Smart Greenhouse Market Outlook - 2027
The global smart greenhouse market size was valued at $1.37 billion in 2019 and is projected to reach $3.23 billion by 2027, growing at a CAGR of 11.4% from 2020 to 2027. Smart greenhouse is a concept of greenhouse that cultivates crops without human intervention. Crops grow without adjustment of climate or any human interference by any means for a particular period in a smart greenhouse. Smart greenhouse uses various microprocessors and sensors to perform functions such as controlling temperature and irrigation system. The key objective of smart greenhouse is to enhance the productivity of the farmers and to produce better farming outcomes.
Increase in popularity of organic food across the globe and surge in adoption of IoT and artificial intelligence by farmers and agriculturists drive the growth of the market. In addition, ease of crop monitoring and harvesting fuels the market growth. However, high investment costs owing to deployment of expensive systems in smart greenhouses hamper the growth of the market. Furthermore, rise in adoption of vertical farming technology and increase in public-private partnership in the agriculture sector are expected to provide lucrative opportunities for the market growth.
The hydroponics segment is expected to garner a significant share during the forecast period. Hydroponics smart greenhouse is gaining popularity owing to its capability to produce nutritious eatables in less space consumption, which is the major factor that drives the growth of smart greenhouse in this segment. However, the non-hydroponics segment is expected to grow at the highest rate during the forecast period, owing to its environment-friendly nature and surge in adoption of non-hydroponics greenhouse by various key players. This drives the smart greenhouse market growth in this segment.
Region wise, the smart greenhouse industry was dominated by Europe in 2019 and is expected to retain its position during the forecast period. The major factors that drive the growth of the market in this region include rise in demand for organic food and increase in organic farmland in countries such as Germany, France, and the Netherlands. However, Asia-Pacific is expected to witness the highest growth rate during the forecast period due increase in presence of smart greenhouse vendors, and surge in government support in the developing countries of Asia-Pacific.
The report focuses on the growth prospects, restraints, and trends of the global smart greenhouse market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global smart greenhouse market share.
By Type
Hydroponic segment is projected to be the most lucrative segment
Segmentation
The smart greenhouse market is segmented on the basis of type, component, end user, and region. By type, it is bifurcated into hydroponic and non-hydroponic. By component, it is divided into HVAC Systems, LED grow lights, irrigation system, valves & pumps, sensor & control system, and others.
By Component
LED Grow Lights segment had a dominant position in 2019 and will maintain the lead during the forecast period
By end user, it is classified into commercial growers, research & educational institutes, retail gardens, and others. By region, it is analyzed across North America, Europe, Asia-Pacific and LAMEA.
By End User
Commercial Growers segment would grow at a highest CAGR of 12.7% during 2020 - 2027
The key players profiled in the global smart greenhouse market analysis include Argus Controls, Certhon, Cultivar, Greentech Agro LLC, Heliospectra AB, Hort Americas, Lumigrow Inc., Netafim, Rough Brothers and Sensaphone. These key players have adopted various strategies such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to increase their market penetration and strengthen their position in the industry.
By Region
Asia-Pacific region would exhibit the highest CAGR of 12.8% during 2020 - 2027
Top Impacting Factors
Rise in Adoption of IoT and Artificial Intelligence By Farmers and Agriculturists
Framers growing crops are increasingly becoming dependent on technology for day-to-day activities. Connected technologies such as Wi-Fi, Zigbee, additional wireless sensor, and low power wide area network technology are some of the different technologies that help farmers to efficiently execute different agriculture operations such as harvesting, purchasing, planting and inventory control. Furthermore, increase in adoption of IoT and artificial intelligence by farmers help them to monitor the crop field and automate the irrigation process.
In addition, adoption of advance technologies has uplifted organic farming, which includes greenhouse and vertical farming and enhances the productivity. Moreover, use of IoT and artificial intelligence in greenhouse eliminates the need for constant monitoring of the crops and provides cost-effective and optimal solutions for farmers with minimal manual intervention, which boosts the growth of the market.
Rise in Adoption of Vertical Farming
Vertical farming is a revolutionary approach used to produce food in vertically stacked layers such as in a skyscraper, used warehouse, or shipping container. It facilitates huge quantity of nutritious and quality fresh food without relying on favorable weather, high water usage, skilled labor, and high soil fertility. Furthermore, there is an increase in the demand for vertical farming owing to different factors such as optimum use of vertical space and balanced energy utilization and growing urban population which requires organic food.
In addition, surge in adoption of technology driven vertical farming in the developing countries is expected to provide lucrative opportunity for the market growth. Moreover, increase in population leads to rise in demand–supply gap for food. Thus, the need for alternative farming techniques such as vertical farming is expected to grow in the near future.
Key Benefits For Stakeholders:
The study provides an in-depth analysis of the global smart greenhouse market forecast along with the current & future trends to elucidate the imminent investment pockets.
Information about key drivers, restraints, and opportunities and their impact analysis on the global smart greenhouse market size is provided in the report.
Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
The quantitative analysis of the smart greenhouse market trends from 2019 to 2027 is provided to determine the market potential.
Smart Greenhouse Market Report Highlights
| Aspects | Details |
 By Type |
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 By Component |
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 By End User |
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 By Region |
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 Key Market Players | SENSAPHONE, ROUGH BROTHERS, INC, HELIOSPECTRA AB, HORT AMERICAS, CERTHON, GREENTECH AGRO LLC, NETAFIM, LUMIGROW, CULTIVAR LTD, ARGUS CONTROL SYSTEMS LIMITED |
Analyst Review
The adoption of smart greenhouse has increased over time due to the adoption of advance technology in farming such as machine learning and artificial intelligence and enhancements in supportive government regulations across the globe. In addition, the growth of the greenhouse market is driven by factors such as rise in trend of using organic foods, optimum use of vertical space, and minimal impact of weather on yield. Increase in population leads to rise in demand–supply gap for food. Thus, the need for alternative farming techniques such as smart greenhouse is expected to grow in the near future.
According to CXOs of leading companies, increase in economic strength in Asia-Pacific is expected to provide lucrative opportunities for the market growth. Key players are focusing toward product development and increasing their presence across the globe, owing to growth in competition among local vendors, in terms of features, quality, and price.
In addition, these players are adopting various business strategies to enhance their product offerings and strengthen their foothold in the market. For instance, in July 2019, AeroFarms invested $100m in a Series E funding round. This investment is expected to allow the U.S. based company to expand its indoor farms and discover the new type of produce.
The Global Smart Greenhouse Market is expected to grow at a CAGR of 11.4% from 2020 to 2027.
The Smart Greenhouse Market is projected to reach $3.23 billion by 2027.
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Increase in popularity of organic food across the globe and surge in adoption of IoT and artificial intelligence by farmers and agriculturists drive the Smart Greenhouse market growth.
The key players profiled in the report include Argus Controls, Certhon, Cultivar, Greentech Agro LLC, Heliospectra AB, Hort Americas, Lumigrow Inc., Netafim, Rough Brothers and Sensaphone.
On the basis of top growing big corporations, we select top 10 players.
The Smart Greenhouse Market is segmented on the basis of type, component, end user, and region.
The key growth strategies of Smart Greenhouse market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
HVAC System segment will grow at a highest CAGR of 13.2% during the forecast period.
Commercial Grower segment would exhibit the highest CAGR of 12.7% during 2020 - 2027.
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