Smart Greenhouse Market to Hit USD 4.39 Billion by 2032, Driven by the Increasing Adoption of Automation and IoT for Efficient Crop Management | SNS Insider

Smart Greenhouse Market to Hit USD 4.39 Billion by 2032, Driven by the Increasing Adoption of Automation and IoT for Efficient Crop Management | SNS Insider

Austin, April 03, 2025 (GLOBE NEWSWIRE) — Smart Greenhouse Market Size & Growth Insights:

According to the SNS Insider,“The Smart Greenhouse Market Size was valued at USD 1.91 Billion in 2023 and is expected to reach USD 4.39 Billion by 2032 and grow at a CAGR of 9.72% over the forecast period 2024-2032.”

Smart Greenhouse Market Growth Fueled by Automation, Climate Control, and Food Security Needs

The Smart Greenhouse Market is expanding rapidly, driven by advancements in automation, IoT-based monitoring, and the growing need for food security. Operational efficiency improvements focus on energy conservation, climate regulation, and water management, ensuring optimal crop performance. Technology-driven innovations in LED lighting, AI-based sensors, and automation systems enhance yield consistency, reduce crop cycles, and improve plant health. The US market, valued at USD 0.51 billion in 2023, is expected to reach USD 1.07 billion by 2032, growing at a CAGR of 8.55%.

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Leading Market Players with their Product Listed in this Report are:

  • Heliospectra AB (MITRA LED)
  • Argus Control Systems Ltd. (Titan Controls)
  • Rough Brothers Inc. (Greenhouse Systems)
  • Certhon (Greenhouse Automation)
  • Greentech Agro LLC (Growtainer)
  • Netafim (Drip Irrigation Systems)
  • LumiGrow Inc. (TopLight)
  • Hort Americas (Grow Lights)
  • Cultivar Ltd. (Smart Controller)
  • Nexus Corporation (Glazing Systems)
  • Priva (Climate Control Systems)
  • Autogrow Systems Ltd. (IntelliDose)
  • Sensaphone (Sentinel Monitoring)
  • GreenTech Solutions Group (Smart Sensors)
  • Agrilution (Plantcube).

Smart Greenhouse Market Report Scope:

Report Attributes Details
Market Size in 2023 USD 1.91 Billion
Market Size by 2032 USD 4.39 Billion
CAGR CAGR of 9.72% From 2024 to 2032
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segmentation • By Type (Hydroponics, Non-hydroponics)
• By Material Type (Polyethylene, Polycarbonate, Other)
• By Offering (Hardware, Software & Services)
• By Component (HVAC Systems, LED Grow Lights, Control Systems & Sensors)
• By End Use (Commercial Growers, Research & Educational Institutes, Retail Gardens, Others)
Key Drivers • Smart Greenhouse Market Growth Driven by Food Security Demand and Advanced Farming Technologies.

• Analytics and Cloud Integration Unlock Growth Opportunities in the Expanding Smart Greenhouse Market.

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As climate change disrupts traditional agriculture, smart greenhouses provide a controlled environment for year-round, high-quality crop production. The increasing global population and shrinking arable land further push farmers toward precision agriculture, optimizing resources such as water, fertilizers, and energy. Additionally, the rise of hydroponics and vertical farming, especially in urban regions with limited space, is accelerating market growth. With IoT-enabled remote monitoring, drone-assisted irrigation, and AI-driven environmental controls, smart greenhouses are revolutionizing modern farming, ensuring sustainable and efficient food production.

Key Industry Segmentation

By Type

In 2023, hydroponics dominated the smart greenhouse market with a 56.4% share, due to its benefits of maximizing crop yield with minimal use of water and space. Hydroponics means”: “working water and it is the selective growing of plants with their roots immersed in nutrient-rich water. Increased consumer demand for pesticide-free, organic produce also drives adoption.

