Commercial Greenhouse Market By Type (Plastic Greenhouse, Glass Greenhouse), By Equipment Type (Heating Systems, Cooling & Ventilation Systems, Irrigation Systems, Shading Systems, Lighting Systems, Pest & Disease Control Equipment, Harvesting & Processing Equipment), By Application (Fruits & Vegetables, Flowers & Ornamentals, Culinary & Medicinal Plants, Organic & Specialty Crops) and By Region; Global Insights & Forecast (2024 - 2030)

As per Intent Market Research, the Commercial Greenhouse Market was valued at USD 31.6 billion in 2023-e and will surpass USD 65.4 billion by 2030; growing at a CAGR of 9.5% during 2024–2030. Government support for commercial greenhouses in developing economies is driving the commercial greenhouse market growth.

The commercial greenhouse market is expected to expand significantly due to increasing demand for controlled agriculture practices integrated with advanced technology including real-time monitoring and data collection to enhance the production of quality foods. The demand for commercial greenhouse continue to grow as industries recognize the potential for improved performance and resource utilization, to generate effective solution for current needs of quality food.

Commercial greenhouses, used to cultivate crops intended for commercial sale, are the state-of-the-art establishments designed specially to cultivate the targeted crops such as trees, shrubs, flowers, vegetables, and cannabis. Producers can control every aspect of production by creating their own growing environment in greenhouses. Greenhouses are shielded from a variety of pests and diseases, harsh weather, and outdoor pollutants such as pesticide drift.

Commercial Greenhouse Market Dynamics

The Increasing Demand for Fresh and Healthy Food Products Will Drive the Market           

The increasing demand for fresh and healthy food products is expected to drive the market growth. Population across the globe are increasingly very health conscious due to food safety and nutrition value of fresh vegetables. The major reason behind the demand for fresh fruits and vegetables is they provide higher nutritional content such as vitamins, minerals, fibers, and carbohydrates. For instance, according to Food and Agriculture Organization, in 2021, the worldwide production of essential agricultural commodities accounted for 9.5 billion metric tonnes, reflecting a 2% increase from 2020.

High Capital Expenditure Associated with Commercial Greenhouse may Hinder the Market Growth

High capital expenditure associated with commercial greenhouse is the major challenge in the market. It is necessary to constantly monitor the proper temperature, relative humidity, and air quality. They require the best water and light available for growth. The amounts of nutrients that are available to the plants should be periodically checked and progressively adjusted to meet the needs of each crop's growth stage.

Precise fertilizer application and efficient resource allocation are critical components in cultivating crops within commercial greenhouses. Successful implementation necessitates in-depth understanding of the specific crop, its environment, and the optimal conditions for growth. Seasoned farmers typically excel in managing these aspects, yet they entail substantial capital investments, posing a challenge for expanding market reach.

Commercial Greenhouse Market Segment Insights

The Plastic Greenhouse Type is Dominating the Market Share

The plastic greenhouse dominate the market share over the forecast period due to various benefits associated with plastic such as low installation cost, energy saving, and easy fabrication. There are different types of plastic materials used in greenhouse construction including Polyethylene, polycarbonate, and polymethyl-methacrylate from which polycarbonate is driving the segment growth due to its durable nature and shelter-resistant properties. For instance, according to a report in 2022, With an ETFE film, lifetime crop yields increased by up to +46.6% and environmental impacts per kilogram of tomatoes decreased by up to 41.7%.

Heating System Segment is Projected to Witness Significant Growth

Heating systems is the most important prerequisites for the successful cultivation of plants in commercial greenhouses. Plant growth is aided by systems that maintain a steady temperature and release no hazardous materials into the atmosphere. These systems can be distributed or managed centrally in order to heat their interiors during the winter.

Major market players are developing innovating heating systems that can generate energy from clean energy sources. For instance, in 2023, EHP technologies, a Switzerland-based heating and cooling technology company developed and launched cutting-edge greenhouse heating systems seamlessly integrated with clean energy source. This heating system is designed to operate with very little water circulation in the system, in contrast to conventional counterparts that depend heavily on water. The EHP greenhouse heating system ensures a uniform temperature within the greenhouse, effectively maintaining the desired temperature range.

Rising Demand for Fresh Fruits and Vegetables is Expected to Boost Market Growth

The rising demand for fresh fruits and vegetables is driving the growth of this segment due to It makes it easier to grow vegetables year-round without worrying about the weather, temperature, or other factors changing. Vegetables grown in greenhouses are shielded from extreme weather, wind, cold, pests, drought, scorching heat, and animals attempting to consume them. The cultivation of vegetables in greenhouses facilitates the creation of optimal crop conditions, as greenhouses offer a range of controlling factors, including moisture, light, temperature, fertilization, humidity, and irrigation.

Europe Held a Dominant Market Share in the Commercial Greenhouse Market During the Forecast Period

Europe is dominating the commercial greenhouse market owing to the presence of major market players and ongoing research and innovation. High investment in R&D and new product development is predominantly due to the government’s initiatives to increase the sustainability of food products using the right practices.

In addition, European countries contend with issues related to precipitation, resulting in scarce water resources. This necessity drives the widespread adoption of commercial greenhouses, valued for their water conservation attributes and environmental benefits. Notably, in 2021, Tata Steel, a leading steel producer in Europe, introduced a novel 42mm diameter size option for its Forcas precision steel tube. Recognized for its application in commercial greenhouse setups as an efficient crop heating system, this development highlights the industry's dedication to addressing water scarcity challenges.

Major Industry Players are Enhancing their Positions by Actively Developing Innovative Products to Enhance Crop Yield

The market is characterized by intense competition due to the presence of numerous international and domestic players. The commercial greenhouse market, in particular, is dominated by key players such as Agra Tech, Argus Control Systems, Berry, Certhon, Logiqs, Luiten Greenhouses, Netafim, Poly-Tex, Prospiant, Richel, Stuppy Greenhouse, and The Glasshouse Company. These industry leaders are primarily focused on acquiring smaller players and innovating their product lines to cater to changing consumer preferences and needs. The success of market players is heavily dependent on their ability to adapt to changing market trends and consumer preferences.

• In March 2021, Netafim which is a precision irrigation solutions and agricultural projects announced that it has completed the acquisition of Gabon. Through this acquisition, Netafim is extending the range of services it offers in terms of producing and supplying premium greenhouse projects in order to satisfy the growing demand for the most cutting-edge agricultural techniques. The combination of Gakon's cutting-edge greenhouse technology and Netafim's global reach and precision agriculture expertise makes for a synergistic acquisition.
• In August 2023, DENSO Corporation announced the complete acquisition of Certhon Group. Through this acquisition, DENSO demonstrates proficiency not only in creating customized solutions for a wide range of commercial greenhouse projects, but also in merging various systems into cohesive proposals through integration to sustain their position in market across the globe. Certhon Groups is a well-known for producing cutting-edge horticultural technologies of the highest caliber.

Commercial Greenhouse Market Coverage

The report provides key insights into the commercial greenhouse market, and it focuses on technological developments, trends, and initiatives taken by the government in this sector. The report delves into market drivers, restraints, and opportunities, and analyzes key players as well as the competitive landscape within the market. The report offers the market size and forecasts for the commercial greenhouse market in value (USD billion) for all the above segments.

Report Scope