Greenhouse Horticulture Market Size, Share & Trends Analysis Report By Type (Glass house, Plastic Film Greenhouse, Rigid Panel Greenhouse), By Shape (Venlo, Flat arch, Raised dome, Sawtooth, Tunnel, Modified Quonset), By Crop Type (Fruits, Vegetables and Herbs, Nursery Crops, Flowers and Ornamentals, Others), By End-User (Commercial Growers, Research and Educational Institutes, Retail Gardens, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global greenhouse horticulture market size was valued at USD 28.2 billion in 2022. It is estimated to reach USD 51.7 billion by 2031, growing at a CAGR of 9.2% during the forecast period (2023–2031).

Greenhouses are structures composed of inflated frames covered with transparent material. These structures are specifically designed to create a controlled environment for the cultivation of crops. Greenhouse cultivation and other controlled environment cultivation have undergone significant advancements to establish optimal microclimates that facilitate crop production throughout the year or during specific periods as needed. Greenhouses and other controlled environment plant production technologies are commonly utilized in cold climate areas where outdoor production is not feasible. These technologies enable the off-season production of ornamentals and high-value foods, thereby addressing the limitations imposed by the climate. 

Globally, there is a growing adoption of advanced technologies in the agricultural sector. These technologies include automated irrigation systems, climate control software, and pH sensors for pest management and disease prevention. Implementing self-sufficient water systems, incorporating rainwater harvesting techniques and automated irrigation systems, presents significant growth prospects. These systems enable internal condensation and recirculation of water, thereby maximizing efficiency and sustainability. Implementing various lighting spectrums to stimulate plant growth has become a widely embraced technology for optimizing lighting levels in greenhouses. 

Highlights

• Glass house dominates the type segment
• Venlo dominates the shape segment
• Fruits, vegetables, and herbs dominate the crop type segment
• Europe is the highest shareholder in the global market

Market Dynamics

Market drivers

High demand for locally grown and nutritious crops

The global greenhouse horticulture market is experiencing a significant surge in demand, driven primarily by the growing inclination towards locally grown and nutritionally dense crops. The current consumer landscape reflects an emerging pattern where individuals increasingly prioritize the quality and source of their food. This shift in mindset has led to a heightened emphasis on making sustainable and health-conscious choices. Greenhouse horticulture is a highly advantageous cultivation technique that provides a meticulously regulated environment, enabling the continuous growth of crops throughout the year, regardless of the unpredictable external weather conditions. The process described facilitates the growth of recently harvested, high-quality fruits, vegetables, and herbs. This method effectively decreases the reliance on pesticides and enhances the nutritional content of the produce. 

Furthermore, it is crucial to acknowledge that implementing local crop cultivation can substantially alleviate transportation costs, reduce carbon emissions, and lessen reliance on imported agricultural goods. Consumers' propensity to pay a premium for locally cultivated crops with high nutritional value has contributed to the expansion of the global greenhouse horticulture market.

Increasing awareness regarding climate change

In recent years, the global market has witnessed a notable surge in awareness about the factors driving climate change. Multiple explanations emerge for the noticeable boost in consciousness. An urgent need to address the mitigation of greenhouse gas emissions has been brought to light by rising global temperatures and catastrophic weather occurrences. It is important to note that agriculture is a major source of these emissions. Greenhouse horticulture has also emerged as a prominent sustainable solution due to its controlled environment and reduced resource consumption.

Furthermore, consumers are displaying an increasing level of awareness regarding the environmental consequences associated with their dietary decisions. Consequently, there has been a notable surge in the demand for produce cultivated within proximity while also being devoid of pesticide usage. Greenhouse horticulture offers a highly advantageous framework for cultivating fruits, vegetables, and flowers throughout the year. This practice mitigates the need for extensive long-range transportation, minimizing the corresponding carbon emissions.

Market restraint

Low agricultural awareness and high operating costs

The global greenhouse horticulture market faces notable challenges from insufficient agricultural awareness and elevated operating costs. The primary obstacle impeding the widespread implementation of greenhouse horticulture practices is insufficient agricultural awareness among farmers and growers. There exists a potential knowledge gap among farmers regarding the advantages associated with greenhouse cultivation. These benefits include enhanced crop yield, prolonged growing seasons, and enhanced resource management. The market's growth potential may be hindered due to its limited awareness. Additionally, it is important to note that the practice of greenhouse horticulture entails significant financial commitments towards establishing infrastructure, acquiring advanced technology, allocating energy resources, and employing labor. Therefore, this leads to the incurrence of elevated operational expenses. 

Various factors, including the construction and maintenance of greenhouses, the installation of climate control systems, the procurement of advanced equipment, and the ongoing energy consumption, significantly influence the financial burden on growers. Elevated operating costs may deter prospective participants and impede the market's growth potential, especially in areas characterized by constrained financial means or unfavorable economic circumstances. It is essential to put in place a cooperative strategy that gives improving agricultural awareness through educational initiatives and outreach programs a top priority to address these challenges. Simultaneously, it is crucial to encourage adopting cost-effective practices, technological advancements, and financial incentives that can enhance the accessibility and economic viability of greenhouse horticulture for farmers globally.

