by The global Commercial Greenhouse Market is estimated to be valued at US$ 42.36 Billion in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Commercial greenhouses provide controlled environmental conditions for plants, allowing farmers to extend the growing season and increase crop yields. These structures are designed to optimize plant growth by regulating factors such as temperature, humidity, light, and CO2 levels. The advantages of commercial greenhouses include the ability to grow high-quality produce year-round, protection from adverse weather conditions, and reduced water and pesticide usage.
Market Key Trends:
One key trend driving the commercial greenhouse market is the growing demand for controlled environment agriculture (CEA). CEA involves the use of advanced technologies to create an optimal growing environment, mimicking natural conditions and maximizing crop production. This trend is driven by the need for sustainable agriculture practices, increasing urbanization, and the rising demand for fresh produce. Commercial greenhouses equipped with CEA technologies offer several advantages, including higher crop yields, improved quality, reduced water and nutrient wastage, and precise control over environmental conditions.
Porter’s Analysis:
Threat of New Entrants: Low
The commercial greenhouse market requires significant investment in land, infrastructure, and technology, which acts as a barrier to new entrants. Additionally, established players benefit from economies of scale, brand recognition, and strong distribution networks.
Bargaining Power of Buyers: Moderate
Buyers in the commercial greenhouse market have moderate bargaining power due to the presence of several suppliers. However, buyers with large-scale operations can negotiate better pricing and terms, impacting supplier profitability.
Bargaining Power of Suppliers: Low
Suppliers in the commercial greenhouse market face low bargaining power as they compete for a larger customer base. The availability of alternative suppliers and the presence of standardized products further limit their influence on pricing and terms.
Threat of New Substitutes: Low
The threat of new substitutes in the commercial greenhouse market is low, as traditional farming methods are unable to match the productivity and efficiency offered by greenhouse cultivation. Moreover, increasing demand for sustainable agriculture further supports the market’s growth.
Competitive Rivalry: High
The commercial greenhouse market is highly competitive, driven by rapid technological advancements and the pursuit of innovation. Key players are continually striving to enhance product offerings and expand their global footprint through mergers, acquisitions, and partnerships.
Key Takeaways:
The Global Commercial Greenhouse Market Demand is projected to witness a CAGR of 6.2% from 2023 to 2030, reaching a value of US$ 42.36 Billion by 2023. This growth can be attributed to the increasing adoption of greenhouse cultivation methods, driven by the rising global population and the need for sustainable food production.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the commercial greenhouse market. The region’s favorable government policies, technological advancements, and increasing investments in greenhouse technology contribute to its leadership position.
Key players operating in the commercial greenhouse market include Richel Group, Argus Control Systems Ltd, Rough Brothers Inc., Certhon, Logiqs BV, Lumigrow Inc., Nexus Corporation, Hort Americas, Heliospectra AB, and Agra Tech Inc. These companies have a strong presence and are actively involved in research and development activities, product innovation, and strategic collaborations to gain a competitive edge.
In conclusion, the commercial greenhouse market is witnessing rapid growth, driven by factors such as increasing global population, sustainable agriculture practices, and advancements in greenhouse technology. Key players are focusing on expanding their product portfolios and geographical presence to capitalize on emerging opportunities in this market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
