According to Stratistics MRC, the Global High End Greenhouse Market is accounted for $1.56 billion in 2021 and is expected to reach $3.34 billion by 2028 growing at a CAGR of 11.5% during the forecast period. The high-End greenhouse is a farming technique, which helps users to monitor and control the growth condition of the plant and to optimize the growing process of the plants. Additionally, the major goal of high-end greenhouse is to implement a system that will allow the user to remotely monitor all conditions required for the growth of the crops. It provides different benefits such as maintaining a micro-climate environment for the crops, optimizing the yielding process, and minimizing manual intervention.
Driver: Growing demand for agricultural food products
Rising food demand due to increasing population levels serves as one of the major drivers for the high-end greenhouse. According to statistics from the World Health Organization, the global population grew faster. Such growth in the population is expected to drive the demand for agricultural food products. In addition to the growing population, economic development in emerging economies will further drive the demand for agricultural products. For instance, in 2020, the World Bank announced that the Tanzanian economy moved from a low-income economy to a lower middle-income economy. Such factors are expected to drive the demand for agricultural products and subsequently drive the demand for the high-end greenhouse, as an increasing number of farmers are focusing on the use of modern technology to increase the harvest. Besides, a greenhouse allows farmers to grow a range of crops throughout the year, even during the winter season when the intensity of sunlight received is low.
Restraint: High Cost
As Greenhouse trap sunlight to provide crops with a longer growing period. Plastic films used in the greenhouse can lead to excessive heating of the greenhouse during the summer season (if temperature levels exceed the healthy levels and proper ventilation systems are not in place to control the temperature). Glass windows are the most effective material used for maintaining heat in a greenhouse and also allow the greenhouse to be ventilated when required. However, these are much costlier than plastic film alternatives. Even though glass has a longer life in the greenhouse than its alternatives, its material and installation costs are much higher in comparison to its alternatives. The high initial investment required to set up a high end greenhouse is expected to hamper the market growth.
Opportunity: Increasing Demand for Organic Products Globally
The increasing demand for organic and localized agricultural products is expected to drive demand for high-end greenhouses. Locally produced vegetables and fruits spend the least period between harvest and consumption, and this substantially keeps the nutritional value of the product intact. Furthermore, locally produced food also reduces the transportation cost, product cost, and also supports the local economy. According to data from the World Association of Chefs Society, locally produced organic products also tend to taste better than products imported from other regions.