Smart Greenhouse is a breakthrough in farming technology that creates a microclimate for consistent plant growth with the help of sensor technology. It optimizes plant growth by adjusting the growing conditions automatically.
Therefore, even slight variations in these conditions help in generating automated actions that evaluate change and take corrective action and also, help in maintaining ideal conditions for plant growth.
The global smart greenhouse market is experiencing rapid expansion due to the increasing demand for sustainable farming solutions. Utilizing modern technologies like IoT, AI, and climate control systems to maximize crop yield while minimizing resource usage - smart greenhouses help farmers address climate change impacts such as water scarcity and food insecurity while improving production yields and resource use efficiency.
Recent trends reveal an increasing adoption of automation and data analytics in greenhouse management. Through sensors and monitoring systems, farmers are now able to monitor soil conditions, temperatures, humidity levels and plant health in real time - improving productivity while providing precise adjustments that allow for higher efficiency in growing conditions.
Organic and locally-grown produce has also increased demand for smart greenhouses. Consumers' desire for healthy, pesticide-free foods that support sustainable farming operations has prompted
agricultural businesses to adopt smart farming technologies; creating opportunities for them to implement advanced greenhouse solutions into urban and commercial farming operations.
Government initiatives and private investments are driving growth of the smart greenhouse market. Many countries are adopting policies to support agricultural innovation and sustainability, leading to groundbreaking technologies being created, as well as major players investing in smart greenhouse solutions to ensure continued market expansion and innovation in future years.
As per statista Despite a surge in climate pledges, global greenhouse gas (GHG) emissions, including carbon dioxide and methane, continue to rise, reaching a record high of 53 billion metric tons of CO₂ equivalent in 2023. CO₂ emissions from fossil fuels also hit unprecedented levels, and atmospheric CO₂ concentrations are now over 50% higher than pre-industrial levels.
While progress has been made in combating climate change, more aggressive actions are needed. With current policies and measures in place by December 2023, global temperatures are expected to increase by 2.7°C by 2100, significantly surpassing the targets set by the Paris Agreement.
The US Smart Greenhouse Market
The US Smart Greenhouse Market is projected to reach USD 1.0 billion in 2024 at a compound annual growth rate of 9.8% over its forecast period.
The Greenhouse market in the US provides growth opportunities through development in precision agriculture, driven by the demand for sustainable and efficient food production. Innovations in AI, IoT, and renewable energy integration improve Greenhouse operations. In addition, increasing consumer preference for locally sourced, year-round produce and strong government assistance for sustainable farming practices further
fuel market expansion.
Moreover, a key growth driver in the market is the rising demand for sustainable, high-efficiency farming technologies, helped by advancements in AI and IoT. However, a major restraint is the high initial investment required for Smart Greenhouse setup, which can be a barrier for smaller farms and limit broad adoption.
Key Takeaways
- Market Growth: The Smart Greenhouse Market size is expected to grow by 3.2 billion, at a CAGR of 10.4% during the forecasted period of 2025 to 2033.
- By Type: The Hydroponics segment is expected to lead in 2024 with a major & is anticipated to dominate throughout the forecasted period.
- By Offering: The hardware segment is expected to lead the Smart Greenhouse market in 2024.
- By End User: The commercial growers segment is expected to get the largest revenue share in 2024 in the Smart Greenhouse market.
- Regional Insight: North America is expected to hold a 46.4% share of revenue in the Global Smart Greenhouse Market in 2024.
- Use Cases: Some of the use cases of Smart Greenhouse include precision irrigation, energy efficiency, and more.
Use Cases
- Automated Climate Control: Monitors and adjusts temperature, humidity, and CO2 levels to optimize plant growth, minimizing manual intervention and ensuring constant crop quality.
- Precision Irrigation: Uses soil moisture sensors & weather data to automate and optimize watering schedules, store water, and prevent over-irrigation.
- Energy Efficiency: Integrates renewable energy sources and smart lighting systems to minimize energy consumption, improving sustainability.
- Remote Monitoring and Management: Enables farmers to monitor and control Greenhouse conditions from anywhere through mobile apps or cloud platforms, improving flexibility and real-time decision-making.
Market Dynamic
Driving Factors
Rising Demand for Sustainable Agriculture
The growing awareness of the requirement for sustainable farming practices drives the adoption of Smart Greenhouses, which provide efficient resource management, minimize environmental impact, and enhance crop yield quality.
Technological Advancements
Innovations in IoT, AI, and automation technologies are making Smart Greenhouse systems more accessible, user-friendly, and cost-effective, allowing broad adoption in both small-scale and commercial farming operations.
Restraints
High Initial Investment
The higher costs of setting up Smart Greenhouse systems, like advanced sensors, automation equipment, and renewable energy sources, can be a barrier for small and medium-sized farmers.