Market opportunities

Adoption of new and cutting-edge technologies

Adopting new and cutting-edge technologies in the global greenhouse horticulture market will present significant opportunities. Greenhouse horticulture has emerged as a prominent and viable approach to address the critical challenges of climate change and the demand for sustainable agricultural practices. It also offers a promising solution for producing efficient and environmentally conscious food. In addition, incorporating cutting-edge technologies such as AI, the Internet of Things (IoT), and precision farming techniques can have several notable benefits. These advantages encompass efficient resource distribution, enhanced agricultural output, and the reduction of environmental repercussions. AI-powered systems demonstrate a remarkable capacity to effectively control and oversee a wide range of factors within greenhouses, including but not limited to temperature, humidity, and CO2 levels. This enables the maintenance of optimal growing conditions while simultaneously minimizing energy consumption. 

Additionally, integrating Internet of Things (IoT) sensors and intelligent irrigation systems facilitates the meticulous and automated supervision and control of water and nutrient levels. Consequently, this leads to enhanced utilization of resources, thereby improving overall resource efficiency. In addition, it is worth noting that implementing vertical farming, hydroponics, and aeroponics methods in the context of greenhouse horticulture presents several advantages. These include cultivating crops throughout the year, achieving enhanced crop yields, and minimizing the land needed for cultivation. Integrating new and advanced technologies in the global greenhouse horticulture market presents a range of benefits. These include improved productivity and profitability for growers, promoting sustainable agricultural practices, and advancing a more environmentally friendly future.

Regional Analysis

Based on region, the global greenhouse horticulture market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Europe dominates the global market

Europe is the most significant shareholder in the global greenhouse horticulture market and is predicted to grow at CAGR of 10.9% during the forecast period. European countries have notably committed to enhancing their greenhouse technology and infrastructure through substantial investments. The organization has successfully established cutting-edge greenhouse facilities incorporating advanced climate control systems, automated irrigation systems, energy-efficient technologies, and optimized resource utilization, particularly regarding water and fertilizers. Technological advancement has given European greenhouse growers a notable advantage in both productivity and quality.

Several European countries are known to have cold winters and relatively shorter growing seasons. The implementation of greenhouse horticulture techniques enables the cultivation of crops to transcend the limitations imposed by seasonal variations, thereby facilitating year-round production. The greenhouses are designed to create a controlled environment that offers protection against adverse weather conditions, pests, and diseases. The advantage of Europe has positioned it as a prominent region in cultivating high-value crops, including but not limited to vegetables, flowers, and ornamental plants.

Furthermore, European governments have exhibited a proactive stance towards the advancement of greenhouse horticulture through the implementation of favorable policies and the provision of financial support. The organization actively promotes and supports sustainable farming practices, emphasizing energy efficiency and advocating for renewable energy sources. It is also important to acknowledge that different types of financial support exist, including subsidies, grants, and research funding, specifically tailored to assist greenhouse growers in pursuing advanced technologies and improving their overall market competitiveness. In addition, the presence of Europe in the greenhouse horticulture market extends beyond catering to local needs. The European growers have successfully solidified their position in the global market by strategically exporting their high-value crops to various regions. European greenhouse horticulture has achieved a competitive advantage in international trade due to its esteemed reputation in quality, reliability, and strict adherence to food safety standards.

Asia-Pacific is expected to grow at a CAGR of 14.12% rate during the forecast period. Based on current market trends and projections, the Asia-Pacific region is anticipated to witness significant expansion within the global greenhouse horticulture market. Multiple contributing factors underpin this prediction. The rising demand for fresh, high-quality produce directly results from the region's expanding metropolitan population. Therefore, agriculture is increasingly needed in a regulated environment to provide this demand. Governments' promotion of greenhouse agriculture in countries like China, India, and Japan is also noteworthy. This systematic strategy intends to reduce post-harvest losses, improve food security, and lessen the environmental impact of conventional farming.

In addition, it is worth noting that the region is witnessing investments in greenhouse technologies due to the emergence of energy-efficient designs, climate control systems, and precision farming techniques. The increasing consumer consciousness surrounding the advantages of locally cultivated, pesticide-free produce is a key factor propelling the demand for greenhouse-grown fruits and vegetables. The Asia-Pacific region exhibits promising potential for substantial expansion within the greenhouse horticulture market as it strategically tackles diverse obstacles and leverages emerging prospects.

North America holds a significant position in the global greenhouse horticulture market and is predicted to growing at CAGR of 6.9% during the forecast period. A thorough geographical study highlights several interesting elements of the worldwide greenhouse horticulture industry, revealing North America's dominant position. The United States and Canada have emerged as the region's primary market expansion drivers. The area is fortunate to have ideal weather, cutting-edge technology, and long-standing horticultural traditions. Due to their sizable agricultural industries and agreeable climates, states like California, Texas, and Florida exhibit significant greenhouse horticulture activity in the United States. In Ontario, British Columbia, and Quebec, cutting-edge technology and innovative approaches grow high-quality, sustainable crops in greenhouses. Local farmers and organic produce are becoming more important to North Americans. The region's strong presence in the global greenhouse horticulture industry is largely due to these characteristics, supportive government efforts, and expanding investments in greenhouse infrastructure.

