May 27, 2024
Commercial Greenhouse Market

Commercial Greenhouse Market Is Driven By Growing Demand For Controlled Environment Agriculture

The commercial greenhouse market comprises glass or transparent poly films covered structures used for cultivation of plants including vegetables, fruits, flowers and ornamental plants under controlled environmental conditions. The commercial greenhouses aid in maintaining optimum temperature, humidity, lighting and other parameters essential for plant growth using heating & cooling systems, ventilation, irrigation as well as CO2 enrichment systems. With the growing demand for organic and pesticide-free foods coupled with rising population worldwide, the controlled environment agriculture using greenhouses is gaining widespread acceptance. Countries including Netherlands, Spain, China, Japan and United States have established greenhouse cultivation practices to fulfill the increasing demand for fresh produce throughout the year.

The global commercial greenhouse market is estimated to be valued at US$ 44.99 Bn  in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends gaining traction in the commercial greenhouse market is the increasing adoption of IoT (Internet of Things) and AI (Artificial Intelligence) based sensors, controllers and systems. These technologies aid in precise monitoring of crop growth conditions including temperature, humidity, pH levels, nutrients and enable automated adjustments to optimize plant performance. Several vendors are offering commercial greenhouses integrated with IoT/AI platforms that provide real-time data analysis and alert growers about deviations from preset parameters. This facilitates improved yields while reducing manual intervention and labor costs. Moreover, the development of hybrid greenhouses combining natural light transmission with artificial supplemental LED/HID lighting is another emerging trend. These hybrid structures exploit both natural photosynthesis and precision growing benefits to cultivate high-value specialty crops round the year independent of outdoor weather conditions.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the market requires large capital investments and technical expertise.

Bargaining power of buyers: The bargaining power of buyers is moderate as there are many players in the market providing similar products.

Bargaining power of suppliers: The bargaining power of suppliers is moderate owing to the availability of substitute production components.

Threat of new substitutes: The threat of new substitutes is moderate as there are no close substitutes available for commercial greenhouses.

Competitive rivalry: Competitive rivalry is high as players compete on the basis of technology, quality, and pricing.

Key Takeaways

The Global Commercial Greenhouse Market Size is expected to witness high growth.

Regional analysis:

Europe is also a major market for commercial greenhouses driven by supportive government policies for indoor farming in countries like Spain, Italy and Netherlands. Asian countries are emerging markets with China and Japan adopting greenhouses rapidly on back of limited land availability.

Key players: Key players operating in the commercial greenhouse market are BASF SE, Phenospex, WIWAM, Lemnatec Corporation, Plant-DiTech, Hiphen, Delta-T Devices Ltd., Phenomix, Keygene, Qubit Systems, WPS B.V., Photon Systems Instruments, Vienna Biocenter, Heinz Walz Gmbh, CropDesign, and Rothamsted Research. BASF SE is one of the leading players providing integrated solutions for commercial greenhouses.

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