Non-hydroponic systems are expected to grow at the fastest CAGR from 2024-2032, benefiting from lower setup complexity and accessibility for traditional farmers. As awareness of smart greenhouse advantages increases, non-hydroponic adoption is set to accelerate, particularly in regions where soil-based farming remains prevalent.

By Material Type

Polyethylene led the smart greenhouse market in 2023 with a 61.8% share, as they are cost-effective, lightweight, UV-resistant, and easy to install. It diffuses light well and is flexible enough to suit commercial greenhouses or smaller scale greenhouses.

Polycarbonate is expected to register the highest CAGR from 2024 to 2032, owing to its increased durability, impact resistance, and insulation features. Its heat retention properties improve energy efficiency and lower operational costs. The market for polycarbonate is expected to see growth in the future and this will drive the growth of the market as growers demand for extended growing seasons and increased yields.

By Offering

In 2023, hardware dominated the smart greenhouse market with a 73.8% share, growth is largely due to extra hardware components such as HVAC systems, LED grow lights, sensors, and irrigation systems. These technologies help to optimize resources and improve crop yields, with automation driving adoption even more.

Software & services are expected to grow fastest From 2024 to 2032, driven by the need for data-driven analytics, predictive tools, and remote monitoring. As precision farming gains popularity, greenhouse management platforms will see increased adoption, enabling efficient resource use and improved crop management.

By Component

In 2023, HVAC systems held the largest share (42.9%) of the smart greenhouse market, ensuring stable environments crucial for plant growth, especially in extreme climates. Their role in airflow control and heat stress reduction makes them essential for large-scale operations.

LED grow lights are expected to grow fastest from 2024 to 2032, due to their energy efficiency, long lifespan, and ability to enhance crop quality and yield.

By End Use

In 2023, commercial growers dominated the smart greenhouse market with a 57.3% share, leveraging automation, sensors, and climate control to boost yield and efficiency.

Research and educational institutes are expected to grow fastest From 2024 to 2032, driven by rising investments in agricultural research, sustainable farming, and climate-resilient crops. These institutes use smart greenhouses to study advanced cultivation techniques, fueling future market expansion.

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North America Leads Smart Greenhouse Market, While Asia Pacific Grows Rapidly

In 2023, North America held a 38.6% market share in the smart greenhouse sector, driven by advanced agricultural technologies, increased investment in controlled environment agriculture (CEA), and rising organic food demand. Companies like AppHarvest and BrightFarms leverage AI-powered climate control and sensor-based monitoring to optimize crop production.

Asia Pacific is expected to record the highest CAGR from 2024 to 2032, owing to increasing food demand, and governmental support for Smart farming. Japan, China and India are lumbering with greenhouse speeds, all industry leaders such as Spread Co. and SananBio are making great strides in hydroponics and vertical farming to increase food security.

Recent Development

  • August 1, 2024, a breakthrough in green hydrogen production has improved electrolysis efficiency, making hydrogen a more viable clean energy source. Additionally, AI-powered smart grids are now optimizing energy distribution, reducing waste, and enhancing renewable integration.
  • June 14, 2024, Hort Americas introduced HDPE floating rafts in North America, significantly improving durability and sustainability in hydroponic farming. These rafts, developed by Meteor Systems, last four to five times longer than traditional EPS rafts, reducing landfill waste and enhancing cost efficiency.

Table of Contents – Major Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

5.1 Operational Metrics

5.2 Production & Crop Metrics

5.3 Innovation & R&D Metrics

5.4 Automation & Control System Metrics

6.  Competitive Landscape

7. Smart Greenhouse Market Segmentation, by Type

8. Smart Greenhouse Market Segmentation, by Material Type

9. Smart Greenhouse Market Segmentation, by Offering

10. Smart Greenhouse Market Segmentation, by Component

11. Smart Greenhouse Market Segmentation, by End Use

12. Regional Analysis

13. Company Profiles

14. Use Cases and Best Practices

15. Conclusion

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