Market Overview:
Global Hydroponics Market Size Was Valued at USD 27.99 Billion In 2022 And Is Projected to Reach USD 42.64 Billion By 2030, Growing at A CAGR of 5.4% From 2023 To 2030.
Hydroponics is a technique for growing plants in a water-based and nutrient-rich solution. The plant root system is supported by using an inert medium such as rock wool, perlite, clay pellets, vermiculite, or peat moss, rather than soil. Plant roots are directly in contact with the nutrient solution with access to oxygen which enhances the proper growth of the plant. This method of growing plants is used widely by commercial growers as it is easy to set up, has a high return on investment, and costs less than other techniques. Hydroponics recycles large amounts of water with minimal wastage and thus makes it the most water-efficient farming method. Additionally, hydroponically grown crops produce better quality crops and high yields than the crops grown in soil due to the proper control over essential nutrients.
Top Key Players in Hydroponics Market:
Aero Farm Systems (USA), Lettus Grow (United Kingdom), Hydrofarm (USA), CityCrop (Greece), Circulus Agtech (Canada), Rivasha Eco Design (India), Phytoponics (United Kingdom), Sky Greens (Singapore), Spread (Japan), Infarm (Berlin), AgriCool (France), Crop One (Dubai, UAE), Surna (Boulder, Colorado), Freight Farms (Boston), SweGreen (Sweden), and Other Major Players.
Market Dynamics and Factors for Hydroponics Market:
Drivers:
Greater Yield than the Conventional Agriculture Practices
Hydroponics is a modern method of crop cultivation without soil, where a mineral solution is inserted near the plant roots, and the use of soil is eliminated. Hydroponics mechanism also terminates the risk of soil-borne diseases, which are mostly observed in traditional methods of farming. In addition to this, the plants that are cultivated hydroponically supply better quality and high yield and the plant is rich in all the essential nutrients. Also, with the help of several sensors, the plant is monitored and the temperature is adjusted accordingly. All these significant properties of hydroponics farming lead to a greater yield of plants than that from conventional agricultural practices; thereby supporting the expansion of the hydroponics market.
Opportunities:
Huge Demand for Exotic Vegetables and Salads
In recent years, the demand for exotic vegetables and salads has been widely increasing owing to the change in eating habits, shifting preferences to healthy and nutritious foods, and growing awareness regarding organic food. Also, with the rapid urbanization, the demand for hydroponically cultivated vegetables and fruits is increasing from the HoReCa segment, as well as the NGOs, fast food chains, and railway catering. Additionally, retail and food chains such as KFC & Burger King are looking forward to utilizing exotic vegetables such as red lettuce, yellow and red capsicum, and many more. Such a rise in demand from various food chains creates an immense opportunity for hydroponics growers and is expected to gain high revenue in the forthcoming years.
Segmentation Analysis of the Hydroponics Market:
- By System Type, the aggregate system segment is forecasted to dominate the global hydroponics market in the forecast years. The huge growth of this segment is due to its extensive popularity among all indoor hydroponic growers, owing to its low costs of installation and ease of setup.
- By Crop Type, the fruits segment is estimated to grow at a high rate and dominate the hydroponics market in upcoming years. Fruits cultivated through hydroponics are sustainable and can be harvested throughout the year due to the interior conditions of the farming unit or greenhouse.
Regional Analysis of the Hydroponics Market:
The Asia Pacific region dominates the hydroponics market and is expected to continue its dominance owing to the significant adoption of the mechanism in various parts such as South Korea, Australia, and China. The demand for fresh fruits and vegetables in the region is boosting the market demand for hydroponic mechanisms. The hydroponics farms present in this region are either small business operations or individuals and families that cover approx. one acre of land. The market in India and China is expected to rise substantially over the forecasted period due to the emerging urban hydroponic farms. The region also holds a high potential for growth owing to rapid urbanization, changing eating habits and dietary plans, and the adoption of alternative farming techniques in various urban areas.
North America
- The U.S.
- Canada
- Mexico
Eastern Europe
- Russia
- Bulgaria
- The Czech Republic
- Hungary
- Poland
- Romania
- Rest of Eastern Europe
Western Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Spain
- Rest of Western Europe
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- New-Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
Key Industry Development:
In February 2022, Silal Abu Dhabi’s leading fresh produce and agri-tech company, and AeroFarms, a Certified B Corporation and leader in indoor vertical farming, signed a memorandum of understanding (MoU) to forge a long-term research and development collaboration involving knowledge and technology transfer of advanced farming systems to local farmers.
In August 2019, LumiGrow Inc. launched a new TopLight Hybrid smart fixture. The Hybrids will enable users to benefit from the enriched white spectrum, which is completely wireless and can be controlled via the SmartPAR software of the company.
