Commercial greenhouse market to grow at a CAGR of 8.8% during 2015-2020

According to the report “Commercial Greenhouse Market- Global Trends & Forecasts to 2020 ”, the global commercial greenhouse market is estimated to be valued at $19.48 bn in 2015 and is projected to grow at a CAGR of 8.8% from 2015 to 2020.

There have been various factors which have played a major role in driving the commercial greenhouse market across the globe. One of the major drivers is that commercial greenhouses provide higher yield compared to traditional agricultural techniques. Increasing trend of rooftop farming is also an important driver of the commercial greenhouse market.

Greenhouses are places for growing plants in a controlled environment. Europe has traditionally been at the forefront of implementing advanced techniques in the commercial greenhouse market. Countries such as The Netherlands, Spain, and France have large areas under greenhouse cultivation. The increasing population and demand for food in developing regions such as Asia-Pacific are boosting the growth of the commercial greenhouse market. The increasing trend of rooftop farming and the rising population are the two major drivers for the market. However, the high cost of commercial greenhouses, especially technologies such as LED grow light and HVAC systems, is a restraint for the commercial greenhouse market.

Temperature is one of the most important parameters for plant photosynthesis. Due to this, a commercial greenhouse needs to be equipped with technologies for maintaining the ideal temperature required for photosynthesis. Thus, heating and cooling systems together constituted nearly 51% of the overall commercial greenhouse market in 2014. However, they are far more superior to the conventional greenhouses or traditional farming in terms of providing the desired light spectrum at all stages of plant growth, are energy-efficient, and offer longer operating life. These features are encouraging growers to adopt LED grow lights.

The key market players that dominated the commercial greenhouse market include Richel Greenhouse (France), Argus control systems ltd. (U.S), Certhon (U.S.), Logiqs (The Netherlands), Lumigrow (U.S.).