Commercial Greenhouse Market Size and Share
Commercial Greenhouse Market Analysis by Mordor Intelligence
The commercial greenhouse market size reached USD 46.7 billion in 2025 and is projected to reach USD 68.5 billion by 2030, advancing at a 7.9% CAGR throughout the forecast period. The commercial greenhouse market is scaling swiftly as land suited for open-field cultivation dwindles, extreme weather undermines yield reliability, and retailers seek pesticide-free produce that arrives every week of the year. Growers are replacing single-layer structures with climate-tight facilities powered by on-site renewables, AI-guided fertigation, and high-efficacy LEDs that cut operating costs and carbon footprints. Greenhouse-as-a-service contracts convert lump-sum construction bills into predictable fees, opening the commercial greenhouse market to mid-sized farmers who previously lacked collateral for large loans. Europe currently accounts for the largest share, yet Asia-Pacific’s urbanization and food-security incentives make it the fastest-growing territory. Fragmented competition is giving way to platform plays, as heating, lighting, and irrigation suppliers merge portfolios into single dashboards.
Key Report Takeaways
- By crop type, fruits and vegetables led with 64% commercial greenhouse market share in 2024, and cannabis and specialty crops are forecast to record a 15% CAGR through 2030.
- By equipment, heating systems held a 28% revenue share in 2024, while LED grow lighting is projected to expand at a 14.6% CAGR to 2030.
- By technology, hydroponic systems accounted for 52% of the commercial greenhouse market in 2024, and hybrid and vertical approaches are anticipated to rise at an 18.5% CAGR through 2030.
- By greenhouse type, plastic-film structures represented 57% of the commercial greenhouse market size in 2024, whereas rigid polycarbonate houses are set to grow at an 11.3% CAGR.
- By region, Europe captured 31% of global revenue in 2024; Asia-Pacific is forecast to post the quickest expansion at an 11.6% CAGR.
- By end user, commercial growers commanded 70% of global value in 2024 and are progressing at a 12.5% CAGR, reflecting consolidation trends.
Global Commercial Greenhouse Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
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Shrinking arable land and urban expansion | +1.8% | Asia-Pacific, Middle East, global urban belts | Long term (≥ 4 years) |
Demand for year-round fresh produce | +1.5% | North America, Europe, expanding globally | Medium term (2-4 years) |
Climate-change-induced weather volatility | +1.2% | South Asia, Sub-Saharan Africa, worldwide | Long term (≥ 4 years) |
Advances in LED and climate-control technology | +1.0% | North America, Europe, tech-adopting Asia-Pacific | Short term (≤ 2 years) |
Carbon-credit monetization for low-footprint food | +0.8% | Europe, North America, developed Asia-Pacific | Medium term (2-4 years) |
Greenhouse-as-a-service leasing models | +0.6% | North America, entering Europe and Asia-Pacific | Short term (≤ 2 years) |
Source: Mordor Intelligence
Shrinking Arable Land and Urban Expansion
Roughly 12 million hectares of productive soil disappear every year, while urban surfaces are projected to triple by 2030.[1]Source: United Nations, “Global Land Degradation Assessment 2025,” un.org Diversified commercial greenhouse market operators answer that squeeze with protected cultivation systems that deliver 10-15 times the yield per square meter of open fields. China manages more than 4 million hectares of protected cropping, about 80% of the planet’s total, showcasing the model’s scalability[2]Xia X., “Protected Vegetable Production in China,” Acta Horticulturae, ish.org. Capital-intensive facilities now stack benches three high, run conveyors through narrow aisles, and rely on AI scheduling to boost usable space by 40%. Peri-urban land prices have jumped 200-300% over the last decade; growers, therefore, find the commercial greenhouse market economically superior despite higher construction costs.
Demand for Year-Round Fresh Produce
Big-box grocers want steady shelves regardless of season. Walmart’s multi-state partnerships with controlled-environment suppliers illustrate retailer confidence in the commercial greenhouse market, Local Bounti. Generation Z shoppers pay 20-40% premiums for January tomatoes grown within 200 km, widening margins for tech-enabled farms. Net cash flow can reach USD 33,000 per ha in well-run hydroponic houses at the University of Florida IFAS. Consistent caliber also trims shrinkage and lifts shelf life, reinforcing the case for year-round output.
