Global Hydroponics Market Overview

Global Hydroponics Market Size Was Valued at USD 28.13 Billion In 2023 And Is Projected to Reach USD 45.32 Billion By 2032, Growing at A CAGR of 5.9% From 2023 To 2032.

Hydroponics is a technique of growing plants in a water-based and nutrient-rich solution. The plant root system is supported by using an inert medium such as rockwool, 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 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 amount of water with minimal wastage and thus makes it the most water-efficient farming method. Additionally, the hydroponically grown crops produce better quality crop and high yield than the crops grown in soil due to the proper control over essential nutrients. Hydroponics is looked upon as a substantial solution for the rising concern about food security and supplying nutritious and safe food over the projected period. The rising pressure on the agriculture sector to meet the growing human as well as animal population is the main factor expected to propel the development of the hydroponics market over the projected period.

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 mineral solution is inserted near the plant roots and use of soil is eliminated. Hydroponics mechanism also terminates the risk of soil borne diseases, which are mostly observed in traditional or conventional method of farming. In addition to this, the plants that are cultivated hydroponically, supplies 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 temperature is adjusted accordingly. All these significant properties of hydroponics farming lead to greater yield of plants than that from the conventional agricultural practices; thereby supporting the expansion of the hydroponics market.

Restraints:

High Initial Cost for Large Scale Farms

Comparing the investments required in the conventional farming or traditional farming methods on large scale farms, the hydroponics mechanism require high capital investment. Different System Type of equipment such as grow lights, irrigation systems, ventilators, HVAC systems, rails, fans, control systems and others are the basic and essential requirements for setting up a hydroponics unit. The tremendous high cost for installing all the equipment is estimated to hamper the market growth for large scale farms. Several farmers or growers are refraining themselves from installing such systems, which is further expected to a decline in growth of hydroponics market.

Opportunity:

Huge Demand for Exotic Vegetables and Salads

In recent years, demand for exotic vegetables and salads have 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, the retail and food chains such as KFC & Burger king are looking forward to utilize 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 the hydroponics growers, and is expected to gain high revenue in the forthcoming years.

Segmentation Analysis of 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 the extensive popularity among all the indoor hydroponic growers, owing to its low costs of installations and ease of setup. The primary technologies like ebb, drip, wick and flow systems being cheaper and easy, drive the market growth of aggregate systems segment.

By Crop Type, the fruits segment is estimated to grow at 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. Water adaptable fruits like tomatoes, watermelon is ideal choice of farmers as they can be cultivated easily using the hydroponics mechanism.

By Equipment, the HVAC [Heating, Ventilation & Air Conditioning] segment dominates the hydroponics market and is further projected to continue its significant dominance owing to the rapid development of indoor growers or farmers. The HVAC system is essential in dehumidification, cooling and monitoring required temperature in the unit. Also, the economic costs of HVAC systems are far better than other utilities and equipment, which is further expected to drive the growth.

Regional Analysis of Hydroponics Market

The Asia Pacific region dominates the hydroponics market and is expected to continue its dominance owing to 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 the rapid urbanization, changing eating habits and dietary plans and adoption of alternative farming techniques in various urban areas.

The North American region is anticipated to have the second highest share of the hydroponics market over the forecasted period. Rooftop hydroponic setups or gardens in urban areas like New York are boosting the market growth. Hydroponic farming being widely used in most part of the region, instead of the open-field agriculture, is most likely to drive the regional growth. The produce of hydroponic farming has gained popularity among commercial vegetable producers as it is a less labor-intensive and effective method to control inputs. The rapid rise in adoption of hydroponics as a regular cultivation method is further projected to drive market growth in North America.

Europe is expected to gain rapid growth over the projected period owing to the increasing adoption of hydroponics in the region. Europe being the home to many developed economies such as Greece, Germany, France, Italy, Netherlands and Spain, contributes in expansion of hydroponics technology among the commercial growers. Europe has been in the forefront of adopting advanced technologies like smart greenhouses, and is further expected to witness a huge growth in the hydroponics farming method over the projected period.

Covid 19 Impact Analysis on Hydroponics Market

Due to the sudden emergence of COVID-19, many individuals have formed a critical point of view regarding outdoor food. After the destructive outbreak of COVID-19 pandemic, there have been observed an immense rise in the adoption rate of urban farming or hydroponics mechanisms worldwide. The agriculture sector faced challenges during the initial stage of the spread of the pandemic. There was shortage of labour on the farms, some farmers missed their harvesting for seasonal crops, also, the falling prices of agricultural food and grains was observed and the supply chain and logistics was disrupted. Later, consumers shift towards indoor, healthy and nutritious food propelled the market growth of hydroponic farming as it is an easy method to control everything from seeds to stores. The market is now witnessing a rapid rate of growth and is expected to gain huge revenue in the coming years.

