Greenhouse Horticulture Market By Crop Type (Nursery Crops, Flowers & Ornamentals, Fruits & Vegetables, and Others), Material (Plastic and Glass), Product (Grow Bags, Greenhouse Films, Wind Break & Shelter Nets, Horticulture Twines, Others), Equipment Type (Heating Systems, Cooling Systems, Air Circulation Fan, and Others), Application (Greenhouse, Vertical Farms, and Indoor Farms) and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023–2032

Market Perspective

The global Greenhouse Horticulture Market size was valued at USD 33.6 billion in 2022 and is anticipated to reach USD 66.76 billion by 2032 at a CAGR of around 7.7% between 2023 and 2032. The growth is driven by an increasing population, the rising need for food products to meet the demand, and the growing popularity of greenhouse farming. Factors such as the advantages of the controlled environment, technological advancements, and efficient energy use are driving business growth.

Due to the rising trend of sustainable farming methods, the demand for greenhouse horticulture has been increasing globally. Greenhouse farming helps farmers boost crop yields, increase efficiency, reduce waste, and maintain better control over production costs. Further, the emergence of automated greenhouses with efficient monitoring systems is also driving the market growth. In addition, the need for efficient energy usage in greenhouses is expected to drive the greenhouse horticulture market share.

However, high initial capital investments and operational costs involved in setting up greenhouses are expected to restrain the market growth. Additionally, the lack of awareness about the potential benefits of greenhouse horticulture may lead to a slowdown in the demand for these technologies.

Key Insights

• Based on the crop type, the fruits & vegetables segment held the largest market share
• Based on material, the plastic segment generated the highest revenue
• By product, the grow bags segment has dominated the market in 2021
• By equipment type, cooling systems segments are expected to dominate over the forecast period
• By application, the greenhouse segment is expected to dominate the market
• On the basis of region, North America accounted for the largest market share

Increase in Population and Food Demand Driving Market Growth

Greenhouses have become increasingly popular as a means of producing fresh and healthy food to meet the growing demand of the increasing population. For instance, India is an agricultural country that produces about 326 million tons of horticultural products every year, which is a prominent factor in accelerating the greenhouse horticulture market revenue.

The construction of new greenhouses, supported by various governments, has allowed for the cultivation of a wide range of plants and flowers, which not only helps to increase productivity but also provides an ideal environment for plant growth in terms of temperature and humidity.

Additionally, greenhouse cultivation can also be used to grow crops out of season, as they are not dependent on external weather conditions. This allows for year-round production of fresh produce, which is particularly useful in areas with harsh climates or long periods of inclement weather. The advantages of greenhouse cultivation, such as less need for watering, shorter harvest duration, and increased productivity, have also contributed to its growth.

Adoption of Artificial Intelligence for Agricultural Solutions Provides Lucrative Opportunities for the Market Growth

Significant growth in agribusiness and the spread of sustainable gardening methods are two key factors that will accelerate the growth of the market. The development of lighting systems that are compatible with the Internet of Things (IoT) is propelling market growth. Additionally, these LED-based solutions may be remotely changed, collect data using machine learning (ML) techniques, and have a longer operational life. Significant expansion in agribusiness and the spread of sustainable gardening technologies are two significant drivers that will propel greenhouse horticulture market growth. Several other factors such as growing R&D and favorable government initiatives to support greenhouse farming are likely to boost the market.

High Operating Expenses Restrain the Market Growth

Despite the numerous benefits associated with greenhouse horticulture, the market growth is hindered by the need for regular inspections and high costs for installation and materials. The production of greenhouse plants requires specialized knowledge and expertise, as well as a significant investment in monitoring and ensuring the accurate use of natural resources and nutrients. These expenses are considered capital costs, which can range from USD 5,000 to USD 25,000 for a basic greenhouse to a high-tech greenhouse.

In addition, the ongoing maintenance costs of a greenhouse, such as cleaning, repairing equipment, and maintaining heating, ventilation, and irrigation systems, add to the high cost of greenhouse ownership, making it a major barrier to market growth.

Recent Developments

In October 2022: Horticoop and StartLife collaborated to increase their investments in scale-ups and start-ups that use emerging technology in the horticulture industry. The company aims to engage with StartLife to tap into the creative potential of entrepreneurs developing uses for advanced technologies in the horticulture industry.

