Commercial Greenhouse Market

A commercial greenhouse is a structure used for the cultivation of crops under controlled conditions. These greenhouses are designed to provide an ideal environment for the growth of plants, regardless of the weather outside. In recent years, the commercial greenhouse market has experienced significant growth, driven by the increasing demand for locally grown produce and the need for more sustainable farming practices.

One of the recent developments in the commercial greenhouse market is the use of advanced technology to improve crop yields and reduce energy consumption. LED lighting, for example, is increasingly being used to provide the right amount and type of light for plant growth, while also reducing energy costs. Additionally, advanced climate control systems are being used to maintain optimal temperature, humidity, and CO2 levels inside the greenhouse.

Another development in the commercial greenhouse market is the use of hydroponic and aeroponic systems. These systems allow plants to grow in nutrient-rich water or air, without the need for soil. This method of cultivation can significantly reduce water usage and increase crop yields, making it an attractive option for commercial growers.

The use of renewable energy sources is also becoming increasingly popular in the commercial greenhouse market. Solar panels and other renewable energy sources are being used to power climate control systems and lighting, reducing energy costs and making commercial greenhouses more environmentally sustainable.

In addition, there is a growing trend towards the use of vertical farming techniques in commercial greenhouses. Vertical farming involves growing crops in stacked layers, allowing for more efficient use of space and resources. This method of cultivation is particularly useful in urban areas where space is limited.

The use of automation and robotics is another recent development in the commercial greenhouse market. Automated systems can be used to control climate conditions, water and nutrient delivery, and harvesting. This not only reduces labor costs but also improves the overall efficiency of the greenhouse.

Market Dynamics of Commercial Greenhouse Market

Market dynamics refer to the forces that shape and influence the behavior of a market. In the case of greenhouse farming, one of the primary drivers is the need for higher yields while using limited space and water resources. Compared to traditional farming methods, greenhouse farming offers several advantages, including higher crop yields, faster crop growth cycles, and the ability to grow crops in a controlled environment.

By creating an enclosed facility, farmers can optimize the growing conditions for their crops and achieve higher yields per square foot of land. For example, according to USDA data, tomatoes grown in greenhouse hydroponics had an average yield of 10.59 pounds per square foot in 2020, compared to 1.85 pounds per square foot for traditionally grown tomatoes. This increased efficiency allows farmers to stack additional layers and increase the growing area, resulting in even higher yields.

With the Food and Agriculture Organization of the United Nations projecting a 70% increase in food production requirements by 2050, greenhouse farming can play a vital role in meeting the food demands of a growing population. As urbanization continues to take over arable land, traditional farming methods become less viable, making greenhouse farming an attractive alternative.

Another advantage of greenhouse farming is its water efficiency. Greenhouse farms recirculate and reuse water, requiring an average of 95% less water than traditional outdoor farming. Vertical greenhouse systems further increase water efficiency by utilizing the transpiration process, allowing farmers to reuse water for irrigation purposes.

Overall, the need for higher yields and efficient use of limited resources drives the growth and adoption of greenhouse farming. As the world's population continues to grow, greenhouse farming will play an increasingly important role in meeting food demands sustainably.

Restraints in Commercial Greenhouse Market

The greenhouse farming industry faces limitations due to a restricted range of crops that can be grown, making it unappealing to some growers. Growing crops in greenhouses requires careful consideration of various factors such as temperature control, water management, nutrient supply, growth methods, and harvesting times. While fruits and vegetables are well-suited for greenhouse farming, only a limited number of varieties can be cultivated in a controlled environment due to the challenges of growing certain crops with multiple edible parts like leaves, stems, and roots.

Furthermore, crops such as sugarcane, rice, and wheat require large amounts of water and longer harvesting periods, making them challenging to cultivate in a greenhouse environment. Rice and wheat are major crops in the Asia-Pacific (APAC) region, where they are grown year-round to feed the population. However, due to the difficulty of growing these crops in greenhouses, the commercial greenhouse farming industry has been slow to gain traction in these regions.

