Hydroponics Market

Hydroponics Market: Overview

The market size for hydroponics was USD 2.2 billion in 2021, and it is projected to grow at a CAGR of 20.3 percent during the forecast period. The increased usage of hydroponic systems for growing crops indoors is to blame for this high growth rate. In addition, the use of alternative agricultural methods for cannabis cultivation is fast expanding as a result of the legalisation of marijuana in countries like Canada, the Czech Republic, South Africa, and others. The demand for hydroponics is anticipated to rise as customers become more conscious of the negative health consequences of pesticides and artificial ripening agents. This is so that more nutrient-dense veggies can be produced using hydroponics, which reduces the requirement for these things. The popularity of these systems is anticipated to increase in the near future due to their low installation costs and simplicity of use.

Worldwide demand for food is expanding as a result of population growth. There will be up to 9.1 billion people on the earth by 2050, according to the Food and Agriculture Organization (FAO) of the United Nations (UN), for whom food production will increase by 25% to 70%. The desire for alternative farming techniques that deliver significant yields quickly is anticipated to rise as a result. In regions like the Asia Pacific and Europe where there is a shortage of arable land and water, the usage of alternative high-yield agricultural methods is growing, which is projected to drive market expansion.

In the foreseeable future, improvements in sensing technologies, nutrient film techniques, and climate control, among other areas, are predicted to favour market expansion. Providers of hydroponic farming solutions give customers a variety of sensors, web platforms, software, and mobile applications to monitor and control their crops. For instance, SmartBee Technology, Inc. provides agriculturalists with real-time control through software, irrigation controls, water, fertiliser, and environmental sensors. The sophisticated use of IoT makes automatic and remote data collecting and monitoring possible. Due to these technical developments in hydroponics products, the market is anticipated to expand significantly between 2022 and 2027.

Hydroponics Market: COVID-19 Impact

The Covid-19 epidemic has caused a lot of people to develop a bad opinion of outside food. As health and food safety take centre stage, people all over the world are turning to home cooking and self-made/homemade meals. As a result, the hospitality and food businesses are in danger. The rate of global adoption of urban hydroponic farming systems is anticipated to soar in the wake of the horrifying coronavirus outbreak. The agriculture sector had challenges in the early phases of the pandemic. There were serious labour shortages on farms, many farmers missed the harvesting season for seasonal crops, the price of agricultural products was falling, and logistics were thrown off.  Many nations also became aware of their over reliance on food imports and turned their attention to domestic and local production.

Hydroponics Market: Drivers

Aid in Resource Conservation to Drive Market Growth

The fact that hydroponic farming does not require soil or more space to produce plants is a major benefit. Plants can be stacked vertically, eliminating the need for large farming plots because more crops can be grown in a smaller space. Commercial hydroponic producers need only one-fifth the amount of area to grow hydroponic vegetables compared to conventional farming. It enables farmers to cultivate the produce in greater quantities while using less room and energy, saving them a significant amount on land expenditures. Growing plants vertically and packing them closer together makes it possible to grow a variety of crops with fewer challenges than traditional farming.

Hydroponics Market: Restraints

High Capital Expenditures for Large Farms to Hamper Market Growth

A hydroponic farm requires a significant initial investment to start up, and the equipment necessary is costly to purchase and maintain. The main cost components of a hydroponic farm are various pieces of equipment, such as HVAC systems, fans, ventilation, irrigation systems, control systems, railways, and lighting. An entry-level system that is not fully automated can run up to USD 110,000 for a hydroponic farm that is 500 square feet in size. Depending on the degree of autonomy, larger and more automated farms can cost between USD 500,000 and 800,000 per 1,000 square feet.  The prices in this case just take into account the costs of setting up the farm; however, when improvements are taken into account, it might lead to a recurring cost for the farm because the equipment needs to be replaced every three to four years to increase the farm's productivity and production.

Hydroponics Market: Segment Overview

Aggregate System to Dominate Market due to its Easy Setup and Low Cost

Due to their general acceptance among all indoor hydroponic growers and their ease of setup and low cost, aggregate systems retained the greatest market share of about 55% in 2021. The plants in these systems are supported by inert and solid media, such as peat, rock wool, vermiculite, sand, sawdust, perlite, or coconut coir. Drip, ebb, and flow, and wick systems are some of the main technologies used in aggregation systems. The ebb and flow aggregate system is the most popular and recommended of these due to its simplicity and inexpensive construction costs. Because closed system farming is becoming more and more popular among farmers, the liquid systems segment is predicted to experience the fastest CAGR growth between 2022 and 2027. Growing lettuce and other green plants is being done more and more with deepwater culture and nutrient film technique (NFT) systems. Liquid systems simplify growing by doing away with the need for a solid medium and placing the roots directly in the nutrient solution. Additionally, because nutrients are delivered directly to a plant's roots, liquid systems hasten growth and increase yields. While the risk of soil-borne infections is reduced by soilless farming techniques, the possibility of pathogens spreading via recirculating nutrient solutions in closed systems is increased. Therefore, regular maintenance is needed for liquid systems to check on and replace nutritional solutions in order to prevent this.

