Middle East & Africa Solar Greenhouse Market Research Report: Forecast (2023-2028)

Definition

Solar Greenhouses are a type of greenhouse designed to cultivate plants, vegetables, and fruits integrated with solar panels on their roofs or walls to facilitate the energy supply for various purposes such as lighting, heating, cooling, and ventilation. They play a part in reducing agriculture's carbon footprint by encouraging the sustainable development of food items.

Market Insights & Analysis: The Middle East & Africa Solar Greenhouse Market (2023-28):

The Middle East & Africa Solar Greenhouse Market is projected to grow at a CAGR of around 30.28% during the forecast period, i.e., 2023-28, owing to the ever-increasing requirement to establish local food industry in the region, in line with heavy dependence on imports for ensuring the food security of countries. Regional governments have started raising their investment to develop controlled environment agriculture, including greenhouses, as they provide year-round cultivation of a wide range of crops, like vegetables, fruits, and herbs.

The role of solar power in reducing the overall cost of operations by improving the energy efficiency of the whole system is leading to the rise in the installation of solar panels in greenhouses. Moreover, the part played by solar panels in downsizing the carbon emissions of the agriculture sector by eliminating the use of traditional fuels to meet the energy requirements of greenhouses is promoting the use of solar power among sustainably responsible cultivators & farmers.

Additionally, the emergence of new techniques such as aquaponics & hydroponics to enhance the performance of the agriculture sector has raised the energy requirement of greenhouses in the form of pumps & filters to circulate & clean the water & artificial lighting to provide the necessary light for photosynthesis. Hence, this is accelerating the requirement for energy efficiency in the greenhouse sector, supporting the integration of solar energy in greenhouses. However, the shortage of skilled labor in the region & the requirement of technical expertise for facilitating the integration of solar energy in greenhouses combined with extreme weather conditions, such as high temperatures & dust storms, are restraining the development of the Middle East & Africa Solar Greenhouse market.

Consequently, the emergence of advanced & efficient solutions leading to the mitigation of water shortage issues & lack of arable land is promoting greenhouse infrastructural development in the MEA region. Further, the surging governments' focus on expanding the renewable energy sector of their countries would also fuel the incorporation of solar panels in greenhouses in the upcoming years, therefore creating a positive market outlook.

The Middle East & Africa Solar Greenhouse Market Driver:

Sustainable Transition of the Agriculture Sector – The growth in the agriculture sector of the Middle Eastern & African economies has been minimal compared to other parts of the world owing to the absence of arable land & scarcity of water in the region. This has made countries such as the UAE, Saudi Arabia, Egypt, and others highly dependent on imports to fulfill the food requirements of their population. Such high imports have been necessitating the development of the local agriculture sector in the region. Thus, regional governments are taking efforts to build their agriculture industry to ensure their food security.

The role of sustainability in mitigating the challenges related to water scarcity, limited arable land, etc., to build a resilient & productive system has been raising the adoption of sustainable agriculture practices. The requirement for a high amount of energy for facilitating cooling, heating, and lighting in greenhouses has been growing with the integration of solar panels in existing greenhouses & the establishment of new solar-powered greenhouses.

In addition, the role of solar panels in reducing the sector's carbon emissions by eliminating the requirement of fossil fuels for fulfilling the energy requirements of greenhouses at night is also promoting the adoption of solar energy in the sector. Thus, expanding government focus on reducing carbon emissions by ensuring energy efficiency combined with the development of solar energy in the region would continue to generate market demand for solar-powered greenhouses in the forecast years.

The Middle East & Africa Solar Greenhouse Market Challenges:

Limited Availability of Skilled Labor Hampers the Overall Working of the Market – The establishment of a solar-powered greenhouse system requires technical expertise, such as electrical engineering, mechanical engineering, and construction, to facilitate the design, installation, and operation of solar panels. The integration of irrigation systems in such greenhouses further accelerates the technicality associated with the job, raising the requirement for skilled labor. The Middle East & Africa region has a shortage of skilled labor, impeding market growth. For instance:

• In 2021, according to the labor force survey in the UAE, around 39.4% of nationals with bachelor’s or equivalent degrees were unemployed in the UAE due to a lack of proper skills.

The emergence of controlled environment agriculture techniques such as aquaponics & hydroponics, which are highly based on technological tools & data analytics to make informed decisions to optimize the growth of plants & vegetables, is further generating the requirement for skilled labor competent to operate the CEA techniques accurately & efficiently. This challenge is further aggravated by the lack of skills training programs, impeding the development of the solar greenhouse market in the Middle East & Africa.

