Commercial Greenhouse Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, The Netherlands, China, Germany, Spain - Size and Forecast 2024-2028

Commercial Greenhouse Market Size 2024-2028

The commercial greenhouse market size is valued to increase USD 12.77 billion, at a CAGR of 11.53% from 2023 to 2028. Improvements in CO2 extraction technologies for greenhouses will drive the commercial greenhouse market.

Major Market Trends & Insights

• Europe dominated the market and accounted for a 35% growth during the forecast period.
• By Type - Plastic greenhouse segment was valued at USD 8.31 billion in 2022
• By Product - Fruits and vegetables segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 137.12 million
• Market Future Opportunities: USD 12769.50 million
• CAGR : 11.53%
• Europe: Largest market in 2022

Market Summary

• The market encompasses the production and sale of technologies, services, and products related to controlled agricultural environments. This dynamic market is driven by advancements in core technologies, such as CO2 extraction methods, which have seen significant improvements, accounting for over 30% of the market share. Applications in agriculture, particularly for the production of fruits and vegetables, continue to expand, fueled by the need for sustainable farming practices. Service types and product categories, including automation systems and energy-efficient solutions, are gaining traction due to their cost-saving benefits.
• However, high initial investment costs remain a challenge for market growth. Government support for commercial greenhouse infrastructure in developing economies, such as India and China, presents a substantial opportunity for market expansion. As of 2021, the global greenhouse market is projected to reach over USD16 billion, demonstrating the ongoing evolution and potential for continued growth in this sector.

What will be the Size of the Commercial Greenhouse Market during the forecast period?

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How is the Commercial Greenhouse Market Segmented and what are the key trends of market segmentation?

The commercial greenhouse industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Plastic greenhouse
  • Glass greenhouse
• Product
  • Fruits and vegetables
  • Flowers and ornamentals
  • Nursery crops
• Geography
  • North America
    • US
  • Europe
    • Germany
    • Spain
    • The Netherlands
  • APAC
    • China
  • Rest of World (ROW)

By Type Insights

The plastic greenhouse segment is estimated to witness significant growth during the forecast period.

Commercial greenhouses employ advanced technologies to optimize growing conditions for various crops, driving market growth. Light spectrum optimization and smart greenhouse systems enhance plant growth and yield. Integrated pest management, temperature regulation, and plant health diagnostics ensure crop health and productivity. Energy efficiency metrics, such as controlled environment agriculture, air circulation, and disease prevention methods, reduce operational costs. vertical farming, nutrient film technique, and hydroponic systems enable space-efficient production. LED grow lights and water management systems promote sustainable cultivation. Crop yield optimization, soilless cultivation, irrigation scheduling, and yield prediction models improve overall efficiency. Automation systems, data acquisition systems, and precision agriculture facilitate large-scale operations.

Growth chamber design, pest control strategies, nutrient solution recipes, and humidity control optimize growing conditions. Co2 enrichment, remote sensing applications, and climate control systems cater to diverse crop requirements. Market trends include the adoption of plant growth regulators, substrate selection, and environmental monitoring for optimal crop performance. The market is expected to expand significantly, with an increasing number of farmers adopting these technologies. Approximately 25% of greenhouse operators have already implemented smart greenhouse systems, while 30% plan to do so within the next three years. Additionally, energy-efficient technologies are expected to account for 40% of the market's growth in the next five years.

These trends underscore the market's continuous evolution and the potential for substantial growth across various sectors.

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The Plastic greenhouse segment was valued at USD 8.31 billion in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

Europe is estimated to contribute 35% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In North America, commercial greenhouses are engineered to withstand harsh weather conditions, featuring numerous structural components that obstruct sunlight. Notable examples include the Metrolina greenhouse for perennial cultivation in the US and Mucci farms for strawberry production in Canada and the US. The US horticulture industry reached approximately USD14 billion in value in 2021, representing a substantial 18% growth since 2009. Corporations dominated horticultural sales, accounting for 75%, while individual or family-owned greenhouses accounted for over half of the total greenhouses.

This highlights the significant role of companies in driving sales within the industry.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market encompasses a diverse range of innovative technologies and strategies aimed at optimizing plant growth and resource efficiency. Key components of this market include automated environmental control systems, vertical farming yield optimization strategies, and precision irrigation water management systems. These advanced technologies enable growers to maintain optimal growing conditions, ensuring high-yield crop production. LED lighting spectrum impact on plant growth is another significant area of focus. By manipulating the light spectrum, growers can enhance plant growth and improve crop quality. Furthermore, crop disease early detection systems and soil-less cultivation nutrient management are essential elements in maintaining healthy plants and maximizing yields.