Top Key Players Covered 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.

Key Industry Development In The Hydroponics Market

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, have 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. Under the MoU, both parties will assess opportunities to transfer technology and data analytics capabilities from high-tech farming systems to improve yield, reduce cost and waste, and enhance environmental sustainability practices in agriculture across the emirate of Abu Dhabi.

In April 2024, Vertefarm proudly announced the launch of its innovative hydroponic micro plant factory, seamlessly blending aesthetic appeal with smart practical functionality. Vertefarm utilizes cutting-edge vertical surface planting and root cyclic drip irrigation technologies to ensure healthy plant growth by providing ample contact with both water and air.

Chapter 1: Introduction
 1.1 Research Objectives
 1.2 Research Methodology
 1.3 Research Process
 1.4 Scope and Coverage
  1.4.1 Market Definition
  1.4.2 Key Questions Answered
 1.5 Market Segmentation

Chapter 2:Executive Summary

Chapter 3:Growth Opportunities By Segment
 3.1 By System Type
 3.2 By Crop Type
 3.3 By Equipment

Chapter 4: Market Landscape
 4.1 Porter's Five Forces Analysis
  4.1.1 Bargaining Power of Supplier
  4.1.2 Threat of New Entrants
  4.1.3 Threat of Substitutes
  4.1.4 Competitive Rivalry
  4.1.5 Bargaining Power Among Buyers
 4.2 Industry Value Chain Analysis
 4.3 Market Dynamics
  4.3.1 Drivers
  4.3.2 Restraints
  4.3.3 Opportunities
  4.5.4 Challenges
 4.4 Pestle Analysis
 4.5 Technological Roadmap
 4.6 Regulatory Landscape
 4.7 SWOT Analysis
 4.8 Price Trend Analysis
 4.9 Patent Analysis
 4.10 Analysis of the Impact of Covid-19
  4.10.1 Impact on the Overall Market
  4.10.2 Impact on the Supply Chain
  4.10.3 Impact on the Key Manufacturers
  4.10.4 Impact on the Pricing

Chapter 5: Hydroponics Market by System Type
 5.1 Hydroponics Market Overview Snapshot and Growth Engine
 5.2 Hydroponics Market Overview
 5.3 Liquid Systems
  5.3.1 Introduction and Market Overview
  5.3.2 Historic and Forecasted Market Size (2016-2028F)
  5.3.3 Key Market Trends, Growth Factors and Opportunities
  5.3.4 Liquid Systems: Grographic Segmentation
 5.4 Aggregate Systems
  5.4.1 Introduction and Market Overview
  5.4.2 Historic and Forecasted Market Size (2016-2028F)
  5.4.3 Key Market Trends, Growth Factors and Opportunities
  5.4.4 Aggregate Systems: Grographic Segmentation

Chapter 6: Hydroponics Market by Crop Type
 6.1 Hydroponics Market Overview Snapshot and Growth Engine
 6.2 Hydroponics Market Overview
 6.3 Flowers
  6.3.1 Introduction and Market Overview
  6.3.2 Historic and Forecasted Market Size (2016-2028F)
  6.3.3 Key Market Trends, Growth Factors and Opportunities
  6.3.4 Flowers: Grographic Segmentation
 6.4 Vegetables
  6.4.1 Introduction and Market Overview
  6.4.2 Historic and Forecasted Market Size (2016-2028F)
  6.4.3 Key Market Trends, Growth Factors and Opportunities
  6.4.4 Vegetables: Grographic Segmentation
 6.5 Fruits
  6.5.1 Introduction and Market Overview
  6.5.2 Historic and Forecasted Market Size (2016-2028F)
  6.5.3 Key Market Trends, Growth Factors and Opportunities
  6.5.4 Fruits: Grographic Segmentation

