PUBLISHER: Grand View Research, Inc. | PRODUCT CODE: 1224573
PUBLISHER: Grand View Research, Inc. | PRODUCT CODE: 1224573
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The global greenhouse market size is anticipated to reach USD 89,311.1 million by 2030, registering a CAGR of 11.9% from 2022 to 2030, according to a new report by Grand View Research, Inc. The growing population leading to the rising consumption of food is attributed to the growth of modern farming techniques, including greenhouse farming. According to the Food and Agriculture Organization (FAO) of the United Nations, 70.0% of food production must increase by 2050 in order to meet global food demand.
Thus, the rising population & increasing urbanization coupled with the scarcity of arable land is leading to the adoption of alternate farming techniques, including greenhouse farming. Greenhouse farming has a huge potential to help meet the increasing population's needs observed in numerous countries like China and India.
The major advantages of modern indoor farming techniques such as greenhouses & vertical farming over conventional agricultural methods include less consumption of water, precision growth of the crops year-round, high yield of produce, reduction in food wastage, integrated pest management, prevention of agricultural run-off, and cultivation in limited space, among others. Moreover, the need to produce high yields and maintain growing conditions such as adequate light & shade, temperature, humidity, fertilization, pollination, and irrigation in the farms is further bolstering the growth of the greenhouse market.
The automation techniques adopted by greenhouse growers include automated irrigation systems, climate control software, and pH sensors, among others that help in producing good quality crops and high yields.
In addition, the implementation of agrarian management solutions such as farming artificial intelligence (AI) & automation, analytical tools, production planning management, fustigation automation, etc. provides better visibility to the growers. The various aspects such as setting clear objectives, production planning & control, order & labor tracking, packaging, shipping & inventory management, and transportation can be efficiently carried out using greenhouse farm management solutions.
For example, FarmNXT, Inc., a Canadian-based farm management software provider, offers its FarmNXT greenhouse management software to growers, greenhouse operators, and urban farmers. The software is integrated with features like farm mapping, production management, nutrient & crop management, post-harvest management, yield forecasts, cost analysis, weather analytics, pest & disease scouting, certification, and customer sales & supplier management.
Another example comprises the US-based company iUNU, a precision agriculture solution provider, who developed LUNA, an optical scanning system that utilizes to continuously record imagery in greenhouses and analyzes visual data from growth cycles. The application has the ability to recognize crops that are stable and alert farmers to issues.
Further, the COVID-19 outbreak has brought extensive disruption to the global supply chain, which has resulted in inflation and food shortages. Factors such as unavailability of labor, restrictions on transportation, and the temporary shutdown of restaurants, independent stores, and schools & institutions impacted the farmers of both conventional and modern agriculture sectors.
Thus, the ongoing pandemic has brought attention to how important it is to carry out agricultural activities remotely via small-scale & private farmlands. Thus, the pandemic has generated awareness about the benefits of urban agricultural solutions like greenhouses, to overcome food shortages.
Europe accounted for the largest market share of more than 32.05% in 2021. Europe was the first to adopt cutting-edge technology in greenhouses due to extensive greenhouse farming in countries like Italy, Spain, and the Netherlands. In addition, the factors such as rapid urbanization, adoption of advanced technologies, and strong demand for fruits and vegetables have further bolstered the growth of the target market in the European region.
Several European startups are leading the way in the indoor farming sector. For example, Infarm, a Berlin-based company, builds and installs indoor farming systems, including greenhouses, for supermarkets that can enable environment-friendly production with low carbon footprint delivery, minimal soil depletion, and less water consumption.