Smart Greenhouse Market

Smart Greenhouse Market Size and Share:

The global smart greenhouse market size was valued at USD 2.07 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 4.26 Billion by 2033, exhibiting a CAGR of 7.96% from 2025-2033. Europe currently dominates the market, holding a smart greenhouse market share of over 28.7% in 2024. The growing adoption of organic farming that requires strict adherence to chemical-free cultivation practices, rising innovations in artificial lighting technology, particularly the use of light-emitting diode (LED) grow lights, and increasing integration of automated systems, are some of the factors impelling the market growth.

The adoption of the Internet of Things (IoT) and AI-driven automation is a major growth driver in the smart greenhouse market, facilitating real-time monitoring and control of essential factors like temperature, humidity, and soil moisture. IoT sensors collect data, which AI algorithms analyze to optimize water usage, nutrient delivery, and lighting conditions, enhancing crop yields while reducing resource wastage. Automated climate control systems further improve efficiency by adjusting conditions based on predictive analytics. This technological integration helps farmers achieve higher productivity, sustainability, and cost savings, driving the demand for smart greenhouse solutions globally as agriculture shifts toward data-driven precision farming practices.

The U.S. smart greenhouse market, holding an 88.90% share, is driven by advancements in agricultural technology, growing demand for sustainable farming, and the increasing use of automation in controlled-environment agriculture. Government initiatives supporting precision farming and water conservation further accelerate growth. High-tech innovations, including AI-driven climate control, IoT-based monitoring, and hydroponic systems, enhance productivity and resource efficiency. The presence of key industry players and research institutions fosters continuous innovation. Additionally, growing consumer demand for organic and locally sourced produce encourages investments in smart greenhouses. Rising energy costs and climate challenges also push farmers toward technology-driven solutions for optimizing crop yields and reducing operational expenses.

Smart Greenhouse Market Trends:

Automation and Internet of Things (IoT) Integration

Automated systems allow growers to precisely regulate environmental factors such as temperature, humidity, lighting, and soil moisture, ensuring optimal growing conditions. IoT sensors collect real-time data, enabling predictive maintenance and efficient resource management. In 2024, the number of connected IoT devices is expected to grow by 13%, reaching 18.8 billion globally. It helps reduce labor costs and increases productivity by eliminating manual intervention in the routine tasks. The remote monitoring and control capability of greenhouse operations also appeals to commercial and small-scale farmers alike, thereby increasing overall adoption rates. Smart greenhouses are providing data-driven insights to improve crop yield, and this is encouraging the adoption of automated solutions. In 2024, Nature Fresh Farms collaborated with Koidra to test artificial intelligence (AI)-powered automation in their greenhouses. In collaboration with Nature Fresh Farms, Koidra's AI-based solutions, DataPilot and KoPilot, will automate the management of climate, lighting, and irrigation systems to help the farm operate more efficiently with optimized productivity and resource use. This trial aims to improve the efficiency of operational performance, energy cost savings, and crop yield.

Advancements in Artificial Lighting

Innovations in artificial lighting technology are enhancing the efficiency of smart greenhouses. LED lighting systems can be precisely controlled to provide the optimal light spectrum for different plant growth stages, notably increasing crop yields. These lights are energy-efficient and have a prolonged lifespan than traditional lighting alternatives, making them a cost-effective solution for greenhouse operators. Moreover, advancements in light automation allow growers to simulate natural sunlight cycles, improving plant health and growth. The adoption of these cutting-edge lighting technologies is helping smart greenhouses maximize productivity while reducing energy usage. In 2024, ams OSRAM introduced the OSCONIQ® P3737, a high-power LED with 83.2% efficiency in Hyper Red, designed to lower energy costs in greenhouses while maintaining optimal light output. This LED increases photosynthesis rates and crop yields while offering up to 11% energy savings.

Rising Demand for Organic Food

Organic farming requires strict adherence to chemical-free cultivation practices, which can be challenging to maintain in open fields due to exposure to pollutants, pests, and unpredictable weather. Smart greenhouses provide a controlled environment where organic crops can be grown without the need for pesticides or synthetic fertilizers, ensuring compliance with organic standards. This technology allows for year-round organic production, helping farmers meet the increasing the smart greenhouse market demand. As organic food is gaining popularity due to health and environmental concerns, the use of smart greenhouses in organic farming is becoming more widespread. In 2023, the total value of the worldwide market for organic food was USD 207.4 Billion, as per the data provided by the IMARC Group.

Smart Greenhouse Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global smart greenhouse market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on type, offering, and end user.

Analysis by Type:

• Hydroponic
• Non-Hydroponic

Hydroponics was the market leader for the majority share, at 59.8%, because it is an extremely efficient method regarding water and nutrient consumption. It offers the chance to control the growing conditions precisely, hence possibly providing a greater crop yield compared to traditional cultivation, and shorter growth cycles, and practically eliminates all resource wastage as there are recirculating nutrient solutions in place. Increasing demand for organic and pesticide-free produce works as a catalyst for hydroponic adoption. Also, the increasing research in automation, IoT-based monitoring, and climate control systems enhance the optimization of hydroponic greenhouse operations. It is compatible with vertical farming and urban agriculture, as it provides possibilities for year-round production in limited areas to enhance food security and profitability.