Opportunities in Commercial Greenhouse Market

Research and Development to Enhance Greenhouse Farming Techniques

Research and Development (R&D) initiatives are constantly underway to improve greenhouse farming methods, making it an attractive field for scientists, researchers, and farmers. With the challenges posed by climate change and environmental concerns, various methods have been developed to ensure global food security. Greenhouse farming is being explored as a viable solution to the basic problem of climate control in temperate regions. The Advanced Horticulture Research Facility has highlighted the effectiveness of active cooling methods in establishing an optimal environment for crop growth. Research is being conducted to study photovoltaic (PV)-based shading methods for passive cooling of greenhouses. Additionally, experts are seeking to enhance the current humidity-control techniques used in the protected cropping industry and identify future research opportunities in this area. The budget for agriculture, rural development, and fisheries for the European Union (EU) in 2020 amounted to USD 69.2 billion, which accounted for 35% of the total budget, indicating the significance of the agricultural sector in research and development.

Challenges in Commercial Greenhouse Market

Inadequate Temperature Control Systems in Warm Regions

Temperature is a crucial environmental element that significantly influences crop growth, development, and yield, especially during critical stages such as flowering. Temperature requirements vary depending on the type of crop and must be maintained within a specific range for optimum growth and yield. While commercial greenhouse farming techniques are gaining traction in urban and semi-urban areas of developing countries, maintaining an optimal climate in tropical regions like the Middle East, parts of the Asia-Pacific, and Africa presents unique challenges. The hot and humid climate in these regions makes it difficult to control the temperature, hindering crop growth. Innovative techniques are urgently needed to address the lack of temperature control systems suitable for warm regions and maintain an optimal growing environment for crops.

The global commercial greenhouse market has been segmented by product type into fruits, flowers & ornamentals, nursery crops, and others. In 2021, the vegetables segment dominated the market with a share of 41.0%, followed by fruits with 25.4%, and flowers & ornamentals with 16.8%. This is because greenhouses offer optimal growing conditions for vegetables, allowing for control over moisture, light, temperature, fertilization, humidity, and irrigation.

Common crops grown in commercial greenhouses include tomatoes, strawberries, squash, broccoli, herbs, artichokes, beans, peas, and leafy greens like spinach, kale, arugula, and microgreens. High-producing crops like lettuce, cucumber, rocket, and beans also thrive in greenhouse environments.

One major trend in the industry is the increasing use of machine-to-machine (M2M) solutions in greenhouse farming. These solutions assist in data analysis, real-time information collection, and improving crop yields. There are significant growth opportunities for M2M solutions in countries like China, Indonesia, and the Philippines. Fleet management using M2M solutions helps reduce food wastage during transportation, while IoT technology helps minimize resource usage, such as energy and land.

Technology-based smart agriculture also helps reduce greenhouse emissions by minimizing input wastage through variable rate technology. As the commercial greenhouse market continues to evolve, the use of M2M solutions and other technologies will become increasingly important for improving efficiency and sustainability.

Europe is the leading market for commercial greenhouse farming, with a value of USD 12.6 billion in 2021, and it is projected to reach USD 24 billion by 2027, with a compound annual growth rate (CAGR) of 11.3% during the forecast period. Europe has been a pioneer in adopting advanced techniques in commercial greenhouse horticulture, with countries like the Netherlands, Spain, and Turkey having large areas under greenhouse cultivation. However, in the Netherlands, growers primarily use simple tunnel-like greenhouses without climate control technologies. Controlled environment agriculture is more common in Scandinavian countries, where the harsh winter weather makes outdoor farming difficult. European growers are among the world's leading adopters of commercial greenhouse technologies, especially in regions where the cold climate necessitates climate control for plant growth. Supplemental lighting is also crucial in many parts of Europe, including Scandinavian countries, to extend the growing season throughout the year.

Spain and Italy are the key European countries practicing greenhouse farming, with Eastern European countries showing significant growth in recent years. The greenhouse market in Western and Central Europe has matured, with declining demand for greenhouses in several countries, corresponding to their respective GDPs. Countries like Germany, Italy, France, the UK, and Spain have seen a slowdown in greenhouse construction. Stringent regulations against the use of plastics are a significant factor contributing to the slow growth of the plastic greenhouse market in Western and Central Europe.

