The global commercial greenhouse market is estimated to be valued at USD 35.5 billion in 2022. It is projected to reach USD 61.6 billion by 2027, recording a CAGR of 11.6% during the forecast period. Commercial greenhouses offer different types of covering materials such as glass or plastic roofs, and frequently glass or plastic walls. An emerging application with high growth potential, commercial greenhouses use several technologies such as heating systems, cooling systems, ventilation systems, LED grow light, communication technology, irrigation system, and control systems.
North America is projected to reach USD 19.69 Billion during the forecast period.
In 2021, North America accounted for a market share of 30.80% in the global commercial greenhouse market. The North American commercial greenhouse market is completely driven by the US market. The US Government is promoting the use of degradable films in agriculture. The United Soybean Board (USB) New Uses Committee has been providing funding support for the development of soy-based biodegradable films.
In the last decade, commercial greenhouse growers in North America gradually began switching to automation technologies to enable plant growth throughout the year. Commercial greenhouse technologies are becoming increasingly popular in urban areas to facilitate supply of fresh vegetables to grocery stores. Rooftop farms—such as New York-based Gotham Greens (US)—are emerging as a new trend in urban commercial greenhouses in North America.
Europe dominated the commercial greenhouse market, with a value of USD 12.6 billion in 2021; it is projected to reach USD 24 billion by 2027, at a CAGR of 11.3% during the forecast period.
Europe has traditionally been at the forefront of implementing advanced techniques in commercial greenhouse horticulture. The Netherlands, Spain, and Turkey have large areas under greenhouse cultivation. However, in the Netherlands, growers mostly cultivate their plants in simple tunnel-like greenhouses without the use of climate control technologies. Controlled environment agriculture has flourished in Scandinavian countries, where farming is nearly impossible during winter. European growers are among the biggest adopters of commercial greenhouse technologies in the world. The cold climate in several parts of Europe necessitates the use of climate control to provide a favourable environment for plant growth. Supplemental lighting is also necessary in Scandinavian countries, and several other regions of Europe, to extend the growing season throughout the year.
Spain and Italy are the key European countries where greenhouse farming is practiced. Eastern European countries have shown high growth in the past few years. The market for commercial greenhouse has matured in Western and Central Europe, with the demand for greenhouses declining in several countries in line with their respective GDPs. Germany, Italy, France, the UK, and Spain are witnessing a significant slowdown in greenhouse construction. Stringent regulations against the use of plastics are the major reason for the plastic greenhouse market’s slow growth in Western and Central Europe.
The key players in this market include Richel Group (France), Heliospectra AB (Sweden), Signify Holding (Netherlands), and Certhon (Netherlands).