Commercial Greenhouse Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 47.76 Billion |
| Market Size (2029) | USD 66.86 Billion |
| CAGR (2024 - 2029) | 7.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players.webp){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
Commercial Greenhouse Market Analysis
The Commercial Greenhouse Market size is estimated at USD 47.76 billion in 2024, and is expected to reach USD 66.86 billion by 2029, growing at a CAGR of 7% during the forecast period (2024-2029).
A commercial greenhouse is a specialized structure designed for cultivating crops intended for sale. These greenhouses are equipped with advanced technology to optimize the growth of specific plants, including vegetables, flowers, trees, cannabis, and shrubs. Some have transparent roofs to harness natural sunlight, while others use artificial lighting. When exposed to sunlight, commercial greenhouses trap warm air, creating a temperature-controlled environment that shields plants from cold weather. The growing global population, increased food demand, rising global warming, and the need to enhance crop productivity drive the commercial greenhouse market. Advanced greenhouse techniques are being implemented in Europe, especially in countries like Italy, Spain, and the Netherlands, where significant areas are dedicated to greenhouse cultivation.
The diminishing availability of cultivable land contributes to the rise of greenhouse farming. For example, Germany experienced reduced agricultural land from 166.6 million hectares in 2019 to 165.0 million hectares in 2023. Consequently, maximizing crop yield within the limited land area to meet food demand propels the greenhouse farming market. Additionally, climate fluctuations are encouraging farmers across the world to adopt greenhouse farming methods, leading to the market's growth. However, high initial setup costs and a lack of technical expertise among farmers may hinder market expansion during the forecast period.
Commercial Greenhouse Market Trends
Declining Agricultural Land is Boosting the Usage of Commercial Greenhouse
Global agricultural land is diminishing due to urban expansion and infrastructure development encroaching on fertile areas. This reduction in available land puts strain on existing agricultural resources, leading to soil degradation and decreased food security. To tackle these challenges, investments in commercial greenhouse farming and controlled-environment agriculture (CEA) within commercial greenhouses are rising.
Over the past decade, Europe has witnessed a decline in agricultural land. The EU Agriculture Outlook predicts that by 2030, Europe’s total arable land will decrease further due to urbanization, emphasizing the need to utilize agricultural areas efficiently. With population growth and rapid urban development, there is a pressing demand to enhance crop yields in the coming decades. Consequently, the adoption of cultivation methods like commercial greenhouse farming is increasing to achieve higher productivity.
Globally, significant portions of arable land have been lost due to erosion and pollution over the past 40 years. This loss has potentially dire consequences for the global food supply. Rising temperatures, unpredictable rainfall patterns, and extreme weather events, such as droughts and floods, render large areas unsuitable for traditional agriculture. As a result, there is an increasing demand for climate-resilient crops and adaptation technologies, including heat-resistant commercial greenhouses, which are expected to increase adoption during the forecast period.
Europe Holds the Largest Share in Commercial Greenhouse Installment
Germany has traditionally been at the forefront of implementing advanced techniques in smart greenhouse horticulture. The total area under commercial greenhouse cultivation in Germany was 1300 hectares in 2023. Most of this area was occupied by tomato crops, with an acreage of 382.74 hectares. Similarly, the cultivation area under cucumber was 215 hectares. The most extensive areas of commercial greenhouse vegetable cultivation in Germany are North Rhine Westphalia, Rhineland Palatinate, and Lower Saxony. Additionally, subsidies for energy-efficient greenhouses, covering up to 60% of eligible expenses, help reduce operating costs.
Moreover, the commercial growth of greenhouses has increased on a massive scale in the United Kingdom. Many companies in the United Kingdom are leveraging new technologies. For instance, in March 2022, Tomtech designed and produced industrial control and monitoring equipment for commercial greenhouses. Their systems use sensors to automatically track and regulate light, heat, air circulation, irrigation, fertigation, and fertilizer dosing to maintain the greatest possible growth environment.
Commercial Greenhouse Industry Overview
The commercial greenhouse market is highly fragmented, with numerous large, small, and medium-sized manufacturers. The top players in the market include Richel Group, Rough Brothers Inc., Argus Control System Ltd, Certhon, and Gibraltar Industries (Nexus Corporation). Along with innovations and expansions, investments in R&D and developing novel product portfolios are crucial strategies to enter the market.
Commercial Greenhouse Market Leaders
-
Rough Brothers, Inc.
-
Richel Group
-
Argus Control Systems Limited
-
Certhon
-
Gibraltar Industries (Nexus Corporation)
*Disclaimer: Major Players sorted in no particular order
Commercial Greenhouse Market News
- September 2023: Richel Group is in a three-year, exclusive strategic partnership with Pure Harvest Smart Farms to increase its efficiency in designing, manufacturing, and building high-tech greenhouses in challenging climates and distant regions, including the Middle East and Asia.
- June 2023: Certhon and Living Greens Farm announced a strategic partnership to develop further and globally expand Living Greens Farm’s disruptive aeroponic growing technology. Certhon would bring its technological expertise and global network to this partnership to create and help market aeroponics technology outside North America.
- February 2023: Heliospectra AB (publ) expanded its product portfolio and MITRA platform with MITRA Flex, the market’s first wirelessly controlled flexible far-red light.
