April 21, 2024
Commercial Greenhouse Market

The Commercial Greenhouse Market Driven By Increasing Demand For Year-Round Crop Production

Commercial greenhouses allow farmers to maximize use of space and grow crops all year round regardless of outdoor weather conditions. They are enclosed structures with walls and roofs made mainly of transparent material such as glass or plastic which allows natural light penetration to aid photosynthesis in plants. With controlled environment, greenhouses provide regulated temperature, humidity as well as delivery of nutrients and water to optimize plant growth. They help cultivate a wide variety of vegetation including tomatoes, cucumbers, peppers, flowers and more.

The global Commercial Greenhouse Market is estimated to be valued at US$ 5 billion in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market key Trends

The rising need for locally grown and organic produce has boosted adoption of commercial greenhouses in recent years. Advantages of greenhouses such as reducing usage of synthetic chemicals and delivering high yield crops throughout the year have prompted many farmers and cultivators worldwide to adopt smart greenhouse technologies for organic produce. Automation solutions for environmental control, irrigation, crop monitoring and harvesting are witnessing strong uptake. Moreover, vertical farming using multi-layer greenhouses is gaining popularity as it helps increase farmable area by growing crops indoors in stacked layers. This allows urban farming and fresh local supply of fruits and vegetables to urban populations. Use of LED grow lights is also gaining traction as they offer more efficient light spectrum customized for various crops compared to traditional lighting solutions. The commercial greenhouse industry is witnessing rapid innovations fueling market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: Low capital requirement and established value chain poses threat of new entrants in the greenhouse market.
Bargaining power of buyers: Large scale buyers have high bargaining power due to the availability of substitutes.
Bargaining power of suppliers: Few large suppliers have bargaining power over specialty products and technology required for greenhouses.
Threat of new substitutes: Products from indoor farming, vertical farming and traditional open field farming pose threat of substitution.
Competitive rivalry: Intense competition exists among key players to gain market share through product innovation, regional expansion and lowering supply cost.

Key Takeaways

The global Commercial Greenhouse Market Growth is expected to witness high growth. With increasing global population and changing climatic conditions, commercial greenhouses are projected to play a vital role in sustainable food production. The global Commercial Greenhouse Market is estimated to be valued at US$ 5 billion in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024-2031.

Regional analysis:

North America dominates the commercial greenhouse market currently due to high technology adoption. Asia Pacific is expected to witness fastest growth due to increasing farmer awareness, emergence of contract farming and supportive government initiatives in countries like China and India. Countries like the Netherlands, Spain and Portugal will continue to lead the European market with their established greenhouse infrastructure and expertise.

Key players:

Key players operating in the commercial greenhouse market are Richel Group SA, Argus Control Systems Ltd., Certhon, Logiqs B.V., Lumigrow, Inc., Agra Tech, Inc., Rough Brothers, Inc., Nexus Corporation, HortAmericas and Heliospectra AB.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it