Hydroponics Market Overview and Analysis:
The Hydroponics Market size is expected to grow from USD 4.69 billion in 2022, registering a CAGR of 7.80% during the forecast period, 2023-2030.
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Hydroponics farming not only helps in protecting the environment, but it also helps in getting a higher yield from the crops compared to open field production. Additionally, rising health awareness among consumers created higher demand, thereby resulting in the increasing adoption of hydroponic production techniques.
The increasing pressure on global arable land, increased demand for nutrition, and a shift in the dietary pattern of the global population toward consumption of fresh fruits and vegetables are the factors driving the increase in area under hydroponics.
Hydroponics Market Latest Trends:
The incorporation of vertical farming in hydroponics has gained significant momentum in the hydroponics industry. It involves growing plants in stacked layers, often in indoor environments with controlled conditions. This approach maximizes space utilization and can lead to higher yields and energy efficiency. Moreover, the use of automation and precision control are becoming increasingly prevalent in hydroponics. Sensors, data analytics, and IoT (Internet of Things) technology allow for real-time monitoring and adjustments in factors such as temperature, humidity, light, and nutrient levels. This helps optimize plant growth and resource usage. Thus, the market is expected to witness significant growth over the forecast period.
Segmentation:
The Global Hydroponics Technologies Market is segmented
By Type :
- Aggregate Hydroponic System (Closed System, Open System)
- Liquid Hydroponic System
Crop Type :
- Tomato
- Lettuce
- Leafy Vegetables
- Pepper
- Cucumber
- Microgreens
- Other Crop Types
Geography :
- North America
- Europe
- Asia-Pacific
- South America
- Middle-East and Africa
The report offers the market sizes and forecasts in value (USD million) for all the above segments.
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Drivers:
Higher Consumption of Salads and Exotic Vegetables
The higher consumption of salads and exotic vegetables is closely linked to the hydroponics industry's ability to provide fresh, nutritious, and environmentally sustainable produce. As consumer preferences continue to evolve, the hydroponics industry is well-positioned to meet the growing demand for these vegetables while contributing to a more sustainable and resilient food supply chain. Thus, the market is expected to witness significant growth over the forecast period.
Technological Advancements
The anticipated market growth in the near future is poised to benefit from advancements in climate control, nutrient film techniques, and sensing technologies, among other innovations. Providers of hydroponic farming solutions are equipping consumers with a range of tools to effectively oversee and nurture their crops, leveraging an array of sensors, web-based platforms, software, and mobile applications. For instance, In April 2021, AeroFarms announced the commencement of the construction of its second commercial 136,000-square-foot indoor vertical farm in Danville-Pittsylvania County, Virginia. Danville Farm is strategically located close to more than 1,000 grocery stores in the area, serving approximately 50 million people in a day's drive. Similarly, Numerous vendors are investing in research and development activities to develop differentiated products that help them stay ahead of the competition. Thus, the market is expected to witness significant growth over the forecast period.
Restraints
High Investment
The initial setup costs for hydroponics can be substantial, given the advanced systems and technology involved. There's also a steep learning curve, as managing a hydroponic farm demands specialized expertise. Energy consumption, especially with artificial lighting, requires high investment and thus the growth of the market may slow down over the forecast period.
COVID-19 Impact on Hydroponics Market
The COVID-19 pandemic has accelerated the adoption of hydroponics as a reliable and sustainable method of agriculture. It has not only addressed immediate challenges related to food security and supply chain disruptions but has also contributed to the long-term growth of hydroponics as a viable solution for ensuring a consistent and safe food supply. The disruptions in supply chains highlighted the importance of local and resilient production systems. Hydroponics offers the potential to create localized supply chains that are less vulnerable to external shocks. Thus, the pandemic accelerated the adoption of technology in agriculture. Hydroponics systems that leverage automation, remote monitoring, and data analytics gained prominence as they offered the capability to operate farms with minimal physical contact. As a result, the market is expected to witness significant growth over the forecast period.