Chapter 7: Hydroponics Market by Equipment
 7.1 Hydroponics Market Overview Snapshot and Growth Engine
 7.2 Hydroponics Market Overview
 7.3 HVAC
  7.3.1 Introduction and Market Overview
  7.3.2 Historic and Forecasted Market Size (2016-2028F)
  7.3.3 Key Market Trends, Growth Factors and Opportunities
  7.3.4 HVAC: Grographic Segmentation
 7.4 Irrigation Systems
  7.4.1 Introduction and Market Overview
  7.4.2 Historic and Forecasted Market Size (2016-2028F)
  7.4.3 Key Market Trends, Growth Factors and Opportunities
  7.4.4 Irrigation Systems: Grographic Segmentation
 7.5 Material Handling Equipment
  7.5.1 Introduction and Market Overview
  7.5.2 Historic and Forecasted Market Size (2016-2028F)
  7.5.3 Key Market Trends, Growth Factors and Opportunities
  7.5.4 Material Handling Equipment: Grographic Segmentation
 7.6 LED Grow Lights
  7.6.1 Introduction and Market Overview
  7.6.2 Historic and Forecasted Market Size (2016-2028F)
  7.6.3 Key Market Trends, Growth Factors and Opportunities
  7.6.4 LED Grow Lights: Grographic Segmentation
 7.7 Control Systems
  7.7.1 Introduction and Market Overview
  7.7.2 Historic and Forecasted Market Size (2016-2028F)
  7.7.3 Key Market Trends, Growth Factors and Opportunities
  7.7.4 Control Systems: Grographic Segmentation

Chapter 8: Company Profiles and Competitive Analysis
 8.1 Competitive Landscape
  8.1.1 Competitive Positioning
  8.1.2 Hydroponics Sales and Market Share By Players
  8.1.3 Industry BCG Matrix
  8.1.4 Ansoff Matrix
  8.1.5 Hydroponics Industry Concentration Ratio (CR5 and HHI)
  8.1.6 Top 5 Hydroponics Players Market Share
  8.1.7 Mergers and Acquisitions
  8.1.8 Business Strategies By Top Players
 8.2 AERO FARM SYSTEMS (USA)
  8.2.1 Company Overview
  8.2.2 Key Executives
  8.2.3 Company Snapshot
  8.2.4 Operating Business Segments
  8.2.5 Product Portfolio
  8.2.6 Business Performance
  8.2.7 Key Strategic Moves and Recent Developments
  8.2.8 SWOT Analysis
 8.3 LETTUS GROW (UNITED KINGDOM)
 8.4 HYDROFARM (USA)
 8.5 CITYCROP (GREECE)
 8.6 CIRCULUS AGTECH (CANADA)
 8.7 RIVASHA ECO DESIGN (INDIA)
 8.8 PHYTOPONICS (UNITED KINGDOM)
 8.9 SKY GREENS (SINGAPORE)
 8.10 SPREAD (JAPAN)
 8.11 INFARM (BERLIN)
 8.12 AGRICOOL (FRANCE)
 8.13 CROP ONE (DUBAI
 8.14 UAE)
 8.15 SURNA (BOULDER
 8.16 COLORADO)
 8.17 FREIGHT FARMS (BOSTON)
 8.18 SWEGREEN (SWEDEN)
 8.19 OTHER MAJOR PLAYERS

Chapter 9: Global Hydroponics Market Analysis, Insights and Forecast, 2016-2028
 9.1 Market Overview
 9.2 Historic and Forecasted Market Size By System Type
  9.2.1 Liquid Systems
  9.2.2 Aggregate Systems
 9.3 Historic and Forecasted Market Size By Crop Type
  9.3.1 Flowers
  9.3.2 Vegetables
  9.3.3 Fruits
 9.4 Historic and Forecasted Market Size By Equipment
  9.4.1 HVAC
  9.4.2 Irrigation Systems
  9.4.3 Material Handling Equipment
  9.4.4 LED Grow Lights
  9.4.5 Control Systems

Chapter 10: North America Hydroponics Market Analysis, Insights and Forecast, 2016-2028
 10.1 Key Market Trends, Growth Factors and Opportunities
 10.2 Impact of Covid-19
 10.3 Key Players
 10.4 Key Market Trends, Growth Factors and Opportunities
 10.4 Historic and Forecasted Market Size By System Type
  10.4.1 Liquid Systems
  10.4.2 Aggregate Systems
 10.5 Historic and Forecasted Market Size By Crop Type
  10.5.1 Flowers
  10.5.2 Vegetables
  10.5.3 Fruits
 10.6 Historic and Forecasted Market Size By Equipment
  10.6.1 HVAC
  10.6.2 Irrigation Systems
  10.6.3 Material Handling Equipment
  10.6.4 LED Grow Lights
  10.6.5 Control Systems
 10.7 Historic and Forecast Market Size by Country
  10.7.1 U.S.
  10.7.2 Canada
  10.7.3 Mexico