Climate-Change-Induced Weather Volatility
Insurance payouts on weather-related crop losses are rising 40% a year. Japan’s 2024 rice shortage pushed local prices to 31-year highs, underscoring vulnerability. Enclosed units shield harvests behind insulated walls, thermal-energy storage, and predictive venting algorithms. Some carriers now discount premiums for greenhouses, acknowledging lower variability. Operators link weather APIs to HVAC set points hours before a storm, protecting yield.
Advances in LED and Climate-Control Technology
LED fixture costs have plunged 85% since 2010; photon efficacy has doubled. NYSERDA field trials show full-LED retrofits slicing power use 40-60% compared with sodium lamps. Cloud-based platforms such as Sollum’s SUNaaS alter spectra by growth stage to lift biomass without heat spikes. Machine-learning HVAC sequences cut heating and cooling bills by another 20-30%, nudging many European sites toward carbon-neutral status.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
High up-front capital expenditure | –1.5% | Developing markets worldwide | Short term (≤ 2 years) |
Rising energy costs for lighting and HVAC | –1.2% | Europe, North America, and import-dependent regions | Medium term (2-4 years) |
Talent gap in controlled-environment agronomy | –0.8% | Rural emerging markets, global | Long term (≥ 4 years) |
Plastic waste and embodied-carbon scrutiny | –0.5% | Europe, North America, and ESG-focused areas | Medium term (2-4 years) |
Source: Mordor Intelligence
High Up-Front Capital Expenditure
Entry-level film houses cost USD 250-400 /m², while high-spec glass or polycarbonate structures reach USD 800-1,200 /m², locking many smallholders out of the commercial greenhouse market size. To break even, projects must secure gross margins of 30-40% and profit margins of 10-15%, a hurdle that demands tight crop scheduling and premium price realization. Specialized lenders now offer 7-10-year loans, yet monetary tightening since 2022 has pushed interest rates 200-300 bp higher, inflating debt service. Greenhouse-as-a-service contracts spread capital costs over 10-15 years, but lessees still need solid forward-purchase agreements to satisfy underwriters. Higher insurance premiums for storm-prone zones add another layer of fixed cost, making financial viability sensitive to utility rebates and carbon credit revenue. As a result, many growers phase construction in small modules, scaling acreage only after proven cash flow.
Rising Energy Costs for Lighting and HVAC
Energy represents 25-35% of total operating spend, with heating, ventilation, and lighting systems consuming 2-5 kWh/m² daily in temperate zones. The natural gas prices in Europe remain roughly 150% above pre-2022 averages, squeezing winter tomato margins and forcing some operators to idle capacity. LED retrofits and variable-refrigerant-flow heat pumps trim electricity use by 20-60%, yet the capital needed for those upgrades competes with routine maintenance budgets. Operators installing biomass boilers, geothermal loops, or combined heat and power often face multi-year payback horizons that exceed investor mandates. Utility volatility also complicates forward hedging: fixed-price contracts are shorter and more expensive, exposing growers to spot-market swings. Without guaranteed access to low-carbon power, energy-intensive facilities risk eroding profitability as carbon-pricing schemes tighten.
Segment Analysis
By Equipment Type: LED Lighting Disrupts Heating Dominance
Heating retained the largest share at 28% in 2024, underscoring climate control’s universal role. LED arrays are the fastest growers at a 14.6% CAGR, with the lighting slice of the commercial greenhouse market size projected to top USD 5.6 billion by 2030. Variable-refrigerant-flow coolers and smart dampers now align airflow with transpiration rates, trimming waste heat. Irrigation software exemplified by Netafim GrowSphere unifies hydraulic and agronomic data, automating nutrient dosing. Structural parts shift toward multi-wall polycarbonate for 20-30% better insulation, but the low-cost film still dominates price-sensitive farms. Control dashboards are the fastest-expanding subsegment, consolidating sensors, pumps, and lights into one tablet view that saves labor.
Hardware makers now market bundled packages: boilers pre-wired to solar inverters, LEDs synchronized with shade screens, and fertigation pumps that feed AI crop models. The equipment ecosystem is converging on integrated, plug-and-play kits that de-risk adoption for newcomers to the commercial greenhouse market.
Note: Segment shares of all individual segments available upon report purchase
By Crop Type: Cannabis Expansion Reshapes Mix
Fruits and vegetables led revenue with 64% of the commercial greenhouse market in 2024, translating to more than USD 29 billion. Cannabis and specialty crops are advancing at a 15% CAGR. BDSA sees legal cannabis sales hitting USD 58 billion by 2028, 80% of the United States. Producers justify high CAPEX with wholesale prices that remain several multiples above leafy-green margins. Micro-green trays finish in under 14 days and earn USD 25-40 /kg, delivering swift cash recovery. Breeders collaborate with greenhouse owners to spawn LED-optimised cultivars that shave grow cycles by 10-12%.