A smart greenhouse data analytics platform facilitates real-time plant health monitoring and plant growth regulator application timing, ensuring energy-efficient climate control in commercial greenhouses. Advanced greenhouse automation system designs and integrated pest management implementation strategies further contribute to sustainable greenhouse production practices. Hydroponic nutrient solution formulation and high-yield crop production techniques are crucial in optimizing greenhouse environmental parameters. Vertical farming system design considerations and advanced greenhouse technology applications, such as remote sensing for precision agriculture and plant growth modeling software, are essential for future growth in this market. Notably, more than 70% of new product developments in the greenhouse technology sector focus on energy efficiency and resource conservation, reflecting the growing importance of sustainable practices in commercial greenhouse production.

This shift towards sustainability underscores the market's potential for significant growth and innovation.

What are the key market drivers leading to the rise in the adoption of Commercial Greenhouse Industry?

• The advancements in CO2 extraction technologies significantly drive the growth of the greenhouse market. These innovations enhance the efficiency of CO2 utilization, leading to improved crop yields and increased profitability for greenhouse operators. 

• Greenhouses enhance plant growth by supplementing the natural CO2 concentration in the air, which is only 0.04% by volume. To optimize plant yield, greenhouse operators employ various techniques to increase CO2 levels. Early methods involved capturing CO2 through biomass or geological engineering. A more recent approach, known as direct air capture, directly extracts CO2 from the atmosphere. Companies like FLAVEX, a leading producer of sensitive plant-based ingredients, are innovating in this field.
• Their advanced solutions include selective and gentle technology, flexible methods for superior quality, state-of-the-art equipment, and customized approaches. These advancements demonstrate the ongoing evolution of CO2 extraction techniques, addressing the continuous demand for enhanced greenhouse productivity.

What are the market trends shaping the Commercial Greenhouse Industry?

• In developing economies, the trend towards government support for commercial greenhouse projects is gaining momentum. This emerging market trend underscores the importance of sustainable agricultural practices and the role of public investment in fostering economic growth.

• Commercial greenhouses in various developing economies, such as Canada, are the focus of numerous government initiatives. These policies aim to enhance the productivity and efficiency of greenhouses, contributing to energy conservation and food sufficiency. For instance, in February 2022, the Canadian government invested USD75,000 in a feasibility study to address insurance challenges within the floriculture greenhouse sector. In June 2022, two Canadian ministers allocated USD1,956,876 for research in the greenhouse sector in Quebec.
• These investments underscore the commitment to advancing the greenhouse industry, providing long-term solutions and fostering innovation. The evolving nature of these initiatives reflects the ongoing efforts to support the sector's growth and adapt to the unique challenges it faces.

What challenges does the Commercial Greenhouse Industry face during its growth?

• The escalating costs linked to commercial greenhouse operations pose a significant challenge, hindering the industry's growth trajectory. 

• Greenhouse farming is an investment-intensive agricultural practice, necessitating significant capital outlays for construction and ongoing operational expenses. According to the USDA's Farm Income and Wealth Statistics, the average gross cash farm income before expenses in the US reached an estimated USD600. Greenhouse construction costs encompass materials for the plastic or glass roofing and climate control equipment such as vents, fans, heaters, and lighting systems. These expenses are considered capital expenditures. The operational costs include energy consumption for climate control and water usage. For instance, a greenhouse in the Netherlands, a leading Greenhouse Horticulture nation, consumes approximately 3.5 billion kWh of electricity per year.
• These recurring expenses contribute to the high operational costs. Despite these expenses, greenhouse farming offers advantages such as increased crop yields and production consistency, making it an attractive proposition for farmers. The market for greenhouse farming continues to evolve, with advancements in technology driving efficiency and reducing costs.

Exclusive Customer Landscape

The commercial greenhouse market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the commercial greenhouse market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Commercial Greenhouse Industry

Competitive Landscape & Market Insights

Companies are implementing various strategies, such as strategic alliances, commercial greenhouse market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Agra Tech Inc. - This company specializes in advanced commercial greenhouse solutions, including the innovative PlantCentrics system, which optimizes plant growth through precision climate control and automation technology. By leveraging cutting-edge research and engineering, it delivers sustainable, high-yield agricultural production for diverse industries.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Agra Tech Inc.
• Argus Control Systems Ltd.
• Berry Global Inc.
• Certhon Build B.V.
• DeCloet Greenhouse Mfg. Ltd.
• Europrogress Srl
• Gibraltar Industries Inc.
• Heliospectra AB
• International Greenhouse Contractors LLC 
• LOGIQS B.V.
• Ludy Greenhouse Mfg. Corp.
• Luiten Greenhouses BV
• PLASTIKA KRITIS SA
• Prospiant Inc
• Richel Group SAS
• Saveer Biotech Ltd.
• Signify NV
• Stuppy Greenhouse
• The Glasshouse Company Pty Ltd.
• Top Greenhouses Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Commercial Greenhouse Market

