Greenhouse Horticulture Market to Grow by USD 11.46 Billion from 2024-2028, Driven by Urban Demand and AI Advancements in Horticultural Production - Technavio

NEW YORK, Sept. 9, 2024 /PRNewswire/ -- Report with the AI impact on market trends- The global greenhouse horticulture market size is estimated to grow by USD 11.46 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 7.53%  during the forecast period. Increased urban demand driving horticultural production is driving market growth, with a trend towards increasing relevance of led growth lights in greenhouse horticulture. However, high costs associated with greenhouses  poses a challenge.Key market players include Asian Perlite Industries Sdn Bhd, Batenburg Techniek NV, Beijing Kingpeng International Hi-tech Corp., Beijing Orient View Technology Co. Ltd., Ceres Greenhouse Solutions, Certhon Build B.V., CMF Groupe, Dalsem Greenhouse Projects BV, Europrogress Srl, Industries Harnois Inc., Novavert GmbH and Co. KG., Orbia Advance Corp. SAB de CV, Priva Holding BV, Prospiant Inc, Richel Group SAS, Ridder Drive Systems BV, Tapex Group Pty Ltd., Top Greenhouses Ltd., Trinog xs Xiamen Greenhouse Tech Co. Ltd., and Van der Hoeven Horticultural Projects BV.

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Market Driver

In the realm of greenhouse horticulture, natural sunlight is insufficient for plant growth during certain seasons, particularly rainy, autumn, and winter, due to cloud coverage. Photosynthesis, the process by which plants convert light energy into food, occurs only within a specific wavelength range called Photosynthetically Active Radiation (PAR), which falls between 400 and 700 nanometers. Horticultural lighting solutions, including photoperiodic and supplemental lighting, address these conditions by inducing photosynthesis. Photoperiodic lighting extends daytime with low-intensity light, while supplemental lighting compensates for insufficient sunlight with high-intensity sources. LEDs have emerged as a preferred choice for horticultural lighting due to their adjustable wavelengths, energy efficiency, longer lifespan, and cooler operation compared to traditional sodium lamps. However, the high initial cost of LEDs remains a significant barrier to their widespread adoption. Nevertheless, the integration of LED growth lighting systems with control systems and IoT technologies enables advanced data collection and analysis, optimizing factors for maximum output and reducing production uncertainty. This market trend is expected to fuel growth in the greenhouse horticulture industry during the forecast period. 

The Greenhouse Horticulture Market is experiencing significant growth due to trends like Vertical Farming, Hydroponic, and Aeroponic systems. These methods offer spatial efficiency and high crop yields in compact areas, making them ideal for regions with water scarcity and irrigated farming challenges. Traditional open-field methods face hurdles like harsh weather, pests, and illnesses, leading to the adoption of advanced systems. Vertical farming and hydroponic/aeroponic systems provide targeted delivery of nutrients and water to plant roots, ensuring superior quality and greater aesthetic appeal. However, these systems come with high initial investment and ongoing operational expenses, including energy-intensive HVAC systems, control systems, LED grow lights, and sensors. Smaller-scale farmers and emerging regions are embracing these technologies, driven by the rise in demand for floriculture and aesthetically pleasing plants. Despite the learning curve, benefits like precision and control over ideal growing conditions, shielding from climate outside, and off-season production make the investment worthwhile. Water pumps, nutrient storage, and automation systems are essential components of these advanced systems. While they may be expensive, the potential for superior yields, energy savings, and reduced water usage make them a worthwhile investment for the long term. 

