Commercial Greenhouse Market Snapshot
|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The commercial greenhouse market is projected to register a CAGR of 6.2% during the forecast period (2021-2026).
The commercial greenhouse market has suffered in terms of production, distribution, and uncertainty in demand due to the global COVID-19 pandemic. COVID-19-related restrictions on exports and imports have resulted in supply chain disruptions as the existing supply chain is not equipped to cater to customers.
The adoption of advanced technology in agriculture has improved the approaches that farmers use in the farmland. Modern agriculture has made it easy for farmers to achieve high produce while making efficient utilization of resources.
As the farming sector is expanding, farmers across the world are aiming for higher yields, along with quality production and economies of scale. The needs of the rising population, increasing food demand, the necessity to increase crop yields, and an increase in productivity are the factors driving the market studied.
Europe and North America hold significant market shares while the fastest growth can be observed in the Asia-Pacific region. Europe has been the first to implement advanced techniques in greenhouse, particularly in countries, such as Italy, Spain, and the Netherlands, where large areas are under greenhouse cultivation.
The rapid population growth with shrinkable land, particularly in countries, such as China and India, is anticipated to drive the greenhouse market in the Asia-Pacific region during the forecast period. One of the major reasons for the growth of greenhouse farming is that the cultivable land is shrinking year to year. Therefore, the need to maximize the crop yield in the available land to meet the increasing food demand is propelling the commercial greenhouse farming market. Furthermore, the fluctuations in the climatic conditions around the world are pushing the farmers toward employing greenhouse farming techniques, resulting in the growth of the market studied.
Scope of the Report
Commercial greenhouses enable the cultivation of fruits and vegetables under controlled conditions, which ensure a continuous year-round supply of high-quality products and help overcome issues of land and water shortage and climate change. For the purpose of this report, only the global greenhouse market has been considered. The report covers an extensive study of segments and factors driving the growth of the commercial greenhouse market. The commercial greenhouse market is segmented by equipment type (heating systems, cooling systems, and other equipment types), greenhouse type (glass greenhouses and plastic greenhouse), crop type (fruits and vegetables, flowers and ornamentals, nursery crops, and other crop types), and geography (North America, Europe, South America, Asia-Pacific, and Africa).
|By Equipment Type|
|Other Equipment Types|
|By Crop Type|
|Fruits and Vegetables|
|Flowers and Ornamentals|
|Other Crop Types|
|By Greenhouse Type|
Key Market Trends
Decrease in Arable Land
The global population is increasing exponentially, and every day, nearly 200,000 people are getting addednAccording to the baseline projections in the EU Agriculture Outlook for the period 2018-2030, the total arable land in Europe is anticipated to decline at a much higher rate by 2030, primarily attributing to the increasing level of urbanization in the region, which has affected the efficiency of the utilized agricultural area (UAA). So, there is a dire need to increase the crop yields in the coming decades to keep pace with the food demand driven by population growth and rapid urbanization.
Agricultural crop land is anticipated to suffer a setback with the declining area under arable land in the region. According to the FAO, in Germany, the arable land came down steadily from 13.2 million hectares in 2014 to 9.9 million hectares in 2018. Over the period of 2014-18, a sharp decline of nearly 25% had been observed in the country.
Saudi Arabia has witnessed reduction in the total arable land available for agriculture. Despite government policies and booming agribusiness, the country steeps the arable land in the country. According to FAO, the total arable land was at 519.2 thousand hectares in 2015, which has gradually decreased over the years. In 2017, the total arable land in the country was 498.9 thousand hectares, which is approximately 4% lower than that in 2015.
The world has lost a major portion of its arable land due to erosion or pollution in the past 40 years, with potentially disastrous consequences to the global demand for food. The continual ploughing of fields, combined with heavy use of fertilizers, has degraded soils across the world, with erosion occurring at a pace of up to 100 times greater than the rate of soil formation. It takes around 500 years for just 2.5 cm of topsoil to be created amid unimpeded ecological changes. Therefore, meeting the global food demand with less space per hectare is the key to drive the commercial greenhouse market during the forecast period.
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Europe Dominates the Largest Share in Greenhouse Installment
Europe and North America hold significant market shares, while the fastest growth can be observed in the Asia-Pacific region. Europe has been the first to implement advanced techniques in greenhouses, particularly in countries such as Italy, Spain, and the Netherlands, where large areas are under greenhouse cultivation. Europe is the largest player because of urbanization, rapid technological advancements, and the high demand for fruits and vegetables. The rapid population growth, along with shrinkable land, particularly in countries such as China and India, is expected to drive the commercial greenhouse market during the forecast period in the Asia-Pacific region.
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The global commercial greenhouse market is highly fragmented, with the presence of numerous large, small, and medium-sized manufacturers. The top 3 players in the market include Richel Group Rough Brothers Inc., International Greenhouse Company . Some of the other notable players include Argus Control System Ltd, Certhon and Lumigrow Inc., and Heliospectra AB. Along with innovations and expansions, investments in R&D and developing novel product portfolios are likely to be crucial strategies during the forecast period. Major players like LumiGrow, Nexus Corporation, Certhon, and Greentech Agro are making new strategies to enter the market.
In April 2020, Denso invested in Certhon Group to provide advanced greenhouse solutions to consumers. Denso is the world's second-largest automotive technological supplier.
In January 2020, Madar Farms signed a contract with Certhon Group to establish a commercial indoor farming facility in the United Arab Emirates.
In 2019, Argus Controls and Urban-Gro renewed a strategic agreement to provide automatic and plant-centric solutions for environmental control in greenhouses to cannabis cultivars in North America.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Equipment Type
5.1.1 Heating Systems
5.1.2 Cooling Systems
5.1.3 Other Equipment Types
5.2 By Crop Type
5.2.1 Fruits and Vegetables
5.2.2 Flowers and Ornamentals
5.2.3 Nursery Crops
5.2.4 Other Crop Types
5.3 By Greenhouse Type
5.3.1 Glass Greenhouses
5.3.2 Plastic Greenhouse
5.4.1 North America
18.104.22.168 United States
22.214.171.124 Rest of North America
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 Rest of Asia-Pacific
5.4.4 South America
220.127.116.11 Rest of South America
5.4.5 Middle East and Africa
18.104.22.168 South Africa
22.214.171.124 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Richel Group
6.3.2 Argus Control Systems Ltd
6.3.3 Rough Brothers Inc.
6.3.5 Logiqs BV
6.3.6 Lumigrow Inc.
6.3.7 Nexus Corporation
6.3.8 International Greenhouse Company
6.3.9 Heliospectra AB
6.3.10 Agra Tech Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. AN ASSESSMENT OF THE COVID-19 IMPACT ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Commercial Greenhouse Market market is studied from 2016 - 2026.
What is the growth rate of Commercial Greenhouse Market?
The Commercial Greenhouse Market is growing at a CAGR of 6.2% over the next 5 years.
Which region has highest growth rate in Commercial Greenhouse Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Commercial Greenhouse Market?
North America holds highest share in 2020.
Who are the key players in Commercial Greenhouse Market?
International Greenhouse Company, Rough Brothers Inc., Richel Group, Argus Control Systems Ltd, Certhon are the major companies operating in Commercial Greenhouse Market.