PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1559203
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1559203
Commercial Greenhouse Market Assessment, By Type, By Structure, By Technology, By Application, By Region, Opportunities and Forecast, 2017-2031F
Global commercial greenhouse market is projected to witness a CAGR of 9.61% during the forecast period 2024-2031, growing from USD 37.37 billion in 2023 to USD 77.86 billion in 2031. The market is expanding rapidly due to increased demand for sustainable agriculture and the rising need to grow food in controlled surroundings. Greenhouses provide the best conditions for plants to flourish and, therefore, guarantee maximum production levels within a short period regardless of other environmental factors such as rainfall or sunshine. It is important, especially when adverse climatic changes and uncertain weather occurrences affect conventional farming methods.
Increased productivity is being experienced due to technological progressions in greenhouse automation, including climate control systems, LED grow lights, hydroponics, and others. Labor costs have been greatly reduced while crop quality and quantity have improved remarkably as a result of these innovative methods. There is an increase in demand by consumers for organic and locally produced food, hence farmers and agro-based enterprises are encouraged to engage in greenhouse farming practices.
Regionally, owing to its advanced agricultural infrastructure and high adoption of greenhouse technologies, Europe dominates the share of the global market. However, Asia-Pacific is expected to experience the fastest growth due to rising population, urbanization, and increasing need for food security.
Tomatoes, cucumbers, peppers, and leafy vegetables are the primary crops found in commercial greenhouses. Moreover, greenhouse systems include floriculture and medicinal plants in high demand.
Even though several challenges such as high start-up capital and operational expenses persist, the market is being extended by the long-term advantages and growing governmental support in terms of subsidies and other incentives.
In August 2024, Heliospectra AB. collaborated with Tomatoworld to deploy cutting-edge LED lighting in greenhouse farming with the goal of encouraging sustainability. As a part of this collaboration, Tomatoworld will replace its antiquated HPS lighting systems with helioCORE control system and MITRA X LED fixtures from Heliospectra.
Increasing Occurrence of Extreme Weather Events and Shifting Climates Catalyze Market Expansion
Climate change and unpredictable weather patterns have become serious challenges to traditional agricultural practices, thus making the market for commercial greenhouses crucial. Open field agriculture has been disrupted by extreme weather events such as droughts, extreme floods, and storms, these have led to produce failures and reduced yields. Farmers find it hard to deal with this unpredictable nature, which results in uncertainties of production, affecting global food security. In fact, in May 2024, due to unfavorable weather reducing yields for the maturing crop in Russia, the largest wheat exporter, wheat prices worldwide surged to a 10-month high. Moreover, during the same time period, the Midwest region in the United States was more concerned about excessive rain than heat, causing floods in places that grow corn and soybeans.
In such an environment, temperature, humidity, light, and other growth factors can be controlled to shield crops from external climatic factors. This control over extreme conditions enables farmers to produce good harvests all year round, irrespective of the outside climate. Moreover, since they protect against climate change, commercial greenhouses are more stable to enable steady production in adversity.
As global warming becomes more severe, the use of greenhouse farming is expected to increase. It offers a sustainable solution for farmers in dealing with the escalating challenges resulting from unpredictable weather patterns, contributing towards ensuring food security and minimizing the ecological effects of agriculture through effective water and energy management systems.
Government Incentives and Support Fuel the Market Growth
Government incentives include offering grants, tax breaks, or subsidies to farmers to encourage greenhouse farming, as many countries find sustainable and resilient food production significant. The aim of these measures is to compensate for the high initial costs involved in setting up and operating commercial greenhouses, thus making it more affordable for farmers and agri-business enterprises to set up. For instance, farmers who build polyhouses are eligible for subsidies from the Indian government. The subsidy may equate to 80% of the project's total cost.
In conjunction with financial assistance, certain nations offer technical help and research financing, which serve to encourage the growth of sophisticated greenhouse technologies such as climate control systems, automated irrigation, and energy efficient lighting. Productivity is enhanced by these inventions while minimizing their impact on the environment, hence promoting greater sustainability objectives in agriculture. In October 2023, St. Kitts and Nevis' Ministry of Agriculture, Fisheries, Marine Resources, and Cooperatives introduced its Greenhouse Village Initiative, emphasizing reducing the country's Food Import Bill. In the project's initial phase, fifteen advanced greenhouses were built, focusing on producing priority crops in large quantities, such as melons, cucumbers, tomatoes, peppers, and leafy greens.
Greenhouse farming is being considered by many countries as a part of their agricultural development strategies, especially in areas experiencing food security problems or extreme climatic conditions. Regions that can no longer support traditional farming due to water shortages and erratic weather are looking at greenhouses as one possible long-term measure for ensuring stable food supplies.
Plastic Greenhouses are Expected to Hold the Dominant Market Share
As plastic greenhouses are inexpensive, adaptable, and simple to install, they dominate the share of the global commercial greenhouse market. In addition, compared to glass, polyethylene and polycarbonate plastic materials are lighter and less costly making them a preferred option for small-scale and larger scale farming enterprises. Their lightweight nature allows them to be moved around with great ease, thereby lowering the capital needed to start up a greenhouse. In fact, in September 2024, J. Huete Greenhouses began the construction of a semi-closed plastic greenhouse in Colombia. This project, which is supposed to be launched for a university in the last semester of 2024, will make use of advanced machinery to ensure that crops flourish to their full potential while preventing pests from appearing using a positive pressure system.
Table of Contents
1. Project Scope and Definitions
2. Research Methodology
3. Executive Summary
4. Voice of Customer
- 4.1. Demographics (Age/Cohort Analysis - Baby Boomers and Gen X, Millennials, Gen Z; Gender; Income - Low, Mid and High; Geography; Nationality; etc.)
- 4.2. Market Awareness and Product Information
- 4.3. Brand Awareness and Loyalty
- 4.4. Factors Considered in Purchase Decision
- 4.4.1. Cost
- 4.4.2. Budget
- 4.4.3. Technology and Automation
5. Global Commercial Greenhouse Market Outlook, 2017-2031F
6. North America Commercial Greenhouse Market Outlook, 2017-2031F*
7. Europe Commercial Greenhouse Market Outlook, 2017-2031F
8. Asia-Pacific Commercial Greenhouse Market Outlook, 2017-2031F
9. South America Commercial Greenhouse Market Outlook, 2017-2031F
10. Middle East and Africa Commercial Greenhouse Market Outlook, 2017-2031F
11. Demand Supply Analysis
12. Value Chain Analysis
13. Porter's Five Forces Analysis
14. PESTLE Analysis
15. Macro-economic Indicators
16. Market Dynamics
17. Market Trends and Developments
18. Case Studies
19. Competitive Landscape
20. Strategic Recommendations
21. About Us and Disclaimer
List of Tables
- Table 1. Pricing Analysis of Products from Key Players
- Table 2. Competition Matrix of Top 5 Market Leaders
- Table 3. Mergers & Acquisitions/ Joint Ventures (If Applicable)
- Table 4. About Us - Regions and Countries Where We Have Executed Client Projects
List of Figures
- Figure 1. Global Commercial Greenhouse Market, By Value, In USD Billion, 2017-2031F
- Figure 2. Global Commercial Greenhouse Market Share (%), By Type, 2017-2031F
- Figure 3. Global Commercial Greenhouse Market Share (%), By Structure, 2017-2031F
- Figure 4. Global Commercial Greenhouse Market Share (%), By Technology, 2017-2031F
- Figure 5. Global Commercial Greenhouse Market Share (%), By Application, 2017-2031F