Chapter 11: Europe Hydroponics Market Analysis, Insights and Forecast, 2016-2028
 11.1 Key Market Trends, Growth Factors and Opportunities
 11.2 Impact of Covid-19
 11.3 Key Players
 11.4 Key Market Trends, Growth Factors and Opportunities
 11.4 Historic and Forecasted Market Size By System Type
  11.4.1 Liquid Systems
  11.4.2 Aggregate Systems
 11.5 Historic and Forecasted Market Size By Crop Type
  11.5.1 Flowers
  11.5.2 Vegetables
  11.5.3 Fruits
 11.6 Historic and Forecasted Market Size By Equipment
  11.6.1 HVAC
  11.6.2 Irrigation Systems
  11.6.3 Material Handling Equipment
  11.6.4 LED Grow Lights
  11.6.5 Control Systems
 11.7 Historic and Forecast Market Size by Country
  11.7.1 Germany
  11.7.2 U.K.
  11.7.3 France
  11.7.4 Italy
  11.7.5 Russia
  11.7.6 Spain
  11.7.7 Rest of Europe

Chapter 12: Asia-Pacific Hydroponics Market Analysis, Insights and Forecast, 2016-2028
 12.1 Key Market Trends, Growth Factors and Opportunities
 12.2 Impact of Covid-19
 12.3 Key Players
 12.4 Key Market Trends, Growth Factors and Opportunities
 12.4 Historic and Forecasted Market Size By System Type
  12.4.1 Liquid Systems
  12.4.2 Aggregate Systems
 12.5 Historic and Forecasted Market Size By Crop Type
  12.5.1 Flowers
  12.5.2 Vegetables
  12.5.3 Fruits
 12.6 Historic and Forecasted Market Size By Equipment
  12.6.1 HVAC
  12.6.2 Irrigation Systems
  12.6.3 Material Handling Equipment
  12.6.4 LED Grow Lights
  12.6.5 Control Systems
 12.7 Historic and Forecast Market Size by Country
  12.7.1 China
  12.7.2 India
  12.7.3 Japan
  12.7.4 Singapore
  12.7.5 Australia
  12.7.6 New Zealand
  12.7.7 Rest of APAC

Chapter 13: Middle East & Africa Hydroponics Market Analysis, Insights and Forecast, 2016-2028
 13.1 Key Market Trends, Growth Factors and Opportunities
 13.2 Impact of Covid-19
 13.3 Key Players
 13.4 Key Market Trends, Growth Factors and Opportunities
 13.4 Historic and Forecasted Market Size By System Type
  13.4.1 Liquid Systems
  13.4.2 Aggregate Systems
 13.5 Historic and Forecasted Market Size By Crop Type
  13.5.1 Flowers
  13.5.2 Vegetables
  13.5.3 Fruits
 13.6 Historic and Forecasted Market Size By Equipment
  13.6.1 HVAC
  13.6.2 Irrigation Systems
  13.6.3 Material Handling Equipment
  13.6.4 LED Grow Lights
  13.6.5 Control Systems
 13.7 Historic and Forecast Market Size by Country
  13.7.1 Turkey
  13.7.2 Saudi Arabia
  13.7.3 Iran
  13.7.4 UAE
  13.7.5 Africa
  13.7.6 Rest of MEA

Chapter 14: South America Hydroponics Market Analysis, Insights and Forecast, 2016-2028
 14.1 Key Market Trends, Growth Factors and Opportunities
 14.2 Impact of Covid-19
 14.3 Key Players
 14.4 Key Market Trends, Growth Factors and Opportunities
 14.4 Historic and Forecasted Market Size By System Type
  14.4.1 Liquid Systems
  14.4.2 Aggregate Systems
 14.5 Historic and Forecasted Market Size By Crop Type
  14.5.1 Flowers
  14.5.2 Vegetables
  14.5.3 Fruits
 14.6 Historic and Forecasted Market Size By Equipment
  14.6.1 HVAC
  14.6.2 Irrigation Systems
  14.6.3 Material Handling Equipment
  14.6.4 LED Grow Lights
  14.6.5 Control Systems
 14.7 Historic and Forecast Market Size by Country
  14.7.1 Brazil
  14.7.2 Argentina
  14.7.3 Rest of SA

Chapter 15 Investment Analysis

Chapter 16 Analyst Viewpoint and Conclusion