In March 2021: Netafim acquired Gak to expand its offer in the production and supply of cutting-edge greenhouse projects to meet the growing demand for the most advanced farming methods. The expanded offering leverages Netafim's power as a one-stop destination for a growing number of year-round farmers. crops and farm-to-table local production and aims to promote sustainable and profitable crop production.

Segmentation Analysis

Based on the crop type, the market is segmented into nursery crops, flowers & ornamentals, fruits & vegetables, and others. The fruit and vegetable segment is the most dominant segment as greenhouses are widely used for growing fruits and vegetables as it protects the crop from strong winds and rodents while maintaining the optimum temperature for plant growth. Greenhouse farming keeps the environment stable by keeping the temperature constant and protecting the crop from excessive cold.

Based on material, the market is bifurcated into plastic and glass. The plastic segment is expected to dominate during the forecast period. Plastic films are cheaper and more durable compared to glass films, which are expensive and fragile. It can also be used in extreme weather conditions because they are safe and difficult to break, providing effective light diffusion, UV protection, and radiation protection because the plastic material can be treated with UV radiation, which can manipulate certain wavelengths of the sun to promote plant growth.

Based on application, the market is categorized into greenhouse, vertical farms, and indoor farms. The greenhouse segment is expected to dominate the global market as it offers a longer growing season, weather protection, large-scale production of exotic plants, pest control, portability, and customization. This helps to create suitable climatic conditions for each crop and stage, along with efficient use of production resources and allows better regulation of the ecosystem of the cultivation site.

Europe is Dominating the Market Share Due to Favourable Climatic Conditions

The Europe greenhouse horticulture market is experiencing significant growth due to the region's favorable climatic conditions and the adoption of advanced technical methods in the production of horticultural plants. The increasing number of greenhouse farms and the presence of numerous vendors are expected to contribute to the market's growth during the forecast period. The region is expected to see high market growth, with countries such as the Netherlands, Germany, and Spain being the leading markets for greenhouse production.

The demand for greenhouse farming in Europe is driven by the need for sustainable and economically viable crop production techniques to meet the food demands of a growing population. Greenhouse farming increases yields by maintaining optimal conditions for plant growth, reducing waste, and efficiently using resources such as water and agricultural chemicals. The popularity of greenhouse farming in European countries is also driven by their status as major exporters and producers of fruits, flowers, and vegetables. As a result, there is a focus on research and development aimed at producing greener and more economically viable production technologies that offer consumers hygienic, reliable, and high-quality products.

Asia Pacific is the Fastest Growing Market Owing to the Increased Disposable Income

The Asia Pacific region is witnessing rapid growth in the greenhouse horticulture market, driven by rising incomes and population. The scarcity of agricultural land in the region is leading to a focus on improved agricultural strategies, such as indoor cultivation, greenhouse farming, and precision agriculture. The market's expansion is fueled by the increasing demand for food due to the growing world population and the effects of climate change on crops.

The supportive government policies and farmer subsidies in the region, along with the widespread adoption of advanced farming practices, are further contributing to the growth of the greenhouse horticulture market. Many developing economies in the region are turning to greenhouse horticulture farming as a way to enhance their agricultural sector, as it offers higher yields compared to traditional farming methods. Additionally, the growth of the market in the Asia Pacific region is being driven by increasing urbanization and advancements in farming technologies.

Competitive Landscape

• Eurofins Scientific
• Horticoop Scandinavia A/S
• Humintech
• Luiten Greenhouses
• NETAFIM
• Priva
• Richel Group
• Ridder
• Sotrafa
• Top Greenhouses

The global greenhouse horticulture market is segmented as follows:

By Crop Type

• Nursery Crops
• Flowers & Ornamentals
• Fruits & Vegetables
• Others

By Material

• Plastic
• Glass

By Product

• Grow Bags
• Greenhouse Films
• Wind Break & Shelter Nets
• Horticulture Twines
• Others

By Equipment Type

• Heating Systems
• Cooling Systems
• Air Circulation Fan
• Others

By Application

• Greenhouse
• Vertical Farms
• Indoor Farms

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America