United States Smart Greenhouse Market By Type (Hydroponic, Non-Hydroponic), By Technology (HVAC, LED Grow Light, Irrigation System, Material Handling, Valves, Control System and Sensor & Camera), By Component (Hardware, Software and Services), By Crops (Vegetables, Floriculture, Tree Seedlings and Others), By Region, Competition, Forecast & Opportunities, 2019-2029F

Published Date: September - 2023 | Publisher: MIR | No of Pages: 320 | Industry: Agriculture | Format: Report available in PDF / Excel Format

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United States Smart Greenhouse Market By Type (Hydroponic, Non-Hydroponic), By Technology (HVAC, LED Grow Light, Irrigation System, Material Handling, Valves, Control System and Sensor & Camera), By Component (Hardware, Software and Services), By Crops (Vegetables, Floriculture, Tree Seedlings and Others), By Region, Competition, Forecast & Opportunities, 2019-2029F

Forecast Period2025-2029
Market Size (2023)USD 360.92 Million
Market Size (2029)USD 606.37 Million
CAGR (2024-2029)9.11%
Fastest Growing SegmentHydroponic
Largest MarketWest

MIR Agriculture

Market Overview

United States Smart Greenhouse Market w

The Smart Greenhouse market in the United States has seen a significant growth in recent years. This is fueled by an increasing interest in sustainable agriculture and the need for efficient food production methods to meet the demands of the burgeoning population. The adoption of tech-driven farming practices, such as smart greenhouses, is on the rise among both commercial farmers and urban dwellers. Technology companies have also entered this market, contributing to its development by producing sophisticated sensors and control systems. Not only does this trend drive economic growth in the sector, but it also promotes sustainable and efficient food production, which is of paramount importance in today's world.

Key Market Drivers

Rising Demand for Controlled Environment Agriculture (CEA)

The increasing demand for Controlled Environment Agriculture (CEA) is a pivotal driver of the smart greenhouse market in the United States. Smart greenhouses offer year-round cultivation solutions by creating controlled environments, making them ideal for regions with extreme climates or limited arable land. According to the U.S. Department of Agriculture (USDA), approximately 15% of all U.S. farms now utilize some form of controlled environment agriculture to optimize crop production and mitigate external environmental risks.

Advanced technologies, such as IoT sensors, data analytics, and automation, further enhance the efficiency and functionality of smart greenhouses. These systems allow precise control over critical environmental parameters, such as temperature, humidity, and light, tailored to specific crop requirements. For instance, IoT-enabled systems can monitor real-time conditions and adjust greenhouse settings autonomously, ensuring optimal growing conditions.

Moreover, the federal government supports innovative agricultural practices through initiatives that promote smart farming technologies. Programs under the USDA’s Climate-Smart Agriculture strategy advocate for adopting systems like smart greenhouses to meet sustainability goals.

Advancements in Sensor Technologies & IoT Integration

Advancements in sensor technologies, such as the development of highly sensitive and accurate sensors, along with the integration of the Internet of Things (IoT), are playing a pivotal role in driving the growth of the United States Smart Greenhouse Market. Smart greenhouses, leveraging the power of these technologies, utilize a sophisticated network of sensors strategically placed throughout the greenhouse to monitor and control various environmental factors. These factors include temperature, humidity, light intensity, and soil conditions, ensuring optimal conditions for plant growth. The network of sensors continuously collects real-time data, providing growers with valuable insights into the greenhouse environment. This data enables informed decision-making and allows growers to make precise adjustments to parameters, tailoring them to the specific needs of different plant species. By fine-tuning the environmental conditions, growers can achieve optimal plant growth, leading to higher crop yields and improved quality.

The seamless integration of IoT technologies further enhances the efficiency of smart greenhouse operations. Through IoT connectivity, the sensor data is transmitted and analyzed in real-time, enabling growers to remotely monitor and control the greenhouse environment from anywhere. This reduces the need for manual intervention and streamlines the overall management process, resulting in higher productivity and reduced operational costs. The convergence of advancements in sensor technologies and the integration of IoT is revolutionizing the United States Smart Greenhouse Market. These cutting-edge technologies enable growers to create an ideal environment for plant growth, leading to improved efficiency, precision agriculture practices, and ultimately, the sustainable production of high-quality crops.


MIR Segment1

Government Support & Incentives for Agricultural Innovation

Government initiatives and incentives are pivotal in advancing agricultural innovation and driving the growth of the United States Smart Greenhouse Market. Recognizing the transformative potential of smart greenhouse technologies in enhancing agricultural productivity, sustainability, and resource efficiency, government bodies are actively supporting their adoption.

Financial incentives, such as grants, subsidies, and tax credits, have been launched to lower the entry barriers for farmers and agribusinesses investing in smart greenhouse solutions. For example, the U.S. Department of Agriculture (USDA) provides various funding programs to support innovative agricultural technologies. The Environmental Quality Incentives Program (EQIP) encourages the adoption of resource-efficient technologies like precision irrigation systems commonly used in smart greenhouses. According to USDA reports, EQIP allocated USD 1.8 billion in 2023 to promote conservation practices, including greenhouse innovations.

Additionally, research grants and funding are channeled towards developing advanced smart greenhouse systems, focusing on IoT integration, energy efficiency, and climate resilience. The federal government’s climate-smart agriculture initiatives also align with these objectives, emphasizing the importance of technologies that mitigate the impact of climate change on farming.

Such government backing not only catalyzes market growth but also fosters a culture of innovation. By creating a conducive environment for collaboration between researchers, businesses, and farmers, these initiatives ensure sustainable agricultural practices and bolster the long-term competitiveness of the U.S. agriculture sector. These measures underscore the critical role of smart greenhouses in addressing challenges like resource scarcity and climate variability, paving the way for a resilient and forward-looking agricultural ecosystem.

