Global Hydroponics Market Outlook 2031:
The global hydroponics market size was valued at USD 12.10 Billion in 2022 and is projected to reach USD 44.61 Billion by 2031, expanding at a CAGR of 15.6% during the forecast period 2023 - 2031. The growth of the market is attributed to increased investments and incentives offered by governments across the world to encourage alternative farming methods and high yields from hydroponic farms.
Hydroponics is a form of horticulture and a subset of hydroculture that utilizes mineral fertilizer solutions in an aqueous solvent to grow plants (typically crops) without soil. Terrestrial plants grow with their roots exposed to the nutrient liquid, or they can have an inert medium supporting their roots. Tomatoes, peppers, cucumbers, strawberries, lettuces, cannabis, and model plants like Arabidopsis thaliana are all widely cultivated hydroponically on inert material. Hydroponics saves water in agriculture.
Many people have formed a sceptical attitude about outside food as a result of the Covid-19 pandemic. With health and food safety taking center stage, people all around the world are gravitating towards homemade meals. The food and lodging industries have been put in risk as a result of Covid-19.
Following the disastrous breakout of the coronavirus pandemic, the adoption rate of urban hydroponic farming systems is expected to skyrocket throughout the world. During the early stages of the pandemic, the agriculture industry experienced difficulties. Mostly on farm, there were severe labor shortages, some farmers missed their harvesting window for seasonal crops, agricultural product prices were decreasing, and logistics were disrupted. Many countries realized that they were reliant on food imports and began focusing on local and internal production
Hydroponics Market Trends, Drivers, Restraints, and Opportunities
- Governments worldwide are providing an incentive to encourage the use of alternative agricultural technology is the major factor propelling the market.
- High capital investment for large-scale farms is expected to hinder the hydroponics market growth.
- Lack of skilled labor act as main challenge that can restrict the hydroponics market expansion during the forecast period.
- Research and development investment and technological advancement is projected to offer significant opportunities for the market players.
Scope of Hydroponics Market Report
The report on the hydroponics market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Hydroponics Market – Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
2016 – 2021
2023 – 2031
Types (Aggregate Hydroponic System (Closed System and Open System) and Liquid Hydroponic System), Crop Types (Tomato, Lettuce and Leafy Vegetables, Pepper, Cucumber, and Other Crop Types)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Village Farms, Kubo Group, Argus Control Systems Ltd., GreenTech Agro LLC, and Hortisystems UK Ltd.
HydroponicscMarket Segment Insights
The aggregate system segment is projected to hold a major market share
On the basis of types, the hydroponics market share is segregated into aggregate hydroponic system and liquid hydroponic system. The aggregate hydroponic system segment is further bifurcated into closed system and open system. The aggregate hydroponics segment is expected to represent a key share of the market during the forecast period owing to simplicity of setup and low cost.
The plants are supported by an inert and solid media like rock wool, vermiculite, sand, sawdust, perlite, or coconut coir. Drip systems, ebb and flow systems, and wick systems are the most common technologies used in aggregation systems. The most frequent mode of an aggregate system is ebb and flow, because it is simple and inexpensive.
Due to the growing popularity of closed system cultivation among farmers, the liquid systems category is expected to expand at a high CAGR during the forecast period. The lettuce and other green vegetables are grown using deep water culture and nutrient film technique (NFT) systems.
The need of a solid medium is eliminated in liquid systems, and the roots are immediately submerged in the nutrient solution, making the growth process easy. Furthermore, because nutrients are sent directly to a plant's roots, liquid systems speed up growth resulting in higher yields.
The tomatoes segment is expected to grow at a rapid pace
On the basis of crop type, the hydroponics market is divided into tomato, lettuce and leafy vegetables, pepper, cucumber, and other crop types. The tomatoes segment is expected to constitute a key share of the market during the forecast period owing to their high growth rate and the fact that they use less water than conventionally produced tomatoes. For tomato hydroponic production, the indoor farmers utilize rock wool, perlite, or coconut coir as growth materials.
Leafy greens like spinach, arugula, kale, and lettuce are becoming popular among hydroponic gardeners. Green and red leaf lettuce are the most popular hydroponically produced vegetables among indoor farmers, owing to their high raw consumption rates.
The market in North America is expected to hold a major market share
On the basis of regions, the hydroponics market share is classified into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of North America is anticipated to dominate the market during the forecast period. The market in North America accounted for about 35.78 percent of the hydroponics market in 2020. Hydroponics is a technique that is both environmentally beneficial and lucrative.
Various governments and non-governmental groups have supported it because of its benefits in terms of food security. Due to enormous number of firms and the increasing use of new agricultural techniques especially in developed areas, the market in the region is expanding.
Growing need for fresh fruits and vegetables in the region is fueling demand for many hydroponic businesses, which is helping to expand the industry. Furthermore, a growing trend of rooftop hydroponic gardens, particularly in urban areas like New York, is boosting the market.
The hydroponics market has been segmented on the basis of
- Aggregate Hydroponic System
- Closed System
- Open System
- Liquid Hydroponic System
- Lettuce and Leafy Vegetables
- Other Crop Types
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Key players competing in the hydroponics market include Village Farms, Kubo Group, Argus Control Systems Ltd., GreenTech Agro LLC, and Hortisystems UK Ltd.
Some of these players are using several market strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market shares.