Commercial Greenhouse Market Analysis and Global Forecast 2023-2033

Commercial Greenhouse Market Overview

The Commercial Greenhouse Market Size is expected to reach USD 74.88 Billion by 2033. The Commercial Greenhouse industry size accounted for USD 39.65 Billion in 2023 and is expected to expand at a CAGR of 12.41% from 2023 to 2033. A “Commercial Greenhouse” refers to a specialized structure or facility designed for the intensive cultivation of plants, typically crops, in a controlled environment. These structures utilize transparent materials such as glass or plastic to allow sunlight to enter while trapping heat, creating a regulated climate conducive to plant growth. Commercial greenhouses are equipped with advanced technologies including automated climate control, irrigation systems, and artificial lighting to optimize growing conditions and maximize crop yields. They play a crucial role in modern agriculture by extending growing seasons, enhancing productivity, and ensuring consistent supplies of high-quality produce to meet market demands.

Global Commercial Greenhouse Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic catalyzed a surge in demand for commercial greenhouses as consumers prioritized locally grown and sustainable produce. Supply chain disruptions and logistical challenges led to increased interest in domestic food production, driving investments in greenhouse technologies worldwide. Additionally, the pandemic highlighted vulnerabilities in traditional agriculture, prompting governments and businesses to accelerate the adoption of controlled environment agriculture solutions for enhanced food security and resilience.

Global Commercial Greenhouse Market Dynamics

The major factors that have impacted the growth of Commercial Greenhouse are as follows:

Drivers:

⮚      Growing Demand for Locally Grown Produce

The increasing consumer preference for locally sourced, fresh produce, particularly in urban areas, is driving the demand for commercial greenhouses. These structures enable year-round cultivation of crops in controlled environments, reducing dependency on seasonal imports and ensuring a steady supply of high-quality, locally grown food.

Restraint:

• High Initial Investment Costs

The commercial greenhouse market is the high initial investment required for setting up greenhouse facilities. The cost includes construction materials, technology installations, and ongoing operational expenses. This barrier to entry may deter small-scale farmers or businesses from adopting greenhouse farming practices, especially in regions with limited financial resources or access to funding.

Opportunity:

⮚      Technological Advancements and Innovation

The continuous advancements in greenhouse technologies, such as automated climate control systems, hydroponics, and LED lighting, present significant opportunities for market growth. These innovations enhance crop productivity, optimize resource utilization, and improve operational efficiency, making greenhouse farming more economically viable and sustainable. Additionally, the integration of IoT (Internet of Things) and data analytics allows for real-time monitoring and decision-making, further enhancing the performance and profitability of commercial greenhouse operations.

Commercial Greenhouse Market Segment Overview

By Type

Based on the Type, the market is segmented based on Glass greenhouses, Plastic greenhouse. The glass greenhouse segment was expected to dominate the commercial greenhouse market due to its superior light transmission properties, providing optimal conditions for plant growth. Additionally, glass structures offer durability, insulation, and aesthetic appeal, attracting growers seeking long-term investments and high-quality crop yields.

By Product Type

Based on the Product Type, the market has been divided into Fruits, Vegetables, Flowers & ornamentals, and Others. The fruits segment is anticipated to lead the commercial greenhouse market, primarily driven by increasing consumer demand for fresh, locally grown produce with enhanced flavor and nutritional value. Additionally, the ability of greenhouse environments to provide controlled conditions such as temperature, humidity, and light intensity allows for year-round cultivation of a wide variety of fruits, ensuring consistent supply and quality irrespective of seasonal fluctuations.

By Equipment

Based on Equipment, the market has been divided into Cooling systems, Heating systems, and Others. The cooling systems segment is poised to capture the largest market share in the commercial greenhouse market due to rising global temperatures and the need to mitigate heat stress on crops, driving demand for efficient climate control solutions. Additionally, advancements in cooling technologies such as evaporative cooling, ventilation systems, and shade screens offer growers effective means to maintain optimal growing conditions, thereby boosting productivity and crop quality.

Global Commercial Greenhouse Market Regional Analysis

Based on region, the market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. The area of North America is anticipated to dominate the market for the usage of Commercial Greenhouse, followed by those in Asia-Pacific and Europe.

