Hydroponics Market

The global Hydroponics Market is valued at USD 35.2 Billion in 2022 and is projected to reach a value of USD 58.3 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 7.5% between 2023 and 2030.

Premium Insights

The global Hydroponics market has seen significant growth in recent years, with a steady rise in demand for fresh and pesticide-free produce. The Food and Agriculture Organization of the United Nations projects that by 2050, there will be nine billion people on the entire globe, 75% of whom will reside in urban areas. Meeting the growing need for food will be one of the major problems as farmland becomes scarce due to causes including soil pollution, water scarcity, and climate change, among others. In the present scenario, an effective way to solve such an issue is provided by Hydroponics, an agricultural technique that does not use soil. Moreover, the success and future dominance of Hydroponics in the world's food production are likely due to its numerous advantages. Hydroponics allows for year-round crop production, reduces water use by up to 90% compared to conventional farming methods, and eliminates the use of pesticides and herbicides. This sustainable and efficient approach to farming makes Hydroponics a desirable solution to tackle food security challenges, especially as land degradation and urbanization continue to reduce available farmland.

• Governments worldwide are increasingly focusing on promoting sustainable agriculture and food security, which has led to several initiatives supporting the adoption of Hydroponics. For instance, the Dubai government has launched the Dubai Food Security Strategy to promote Hydroponics and other advanced farming techniques to enhance local food production and consumption.
• Europe generated more than 42.00% of revenue share in 2022 because of the increased demand for organic & locally-grown produce, land scarcity, and the necessity for productive and sustainable agriculture practices.
• Asia Pacific is anticipated to increase in the coming years due to the growing adoption of Hydroponics as a sustainable and efficient farming method, combined with technological advancements and government support.
• The outdoor segment accounted for the most significant market growth, with 55.9% of the total revenue share in 2022. The rise in population and urban development has resulted in a shortage of fertile land, making outdoor Hydroponics an effective option for cultivating crops in restricted areas.
• The liquid systems segment observed the most significant market growth in 2022 due to its many benefits over traditional soil-based methods.

Economic Insights

Hydroponics stands out as a suitable, sustainable alternative for urban and peri-urban settlements, which supports the Sustainable Development Goal number 11: Sustainable Cities & Communities of the United Nations' 2030 Agenda for Sustainable Development. This is in contrast to the intrinsically unecological ways of modern open-field agriculture. The expanded use of Hydroponics is crucial for UA and transformative for the food industry's supply chain, social welfare, and environmental development; nevertheless, it must be implemented in small- and medium-scale production to achieve its full potential. It requires producers to comprehend the advantages of adopting new technologies to maximize cost-benefit at small- and medium-scale levels to meet local consumers' demands or self-consumption needs. Technologists must have a basic knowledge of Hydroponics to create applicable technologies. Although crop yields and resource efficiency have shown promise in Hydroponics farming, more research is still required to determine the economic sustainability of various Hydroponics farming methods. This involves studying the advantages and disadvantages of the different Hydroponics systems and creating fresh business plans for Hydroponics farming companies.

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Top Market Trends

• Increasing adoption of vertical farming: Vertical farming has gained significant traction in the Hydroponics market due to its ability to maximize space and increase crop yields. For example, AeroFarms, one of the leading vertical farming companies, claims to produce 390 times more crops per square foot than traditional agriculture.
• Growing demand for local and pesticide-free produce: Consumers are becoming more concerned regarding the quality and safety of their food. Hydroponics enables the production of pesticide-free and locally-grown produce, which meets the growing demand for fresh and healthy food.
• Technological advancements in Hydroponics system: Advanced technologies such as IoT, AI, and automation have revolutionized the Hydroponics market. These technologies enable real-time monitoring, precise control of environmental factors, and automation of processes, resulting in improved crop quality and higher yields. For example, significant companies bringing or already have brought AI to Hydroponics in India involve Agro2o. This Delhi-based startup has developed a "smart Hydroponics garden" integrated with IoT and AI growing algorithms.
• Growing demand for Hydroponics system in urban areas: With the rapid urbanization and limited availability of arable land, there is an increasing need for sustainable and space-efficient farming methods. Hydroponics offers a solution by allowing farming in urban areas with limited space.

Market Segmentation

The Global Market is categorized into the segments as mentioned below:

The globel Hydroponics market can be categorized into Type, Equipment, Input, Farming Method, Crop Area, Crop Type, Region. The Market can be categorized into Aggregate Systems, Ebb & Flow Systems, Drip Systems, Wick Systems, Liquid Systems, Deep Water Culture, Nutrient Film Technique (NFT), Aeroponics based on Type. The Market can be categorized into HVAC, LED Grow Lights, Control Systems, Irrigation Systems, Material Handling Equipment, Other Equipment based on Equipment. The Market can be categorized into Nutrients, Growth Media based on Input. The Market can be categorized into Indoor, Outdoor based on Farming Method. The Market can be categorized into Upto 1000 Square Feet, 1000-10000 Square Feet, 10000-50000 Square Feet, Above 50000 Square Feet based on Crop Area. The Market can be categorized into Tomatoes, Lettuce, Peppers, Cucumbers, Herbs, Fruits, Other Crop Types based on Crop Type. The Market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.

