Plants are grown in a controlled but favorable environment in greenhouses, with temperature, light, humidity, and ventilation being the essential components required for crop production. Over the past decade, commercial greenhouse operations have made its presence felt, and is here to stay for a long time ahead, owing to the lack of arable land and unsuitable climate. Commercial greenhouses help in providing a better yield as compared to traditional agricultural methods. Moreover, rise in population and demand for food is also pushing the market for commercial greenhouse towards growth.
Drivers & Restraints
The growth of the worldwide market for commercial greenhouses is being majorly influenced by the following factors:
- Higher yield in comparison to traditional agricultural methods
- Increasing adoption of rooftop farming
- Lack of arable land
- Unfavorable climatic conditions
Moreover, rising population and increasing demand for food, especially in Asia-Pacific is another factor responsible for the growth of this market. Furthermore, increasing adoption of vertical farming and rooftop farming are likely to create ample growth opportunities for this market. However, higher setup costs of commercial greenhouses, especially technologies like HVAC systems and LED grow lights and lack of awareness regarding greenhouse farming may hinder the growth of this market.
Market at a Glance
Projected to grow at a CAGR of 8.8% between 2015 and 2020, the global commercial greenhouse market which was valued at 19.48 Billion in 2015 is estimated to reach USD 29.64 Billion by the end of 2020. Geographically, Europe is the largest and the fastest-growing market for commercial greenhouses, with countries like The Netherlands, Spain, and France being the major areas under greenhouse cultivation. However, North America is expected to grow at the highest CAGR over the forecast period. Furthermore, the growing population and demand for food in developing regions like Asia-Pacific is also majorly influencing the growth of this market.
Based on equipment, the heating and cooling systems together contributed for about 51% of the total market share in 2014, with heating system segment accounting for the major share. On the basis of type, the market was led by glass greenhouse segment, followed by plastic greenhouses. The European market dominated the plastic greenhouse market. However, the North American market for plastic greenhouse is expected to grow at the highest CAGR over the forecast period. Among crop types, fruits & vegetables held the largest market share in 2015, followed by flowers & ornamentals.
Richel Greenhouse (France), Argus control systems ltd. (U.S), Certhon (U.S.), Logiqs (The Netherlands), and Lumigrow (U.S.) are some of the key players dominating the global commercial greenhouse market.
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Scope of the Research
The forecast and analysis of the global commercial greenhouse market has been done on the basis of following segmentation:
- Equipment: Heating Systems, Cooling Systems, Others
- Type: Glass Greenhouse, Plastic Greenhouse
- Crop Type: Fruits & Vegetables, Flowers & Ornamental, Nursery Crops, Others
- Geography: North America, Europe, Asia-Pacific, RoW