Greenhouse Projects on the Rise Amid Growing Food Demand

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Researched by Industrial Info Resources (Sugar Land, Texas)--With the global population on the rise, the demand for food, as well as its year-round availability, is becoming a critical concern for every nation. Simultaneously, the need for efficient food production and sustainable farming practices, especially in the face of climate change, is also taking center stage. As a result, greenhouses have been witnessing an uptick in global demand recently, with the sector garnering significant investments for their construction.

Greenhouses are glass or plastic-framed structures that are designed for controlled environment agriculture (CAE). They aid in the extension of the growing period of plants and range from small sheds (known as cold frames, typically used at home) to huge industrial buildings. With additional advantages like climate control flexibility, optimal sunlight exposure, improved humidity and pest protection, these buildings also help in the cultivation of a wide variety of off-season fruits, vegetables and floral plants.

Traditionally, these structures were made exclusively from glass, but modern options today include plastic films made of polyethylene or polyvinyl as well as fiberglass. Modern and sustainable agricultural techniques like hydroponics, aquaponics and vertical farming rely on greenhouses to effectively cultivate plants indoors. Besides agriculture, greenhouses also find application in the pharmaceutical sector, especially for the cultivation of medicinal cannabis. Providing discreet cultivation, greenhouses help in shielding cannabis plants from easy view and in complying with local regulations.

Industrial Info is tracking 359 greenhouse-related projects, worth more than US$10 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a detailed list of project reports.

North America is the biggest driver of investment, holding a market share of 54% with an investment of about US$5 billion across 143 projects. It is followed by Asia with an investment of more than US$2 billion and Europe with more than US$1 billion.

By country, the U.S. leads the way, with a total spend pipeline of more than US$4 billion across 108 projects. An investment of more than US$1 billion across 20 projects is also being tracked in Kazakhstan. Other countries with substantial spending include Canada, Russia and Australia.

With an aggregate spend of more than US$3 billion, Plant Agricultural Systems LLC (Florida, U.S.), APH Eco-Culture (Moscow, Russia) and Cox Enterprises (Georgia, U.S.) are the top players in the market and hold a combined market share of 33%.

About 57% of the investment is in the initial planning stages, 18% is in the latter engineering stage and 12% is already under construction. A majority of these projects are anticipated to be completed between December 2025 and the end of 2026, while the rest will reach fruition by December 2030.

Despite their growth, greenhouses face challenges such as high initial and maintenance costs and increased energy consumption (average annual consumption ranging from 1 to 2 kilowatt hours, per square foot of floor area). However, with cost management and installation of energy saving devices and technological advancements, the future for greenhouses seems promising.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).