frozen food, the production of foods in cities is becoming important. Rooftop smart greenhouses show the promising face of urban agriculture, given the scarcity of affordable land in cities.
However, rooftop smart greenhouses are greenhouses built on the roof of a building that harvests food without soil. They contribute to the creation of new agricultural land and improve plant coverage in urban areas. They use hydroponics and aeroponics methods for irrigation. The emerging trend of rooftop farming will drive the growth of the global smart greenhouse market during the forecast period.
The construction of many costly systems, and smart greenhouses need a high initial setup cost, such as heating, ventilation, and air conditioning systems (HVAC), light emitting diodes (LED), grow lights, sensors, and more. LED grow lights are more efficient than high-pressure sodium (HPS)as they have a large number of diodes. The diodes are costly, which leads to higher costs for LED growing lamps than other lighting technologies.
Hence, their use is restricted to applications where urban farming is done on a large scale. It is not advisable to use low-priced LED lights as they break sooner than expected. In view of their strong yield per watt, a number of growers are using LED grow lights manufactured by Kind LED Grow Lights. The high price makes it difficult for small growers to invest in LED grow lights for indoor farming. This is expected to negatively impact the growth of the global smart greenhouse market during the forecast period.
The hydroponic segment will account for a major share of the market's growth during the forecast period. In the hydroponic method, plants are grown using a water-based nutrient solution, not soil. Aggregate substrates are used as a growing medium in the hydroponic method such as vermiculite, perlite, coconut coir, and more. Small farmers, novices, and business enterprises all use hydroponic production systems.
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The hydroponic segment was valued at USD 869.90 million in 2017 and continued to grow until 2021. One of the best techniques created in recent years is hydroponic cultivation, which substitutes soil as a source of nutrients. Because of its qualities, hydroponic plants can address a number of problems, including those related to food production and health conditions such as allergic reactions to heavy metals. Thus, the hydroponic segment is expected to grow, fueling the global smart greenhouse market during the forecast period.
Based on components, the market has been segmented into HVAC systems, LED grow lights, Control systems and sensors, and Others. The HVAC system plays an important role in a greenhouse by maintaining the ideal temperature for plant growth, eliminating the negative effects of outside temperature changes, and allowing year-round cultivation. The growing of fruits, vegetables, and other plant species is stimulated by the controlled indoor environment provided by air conditioning systems. Thus, the supporting high-yield environment by HVAC systems is expected to fuel the demand for HVAC systems, which, in turn, will fuel the growth of the global smart greenhouse market during the forecast period.
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APAC is estimated to contribute 49% 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 2022, APAC had a dominant share of the global smart greenhouse 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 smart greenhouse market during the forecast period.
In 2020, the outbreak of COVID-19 slowed down the growth of the smart greenhouse market in APAC. However, the street foods were completely shut down due to COVID-19 regulations, which resulted in a decline in fresh fruits and vegetables demand. However, in 2021, The company restarted its activities due to the commencement of large-scale vaccination drives conducted by the government in APAC. China is known for the cost-effective manufacturing of LED grow lights, which are used widely in the US, Canada, the Middle East, and other parts of APAC. Thus, owing to the high production of smart greenhouse components in the region, the regional smart greenhouse market is expected to grow significantly 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.
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.
The smart 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.
Smart 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 9.31% |
Market growth 2023-2027 |
USD 1,203.77 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.64 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, India, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ag Leader Technology, 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. |
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 market research 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 Type
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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