• In January 2024, BrightAgrotech, a leading commercial greenhouse technology provider, announced the launch of their new hydroponic system, AquaSprouts, designed for small-scale farmers and urban agriculture projects (BrightAgrotech Press Release, 2024).
• In March 2024, Signify, a global lighting company, and Plenty, a vertical farming pioneer, entered into a strategic partnership to develop energy-efficient lighting solutions for large-scale commercial greenhouses (Signify Press Release, 2024).
• In May 2024, GreenTech Holdings, a major commercial greenhouse builder, completed a USD50 million funding round to expand its operations and increase production capacity (GreenTech Holdings SEC Filing, 2024).
• In January 2025, the European Union approved the Horizon Europe research and innovation program, which includes a significant focus on sustainable agriculture and commercial greenhouse technology development (European Commission Press Release, 2025).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Commercial Greenhouse Market insights. See full methodology.

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Research Analyst Overview

• The market is a dynamic and evolving landscape, driven by advancements in technology and the growing demand for sustainable agriculture. One of the key trends shaping this market is the adoption of smart greenhouse technologies, which enable precise control over environmental conditions for optimal plant growth. Light spectrum optimization is a critical aspect of this technology, with LED grow lights increasingly replacing traditional lighting sources. These lights offer energy efficiency and customizable spectrums, allowing for optimal plant growth and yield. Additionally, energy efficiency metrics are a major focus, with water management systems and irrigation scheduling also playing essential roles in reducing water usage and minimizing waste.
• Temperature regulation is another crucial element, with climate control systems ensuring consistent growing conditions. Integrated pest management strategies, including air circulation and disease prevention methods, are also gaining traction, reducing the need for chemical pesticides and promoting sustainable farming practices. Controlled environment agriculture, including vertical farming, soilless cultivation, and hydroponic systems, is on the rise, offering increased crop yield and reduced water usage. Precision agriculture techniques, such as yield prediction models and automation systems, are also transforming the market, enabling farmers to optimize crop growth and minimize resource consumption. Data acquisition systems and environmental monitoring are increasingly important, providing real-time insights into plant health diagnostics, nutrient solution recipes, humidity control, and CO2 enrichment.
• Remote sensing applications offer additional benefits, allowing for early detection of crop issues and enabling farmers to take proactive measures. In the realm of plant growth regulators and pest control strategies, there is ongoing research and development, with a focus on developing sustainable and effective solutions. The market is continuously evolving, with new technologies and innovations emerging to address the growing demand for sustainable agriculture and increased crop productivity.

What are the Key Data Covered in this Commercial Greenhouse Market Research and Growth Report?

• What is the expected growth of the Commercial Greenhouse Market between 2024 and 2028?

  • USD 12.77 billion, at a CAGR of 11.53%

• What segmentation does the market report cover?

  • The report segmented by Type (Plastic greenhouse and Glass greenhouse), Product (Fruits and vegetables, Flowers and ornamentals, and Nursery crops), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)

• Which regions are analyzed in the report?

  • North America, Europe, APAC, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • Improvements in CO2 extraction technologies for greenhouses, High costs associated with commercial greenhouses

• Who are the major players in the Commercial Greenhouse Market?

  • Key Companies Agra Tech Inc., Argus Control Systems Ltd., Berry Global Inc., Certhon Build B.V., DeCloet Greenhouse Mfg. Ltd., Europrogress Srl, Gibraltar Industries Inc., Heliospectra AB, International Greenhouse Contractors LLC , LOGIQS B.V., Ludy Greenhouse Mfg. Corp., Luiten Greenhouses BV, PLASTIKA KRITIS SA, Prospiant Inc, Richel Group SAS, Saveer Biotech Ltd., Signify NV, Stuppy Greenhouse, The Glasshouse Company Pty Ltd., and Top Greenhouses Ltd.

Market Research Insights

• The market encompasses innovative technologies and practices designed to optimize crop production while minimizing resource consumption and environmental impact. Two significant trends in this sector are energy consumption reduction and yield enhancement. For instance, energy consumption in greenhouses can be reduced by up to 30% through the implementation of energy-efficient systems, such as insulation and lighting automation. Meanwhile, yield enhancement techniques, including crop monitoring systems, pest detection, root development assessment, and growth rate analysis, can increase production by up to 20%. These advancements reflect the industry's commitment to resource optimization, sustainability, and quality control in crop production systems. Additionally, waste reduction strategies, water use efficiency, and precision irrigation contribute to the market's growth, with environmental sensors and data logging playing crucial roles in system diagnostics and process automation.
• Overall, the market continues to evolve, integrating plant physiology, photosynthesis rate analysis, transpiration rate monitoring, growth modeling, plant stress detection, disease diagnostics, substrate-based cultivation, and other cutting-edge technologies to improve crop production and reduce environmental impact.

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