Denso Invests in Automation to Safeguard Food Supply Amid Climate Change Challenges

Denso Corp., a leading supplier of automotive parts, is now focusing on expanding its presence in the agricultural sector by automating greenhouses. The Japanese company is targeting a larger share of a market projected to exceed ¥2 trillion ($13 billion) by 2035, driven by the increasing need for industrialized greenhouses amid climate change and labor shortages.

Yasushi Mukai, Denso’s executive officer responsible for the food value chain business, highlighted the growth potential in the greenhouse sector, which currently represents only about 2% of the ¥700 billion market. Mukai noted that while Denso’s current share is modest, there is significant room for expansion, though specific targets were not disclosed.

Denso, predominantly known for its supply role to Toyota Motor Corp. and other Toyota group companies, has been exploring new growth markets as part of its strategy to establish a "second pillar" of business. The company aims to generate approximately ¥300 billion in sales from these new ventures by the 2030 fiscal year and to have them account for 20% of its overall revenue by 2035. Automation in greenhouse technology will play a crucial role in this strategy.

As part of its expansion into agriculture, Denso acquired Dutch greenhouse and horticultural solutions provider Certhon Build BV last year. In May, the company began accepting orders for an automated tomato-picking machine, with plans to supply 300 units over the next three years and to enter the North American market.

Certhon Build CEO Lotte van Rijn emphasized the importance of improving agricultural practices due to climate change, water scarcity, and labor shortages. "Wherever crops can be feasibly grown, we can build a greenhouse," he stated in a joint interview with Denso.