Analysis by Offering:

• Hardware
  • HVAC Systems
  • LED Grow Lights
  • Irrigation System
  • Valves and Pumps
  • Sensor and Control System
  • Others
• Software
• Services

Hardware accounts for 47.7% of the smart greenhouse market share due to the essential role of advanced equipment in optimizing controlled-environment farming. Essential components like climate control systems, LED grow lights, irrigation systems, sensors, and automated ventilation units play a vital role in ensuring optimal growing conditions in smart greenhouses. The increasing adoption of IoT-enabled sensors and AI-powered automation enhances precision in temperature, humidity, and nutrient management. High initial investments in smart greenhouse infrastructure also contribute to hardware’s dominance. Additionally, technological advancements in energy-efficient lighting and automated irrigation systems drive demand. As growers focus on maximizing yield and resource efficiency, the need for durable, high-performance hardware solutions continues to grow, reinforcing its market leadership in smart greenhouse market outlook.

Analysis by End User:

• Commercial Growers
• Research and Educational Institutes
• Retail Gardens
• Others

Based on the smart greenhouse market forecast, research, and educational institutes represent the largest market growth segment in the smart greenhouse industry due to their role in advancing agricultural innovation and sustainability. These institutions utilize smart greenhouses for studying climate-resilient crops, optimizing hydroponic and aeroponic systems, and enhancing automation through AI and IoT integration. Government funding and academic grants support infrastructure development, enabling large-scale research initiatives. Additionally, universities collaborate with agritech firms to test and refine precision farming techniques. The increasing focus on food security, resource efficiency, and sustainable agriculture further fuels investment in smart greenhouse research. As a result, institutions drive technological advancements, accelerating market growth while fostering future agricultural solutions through education and experimentation.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

Europe holds the leading position in the smart greenhouse market with a 28.7% share due to its strong emphasis on sustainable agriculture and advanced farming technologies. The region’s stringent environmental regulations encourage the adoption of energy-efficient and resource-saving solutions, such as automated climate control, hydroponics, and LED grow lights. Government initiatives and subsidies support high-tech farming infrastructure, driving the smart greenhouse market growth. Additionally, the increasing demand for organic and locally grown produce fuels investment in controlled-environment agriculture. The presence of leading agritech companies and research institutions fosters continuous innovation. Europe’s focus on reducing agricultural dependency on imports while enhancing food security further strengthens its dominance in the smart greenhouse sector.

Key Regional Takeaways:

North America Smart Greenhouse Market Analysis

The North America smart greenhouse market is expanding due to increasing adoption of advanced agricultural technologies, rising demand for sustainable farming, and government support for precision agriculture. The region benefits from strong investments in IoT-based automation, AI-driven climate control, and hydroponic systems, enhancing productivity and resource efficiency. The U.S. leads the market, driven by high-tech innovations and consumer demand for organic, locally sourced produce. Canada is also witnessing growth, fueled by urban farming initiatives and controlled-environment agriculture. Climate challenges and rising energy costs push growers to adopt smart greenhouses for optimized crop production. Continuous advancements in LED lighting, automated irrigation, and data analytics further support the market’s development across North America.

United States Smart Greenhouse Market Analysis

The adoption of smart greenhouses has seen a notable rise due to the increasing integration of advanced HVAC systems. According to reports, there are 114,157 Heating & Air-Conditioning Contractors businesses in the US as of 2024. These systems enhance the environmental control capabilities of greenhouses, providing precise regulation of temperature, humidity, and ventilation. With growing awareness of the importance of maintaining optimal growing conditions for crops, modern HVAC systems are helping farmers achieve year-round cultivation without being affected by external weather conditions. In regions with extreme seasonal variations, HVAC systems in smart greenhouses ensure that plants receive a consistent environment, boosting yields and quality. Advanced monitoring systems integrated with HVAC allow remote management and reduce energy consumption, aligning with sustainable agricultural practices. Moreover, as agricultural land availability becomes more limited, HVAC-enhanced greenhouses enable more efficient use of space, fostering the adoption of smart greenhouses across areas where traditional farming faces challenges.

Asia Pacific Smart Greenhouse Market Analysis

The expansion of the agricultural sector has been a pivotal factor driving the adoption of smart greenhouses in the region. For instance, in 2020, the Indian government invested approximately USD 4.32 Million in 346 agritech startups, aiming to boost the growth of the agricultural sector. With the increasing demand for higher agricultural output, smart greenhouses provide advanced solutions to boost productivity and minimize resource wastage. Precision farming technologies, coupled with automated irrigation and climate control, enable farmers to optimize input use such as water, fertilizers, and energy. These systems are tailored to meet the growing need for controlled-environment agriculture, particularly in regions facing climatic challenges or limited arable land. High-tech smart greenhouses facilitate year-round cultivation, allowing farmers to meet rising consumer demand for fresh produce. The integration of advanced tools within smart greenhouses supports efficient farming practices, helping producers achieve consistent yields despite external environmental conditions.