Key Market Challenges

High Initial Investment Costs & Return on Investment Concerns

One of the significant challenges hindering the growth of the United States Smart Greenhouse Market is the high initial investment costs associated with setting up advanced greenhouse systems. Smart greenhouses require substantial expenditures on infrastructure, automation technology, IoT devices, sensors, climate control systems, and energy-efficient equipment. For instance, installing smart control systems and renewable energy solutions, such as solar panels, can substantially increase upfront costs compared to traditional greenhouses. These expenses often deter small and medium-sized farmers or businesses with limited financial resources from adopting such technologies.

The concerns about the return on investment (ROI) further complicate the adoption of smart greenhouses. While these systems promise long-term benefits such as higher crop yields, resource efficiency, and reduced labor costs, the time required to achieve a profitable ROI can be lengthy. Farmers operating in regions with variable market conditions or price volatility may hesitate to make significant investments without guaranteed short-term returns.

Additionally, the maintenance costs and the need for technical expertise to manage complex systems add to the financial burden, making it difficult for many stakeholders to justify the investment. Overcoming these challenges will require increased government support, financial incentives, and affordable technological advancements to make smart greenhouse solutions accessible to a broader audience.

Technical Complexity & Skill Gaps

The technical complexity of smart greenhouse systems poses a significant challenge for widespread adoption. These systems involve the implementation and management of various advanced technologies such as sensors, automation, and data analytics. Acquiring the necessary technical expertise to effectively operate and maintain these systems can be particularly challenging for small and medium-sized farmers. It requires not only a deep understanding of the technology but also the ability to troubleshoot and optimize its performance.

To address this challenge, it is crucial to develop comprehensive training programs and educational initiatives that cater specifically to the needs of farmers. These programs should provide hands-on training on the installation, configuration, and maintenance of smart greenhouse systems. User-friendly interfaces and intuitive software can greatly simplify the operation of these systems, allowing farmers to focus on their core tasks without being overwhelmed by the technical complexities. By empowering farmers with the knowledge and skills required to harness the full potential of smart greenhouse systems, we can create a more sustainable and efficient agricultural industry. This will not only benefit individual farmers but also contribute to the overall development and advancement of greenhouse farming practices.


MIR Regional

Key Market Trends

Adoption of Automated & Robotic Systems

The United States Smart Greenhouse Market is experiencing significant growth, largely due to the increased adoption of automated and robotic systems. This trend reflects a broader shift towards enhancing efficiency and sustainability in agricultural practices. Automated systems, including precision-engineered robotic arms and automated conveyors, are revolutionizing traditional farming methods by streamlining operations and reducing manual labor.

A key driver behind this technological integration is the persistent labor shortage in the U.S. agricultural sector. According to the U.S. Department of Agriculture (USDA), labor expenses in agriculture are forecasted to increase by more than 4 percent in 2023, reaching the highest level since 2017.

Furthermore, the Agricultural Research Service (ARS) has developed automated harvesting technologies to mitigate labor shortages in the multi-billion-dollar U.S. tree fruit industry. These innovations not only reduce dependence on manual labor but also enhance the consistency and quality of harvested produce.

The integration of automated and robotic systems in smart greenhouses aligns with the USDA's Agriculture Innovation Agenda, which aims to increase U.S. agricultural production by 40 percent while cutting the environmental footprint of U.S. agriculture in half by 2050.

In conclusion, the adoption of automated and robotic systems is a pivotal factor propelling the growth of the United States Smart Greenhouse Market. These technologies address labor shortages, enhance operational efficiency, and support sustainable farming practices, positioning the sector for continued expansion and innovation.

Segmental Insights

Type Insights

Based on the Type,

Technology Insights

Based on the Technology,

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Regional Insights

The West region emerged as the dominant region in the United States Smart Greenhouse Market in 2023, holding the largest market share. This is

Recent Developments

  • In July 2023, Agriculture Secretary Tom Vilsack announced that the U.S. Department of Agriculture (USDA) will invest USD 300 million under President Biden’s Investing in America agenda. The funds, made possible by the Inflation Reduction Act, will enhance the measurement, monitoring, reporting, and verification of greenhouse gas emissions and carbon sequestration in agriculture and forestry. This investment supports the Federal Strategy to Advance Greenhouse Gas Measurement and Monitoring for the Agriculture and Forest Sectors, which outlines actions to improve the accuracy of greenhouse gas estimates and reduce uncertainties.
  • In August 2023, University of Central Florida researchers have pioneered a novel technology for repurposing greenhouse gases into energy and materials. These innovative advancements from UCF allow methane to be harnessed for green energy generation and the production of high-performance materials used in various applications, including smart devices, biotechnology, and solar cells. 

Key Market Players

  • NexusCorp LLC
  • Netafim Irrigation, Inc
  • LumiGrow, Inc.
  • Rough Brothers, Inc.
  • Ceres Greenhouse Solutions
  • GreenTech Agro LLC
  • Hort Americas, LLC
  • TerraSphere Systems LLC
  • Heliospectra AB
  • Cultivar Limited 

By Type

By Technology

By Component

By Crops

By Region

  • Hydroponic
  • Non-Hydroponic
  • HVAC
  • LED Grow Light
  • Irrigation System
  • Material Handling
  • Valves
  • Control System
  • Sensor & Camera
  • Hardware
  • Software
  • Services
  • Vegetables
  • Floriculture
  • Tree Seedlings
  • Others
  • North-east
  • Mid-west
  • West
  • South

Table of Content

Table of Contents

List Tables Figures

List of Tables and Figures

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