Complexity and Technical Challenges
The integration of many technologies and the need for technical expertise in managing & maintaining Smart Greenhouse systems can impact the adoption, mainly in regions with limited access to technical support and infrastructure.
Opportunities
Expansion into Emerging Markets
As awareness of sustainable farming practices grows, there is a major opportunity to launch Smart Greenhouse solutions in developing markets, where agriculture is a key economic sector, and modern farming techniques are in demand.
Integration with Vertical Farming
The combination of Smart Greenhouse technology with vertical farming can enhance space usage and crop production, mainly in urban areas, meeting the growing demand for locally sourced, fresh produce in densely populated cities.
Trends
Adoption of AI and Machine Learning
Smart Greenhouses are largely incorporating AI and
machine learning algorithms to predict crop diseases, optimize resource use, and automate decision-making processes, improving productivity and lowering waste.
Use of Renewable Energy Source
There is a major trend of integrating renewable energy sources, like solar panels and wind turbines, into Smart Greenhouse operations to reduce carbon footprints and improve energy efficiency, aligning with global sustainability goals.
Research Scope and Analysis
By Type
During the forecast period, the hydroponics segment is expected to capture a majority of the market share in the Smart Greenhouse industry, as the rising popularity of Hydroponic Smart Greenhouses is mostly due to their ability to produce nutrient-rich crops while using less space, a key factor driving growth in this segment.
However, the non-hydroponics segment is anticipated to experience the fastest growth during this period, owing to the environmentally friendly nature of non-hydroponic systems and the higher adoption of these Greenhouses by major industry players.
The combination of sustainability & higher interest from key stakeholders is driving the expansion of the Smart Greenhouse market within the non-hydroponics segment, making it a quickly emerging area of growth. As both hydroponic and non-hydroponic systems constantly evolve, their contributions are expected to highly influence the overall market dynamics.
By Offering
Based on the offering, the Smart Greenhouse market is divided into hardware, software, and services. In 2024, the hardware segment of the Smart Greenhouse market is expected to take the lead and maintain its dominance throughout the forecast period, which is due to the higher adoption of advanced technologies like sensors, actuators, and control systems, which are vital for creating intelligent, automated Greenhouse environments.
These hardware components allow real-time monitoring and management of key factors like temperature, humidity, and lighting, vital for optimizing plant growth. As the demand for precision farming and sustainable agriculture continues to grow, the need for reliable &efficient hardware solutions to assist these technologies is also expected to grow, as the growth in demand for advanced hardware is set to significantly boost the Smart Greenhouse hardware market, as more agricultural operations look to implement advanced systems that enhance productivity and sustainability.
By Component
The HVAC systems segment is anticipated to attain the highest growth rate within the Smart Greenhouse market, due to the essential role that
HVAC systems play in regulating key environmental factors like temperature, humidity, and air circulation, which are vital for maintaining optimal growing conditions inside smart greenhouses. These systems are critical for creating an environment that promotes agricultural productivity, leading to higher yields and superior-quality produce.
The ability of HVAC systems to improve the efficiency and effectiveness of Smart Greenhouse operations highlights their significant market position. As the demand for consistent, high-quality agricultural output constantly rises, the importance of HVAC systems in optimizing growing environments makes them a key driver of market growth, securing their leadership in this segment.
By End User
The Smart Greenhouse market is divided into Commercial Growers, Research & Educational Institutes, Retail Gardens, and Others in terms of end users and is expected to be led by the commercial growers segment during the forecast period.
Commercial growers are largely adopting smart greenhouse technologies to boost productivity, improve crop quality, and ensure consistent year-round production, which is important to address the increasing global demand for food. These advanced technologies allow for better control over environmental factors like humidity, temperature, and lighting, causing more efficient use of resources &reduced operational costs.
In addition, because of their scale & potential for major returns on investment, commercial growers are in a stronger position to absorb the relatively high initial costs associated with setting up smart greenhouses, which gives them a competitive edge in enhancing agricultural outcomes and sustainability, further driving the adoption of smart greenhouse technologies within this segment.
The Smart Greenhouse Market Report is segmented on the basis of the following:
By Type
- Hydroponic
- Non-Hydroponic
By Offering
- Hardware
- Software
- Services
By Component
- HVAC Systems
- LED Grow Lights
- Irrigation Systems
- Valves & Pumps
- Sensor & Control Systems
- Others
By End User
- Commercial Growers
- Research & Educational Institutes
- Retail Gardens
- Others
Regional Analysis
North America is set to lead the Global Smart Greenhouse market, capturing
over 46% of the market share in 2024 largely due to the broad adoption of advanced agricultural technologies across the region. North America's strong technological infrastructure, along with the challenges of climate change and the growing demand for year-round, locally sourced produce, has majorly fueled the market for Smart Greenhouses.
