Key Takeaways:
- Greenhouse farming continues to grow in both Europe and the U.S., supported by regional subsidies, technological innovation, and expanding commercial demand.
- In Western Europe, countries like the Netherlands, France, and Spain lead with high-tech and mid-tech greenhouse systems that enable export-oriented horticulture and year-round production.
- In the U.S., growth is driven by a transition toward mid-tech greenhouses in states like Michigan and California, often retrofitted from existing structures to improve energy efficiency.
- A wave of consolidation is reshaping the industry, as larger operators invest in automation and scale operations for better financial resilience.
- Controlled Environment Agriculture (CEA) technologies—including advanced LEDs, climate control, and robotics—are helping reduce labor demands and optimize resource use.
Understanding Greenhouse Types
Greenhouses are diverse structures designed to provide controlled environments for plant cultivation. They range from simple, low-cost setups to advanced, high-tech systems. Here’s an overview:
Low-Tech Greenhouses
These basic greenhouses are typically made from wood, bamboo, or inexpensive metal frames, covered with plastic film or mesh. They rely on passive solar heating and natural airflow. Best suited for regions with mild climates, they offer limited environmental control and require manual monitoring.
Features:
- Low cost and maintenance
- Short lifespan, small footprint
- Minimal climate control
- Ideal for small-scale or family farming
Polytunnels (Mid-Tech Option)
Polytunnels, or hoop houses, are steel-framed tunnels covered in polyethylene. They offer improved protection and seasonal extension, often using manual or simple mechanical controls for temperature and airflow. Widely used in temperate zones for fruits, vegetables, and flowers.
Features:
- Moderate investment and durability
- Manual or basic mechanical climate controls
- Enables growing season extension
- Suitable for commercial and hobby growers alike
High-Tech Greenhouses
These modern greenhouses use steel or aluminum frames with glass or polycarbonate panels. Integrated systems handle lighting, irrigation, climate, and nutrients automatically. Advanced features like hydroponics, smart sensors, and AI-driven control maximize crop yields and efficiency.
Features:
- Strong, durable construction
- Full automation for climate, water, and nutrients
- Designed for high-value, year-round production
- Requires significant upfront investment
Comparison Table
| Type | Structure/Material | Climate Control | Cost | Best Use |
|---|---|---|---|---|
| Low-Tech Greenhouse | Wood/bamboo + plastic/mesh | Minimal (passive) | Low | Small farms, mild climates |
| Polytunnel | Steel frame + polyethylene | Manual/basic | Medium | Commercial/small-scale seasonal crops |
| High-Tech Greenhouse | Steel/aluminum + glass/polycarbonate | Advanced/automated | High | Large-scale, high-value crop farming |
This spectrum highlights how greenhouse design evolves with increasing levels of environmental control, durability, and investment.
Market Overview: Global Growth in CEA
Greenhouses are a cornerstone of Controlled Environment Agriculture (CEA). While vertical farming gets much of the spotlight, greenhouses produce the majority of indoor-grown food and remain the backbone of scalable, climate-resilient food systems.
In the U.S., the greenhouse market reached USD 2.9 billion in 2023 and is forecast to hit USD 5.1 billion by 2030. In Europe, commercial greenhouses are growing at 4–5% CAGR, while solution providers are expanding at 7–8%.
Europe: Driving Innovation in Greenhouse Horticulture
Countries like the Netherlands, France, and Spain lead the way. Europe hosts over 188,000 hectares of greenhouse area, with 33,637 hectares using high-tech setups. Tomatoes are the top crop, followed by leafy greens and others.
Public funding from the EU’s CAP and national subsidies has been essential, but dependency on state support raises long-term concerns. While Northern and Western Europe focus on high-tech, export-driven models, Southern Europe leans toward resilient, mid-tech solutions.
Read our entire European Indoor Farming Report.
U.S. Greenhouse Trends: Adapting to Policy and Energy Pressures
Despite rising energy costs and shifts in agricultural policy, greenhouse acreage is expanding in states like Michigan, California, and Pennsylvania. Many growers are transitioning older facilities into more efficient mid-tech systems.
Corenthin Chassouant of Harnois Greenhouses notes: “We’re seeing renewed interest in low-tech greenhouses paired with basic controls to balance costs with efficiency.”
Read our entire USA Indoor Farming Report.
Smart Tech: Boosting Efficiency and Output
Both European and U.S. growers are investing in technologies that optimize lighting, irrigation, and climate management. Companies such as Würth Elektronik and TTA-ISO provide turnkey solutions that incorporate smart sensors, LED systems, and automation platforms.
Shlomy Raziel, President of Grow-tec, explains: “Labor can make up 40% of project costs. Automation platforms deliver ROI in 3 to 4 years and transform labor roles into skilled positions. Our Lego-like modular solutions are scalable, retrofit-ready, and adaptable to various climates.”
Corenthin Chassouant, VP of Sales at Harnois Greenhouses, adds: “Recent advancements in smart sensor technology, AI-driven climate control, and automation are revolutionizing greenhouse operations. The ability to integrate renewable energy sources and efficiently manage environmental controls is helping growers increase efficiency while reducing operational costs.”
Renko Schuil, Sales Manager at TTA-ISO, highlights the evolving role of robotics: “We can automate up to 95% of CEA operations, but the real value lies in supporting intuitive decision-making. Automation doesn’t replace people—it empowers them. Our goal is to develop systems that deliver clear ROI and practical outcomes.”
Johann Waldherr of Würth Elektronik elaborates: “Our plant-specific LEDs, when combined with control systems, enable dynamic lighting strategies that improve crop quality while cutting energy consumption. We focus on creating measurable outcomes: more biomass, better rooting, and higher metabolite content with fewer resources.”
Market Consolidation on the Rise
In Europe, the greenhouse sector is seeing rapid consolidation, with the top ten tomato producers now controlling over 50% of market share—a significant jump from just 29% a decade ago. This shift is driven by rising operational costs, the need for energy efficiency, and the demand for year-round supply. Companies like ACRES, which manages around 50 hectares of tomato greenhouses, exemplify this trend of scaling operations to remain competitive.
Meanwhile, in the U.S., similar dynamics are unfolding. Firms such as Cox Farms and Cofra Holdings have pursued mergers and acquisitions to expand their footprint, improve operational resilience, and integrate automation technologies. The 2025 U.S. Indoor Farming Report notes a growing preference for franchise and multi-site models, especially among branded greenhouse vegetable producers. The consolidation trend is enabling these larger players to access better financing, invest in high-tech infrastructure, and absorb market volatility more effectively.
Notable Greenhouse Companies
📌 Note: This list highlights selected companies based on public visibility, specialization, and relevance in current CEA greenhouse trends. See the full list here.
Outlook: Greenhouses at the Core of Sustainable Ag
Greenhouses remain pivotal for the future of food production. They offer regional adaptability, scalability, and the ability to integrate with vertical farming or renewable energy systems. However, long-term success depends on reducing energy dependence, adopting technology wisely, and maintaining access to funding.
Read More:
- Get the latest market insights in our full USA and Europe Indoor Farming Reports: https://igrownews.com/agtech-report/indoor-farming/
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