Greenhouse Horticulture Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[224+ Pages Report] According to Facts & Factors, the global greenhouse horticulture market size in terms of revenue was valued at around USD 32.16 billion in 2023 and is expected to reach a value of USD 64.38 billion by 2032, growing at a CAGR of roughly 8.02% from 2024 to 2032. The global greenhouse horticulture market is projected to grow at a significant growth rate due to several driving factors.

Market Overview

Greenhouse horticulture is a method of cultivating plants in a controlled environment, typically within structures made of transparent materials like glass or plastic. These greenhouses provide a stable and optimized climate for plant growth, protecting crops from adverse weather conditions and pests while allowing for the regulation of temperature, humidity, light, and CO2 levels. This method is used for growing a wide range of plants, including vegetables, fruits, flowers, and ornamental plants, ensuring higher yields and quality compared to traditional open-field farming.

This agricultural technique is increasingly popular due to its numerous benefits, such as enabling year-round production, improving resource efficiency (particularly water use), and reducing the environmental impact of farming. Additionally, greenhouse horticulture supports sustainable agricultural practices and food security, particularly in urban areas where space is limited and local food production is valued. Technological advancements in greenhouse systems, such as automated climate control and hydroponics, further enhance the efficiency and productivity of these operations

Key Highlights

• The greenhouse horticulture market has registered a CAGR of 8.02% during the forecast period.
• In terms of revenue, the global greenhouse horticulture market was estimated at roughly USD 32.16 billion in 2023 and is predicted to attain a value of USD 64.38 billion by 2032.
• The greenhouse horticulture market is poised for growth, driven by technological advancements, sustainability efforts, and urban farming trends.
• Based on the material type, the plastic greenhouse segment is growing at a high rate and is projected to dominate the global market.
• By Crop Type, the fruits and vegetables segment is projected to swipe the largest market share.
• By region, Europe dominated the global greenhouse horticulture market in 2023, and it is expected to continue to do so throughout the forecast period.

Growth Drivers:

• Rising Food Demand: Increasing global populations and a growing appetite for fresh, high-quality produce necessitate efficient and sustainable farming methods. Greenhouse horticulture offers a solution by maximizing yields and minimizing the impact of weather variations.
• Technological Advancements: Automation in climate control systems, LED lighting, and other technologies improve efficiency, reduce costs, and allow for even greater control over the growing environment, leading to better yields and higher quality produce.
• Food Safety Concerns: Consumers are increasingly concerned about food safety and traceability. Greenhouses offer a controlled environment with lower contamination risks, appealing to both consumers and retailers.
• Urbanization and Urban Farming: The rise of urban farming and the integration of greenhouses in urban settings help meet the growing demand for locally produced, fresh food. Greenhouses in cities reduce transportation costs and carbon footprints while providing fresh produce to urban population
• Sustainable Agricultural Practices: Greenhouse horticulture supports sustainable farming by optimizing water and nutrient use and reducing the need for chemical pesticides. This practice contributes to food security by enabling year-round production and minimizing the environmental impact of traditional farming methods?.

Restraints:

• High Initial Investment: The upfront cost of constructing and equipping a greenhouse can be significant, especially for high-tech options. This can limit adoption by smaller growers.
• Energy Consumption: Maintaining optimal conditions within greenhouses often requires significant energy use, which can be a cost burden and raise environmental concerns if reliant on non-renewable sources.
• Skilled Labor: Operating a high-tech greenhouse requires specialized knowledge and skills in managing the controlled environment and utilizing advanced technologies.

Opportunities:

• Emerging Technologies: Further advancements in areas like vertical farming and renewable energy integration with greenhouses can enhance efficiency, sustainability, and market reach.
• Urban Farming: The rise of urban agriculture presents opportunities for smaller, localized greenhouse operations catering to specific consumer demands like organic or locally grown produce.
• Developing Economies: The growing middle class in developing economies presents a vast potential market for greenhouse technology, offering food security and improved nutrition.