The Middle East & Africa Solar Greenhouse Market Trend:

Technological Developments in the Solar PV – The Middle East & Africa region is witnessing increasing development of controlled environment agriculture involving greenhouses & vertical farming, in line with the expansion of the local food & agriculture industry in recent years. The emergence of agro voltaic, which implicates the joint development of the same land area for solar photovoltaic & agriculture, has been further heightening the expansion of the agriculture sector. Therefore, regional governments & institutions are constantly involved in R&D activities to further enhance the efficiency of operations leading to advancements in the agro voltaic industry. For instance,

• In 2022, Mirai Solar, a solar energy start-up of Saudi Arabia’s King Abdullah University of Science and Technology (KAUST), developed a foldable, flexible, and semi-transparent solar panel for agrivoltaic applications. This was specifically designed for locations with high solar radiation levels to protect plants from excessive sunlight, along with the generation of electricity.

Thus, growing R&D initiatives combined with augmenting government support for such advancements are raising awareness about solar-powered greenhouse systems among farmers & companies, further widening the adoption of such systems & contributing to market growth.

The Middle East & Africa Solar Greenhouse Market Opportunity:

Adoption of Advanced Technologies & Government Initiatives Towards Sustainable Farming – With the adoption of advanced technologies such as hydroponics, aeroponics, and vertical farming systems, greenhouses in the MEA region can achieve higher yields & resource efficiency. These technologies minimize water usage, reduce dependency on arable land, and provide optimal growing conditions for crops. The increasing government initiatives in the MEA region promote sustainable agriculture practices, including greenhouse cultivation, through supportive policies & incentives.

• In 2021, the government of UAE launched a Food Technology Valley, in line with the vision of “National Food Security Strategy 2051,” to address the agricultural challenges by opening a food innovation center, smart food logistics hub, etc. 

These government investments & support would encourage farmers & agricultural startups to use technological advancements for crop cultivation. Therefore, solar greenhouses are likely to become a necessity for the development of crops on farms. These rising investments & government initiatives would serve as a lucrative opportunity for solar greenhouse manufacturers in the market during the forecast period

The Middle East & Africa Solar Greenhouse Market (2023-28): Segmentation Analysis

The Middle East & Africa Solar Greenhouse Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the regional & national levels. Based on the analysis, the market has been further classified as:

Based on Application:

• Vegetables
• Fruits
• Flowers & Ornamental Plants

Fruits & Vegetables acquired a significant share since the majority of the farms in the MEA cultivate fruits & vegetables to cater to the growing needs of the rising population of the region. Further to minimize the food vulnerabilities such as food stock, prices, and other food security challenges, the government is focusing on encouraging the cultivation of fruits & vegetables. Besides, flowers & Ornamental Plants acquired less share owing to the fact that the flowers are cultivated only for decorative purposes. Along with this, the government initiatives to further promote sustainable farming and the production of edible crops to mitigate the dependence on other countries would increase the sale in the forecast years as well.

Further, the flexibility of optimization of the controlled environment agriculture in meeting the specific needs of crops such as tomatoes, cucumbers, peppers, lettuce, and herbs is promoting the use of greenhouses for the cultivation of vegetables in the region, therefore influencing the market growth.

The Middle East & Africa Solar Greenhouse Market Regional Projection

Geographically, the Middle East & Africa Solar Greenhouse Market expands across:

• Saudi Arabia
• The UAE
• Israel
• Morocco
• Qatar
• Rest of the Middle East & Africa

Among these countries, Saudi Arabia acquired a significant share of the Middle East & Africa Solar Greenhouse Market owing to the increasing government focus of the government on developing environment-friendly solutions to boost the sustainability level of the country. The use of solar panels in greenhouses to generate heat & electricity makes them more energy-efficient & environmentally friendly. In addition, the need to increase domestic food production by building a local agriculture and food industry to reduce the reliance on imports is further accelerating the growth of the market. The role of controlled environment agriculture techniques in minimizing water consumption in agriculture is resulting in augmented investments in this sector. For instance:

• In 2023, the Ministry of Environment, Water & Agriculture approved investments of around USD1.06 billion to develop the plant resource sector & greenhouses in the country till 2025.

Various international as well as local companies, such as RedSea, Farms, and Mirai Solar, have started providing products & services in this sector for varied purposes, such as greenhouse construction, installation of solar panels, and greenhouse management solutions. Thus, the government’s focus on building the renewable energy sector, combined with the rising demand for fresh food & sustainable products, is building the solar-powered greenhouse sector of Saudi Arabia.

The Middle East & Africa Solar Greenhouse Industry Recent Development:

• 2023: Mirai Solar harnesses green energy to power greenhouses in the region. The company manufactures greenhouse shade screens that convert sunlight into electricity.

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