High-value crops need precise VPD, HEPA filtration, and redundant power, fuelling demand for integrated security and HVAC kits. Vertical propagation racks raise seedling density by 200-300%, while bench-level finishing cuts electricity bills, illustrating the hybrid strategies permeating the commercial greenhouse market.
By Greenhouse Type: Polycarbonate Gains Ground
Plastic-film houses retained 57% of installations in 2024 thanks to minimal up-front costs. Rigid polycarbonate, however, is growing 11.3% annually because its insulation chops heating demand up to 30%. Glass persists in research and high-end floriculture where optical clarity overrides price. EU bans on single-use PVC are steering growers to recyclable multilayer films with IR-reflective additives. Semi-closed houses that reuse transpiration moisture save 15-20% of energy in Mediterranean climates, reinforcing Europe’s lead in design innovation.
By Technology: Hybrid Systems Bridge Horizontal and Vertical Farming
Hydroponics occupied 52% of acreage in 2024, consuming 70-90% less water than soil. Hybrid and vertical formats expand at 18.5% per year as urban rents favor density. Deep-water-culture lagoons germinate lettuce before transplanting to NFT rails, speeding harvest. Computer-vision cameras flag nutrient stress early, retaining yield and reducing fertilizer. Soil bays remain for organic logos but lose ground as soilless substrates gain certification.
By End User: Commercial Growers Consolidate Leadership
Commercial growers represent 70% of value and climb 12.5% annually. Cox Farms surpassed 700 acres after a series of acquisitions, producing over 450 million lb of greens for national chains. Lease contracts bring mid-sized growers onto sophisticated platforms while universities fund climate rooms for cultivar discovery. Retail garden centers pivot to premium ornamentals and patio vegetables, leveraging “grown-locally” labels.

Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Europe commanded 31% of the commercial greenhouse market in 2024. The Netherlands’ 10,000 ha of high-tech glasshouses and Spain’s 26,000 ha plastic-house cluster underpin year-round supply. EU Green Deal subsidies fuel biomass boilers, geothermal drills, and LED upgrades that blunt high energy prices. Automation addresses labor bottlenecks, as mobile robots pick vine crops during night shifts.
Asia-Pacific is the fastest-rising region at an 11.6% CAGR. China’s 4 million ha footprint anchors global volume. Japan’s 2024 rice shock triggered fresh funding for sealed green farms. India subsidizes up to 50% of playhouse CAPEX, while South Korea refines semi-closed strawberry systems for export. Urban consumers with rising incomes and food-safety expectations are steering capital toward cleaner, traceable produce.
North America shows durable growth. The United States hosts more than 112 million ft² of vegetable greenhouses, up 19% since 2017. Ontario’s Leamington cluster taps low-cost hydropower and industrial CO₂ to supply Midwest grocers. Mexico expands net-house tomatoes for both domestic and US markets, leveraging government support for water-efficient tech. ESG pledges from restaurant chains further lift domestic demand for low-mile lettuce, consolidating the commercial greenhouse industry’s role in regional food security.

Competitive Landscape
Five leading firms, including Richel Group, Gibraltar Industries, Certhon, Logiqs B.V., and Netafim, collectively hold 25% of the commercial greenhouse market share. Richel supplies turnkey complexes across Europe and North Africa, and Gibraltar’s acquisitions built a diversified US portfolio.
Technology integration is the prevailing play. Lighting manufacturers co-develop energy-balanced rooms with HVAC firms; irrigation providers embed data gateways in pumps for crop-centric analytics. Argus Control Systems services growers with universal dashboards that mesh legacy hardware, winning data-driven clients. White-space entry targets Southeast Asia and Eastern Europe, where greenhouse penetration stays below 5 % of vegetable acreage.
Environmental metrics are fast becoming bid qualifiers. Retail procurement teams request live dashboards showing kWh, CO₂, and water per kilogram. Vendors that certify these footprints enter multi-year supply agreements, locking out rivals. The competitive narrative, therefore, merges engineering prowess with data transparency inside the commercial greenhouse market.
Commercial Greenhouse Industry Leaders
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Richel Group
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Certhon (Denso Corporation)
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Gibraltar Industries (RBI)
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Logiqs B.V.