Segmental Analysis:
Open System Aggregate Hydroponics System is Expected to Witness Significant Growth Over the Forecast Period
Open-system hydroponics is particularly suited for growing a wide range of crops, including lettuce, herbs, and other leafy greens. It is commonly used in both small-scale hobbyist setups and larger commercial operations, offering a versatile and efficient method for soilless plant cultivation. In this method, plants are typically housed in containers or trays within the system. These containers may be specially designed to allow the free flow of nutrient solution around the plant roots. Thus, due to this advantage, the segment is expected to witness significant growth over the forecast period.
North America is Expected to Witness Significant growth Over the Forecast Period
The increasing demand for fresh vegetables and fruits within the region has fueled a growing market interest in hydroponic operations. Currently, hydroponic farms in the area are typically family-owned or small businesses, typically covering approximately 1 acre of land. The proliferation of rooftop hydroponic gardens in urban settings like New York is further propelling market expansion. The future growth of the regional hydroponics market is contingent on the development of cost-competitive hydroponic production systems in comparison to conventional open-field agriculture systems.
Additionally, commercial vegetable producers have embraced hydroponic production due to its efficiency in input control and the management of facilities for disease and pest control. This method also offers the advantage of being less labor-intensive when it comes to managing larger production areas.
Furthermore, the technological development in the region is also boosting the growth of the studied market over the forecast period. For instance, in February 2022, Silal, Abu Dhabi’s leading fresh produce and agri-tech company, and AeroFarms 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.
Hydroponics eliminates the necessity for soil fumigants and has the potential to increase yields of popular vegetables. As a result, it is anticipated that farmers in the region will increasingly adopt hydroponics as a preferred cultivation method. This growing adoption of hydroponics as a cultivation approach is expected to be a driving force behind the market's expansion. Thus, the region is expected to witness significant growth over the forecast period.
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Hydroponics Market Competitive Landscape:
The hydroponic crop growers market is highly fragmented, with the top five companies, such as
- Bright Farms Inc.
- FreshBox Farms
- Pegasus Agritech
- Village Farms International, Inc.
- Thanet Earth
Recent Development:
1) Oct 2022: GrowGeneration Corp (GRWG) has opened a 9,000-square-foot store in Richmond, its first hydroponic store in Virginia. GRWG has plans to expand its store presence in the state to capitalize on the emerging hydroponic market. It also signed two new leases for store launches in Mount Holly, NJ, and Hazelwood, MO, which are expected to open by the end of 2022. With these, GRWG expanded its reach to 17 states.
2) July 2022: Bustanica has opened the doors to the world’s largest hydroponic farm, backed by an investment of USD 40 million. The facility is the first vertical farm for Emirates Crop One, a joint venture between Emirates Flight Catering (EKFC), one of the world’s largest catering operations serving more than 100 airlines, and Crop One, a leader in technology-driven indoor vertical farming.
Frequently Asked Questions (FAQ) :
Q1. At what CAGR is the market projected to grow within the forecast period?
Hydroponics is registering a CAGR of 7.80% during the forecast period.
Q2. What are the factors driving the Hydroponics Market?
Key factors that are driving the Hydroponics Market growth include the Higher Consumption of Salads and Exotic Vegetable and Technological Advancements.
Q3. Who are the key players in Hydroponics Market?
Some key players operating in the Hydroponics Market include Bright Farms Inc., FreshBox Farms and Pegasus Agritech
Q4. What segments are covered in the Hydroponics Market Report?
By Type, By Crop Type and Geography are the segments covered in the Hydroponics Market Report.
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Extensive primary research was conducted to gain a deeper insight of the market and industry performance. The analysis is based on both primary and secondary research as well as years of professional expertise in the respective industries.
In addition to analysing current and historical trends, our analysts predict where the market is headed over the next five years.
It varies by segment for these categories geographically presented in the list of market tables. Speaking about this particular report we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players active in the market.
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