Challenges:

• Climate Change: Extreme weather events can disrupt greenhouse operations and damage infrastructure, requiring adaptation strategies and potentially increasing insurance costs.
• Water Scarcity: Water management is crucial in greenhouses. With increasing water scarcity in some regions, sustainable water usage practices are essential.
• Policy and Regulations: Government policies and regulations regarding greenhouse construction, energy use, and waste disposal can impact the market and require careful navigation by growers.

Greenhouse Horticulture Market: Segmentation Analysis

The global greenhouse horticulture market is segmented based on material type, crop, technology, and region.

By Material Type Insights

Based on Material Type, the global greenhouse horticulture market is divided into plastic greenhouse, glass greenhouse, and others. Plastic greenhouses use materials like polyvinyl chloride (PVC), polyethylene, and polycarbonate for their structure and covering. These materials are favored for their cost-effectiveness, flexibility, and high light transmission.

Plastic greenhouses are popular due to their lower initial setup costs and ease of installation compared to glass greenhouses. They are also highly adaptable, allowing for various designs and sizes, which makes them suitable for different crop types and climates. Plastic greenhouses dominate the market because of their affordability and versatility. They are widely used in both small-scale and commercial farming.

Glass greenhouses are constructed using glass panels, which offer superior light transmission and durability. These greenhouses are typically more expensive to build and maintain but provide excellent growing conditions for high-value crops. Glass greenhouses are favored for their longevity and ability to create optimal growing environments. They are commonly used for research purposes and in regions where high-quality crop production is prioritized.

By Crop Type Insights

On the basis of Crop Type, the global greenhouse horticulture market is bifurcated into flowers and ornamentals, fruits and vegetables, nursery crops, and others. Flowers and Ornamentals segment includes a variety of decorative plants and flowers cultivated primarily for aesthetic purposes, such as roses, tulips, orchids, and poinsettias. Greenhouses provide controlled environments that ensure optimal growing conditions, leading to higher quality and yield. The demand for flowers and ornamental plants is driven by both commercial and consumer markets, including landscaping, floral arrangements, and interior decoration. The controlled conditions of greenhouses allow for year-round production and improved quality.

Fruits and Vegetables segment covers a wide range of edible crops, including tomatoes, cucumbers, peppers, lettuce, and strawberries. This segment witnessed a surge in 2023 due to end consumers' increasing desire for high-quality organic fruits and vegetables. Greenhouse cultivation allows for the production of high-quality, fresh produce regardless of external weather conditions.

The increasing consumer preference for fresh, locally grown produce, along with the advantages of greenhouse farming in enhancing yield and reducing pesticide use, drives this segment. The ability to grow crops year-round and protect them from pests and diseases makes greenhouse farming particularly attractive for fruits and vegetables.

Nursery Crops segment includes young plants, seedlings, and saplings that are sold to other growers or consumers for further cultivation. These crops are often used in landscaping, reforestation projects, and home gardening. The growth of the nursery crops segment is supported by the increasing popularity of home gardening and landscaping. Greenhouses provide the ideal conditions for starting and growing healthy nursery crops, ensuring strong and resilient plants.

By Technology Insights

Based on Technology, the global greenhouse horticulture market is categorized into heating system, cooling system, and others. Heating systems in greenhouses are essential for maintaining optimal temperatures, especially during colder months. They include various technologies such as boilers, heaters, heat pumps, and geothermal systems. These systems ensure that the temperature remains within a range conducive to plant growth. The demand for efficient heating systems is driven by the need to extend growing seasons and increase crop yields. Innovations in energy-efficient heating technologies are reducing operational costs and enhancing sustainability.

