Global Hydroponics Market was estimated at USD 2.87 billion in 2022 and is predicted to hit over USD 20.41 billion by 2032 and poised to grow at a CAGR of 21.9% during the forecast period 2023 to 2032.
Global Hydroponics Market: Overview
Hydroponics is a process of growing plants without soil, consuming nutrient-rich water solutions instead. It has increased popularity owing to its potential for higher crop yields, efficient resource use, and the ability to grow plants in many environments, including urban areas with limited space. Hydroponics plays a crucial role in urban farming and vertical farming initiatives. These systems enable the cultivation of crops in urban environments, helping to address issues related to food security, freshness, and transportation.
Key Insights
- As per the analysis done by our research analyst, the Global Hydroponics Market is estimated to grow with a CAGR 21.9% over the forecast period (2023-2032).
- In terms of revenue, the Global Hydroponics Market size was valued at USD 2.87 billion in 2022 and is projected to grow to around USD 20.41 billion in 2032.
- Due to various driving factors, the Global Hydroponics Market is predicated to grow at significant rate. The growth of this market is primarily driven by the rising population and reduction in arable land, demand for fresh food products among the urban population, and increasing demand for chemical-free fruits and vegetables.
- Based on the Type Segmentation, the Aggregate Systems segment dominates the market and captured a revenue share of around 54.3% in 2022.
- Based on the crops Segmentation, Tomatoes segment likely to dominate the market during forecast period.
- By Regional Analysis, Asia Pacific Hydroponics market has accounted revenue share of 32.4% in 2022.
Hydroponics Market: Key Drivers & Restraints:
Driving factors:
Changing Consumer Preferences: Increasing demand for organic, locally grown, and pesticide-free produce drives adoption of hydroponic farming.
The increasing global population directly contributes to an increased demand for food. As the world's population grows, the need for food also expands, placing pressure on the agricultural sector to produce more food. However, traditional agricultural methods are limited by factors such as available arable land, changing climatic conditions, and resource constraints.
This is where hydroponics comes into play as an innovative solution to address the growing demand for food:
Limited Arable Land: The amount of arable land available for traditional farming is limited and regularly decrease due to urbanization and land shortage. Hydroponics allows food production in smaller spaces, making it suitable for urban areas and regions with limited land resources.
Reduced Environmental Impact: Hydroponics can minimize the use of harmful pesticides and fertilizers, reducing the environmental footprint of food production.
Also, the hydroponic market is experiencing growth due to the rising in demand for fresh food products among the urban population and the increasing preference for chemical-free fruits and vegetables.
Restraints:
- High Initial Costs: Installing a system for hydroponic farming can require pricey investments for infrastructure, tools, technology, and labor. Particularly for small-scale farmers or those who live in economically weak regions, these types of expenses can be a challenge.
- Complexity of Maintenance: To ensure proper fertilizer balancing, water availability, and disease protection, hydroponic systems need constant monitoring and maintenance.
Hydroponics Market: Segmentation
- Based on Types: Based on the types, the market is divided into two types, Aggregate Systems, Liquid Systems. Of these the Aggregate Systems, contributed the largest share towards the Hydroponics market; this will continue during the forecast period.
- Based on Crops: the market is divided into Vegetables, Fruits, Flowers, Others. These are further bifurcated into sub-categories. Vegetables segments Predicted Grow at Rapid Pace During Years to Come. Vegetables includes: Tomatoes, Lettuce, Peppers, Cucumbers, Herbs. Out of these sub-segments, Tomatoes is dominating the market share at present and is likely to continue the trend in the forecast period. Tomatoes are the largest hydroponically cultivated crops across the world due to the earlier cultivation rate and as it needs very less amount of water compared to regular farmed tomatoes.
Regional Insights:
Based on the Regional Analysis, the market is divided into North America, Europe, Asia Pacific Latin America & Middle East & Africa.
Europe is predictable to account for the leading position in the global hydroponics market on account of the high adoption of the crop production technique across prominent European countries, such as France, Germany Netherlands, and Spain. The dominant position of this region is primarily attributed to the presence of major players, technological advancements, growing adoption of hydroponics due to rapid industrialization and land scarcity, accessibility to the infrastructure required for operating hydroponics farms, and rising consumer demand for healthy, chemical-free food. Additionally, the growing level of government support for hydroponic farming contributes to the expansion of this industry. Due to its large number of businesses and the increasing use of alternative farming methods in urban areas, North America has significant growth potential. Asia Pacific hydroponics market is expected to grow at a fastest CAGR due to the considerable adoption of hydroponics in China, Australia, South Korea, and other such countries.
Competitive Analysis:
Some of the key companies that are present in the global Hydroponics market are AeroFarms, Emirates Hydroponics Farms, Heliospectra AB, Signify Holdings, Terra Tech Corp, American Hydroponics, Scotts Miracle-Gro, Argus Control Systems Ltd., LumiGrow, Green Sense Holdings, Urban cultivator, Freight Farms.
Hydroponics Market Scope and Segment:
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Attribute
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Details
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Market Size in 2022
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USD 2.87 billion
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Estimated Market Size in 2032
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USD 20.41 billion
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CAGR Growth Rate
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21.9%
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Base Year
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2022
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Forecast Years
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2023-2032.
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By Types
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- Aggregate Systems
- Liquid Systems
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By Crops
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- Vegetables (Tomatoes, Lettuce, Peppers, Cucumbers, Herbs,)
- Fruits
- Flowers
- Others
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Major Regions Covered
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- North America
- Europe
- Asia Pacific
- Latin America
- The Middle East & Africa
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Companies Covered
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- AeroFarms
- Emirates Hydroponics Farms
- Heliospectra AB
- Signify Holdings
- Terra Tech Corp
- American Hydroponics
- Scotts Miracle-Gro
- Argus Control Systems Ltd.
- LumiGrow
- Green Sense Holdings
- Urban cultivator
- Freight Farms
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Report Coverage
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Revenue Forecast, Company Share, Competitive Landscape, Growth Factors, Restraints, Opportunities, Value Chain Analysis, Porter’s Five Forces Analysis, Patent Analysis, Market Attractiveness Analysis by Segments
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Frequently Asked Questions (FAQs):
What is the size of the global Hydroponics market?
According to Global Research Hub, the global Hydroponics market size is expected to reach around USD 20.41 billion by 2032 from USD 2.87 billion in 2022.
What is the growth rate of global Hydroponics market?
The global Hydroponics market is expected to grow at a CAGR of 21.9% from 2023 to 2032.
Which is the leading segment in the market?
Among Types, the Aggregate Systems is the leading segment of the market.
Which factors driving the Hydroponics market growth?
The growth factors of hydroponics market are rising population levels across the globe, rising need to increase agricultural productivity, rise in demand for fresh food products among the city people, and rising demand for chemical-free fruits and vegetables.
What are the Major Restraints for the Global Hydroponics Market?
Critical management requirement, lack of knowledge in developing countries, high capital investment for large-scale farms are the major restraints for the global hydroponics market.
Which region will contribute notably towards the Hydroponics Market growth?
Europe contributes notably towards the Hydroponics Market.
Who are the top key players in the Global Hydroponics Market?
Some of the major players operating in global Hydroponics market are AeroFarms, Emirates Hydroponics Farms, Heliospectra AB, Signify Holdings, Terra Tech Corp, American Hydroponics, Scotts Miracle-Gro, Argus Control Systems Ltd., LumiGrow, Green Sense Holdings, Urban cultivator, Freight Farms among others.