Vegetable Category Dominated Market Due to its Adaptability

During the forecast period, the vegetable category is anticipated to contribute the largest revenue share. In hydroponic systems, vegetables can be produced more quickly than in soil outside. All seasons can be employed using hydroponic systems. Additionally, hydroponic systems give users a better chance to regulate particular external factors like temperature, nutrient density, water content, and others. Hydroponic systems should see an increase in demand as a result. Vegetables grown in open fields are also susceptible to illnesses that can quickly infect other vegetables and reduce yield. However, using sterilisation methods that can be further quantified and measured, hydroponic greenhouse vegetable farming offers a benefit in containing an epidemic of particular diseases. In the event that sterilisation is unsuccessful, inoculants can be employed to protect root systems.  In the event that sterilisation is unsuccessful, inoculants can be employed to protect root systems. However, sterilisation measures reduce the likelihood that pathogens will enter the root system if inoculants are unsuccessful. The most important elements influencing agricultural productivity also include soil quality and land deterioration. Vegetable production has been adversely affected by overpopulation and increased salinization. Therefore, it is anticipated that these factors would increase demand for hydroponics systems, fueling the segment's rapid expansion over the projection period.

Hydroponics Market: Regional Landscape

Europe to Dominate Market due to Growing Greenhouse Farming Practices

During the projection period, Europe had a considerably higher revenue share than other regional markets in the worldwide hydroponics market. When it comes to applying cutting-edge methods in clever hydroponic practises, Europe has been at the forefront. Another aspect that is anticipated to contribute to the market's revenue growth is the region's developing greenhouse farming practises. The European Union (EU) has promoted the use of alternative and sustainable agricultural practises. In order to modernise and streamline the EU's agricultural policy, it published its proposal for reforming the Common Agricultural Policy (CAP) in 2018. The new CAP agreement was formally adopted on December 2, 2021, and it is scheduled to go into effect on January 1, 2023. Similar efforts have been made by the Dutch government to upgrade alternative farming methods. It is the largest agri-exporter in the EU. In Holland, labour and land are expensive. However, growing use of hydroponic farming techniques is boosting the market's revenue development. For instance, the Dutch company Duijvestijn Tomaten BV uses a hydroponic system and geothermal energy to grow Duijvestijn tomatoes while minimising its environmental impact and increasing productivity. Tomatoes are grown in tiny bags of rockwool substrate, which is formed by spinning molten basaltic rock into thin fibres. This substrate contains nutrients and enables plants to absorb water even when there is little moisture present. It doesn't use pesticides, and the farm uses waste CO from a nearby shell oil refinery into greenhouses, which the plants require to develop, minimising the amount of carbon dioxide released into the sky. This is anticipated to accelerate market revenue growth in Europe.

Due to the widespread use of hydroponics in nations like China, Australia, South Korea, and others, the hydroponics market in Asia Pacific is predicted to expand at the fastest rate. Due to the emergence of urban hydroponic farms, it is anticipated that the market in China and India would grow significantly during the projection period. Owing to its large number of businesses and the increasing use of alternative farming methods in metropolitan areas, North America has a significant development potential. Moreover, due to water constraint and harsh weather, countries in the Middle East and Africa are adopting more creative and alternative agricultural practises, which is likely to cause the area to grow at a quick CAGR throughout the forecast period. The emergence of new companies, expanding alliances with domestic and international firms, and rising economic and political stability in the region have all contributed to a considerable surge in demand for creative methods of alternative farming practises.

Global Hydroponics Market: Competitive Landscape

InFarm has opened a second location in the Netherlands, in Nijmegen, in May 2020. Vegetables will be produced and harvested close to the point of sale thanks to the facility, which will be built in various places including supermarkets, dining establishments, and distribution hubs. Moreover, the newest indoor farm of Bright Farms, the industry-leading grower of leafy greens, was established near Hendersonville, North Carolina, in 2021. The 6-acre greenhouse would increase BrightFarms' commitment to providing people all throughout the country with higher quality, safer produce by producing 2 million pounds of lettuce annually for the Southeast region.

Few of the players in the Industrial Refrigeration Systems Market include Signify Holding (Netherlands), ScottsMiracle-Gro (US), Heliospectra AB (Sweden), Argus Control Systems (Canada), LumiGrow, Inc. (US), Logiqs B.V. (Netherlands), Hydroponic Systems International (Spain), American Hydroponics (US), Hydrodynamics International (US), Advanced Nutrients (US), Triton Foodworks Pvt. Ltd. (India), Emerald Harvest (US), VitaLink (UK), Freight Farms (US), Green Sense Farms (US), AeroFarms (US), Emirates Hydroponic Farm (UAE), Bright Farms (US), Gotham Greens (US), Nature’s Miracle (India), InFarm (Germany), Badia Farms (UAE).

Regional Classification of the Global Hydroponics Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa

*Regions and countries are subject to change based on data availability

Key Elements Included In The Study: Global Hydroponics Market

• Hydroponics Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2018 - 2022
• Volume Consumption at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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