Segmental Analysis

The global greenhouse horticulture market is bifurcated into product type, shape, crop type, and end user.

Based on the product type, the global greenhouse horticulture market is divided into glass house, plastic film greenhouse, and rigid panel greenhouse.

The glass house segment is the highest contributor to the market and is expected to grow significantly at a CAGR of 10.3% during the forecast period. The glass house segment in the global greenhouse horticulture market refers to the use of glass structures for the protected cultivation of various crops and plants. Glass houses, also known as greenhouses, are highly conducive environments for promoting optimal plant growth. This is primarily due to their ability to effectively regulate key factors such as temperature, humidity, and light. In addition, the structures in question are commonly constructed using glass panels that are upheld by a robust framework. The primary objective is to optimize the intake of sunlight while concurrently minimizing the dissipation of heat. 

Based on the shape, the global greenhouse horticulture market is divided into Venlo, flat arch, raised dome, sawtooth, tunnel, and modified Quonset.

The Venlo segment owns the highest market share and is expected to grow significantly at a CAGR of 8.8% during the forecast period. Venlo-shaped segments play a significant role in the global greenhouse horticulture market. The Venlo shape, characterized by its distinctive gable roof design, has gained popularity due to its optimal use of natural light, efficient space utilization, and enhanced climate control capabilities. These segments offer superior durability and strength, allowing for larger span widths and increased vertical growing space. 

The Venlo shape also facilitates easy installation of advanced technologies such as automated irrigation systems, climate control systems, and vertical farming setups. In addition, the system's modular design enables scalability and adaptability, rendering it well-suited for a wide range of crops and climates. The Venlo-shaped segments play a significant role in driving the expansion of the worldwide greenhouse horticulture market. These segments offer farmers and growers a dependable, streamlined, and environmentally friendly approach to achieving top-notch crop production.

Based on the crop type, the global greenhouse horticulture market is divided into fruits, vegetables and herbs, nursery crops, flowers and ornamentals, and others.

The fruits, vegetables, and herbs segment dominates the global market and is anticipated to grow significantly at a CAGR of 7.9% during the forecast period. The segment pertaining to fruits, vegetables, and herbs within the expansive global greenhouse horticulture market is currently experiencing an upward trajectory. The practice of greenhouse horticulture provides a highly advantageous and meticulously regulated setting that optimizes crop productivity and guarantees consistent fresh produce throughout the year. In addition, farmers derive considerable advantages from using greenhouses to cultivate various fruits, vegetables, and herbs. This innovative practice protects against unfavorable weather conditions, detrimental pests, and pernicious diseases. These protective measures contribute to enhanced crop yields and the attainment of unparalleled product quality.

Furthermore, it is worth noting that the astute proclivity of consumers towards the procurement of agricultural products that are sourced from local regions, devoid of harmful pesticides, and adhering to organic farming practices, is significantly contributing to the escalating demand for fruits, vegetables, and herbs that are cultivated within the controlled environment of greenhouses. Moreover, it is imperative to highlight that incorporating energy-efficient climate control systems, LED lights, and automated irrigation, deemed crucial advancements in greenhouse technology, has resulted in a discernible augmentation in crop productivity and the overarching sustainability of the agricultural domain. 

Based on the end-user, the global greenhouse horticulture market is divided into commercial growers, research and educational institutes, retail gardens, and others.

The commercial grower segment owns the largest market share and is predicted to grow at CAGR of 9.5% during the forecast period. Commercial growers possess a distinct competitive advantage due to the extensive scale of their operations. The company boasts an expansive collection of greenhouse facilities spanning substantial land areas, providing ample space for cultivating various crops. In addition, implementing these extensive operations allows the organization to effectively cater to the requirements of the worldwide market. Commercial growers allocate significant resources toward acquiring and implementing cutting-edge technology and robust infrastructure to optimize their productivity and operational effectiveness. The organization employs cutting-edge greenhouse structures, advanced climate control systems, efficient irrigation techniques, and state-of-the-art automation technologies. 

Commercial growers emphasize ensuring the quality of their products and frequently seek certifications such as Good Agricultural Practices (G.A.P.) or Global G.A.P. These certifications serve as a testament to their commitment to adhering to industry best practices and maintaining high standards throughout their agricultural operations. The certifications guarantee that the produce has successfully met rigorous safety, sustainability, and traceability criteria. The trust and preference of buyers and consumers towards products from certified commercial growers reinforces these growers' market dominance.

Recent Developments

• October 2022- Horticoop and StartLife joined forces to improve funding for horticultural technology start-ups and scale-ups. Through its partnership with StartLife, the company hopes to draw on the ingenuity of startups exploring new applications for cutting-edge technologies in the greenhouse sector.
• March 2021- Netafim purchased Gak to address the rising demand for high-tech greenhouse projects that use the latest farming techniques. The new service uses Netafim's position as a one-stop shop for the increasing number of farmers that operate year-round, focusing on both sustainable and lucrative crop production from seed to plate.