North America Market

North America stands as a dominant force in the commercial greenhouse market, fueled by advanced agricultural practices, robust infrastructure, and a growing preference for locally sourced, sustainably produced food. The region benefits from a strong economy, technological innovation, and favorable government initiatives supporting greenhouse farming. With increasing consumer awareness regarding food traceability and safety, coupled with the desire for year-round access to fresh produce, commercial greenhouses in North America are experiencing significant growth. Moreover, the region’s diverse climate conditions, ranging from temperate to arid, provide opportunities for greenhouse operators to cultivate a wide variety of crops throughout the year, further bolstering North America’s leadership position in the global commercial greenhouse market.

Asia Pacific Market

The Asia-Pacific region has witnessed remarkable growth in the commercial greenhouse market, driven by several factors including rapid urbanization, increasing population, and the need for sustainable food production. Countries in this region are facing challenges related to food security and environmental sustainability, prompting governments and businesses to invest in modern agricultural practices such as greenhouse farming. Additionally, favorable government policies, technological advancements, and growing consumer demand for safe and high-quality produce have further propelled the expansion of the commercial greenhouse market in Asia-Pacific. With a diverse range of climates and agricultural landscapes, the region offers abundant opportunities for greenhouse operators to cater to both domestic and international markets, contributing to the overall growth and development of the commercial greenhouse industry in Asia-Pacific.

Competitive Landscape

The competitive landscape includes key players (tier 1, tier 2, and local) having a presence across the globe. Companies such as Richel Greenhouse, Argus Control Systems, Heliospectra, Rough Brothers Inc., and Logiqs are some of the leading players in the global  Commercial Greenhouse Industry. These players have adopted partnership, acquisition, expansion, and new product development, among others as their key strategies.

Key Market Players:

• Richel Greenhouse
• Argus Control Systems
• Heliospectra
• Rough Brothers Inc.
• Logiqs
• Lumigrow Inc.
• Certhon
• Hort Americas
• Agra Tech Inc.
• Nexus corporation

Key Development

In September 2023, Richel Group entered a three-year, exclusive strategic partnership aimed at enhancing its operational efficiency in designing, manufacturing, and constructing advanced greenhouses, particularly in demanding climates and remote areas such as the Middle East and Asia.

In June 2023, Certhon and Living Greens Farm unveiled a strategic collaboration to advance and internationally scale Living Greens Farm’s innovative aeroponic cultivation technology. Leveraging Certhon’s technological proficiency and global reach, the partnership aims to develop and promote the adoption of aeroponics technology beyond North America.

Scope of the Report

Global Commercial Greenhouse Market, by Type

• Glass greenhouse
• Plastic greenhouse

Global Commercial Greenhouse Market, by Product Type

• Fruits
• Vegetables
• Flowers & ornamentals
• Others

Global Commercial Greenhouse Market, by Equipment

• Cooling systems
• Heating systems
• Others

Global Commercial Greenhouse Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $74.88 Billion
CAGR	12.41% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Product Type, Equipment
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Richel Greenhouse, Argus Control Systems, Heliospectra, Rough Brothers Inc., Logiqs, Lumigrow Inc., Certhon, Hort Americas, Agra Tech Inc., Nexus corporation
Key Market Opportunities	• Expansion of greenhouse farming into new regions and climates. • Adoption of advanced technologies for enhanced productivity and efficiency. • Increasing investments in controlled environment agriculture.
Key Market Drivers	• Growing consumer preference for locally grown, fresh produce. • Increasing demand for year-round crop cultivation. • Rising concerns about food safety and security.

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Commercial Greenhouse Industry trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities analysis in the future
• Historical market size for the year 2021, and forecast from 2023 to 2033
• Commercial Greenhouse market share analysis for each segment
• Competitor analysis with a comprehensive insight into its product segment, financial strength, and strategies adopted.
• Identifies key strategies adopted by the key players including new product development, mergers and acquisitions, joint ventures, collaborations, and partnerships.
• To identify and understand the various factors involved in the global Commercial Greenhouse market affected by the pandemic
• To provide year-on-year growth from 2022 to 2033
• To provide short-term, long-term, and overall CAGR comparison from 2022 to 2033.
• Provide Total Addressable Market (TAM) for the Global Commercial Greenhouse Market.