Cooling systems are crucial for managing high temperatures in greenhouses, which can stress plants and reduce productivity. Common cooling technologies include evaporative cooling, shading systems, ventilation, and misting systems. The need to maintain optimal growing conditions during hot weather and prevent crop damage drives the demand for effective cooling systems. Innovations in cooling technologies, such as automated climate control, are enhancing the efficiency and effectiveness of these systems.

Recent Developments:

• In June 2023, Dalsem, a leader in high-tech greenhouse design and construction, secured a contract to build a massive new greenhouse for starter plants in Ontario, Canada. This signifies continued growth in the market for advanced greenhouse solutions.
• In October 2022, Horticoop, a major player in the industry, joined forces with StartLife, an organization that supports innovative startups. This collaboration aims to channel the creativity of startups and accelerate the development of cutting-edge technologies for greenhouses. These initiatives highlight the increasing focus on innovation and investment in the greenhouse horticulture sector.

Report Scope

Greenhouse Horticulture Market: Regional Analysis

• Europe dominate the global market during the forecast period.

Europe holds the largest share in the greenhouse horticulture market. The region's dominance is driven by advanced greenhouse technologies and substantial investments in infrastructure. Countries like the Netherlands, Germany, and Spain are leaders in adopting cutting-edge climate control systems, automated irrigation, and energy-efficient technologies.

The variable climate in Europe, which includes cold winters and short growing seasons, necessitates innovative approaches to ensure consistent crop production. Europe is expected to grow at a CAGR of 11.6% during the forecast period, reflecting strong government support, favorable policies, and a commitment to sustainable farming practices?.

North America is another significant market, primarily driven by the U.S. and Canada. The region benefits from extensive promotion of greenhouse horticulture, advanced agricultural technologies, and favorable climatic conditions. States like California, Texas, and Florida in the U.S., along with provinces like Ontario and British Columbia in Canada, are prominent for their greenhouse activities. The North American market is projected to grow at a CAGR of 7.23% during the forecast period, supported by government initiatives and growing consumer demand for local, sustainable produce??.

The Asia-Pacific region is anticipated to witness the highest growth in the greenhouse horticulture market. This growth is driven by rising demand for fresh, high-quality produce and significant government support for greenhouse farming in countries like China, India, and Japan. The increasing urban population and the need for food security further propel market expansion. The Asia-Pacific market is expected to grow at a CAGR of 15.7% from 2024 to 2032, indicating substantial investments in greenhouse technologies and the adoption of energy-efficient designs and precision farming techniques??.

Latin America is an emerging market for greenhouse horticulture, with Brazil and Mexico leading the region. The market growth is fueled by increasing awareness of the benefits of greenhouse farming and the need to improve agricultural efficiency and productivity. The Latin American market is projected to grow at a moderate rate, with a focus on developing infrastructure and adopting modern greenhouse technologies to meet rising demand?.

The Middle East and Africa region show promising growth potential in the greenhouse horticulture market. Countries like the UAE and South Africa are investing in greenhouse technologies to enhance food security and reduce dependency on imported produce. The market in the Middle East and Africa is expected to grow steadily, driven by the need for efficient agricultural practices in arid climates and increasing government support for sustainable farming initiatives??.

Greenhouse Horticulture Market: List of Key Players

Some of the main competitors dominating the global greenhouse horticulture market include;

• Certhon
• Dalsem Greenhouse Projects BV
• Europrogress
• GreenTech Agro
• HortiMaX
• Industries Harnois Inc.
• Luiten Greenhouses
• Netafim Ltd.
• Priva Holding BV
• Richel Group
• Ridder Holding Harderwijk BV
• Rough Brothers Inc.
• Syngenta
• Top Greenhouses Ltd.
• Van der Hoeven Horticultural Projects BV
• Vicinity Greenhouse Solutions

The global greenhouse horticulture market is segmented as follows:

By Material Type Segment Analysis

• Plastic Greenhouse
• Glass Greenhouse
• Others

By Crop Type Segment Analysis

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

By Technology Segment Analysis

• Heating System
• Cooling System
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • 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