Commercial Greenhouse Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Declining Agricultural Land is Boosting the Commercial Greenhouse Usage
4.2.2 Increased Demand for Food is Boosting the Market
4.2.3 Fluctuating Climatic Conditions are Fueling the Commercial Greenhouse Market
4.3 Market Restraints
4.3.1 High Initial Investments Preventing Farmers from Adopting Commercial Greenhouses
4.3.2 Requirement of Precision Agriculture for Increasing Productivity
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Equipment Type
5.1.1 Heating Systems
5.1.2 Cooling Systems
5.1.3 Other Equipment Types
5.2 Crop Type
5.2.1 Horticulture Crops
5.2.1.1 Fruits and Vegetables
5.2.1.2 Flowers and Ornamentals
5.2.1.3 Herbs
5.2.2 Other Crop Types
5.3 Greenhouse Type
5.3.1 Glass Greenhouses
5.3.2 Plastic Greenhouse
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.1.4 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Russia
5.4.2.5 Spain
5.4.2.6 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 South America
5.4.4.1 Brazil
5.4.4.2 Argentina
5.4.4.3 Rest of South America
5.4.5 Middle East and Africa
5.4.5.1 South Africa
5.4.5.2 Egypt
5.4.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Richel Group
6.3.2 Argus Control Systems Ltd
6.3.3 Rough Brothers Inc.
6.3.4 Certhon
6.3.5 Logiqs BV
6.3.6 Lumigrow Inc.
6.3.7 Gibraltar Industries (Nexus Corporation)
6.3.8 International Greenhouse Company
6.3.9 Heliospectra AB
6.3.10 Agra Tech Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Commercial Greenhouse Industry Segmentation
Greenhouses allow for the controlled cultivation of fruits and vegetables, ensuring a consistent year-round supply of high-quality produce.
The commercial greenhouse market is segmented by equipment type (heating systems, cooling systems, and other equipment types), greenhouse type (glass greenhouse and plastic greenhouse), crop type (horticulture crops and other crops), and geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The report offers the market sizes and forecast values (USD) for all the above segments.
| Equipment Type | |
| Heating Systems | |
| Cooling Systems | |
| Other Equipment Types |
| Crop Type | |||||
| |||||
| Other Crop Types |
| Greenhouse Type | |
| Glass Greenhouses | |
| Plastic Greenhouse |
| Geography | ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
|
Commercial Greenhouse Market Research FAQs
How big is the Commercial Greenhouse Market?
The Commercial Greenhouse Market size is expected to reach USD 47.76 billion in 2024 and grow at a CAGR of 7% to reach USD 66.86 billion by 2029.
What is the current Commercial Greenhouse Market size?
In 2024, the Commercial Greenhouse Market size is expected to reach USD 47.76 billion.
Who are the key players in Commercial Greenhouse Market?
Rough Brothers, Inc., Richel Group, Argus Control Systems Limited, Certhon and Gibraltar Industries (Nexus Corporation) are the major companies operating in the Commercial Greenhouse Market.
Which is the fastest growing region in Commercial Greenhouse Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Commercial Greenhouse Market?
In 2024, the Europe accounts for the largest market share in Commercial Greenhouse Market.
What years does this Commercial Greenhouse Market cover, and what was the market size in 2023?
In 2023, the Commercial Greenhouse Market size was estimated at USD 44.42 billion. The report covers the Commercial Greenhouse Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Commercial Greenhouse Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What government regulations impact the Commercial Greenhouse Industry?
The government regulations that are impacting the Commercial Greenhouse Industry are a) Environmental regulations b) Water usage restrictions c) Potential subsidies
What government regulations impact the Commercial Greenhouse Industry?
The government regulations that are impacting the Commercial Greenhouse Industry are a) Environmental regulations b) Water usage restrictions c) Potential subsidies
Commercial Greenhouse Industry Report
The commercial greenhouse market is experiencing significant growth, driven by the need for efficient land use and water management due to the increasing global population. Industrial greenhouses are revolutionizing agriculture through vertical farming, hydroponics, and aeroponics, which enable higher yields in limited spaces. This market growth is further supported by the rising demand for floriculture and ornamental horticulture, influenced by urbanization and higher disposable incomes.
Despite the high costs associated with advanced systems, the versatility of greenhouses in producing various crops, especially vegetables, underscores the sector's potential. Plastic greenhouses are becoming more popular due to their cost-effectiveness and insulation properties. Europe is at the forefront of market adoption, thanks to its innovative agricultural practices.
The competitive landscape features key players enhancing technology to meet the growing demand for greenhouse-grown produce. Industry reports indicate notable growth in the market, offering comprehensive analysis and forecasts. The market overview highlights attractive opportunities worldwide, driven by advancements in industrial greenhouse technologies.
Market segmentation includes equipment types such as heating systems, cooling systems, and other equipment types. Greenhouse types are categorized into glass greenhouses and plastic greenhouses. Crop types include horticulture crops and other crops, with geographical segmentation covering North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
Industry analysis reveals that the market size and market share are expanding, supported by detailed market research and market trends. Industry statistics and industry information point to a positive industry outlook, with market predictions and market data indicating continued market growth. The market forecast suggests that the sector will continue to evolve, driven by market leaders and industry sales.
The market value and market review further emphasize the sector's potential, supported by industry research and report examples. Research companies are actively involved in providing valuable insights, with report PDFs available for detailed industry analysis. This dynamic market promises significant opportunities, as highlighted in the comprehensive industry reports and market overview.