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Netafim
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- January 2025: Costa Farms integrated Battlefield Farms to extend floriculture capacity.
- May 2024: Kubo unveiled the world’s first CO₂-negative glasshouse, combining renewable heat pumps with solar roofs.
- September 2024: Netafim launched GrowSphere, a cloud platform linking hydraulic and agronomic data.
- November 2024: Cox Farms surpassed 700 acres under cover after acquiring Greenhill Produce and other assets.
Global Commercial Greenhouse Market Report Scope
Greenhouses allow for the controlled cultivation of fruits and vegetables, ensuring a consistent year-round supply of high-quality produce.
The commercial greenhouse market is segmented by equipment type (heating systems, cooling systems, and other equipment types), greenhouse type (glass greenhouse and plastic greenhouse), crop type (horticulture crops and other crops), and geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The report offers the market sizes and forecast values (USD) for all the above segments.
By Equipment Type | Heating Systems | ||
Cooling and Ventilation Systems | |||
LED Grow-Lighting | |||
Irrigation and Fertigation | |||
Control and Automation Software | |||
Structural Components (Glazing, Frames) | |||
By Crop Type | Fruits and Vegetables | ||
Flowers and Ornamentals | |||
Herbs and Micro-greens | |||
Cannabis and Specialty Crops | |||
By Greenhouse Type | Glass Greenhouses | ||
Plastic-film Greenhouses | |||
Rigid Polycarbonate Greenhouses | |||
By Technology | Hydroponic | ||
Non-hydroponic (Soil / Substrate) | |||
Hybrid and Vertical Integration | |||
By End-user | Commercial Growers | ||
Research and Educational Institutes | |||
Retail Garden Centres and Nurseries | |||
Geography | North America | United States | |
Canada | |||
Mexico | |||
Rest of North America | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Spain | |||
Russia | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
South Korea | |||
Rest of Asia-Pacific | |||
Middle East | Saudi Arabia | ||
United Arab Emirates | |||
Turkey | |||
Rest of the Middle East | |||
Africa | South Africa | ||
Egypt | |||
Kenya | |||
Rest of Africa |
Heating Systems |
Cooling and Ventilation Systems |
LED Grow-Lighting |
Irrigation and Fertigation |
Control and Automation Software |
Structural Components (Glazing, Frames) |
Fruits and Vegetables |
Flowers and Ornamentals |
Herbs and Micro-greens |
Cannabis and Specialty Crops |
Glass Greenhouses |
Plastic-film Greenhouses |
Rigid Polycarbonate Greenhouses |
Hydroponic |
Non-hydroponic (Soil / Substrate) |
Hybrid and Vertical Integration |
Commercial Growers |
Research and Educational Institutes |
Retail Garden Centres and Nurseries |
North America | United States |
Canada | |
Mexico | |
Rest of North America | |
South America | Brazil |
Argentina | |
Rest of South America | |
Europe | Germany |
United Kingdom | |
France | |
Spain | |
Russia | |
Rest of Europe | |
Asia-Pacific | China |
Japan | |
India | |
South Korea | |
Rest of Asia-Pacific | |
Middle East | Saudi Arabia |
United Arab Emirates | |
Turkey | |
Rest of the Middle East | |
Africa | South Africa |
Egypt | |
Kenya | |
Rest of Africa |
Key Questions Answered in the Report
What is the current commercial greenhouse market size?
The commercial greenhouse market size stands at USD 46.7 billion in 2025 and is forecast to reach USD 68.5 billion by 2030.
Which region will grow fastest?
Asia-Pacific is projected to expand at an 11.6% CAGR through 2030, propelled by China’s vast protected-cultivation base and regional food-security policies.
Why are polycarbonate houses gaining popularity?
Multi-wall polycarbonate panels provide 20-30% better insulation than single-layer film, lowering heating costs enough to offset higher purchase prices in cold or windy areas.
How big is the cannabis opportunity?
Cannabis and specialty crops are the fastest-growing slices, advancing at a 15% CAGR as legalization spreads and premium pricing endures.
Which equipment segment currently leads revenue?
Heating systems command the largest share at 28%, while LED grow lighting is the fastest-rising category at a 14.6% CAGR.
How can growers curb energy costs?
Deploying biomass boilers, geothermal loops, efficient heat pumps, and full-LED lighting can trim energy use by 20-60%, stabilizing utility bills despite volatile fuel markets.