Commercial Greenhouse Market, By Type (Equipment Type (Heating systems, Cooling systems, Other Equipment Types), Crop Type (Fruits and Vegetables, Flowers and Ornamentals, Nursery Crops, Other Crop Types, Other Equipment Types)), By Greenhouse Type (Glass Greenhouses, Plastic Greenhouses), and By Geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa)

Published In : Jun 2023

Code : CMI5927

Pages :150

Formats :

Excel and PDF

Industry : Agrochemicals

Market Challenges And Opportunities

Global Commercial Greenhouse Market Drivers:

Decreasing arable land is expected to drive growth of the commercial greenhouse market

According to the baseline projections in the EU Agriculture Outlook for the period 2018-2030, the total arable land in Europe is anticipated to decline at a much higher rate by 2030, primarily attributing to the increasing level of urbanization in the region, which has affected the efficiency of the utilized agricultural area (UAA). So, there is s need to increase the crop yields in the coming years in order to meet the food demand driven by population growth and rapid urbanization.

Growing demand for food to foster market growth

According to the UN estimates, around 10 billion people are anticipated to shift to cities by 2050. This growth, coupled with the rising incomes in developing countries, is leading to dietary changes, such as increasing demand for consumption of high protein and meats, which, in turn, are driving up global food demand. The food demand is anticipated increase around the world from 59% to 98% by 2050. This factor is compelling farmers to adopt modern farming techniques, such as greenhouses, which can enable them to produce a wide range of vegetables at varied climatic conditions.

Global Commercial Greenhouse Market Opportunities:

Growing awareness regarding the advantages of commercial greenhouse is expected to provide significant market growth opportunities. In addition to monitoring and adjusting environmental factors, greenhouses must be well-equipped with irrigation systems. Most growers use overhead sprinklers or micro irrigation systems to irrigate their plants. This helps save on labor costs and ensures that each plant receives the amount of water it needs.

Increasing use of artificial intelligence in greenhouses is expected to serve significant major growth opportunities. This is a relatively new technology that enable farms to make more informed decisions regarding crop production. This is done by using machine learning algorithms to evaluate plant health, detect insects, and predict when a crop will be ready for harvesting.

Global Commercial Greenhouse Market Restraints:

High initial investment to hamper market growth

Typically, greenhouse produce need high startup costs and raising enough capital. This is one of the greatest challenges for the entrepreneurs. Moreover, the profit margins are very less with specific products, thereby hampering market growth.

Commercial greenhouse structure use high energy

Greenhouse used for vegetables, fruits, flowers or herbs require significant electricity to heat and cool the structure. In order to minimize energy consumption. Also, an extensive knowledge of horticulture and agriculture is required for successful operation of a greenhouse. All these factors are expected to hinder the market growth.