Based on Type

Liquid Systems Segment Dominates the Market

The liquid systems segment accounted for the most significant market growth in 2022, offering numerous advantages over traditional soil-based methods. Liquid systems enable precise control over nutrient composition, pH levels, and water availability, leading to optimal plant growth. It also allows for better nutrient uptake and absorption, resulting in higher crop yields and faster growth rates. Additionally, liquid systems are highly efficient in water consumption, as the nutrient solution can be recycled, reducing water waste. Furthermore, these systems are suitable for small-scale and large-scale farming operations, making them versatile and adaptable to various agricultural settings.

Based on Equipment

LED Grow Lights to Lead Maximum Market Share

In 2022, the LED grow lights segment dominated the market. LED lights are highly energy-efficient and provide the specific light wavelengths needed for plant growth, making them ideal for indoor farming and Hydroponics system. These lights have a longer lifespan than traditional lighting methods, reducing maintenance costs for growers. Additionally, LED grow lights produce less heat, reducing the risk of plant damage or fire hazards.

Based on Input

Nutrient Segment Topped the Market

The nutrient segment in the global Hydroponics market plays a crucial role in providing essential elements for plant growth and development. The nutrient segment in the market offers a wide range of products, including liquid and powdered nutrients, specifically formulated to meet the unique requirements of Hydroponics plants. These nutrients consist of a balanced mix of macronutrients, such as nitrogen, phosphorus, and potassium, as well as essential micronutrients, like iron, manganese, and zinc. The increasing adoption of Hydroponics systems in commercial farming and home gardening has boosted the demand for nutrient products. As more farmers and gardeners recognize the advantages of Hydroponics, the nutrient segment is projected to witness significant growth in the coming years.

Based on the Farming Method

Outdoor Segment Expects Dominion

The outdoor segment accounted for the maximum revenue share in 2022, i.e., 55.9% in the market due to several factors. The rising population base and urbanization have led to a scarcity of arable land, making outdoor Hydroponics a viable solution for farming in small spaces. The rising awareness about sustainable agricultural practices and the need for pesticide-free produce has also fueled the demand for outdoor Hydroponics. With advancements in technology and automation, outdoor Hydroponics systems have become more efficient and cost-effective, making them attractive options for commercial farming. Furthermore, the ability of outdoor Hydroponics to withstand various weather conditions and produce high yields throughout the year has further boosted its adoption.

Based on Crop Type

The Tomatoes segment held the top spot in the Market

In 2022, the tomatoes category dominated the market. Hydroponics tomato cultivation offers several advantages over traditional soil cultivation methods, such as greater control over nutrient intake, enhanced plant growth, and increased yield. Moreover, the increasing demand for fresh and high-quality tomatoes, coupled with the limited availability of arable land, has driven the adoption of Hydroponics cultivation techniques. Europe and North America have been the major contributors to the growth of the Hydroponics tomato segment, owing to favorable government initiatives and the presence of advanced infrastructure.

Based on Region

Europe Led the Market

Europe dominated the global Hydroponics market with 42% revenue in 2022, driven by increasing demand for organic and locally-grown produce, land scarcity, and the need for efficient and sustainable agriculture practices. Several European countries, including the Netherlands, Spain, and the United Kingdom, are prominent players in the Hydroponics market. The Netherlands, in particular, has established itself as a global leader in Hydroponics technology and production, with many greenhouse facilities dedicated to Hydroponics cultivation.

Competitive Landscape

The Hydroponics market is highly competitive and characterized by constant product innovation, strategic collaborations, and investments. As the industry expands, stakeholders will likely witness the emergence of new players and disruptive technologies, further intensifying competition and driving market growth.

The players in the global Hydroponics market include AeroFarms Inc. (U.S.), AmHydro (U.S.), Argus Control Systems Ltd. (Canada), Emirates Hydroponics Farms (U.A.E.), Freight Farms (U.S.), Green Sense Farms Holdings Inc. (U.S.), LumiGrow Inc. (U.S.), Signify Holding (Netherlands), BrightFarms (U.S.), Infarm (Germany) among others.

Recent Market Developments

• In February 2023, to bring innovative Research and Development (R&D) to the UAE and the Middle East, AeroFarms, the world's leader in indoor vertical farming, recently debuted AeroFarms AgX, its newest cutting-edge indoor vertical farm. AeroFarms AgX advances sustainable controlled environment agriculture (CEA) and indoor vertical farming to address broader problems with the global agriculture supply chain.
• In January 2022, Infarm, the rapidly expanding urban farming company with a North American and global presence, is the first Hydroponics farming system to be classified and certified by UL. Now certified under CAN/UL 8800, the Standard for Horticultural Lighting Equipment and Systems, Infarm's in-store vertical farming units for growing herbs, salads, and other leafy greens in-store or in restaurants indicate that the farming units are made to meet the highest level of safety.

Segmentation of the Global Hydroponics Market