Moreover, the region's high focus on resource-efficient solutions and government support for sustainable farming practices also play major roles in driving this market. As a result, North America is rapidly adopting smart greenhouse technologies to improve agricultural productivity and crop quality, with a strong emphasis on precision agriculture.
Further, the Asia Pacific region is anticipated to take the lead in the smart greenhouse market during the forecast period and is growing significantly in existing times. The region is experiencing a high rate of technological adoption, supported by a large presence of innovative technology companies that are constantly advancing agricultural practices. In addition, the rapid population growth and urbanization in Asia Pacific are driving the need for efficient and sustainable food production systems.
Smart Greenhouses address these needs by allowing high-density, year-round farming, mainly in urban areas where space is limited. Government support, through subsidies and incentives, is also a key factor, as many countries in the region constantly promote the adoption of smart farming technologies to ensure food security and sustainability.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The Smart Greenhouse market is highly competitive, with various players focusing on technological innovation to gain an edge. Companies are investing in advanced automation, AI-driven monitoring systems, and IoT integration to improve Greenhouse efficiency and crop yield. Also, strategic partnerships and collaborations are common, focused on expanding product offerings and market reach.
Moreover, the competition is also driven by a push towards sustainability, with many firms developing eco-friendly solutions. As the market includes, companies are highly differentiating themselves through advanced technology and customized solutions to meet different agricultural needs.
Some of the prominent players in the Global Smart Greenhouse are:
- Cultivar
- Kubo Greenhouse
- Prospiant
- Certhon Group
- Agra Tech
- Heliospectra AB
- Netafim Irrigation
- Argus Control System
- Sensaphone
- Lumigrow
- Other Key Players
Recent Developments
- In August 2024, Helle-Tech Oy and Bloemteknik unveiled a joint venture to launch modular adjustable LED fixtures designed mainly for high-wire and leafy green growers. Leveraging patent-pending technology, the Balance Platform allows growers to better PPFD on the vertical face of vine-growing crops by about 36 percent, without increasing energy consumption. By combining Helle-Tech’s expertise and experience with Bloem’s innovative engineering, the partnership focuses on redefining industry standards, as it highlights a commitment to sustainability and technological advancement, providing growers a competitive edge in the changing landscape of controlled environment agriculture.
- In August 2024, Skytree launched the Stratus Hub following its recently announced decentralized Direct Air Capture (DAC) product Stratus. The Stratus Hub will act as a plug-and-play configuration for a variety of carbon dioxide removal & storage or usage projects. These projects are for markets like cement, fuels & chemicals, food & beverage, and Greenhouses along with sequestration in empty oil/gas fields or through mineralization in geological formations.
- In August 2024, The U.S. Department of Agriculture (USDA) announced that it plans to build the Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program Advisory Council and is looking for nominations for Council membership. USDA announced in a Federal Register, that the new Council will be authorized by the Growing Climate Solutions Act (GCSA).
- In May 2024, KUBO introduced the world’s first CO2-negative Greenhouse producing fresh vegetables with minimal fossil energy and lower costs. Developed by, the Greenhouse launched at the GreenTech RAI event in Amsterdam, where the innovation aligns with the Greenhouse horticulture sector’s responsibility for food security and CO2 reduction. Also, KUBO’s new Greenhouse technology highly reduces energy, water, and pesticide use, eliminating the need for extra CO2.
- In September 2023, Lumiforte and Rui Xue Global announced that the companies will be signing a memorandum of understanding (MOU) to launch a joint venture (JV) headquartered in Beijing. The new company will plan to provide local production, storage, transportation, and delivery services to its customers, initially targeting wholesalers & distributors within the greater China area, also it will be a leading coating platform for Greenhouses serving clients in China and at a later stage other Asian countries, providing affordable, competitive, and sustainable products to multiple end markets.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 2.3 Bn |
| Forecast Value (2033) |
USD 5.7 Bn |
| CAGR (2024-2033) |
10.4% |
| Historical Data |
2018 – 2023 |
| The US Market Size (2024) |
USD 1.0 Bn |
| Forecast Data |
2025 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Type (Hydroponic and Non-Hydroponic), By Offering (Hardware, Software, and Services), By Component (HVAC Systems, LED Grow Lights, Irrigation Systems, Valves & Pumps, Sensor & Control Systems, and Others), By End User (Commercial Growers, Research & Educational Institutes, Retail Gardens, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Cultivar, Kubo Greenhouse, Prospiant, Certhon Group, Agra Tech, Heliospectra AB, Netafim Irrigation, Argus Control System, Sensaphone, Lumigrow, and Other Key Players |
| Purchase Options |
HVMN Inc., Thync Global Inc., Apple Inc., Fitbit Inc., TrackmyStack, OsteoStrong, The ODIN, Thriveport LLC, Muse, Moodmetric, and Other Key Players |