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• Greenhouses are essential structures for optimizing plant growth, but they come with significant capital and operating expenses. Building a high-quality greenhouse can cost between USD5,000 and USD25,000, depending on its complexity. This investment is comparable to the gross cash farm income before expenses, estimated at USD600.0 billion in the US in 2022. Greenhouses can have passive or active climate control systems. Passive systems use materials like bricks, water, compost, or phase change materials to accumulate solar heat. Active climate control systems, which require electricity for heating, can increase capital expenditures due to solar energy-producing equipment and storage systems or high operating costs from electricity suppliers. Maintenance expenses, including cleaning, repairing equipment, and system upkeep, are ongoing and may slow market growth.
• The Greenhouse Horticulture Market faces several challenges in producing nursery crops, including climate variability, unfavorable weather, and environmental factors such as carbon dioxide levels. Farmers use both plastic and glass greenhouses, as well as grow bags and greenhouse films, to optimize growing conditions. Heating and cooling systems are essential for maintaining ideal temperatures, but energy efficiency is a concern. Urbanization and land scarcity increase the demand for greenhouse services, especially during growing seasons. Unreliable crop harvests due to unpredictable weather and consumer awareness of provenance and quality drive the need for higher yields in limited space. Water management and population expansion also impact efficient land utilization in the greenhouse horticulture industry.

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This greenhouse horticulture market report extensively covers market segmentation by  

1. Product 
• 1.1 Plastic
• 1.2 Glass
2. Crop Type
• 2.1 Fruits and vegetables
• 2.2 Nursery crops
• 2.3 Flowers and ornamentals
• 2.4 Others
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Plastic-  Plastic greenhouses are increasingly popular in horticulture due to their cost-effective nature, made from materials such as polycarbonate, acrylic, polyethylene, and fiberglass. Polycarbonates and acrylics offer high impact strength, protecting crops from extreme weather conditions. However, their high combustibility results in increased insurance costs. Polyethylene, on the other hand, transmits less light than glass but is hail-resistant and cost-effective. Greenhouse nets are also commonly made of polyethylene, but their susceptibility to punctures leads to frequent repairs. Plastic greenhouses come in various sizes, lacking standardization, and require manual effort for washing. Despite these challenges, their lower initial investment costs make them attractive to farmers in developing countries. Additionally, the adaptability of plastic coverings, such as adjustable light transmission and impact strength, fuels market growth.

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The greenhouse horticulture market is driven by the increasing demand for reliable crop harvests, especially during unfavorable weather conditions. Consumers are becoming more aware of the provenance and quality of their produce, leading to a growing preference for greenhouse-grown products. Extreme weather events and water scarcity concerns are also driving the adoption of greenhouse solutions for year-round crop production. Advanced greenhouse systems, including plastic and glass greenhouses, grow bags, greenhouse films, horticulture twines, and heating systems, are essential for addressing environmental factors such as carbon dioxide levels and crop types. Rapid urbanization and land constraints are also fueling the growth of the greenhouse horticulture market in emerging markets. Overall, the market is expected to continue expanding due to the need for high-quality, sustainable, and efficient agricultural solutions.

The Greenhouse Horticulture Market is experiencing demand due to the need for reliable crop harvests during unfavorable weather conditions and the consumer's increasing awareness of provenance and quality. Greenhouse services offer ideal growing conditions for various crops, including floriculture, vegetables, and fruits, ensuring higher yields in limited space. However, the initial investment and ongoing operational expenses, including energy-intensive climate control systems, HVAC, and advanced irrigation systems, can be expensive. Greenhouse-grown products offer superior quality and greater aesthetic appeal, especially for sensitive plants during off-seasons and harsh weather conditions. Traditional open-field methods face challenges such as water scarcity, irrigation, and pests, making greenhouse solutions increasingly popular. Advanced greenhouse systems, including vertical farming, hydroponic, and aeroponic systems, offer spatial efficiency and crop yields, making them ideal for emerging regions and smaller-scale farmers. However, there are additional costs associated with greenhouse production, including water, power, and backup systems, as well as the cost of production and profit margins. The learning curve for implementing these systems can be steep, but the benefits of year-round crop production, high-quality produce, and food security make the investment worthwhile. The rise in population expansion and urbanization, as well as concerns over extreme weather events and water scarcity, further highlight the importance of efficient land utilization and greenhouse solutions.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Plastic
• Glass
• Crop Type
• Fruits And Vegetables
• Nursery Crops
• Flowers And Ornamentals
• Others
• Geography
• Europe
• North America
• APAC
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio