Market Trends of Greenhouse Irrigation Systems Industry
Rapid Growth in Green house Vegetable Production
As the global population grows, the demand for food increases, leading to more diverse diets. Consumers are incorporating a broader range of high-value vegetables into their meals. In response, farmers worldwide are diversifying their crop portfolios to include more vegetables, boosting their gross revenues and enhancing cash flow. For example, Statistics Canada reported that farm incomes from greenhouse vegetables in Canada rose from USD 1.73 billion in 2022 to USD 1.83 billion in 2023. With rising incomes, maintaining high yields and managing the seasonal nature of vegetable cultivation becomes crucial. Consequently, the adoption of greenhouses for vegetable production is projected to grow significantly in the coming years. Effective water management in greenhouses is essential for sustainability and cost-efficiency, as vegetables often require substantial water. Greenhouse irrigation systems, designed to minimize water waste by efficiently directing water to plant roots, are in high demand.
Several companies in the market offer greenhouses equipped with smart irrigation systems that can be controlled remotely via smartphones or computers. For instance, the ONDO system from ONDO Smart Farming Solutions allows vegetable farmers to precisely manage water and nutrient delivery at each growth stage, mitigating risks of over- or under-irrigation. Additionally, the system autonomously adjusts the electrical conductivity (EC) and pH of the irrigation water, ensuring optimal nutrient delivery and superior crop quality.
Supportive initiatives for greenhouse vegetable production are bolstering the market for greenhouse irrigation systems. In 2024, the Ministry of Environmental Protection and Agriculture, through the Rural Development Agency, launched a program in Georgia to encourage greenhouse farming. This initiative aims to enhance annual vegetable crop production nationwide by integrating modern, climate-smart technologies, including advanced irrigation systems by facilitating financing for new greenhouse setups. With the rising production of vegetables in greenhouses, the availability of advanced irrigation systems, and supportive initiatives, the market is set for robust growth.
Growing Prominence of Greenhouse Cultivation in Asia Pacific
The global rise in greenhouse farming is particularly pronounced in the Asia-Pacific region. Countries such as China, India, and Japan are projected to see substantial growth due to strong economic forecasts and large populations driving high consumption. Asia leads the market for greenhouse irrigation systems, supported by favorable government policies and innovative technology. Governments in the region are increasingly promoting protected cultivation through policy initiatives, including low-interest loans and subsidies for advanced micro-irrigation systems. For example, in 2022, the Indian government provided subsidies and financial aid for setting up greenhouse farms, covering costs for machinery and irrigation.
As concerns mount over the environmental increases in the region due to conventional farming farmers are increasingly turning to sustainable alternatives. Greenhouse farming stands out, offering controlled environments that curtail water and pesticide use, thus promoting sustainability. Financial investments are further bolstering this market. In 2024, the Queensland Government is backing family farms through its latest round of RED Grants. This initiative sees 20 agricultural businesses collectively receiving USD 3.7 million in the sixth round of the Rural Economic Development (RED) Grants. Each recipient, awarded up to USD 200,000, is undertaking a variety of shovel-ready projects, including constructing greenhouses, glasshouses, fruit packing facilities, and seafood processing areas. Such investments not only expand greenhouse operations but also enhance the adoption of irrigation systems.
China leads the Asia Pacific market with extensive greenhouse farming operations. According to Xiaoye Tong from the University of Copenhagen, China's leadership is linked to its socioeconomic development and the urban population's demand for fresh produce. Government support through subsidies, strategic initiatives, and large greenhouse areas are driving market growth during the forecast period.
