by The commercial greenhouse market is estimated to be valued at US$ 44.99 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Commercial greenhouses are partially or completely covered structure suitable for agricultural and horticultural purposes. They provide controlled environment for cultivation of various crops including vegetables and flowers throughout the year. They help maintain optimal temperature, light and humidity levels required for plant growth. Commercial greenhouses also offer protection from weather extremes and pests. With controlled conditions, greenhouses enable year-round production of crops and higher yields compared to outdoor farming.
Market key trends:
Growing adoption of automation in greenhouse farming is a major trend in the market. Automation solutions help optimize cultivation processes, maximize yields and reduce labor cost. Sensors are increasingly being used to monitor environmental parameters like temperature, humidity, soil moisture and control mechanical equipment accordingly. Drones and robots are also gaining adoption for tasks like pollination, weeding and harvesting. Automation allows for data-driven precision agriculture approach in commercial greenhouses. The trend towards automation is expected to accelerate business growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The Commercial Greenhouse Market Scope requires high investments in infrastructure and land which acts as a deterrent for new players. Moreover, established brands have strong brand image and distribution network making market entry difficult for new players.
Bargaining power of buyers: The presence of several commercial greenhouse operators reduces the bargaining power of buyers. Buyers can switch between vendors, keeping prices in check.
Bargaining power of suppliers: Specialized equipment and machinery providers wield some influence over commercial greenhouse operators due to proprietary technology and patents influencing prices.
Threat of new substitutes: Limited threat as commercial greenhouses provide controlled environmental conditions favorable for year-round production of selected crops with minimal substitutes.
Competitive rivalry: Intense competition among existing commercial greenhouse operators to cater increasing demand and control production costs.
SWOT Analysis
Strength: Controlled environment allows year-round production of high value crops. Robust distribution network of leading brands.
Weakness: High initial investments and operating expenses. Vulnerable to changes in weather, pests and diseases.
Opportunity: Growing consumer demand for pesticide-free foods drives adoption. Favorable regulations supporting urban farming present new avenues.
Threats: Climate change leading to unpredictable weather patterns poses production risks. Supply chain disruptions during pandemic-like situations affect profitability.
Key Takeaways
The global commercial greenhouse market is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing adoption of smart greenhouse technologies and urban farming practices.
Regionally, North America dominated the commercial greenhouse market in 2023 with US and Canada accounting for more than 30% share due to widespread adoption of greenhouse farming. Asia Pacific is anticipated to grow at fastest pace owing to increasing area under greenhouse cultivation in China, India and Japan.
Key players operating in the commercial greenhouse market are Richel Group, Argus Control Systems Ltd, Rough Brothers Inc., Certhon, Logiqs BV, Lumigrow Inc., Nexus Corporation, Hort Americas, Heliospectra AB, and Agra Tech Inc. Strategic partnerships and introduction of advanced greenhouse systems will help these players consolidate their position in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