The key players in this Commercial Greenhouse Market

• BERRY GLOBAL
• SIGNIFY HOLDING
• HELIOSPECTRA AB
• PLASTIKA KRITIS S.A.
• EVERLIGHT ELECTRONICS
• RICHEL GROUP
• ARGUS CONTROL SYSTEMS
• CERTHON
• LOGIQS B.V.
• LUMIGROW
• AGRA-TECH, INC
• ROUGH BROTHERS, INC.
• HORT AMERICAS
• TOP GREENHOUSES
• STUPPY GREENHOUSE
• THE GLASSHOUSE COMPANY
• DECLOET GREENHOUSE MFG. LTD
• EUROPROGRESS
• LUITEN GREENHOUSES
• SOTRAFA
• NOBUTEC B.V.
• AMMERLAAN CONSTRUCTION
• LUDY GREENHOUSE MANUFACTURING CORPORATION
• SAVEER BIOTECH LTD
• HARFORD

Recent Developments in Commercial Greenhouse Market

The commercial greenhouse market has recently seen significant developments. One such development occurred in April 2021, when Argus played a crucial role in Medicago's production of a plant-derived vaccine for Covid-19. Argus provided state-of-the-art equipment for plant growth, which was seamlessly integrated into Medicago's existing facilities in Quebec and Raleigh-Durham.

Another noteworthy development was in May 2020, when Certhon and DENSO Corporation established DENSO AgriTech Solutions, Inc. in Tokyo. This joint venture aims to provide innovative horticulture solutions, combining DENSO's agricultural products with Certhon's horticulture products and services.

In December 2019, Richel Group and GreenFood collaborated to construct a 9-hectare greenhouse in Armenia for strawberry cultivation. This partnership enabled GreenFood to become the largest greenhouse strawberry producer in the Commonwealth of Independent States (CIS) countries.

Finally, in May 2019, Heliospectra extended its product portfolio by launching the MITRA series, a modular LED lighting solution for commercial greenhouse lighting.

The commercial greenhouse market has seen significant growth in recent years due to the increasing demand for fresh produce and the need for more sustainable agricultural practices. In response to this demand, there have been several recent developments in the commercial greenhouse market.

One of the major developments in the commercial greenhouse market is the adoption of new technologies to increase efficiency and sustainability. For example, the use of energy-efficient lighting systems, such as LEDs, has helped to reduce energy costs and increase crop yields. The adoption of renewable energy sources, such as solar panels, has also helped to reduce greenhouse gas emissions and increase sustainability.

Another development in the commercial greenhouse market is the use of automation and robotics. Automated systems can help to improve efficiency and reduce labor costs by performing tasks such as watering, fertilizing, and harvesting. Robotics can also help to reduce the risk of disease transmission by eliminating the need for human contact with plants.

The use of vertical farming techniques has also become increasingly popular in the commercial greenhouse market. Vertical farming involves growing crops in stacked layers, allowing for higher crop yields in a smaller space. This technique also allows for greater control over growing conditions, such as temperature, humidity, and lighting, which can lead to more consistent and higher quality crops.

The demand for locally grown produce has also led to the development of urban agriculture and rooftop greenhouse systems. These systems allow for the production of fresh produce in urban areas, reducing transportation costs and the environmental impact of food production.

The use of hydroponic and aquaponic systems has also become more prevalent in the commercial greenhouse market. These systems involve growing plants in nutrient-rich water instead of soil, which can lead to higher crop yields and reduced water usage. In aquaponic systems, fish are also raised in the same water, providing a sustainable source of protein.

In conclusion, the commercial greenhouse market has seen several recent developments in technology and sustainability practices. The adoption of energy-efficient lighting, renewable energy sources, automation and robotics, vertical farming, urban agriculture, and hydroponic and aquaponic systems are all contributing to a more sustainable and efficient commercial greenhouse industry. These developments are helping to meet the growing demand for fresh produce while also reducing the environmental impact of food production.