Europe Smart Greenhouse Market Analysis

The increasing incorporation of automation and IoT technologies has accelerated the adoption of smart greenhouses. According to the International Data Corporation, the number of installed IoT-connected devices in Europe is projected to rise from approximately 40 billion in 2023 to 49 billion by 2026. Automation systems in greenhouses optimize processes like irrigation, fertilization, and pest control, reducing manual labor and operational costs. IoT-enabled devices provide real-time insights into soil health, plant growth, and environmental conditions, allowing growers to make data-driven decisions. The use of sensors and smart controllers allows for precise adjustments to factors like temperature and lighting, optimizing crop growth. Connectivity through IoT ensures seamless monitoring and control, even remotely, giving farmers unprecedented oversight over their operations. This technological advancement enhances productivity and sustainability, making smart greenhouses an attractive option for modern agriculture. The ability to integrate multiple systems into a cohesive digital network makes automation and IoT indispensable in advancing greenhouse practices.

Latin America Smart Greenhouse Market Analysis

The increasing demand for organic food, which is largely driven by the growth in disposable income, has been a significant factor in the adoption of smart greenhouses. Advanced greenhouses support organic cultivation by providing controlled environments free from chemical interventions. Consumers are increasingly seeking high-quality, organic produce, and smart greenhouses enable consistent production to meet this demand. Reports indicate that the total disposable income of Latin America is poised to increase almost 60% from 2021 to 2040. With the availability of modern equipment, growers would be able to increase productivity based on organic farm principles, making sure that adequate clean and green food products can be supplied continually. This corresponds with the rising trend of new consumer preferences focusing on healthier lifestyle choices.

Middle East and Africa Smart Greenhouse Market Analysis

Advancements in artificial lighting have become a key enabler for the adoption of smart greenhouses in the region. These systems allow growers to simulate natural sunlight, ensuring optimal plant growth even during adverse climatic conditions. For example, the Gates Foundation and the U.A.E. jointly invested USD 200 million in agricultural innovation, leveraging AI and technologies like artificial lighting to address both immediate and long-term challenges posed by climate change to global food systems. The development of energy-efficient lighting solutions enhances the cost-effectiveness of greenhouse operations, enabling continuous cultivation regardless of whether variations. This technological progress ensures that smart greenhouses remain productive, supporting agricultural activities in regions where traditional farming is impacted by unpredictable climate patterns.

Competitive Landscape:

The smart greenhouse market is characterized by intense competition, driven by technological advancements and increasing demand for automated farming solutions. Market players focus on innovations in IoT, AI-powered analytics, and climate control systems to enhance crop yield and efficiency. Companies invest in research and development to introduce energy-efficient solutions, such as LED grow lights and automated irrigation systems. Strategic partnerships and collaborations with agritech firms, research institutions, and government bodies strengthen market presence. Expansion strategies include regional market penetration and customization of solutions based on climate and crop requirements. The rise of vertical farming and hydroponic techniques further intensifies competition, pushing firms to offer scalable and cost-effective smart greenhouse solutions to meet evolving agricultural demands.

The report provides a comprehensive analysis of the competitive landscape in the smart greenhouse market with detailed profiles of all major companies, including:

• Argus Control Systems Limited (Conviron)
• Certhon
• Heliospectra AB
• Netafim (Orbia)
• Sensaphone

Latest News and Developments:

• September 2024, Bicker Elektronik presented a DC UPS solution designed to ensure uninterrupted power for Hoogendoorn’s IIVO smart greenhouse control system. The UPS provides a reliable shutdown and reboot during power failures, using maintenance-free Supercap energy storage for long-lasting, efficient performance.
• August 2024, the USDA announced plans to establish the Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program Advisory Council. This initiative, part of the Growing Climate Solutions Act (GCSA), aims to enhance emissions monitoring and support climate-friendly agricultural practices. Smart greenhouse stakeholders are invited to contribute through Council membership, aiding climate-focused agricultural innovation.
• August 2024, Skytree unveiled the Stratus Hub, a plug-and-play solution designed for carbon dioxide removal projects. Targeting diverse markets like smart greenhouses, fuels, and chemicals, the Hub supports CO2 storage and utilization initiatives. It complements the decentralized DAC product, Stratus, enhancing carbon sequestration in geological formations.
• May 2024, KUBO launched the first CO2-negative smart greenhouse for vegetable cultivation, cutting fossil energy use significantly. Debuted at GreenTech RAI in Amsterdam, the technology supports food security and CO2 reduction goals. KUBO’s greenhouse minimizes energy, water, and pesticide use, redefining sustainable horticulture.
• April 2024, Costa Rica, with support from CABEI and the Republic of Korea, launched its first intelligent greenhouse. Located at the Los Diamantes Experimental Station, the 2,500 m² facility uses advanced technology for automated crop management, improving productivity and quality.
• July 2024, it was reported that Uzbekistan will construct a 0.6-hectare smart greenhouse with the help of South Korean technology. The facility, equipped with energy-saving technologies and remote management, will support agricultural cultivation and research.

Smart Greenhouse Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the smart greenhouse market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global smart greenhouse market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the smart greenhouse industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.