Hydroponics Market Size & Analysis Report – Global Opportunities & Forecast, 2024-2031
Hydroponics Market size reached USD 13.1 billion in 2023 and is estimated to reach USD 29.7 billion in 2031 and the market is estimated to grow at a high CAGR of 10.8% from 2024-2031.
Major Hydroponics Market Drivers
The hydroponics market is estimated to rise due to rising focus on food security, growing awareness concerning eco-friendly agricultural activities, and increasing investments in innovating farming technologies. The swift growth of this sector is also connected to the rising usage of hydroponic systems for indoor vegetable cultivation. In addition, there is an increase in the adoption of alternative farming methods for cultivating cannabis which is propelled by marijuana legalization in countries such as South Africa, Canada, the Czech Republic, and many more. The rising consciousness among customers regarding the harmful impacts of synthetic ripening agents and pesticides on health is anticipated to foster the need for hydroponics. It is due to hydroponic cultivation removes the requirement for these products, leading to the production of vegetables with higher nutritional benefits. Additionally, the economical installation costs and straightforward functional nature of these systems are estimated to promote their widespread adoption in the forecast period.
Furthermore, with the world’s population growing exponentially, nearly 2 lakh people are added to the global food demand daily. Concurrently, arable land around the globe is diminishing, and production costs are increasing owing to crop losses from pest infestations, floods, natural disasters, and droughts. Thereby, huge capital is being invested in commercial hydroponics systems internationally. Hydroponics presents a pragmatic approach to address food security, serving as a space-efficient method for food cultivation accessible to both rural populations and landless urban. The significance of hydroponic farming has increased in response to concerns about environmental degradation caused by greenhouse effects. In addition, with the progress and advancement of agricultural infrastructures, there is a gradual increase in the need for hydroponic farming to address the rising need for vegetables.
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The growing of crops without the usage of pesticides or alternative plant protection agents is highly lucrative, due to its reduced requirement for water, soil, and labor. The increasing need for pesticide-free fruits and vegetables further influences the hydroponics system market. The growing adoption of mechanized procedures in plant cultivation, such as seeding, cleaning, harvesting, packaging, and transplanting, is broadening the scope of the hydroponics market. The rising concerns about food availability and security are anticipated to generate innovative opportunities for the industry to drive. In addition, as agricultural infrastructures have evolved, hydroponic farming has progressively extended to foster vegetable production and address the growing need. The growing awareness concerning environmental degradation due to greenhouse effects has increased the importance of hydroponics.
The decreasing agricultural land and the swiftly expanding world population have sparked international worries about food security, encouraging the adoption of modern agricultural practices and crop production approaches. The hydroponic system is an intelligent crop production method attaining rapid recognition, with its international implementation on the rise due to its effectiveness in producing crops significantly faster than traditional methods. Farmers are increasingly adopting hydroponics for cultivating a variety of fruits, commercial crops, and vegetables, drawn by the higher productivity and superior quality. The increase in research and development activities in hydroponics, coupled with the active involvement of key global market player introducing innovations and advancements in their hydroponics system products, is projected to drive the growth of the global hydroponics market.
However, establishing a hydroponic farm requires a substantial initial investment due to the extensive and often expensive equipment demanded. Key cost factors include HVAC systems, ventilation, rails, irrigation systems, fans, light, fans, and control systems in a hydroponic farm. For a 500-sq. ft. hydroponic farm, the average cost can reach up to USD 110,000 for a base-level system without full automation. Bigger and more automated farms covering 1,000 sq. ft. may vary from USD 500,000 to 800,000 depending on the autonomous function level. These costs are on the initial setup, but it’s essential to note that recurring expenses arise when considering upgrades, as equipment typically requires replacement every 3-4 years to develop farm yield and productivity.
Whereas, growing investments in advanced farming technologies and innovation trends are predicted to lead to hydroponic farming. The market is developing as it is anticipated that the hydroponics demands 95% lower water usage than conventional farming. The technology enables plants to be cultivated in different horizontal and vertical layers without soil, optimizing land use specifically in urban settings. Therefore, with the growing global popularity of hydroponics, producers and researchers are actively functioning to develop the productivity of hydroponics technology, focusing on developing both the quantity and quality of the produced goods. Many businesses allocate significant resources and research and development, acquiring cutting-edge technology to foster production and diversify cultivation methods. The hydroponics market is probably growing due to a rise in strategic collaborations with academic and research institutions.
The liquid systems segment dominated the largest market revenue share in the global hydroponics market
Deep water culture is among the simplest hydroponic systems for home use, where plants thrive with roots submerged in nutrient-rich water. Home growers can easily implement this method by cultivating in sizable opaque storage containers or buckets. In commercial hydroponics, growers use floating rafts on a substantial waterbed. These rafts function as a conveyor belt, with young plants added on one end and progressing until they reach harvest readiness on the opposite side. The plant-holding platform is typically crafted from floats and Styrofoam precisely on the nutrient solution.
Hydroponics facilitates the cultivation of different barriers, with strawberries being a prevalent choice. Berries require key nutrients – nitrogen, phosphorus, and potassium. In addition, the existence of calcium, sulfur, and magnesium in water is important to supplement the growth of berries in hydroponic conditions. The weight of berries poses no hindrance, as they can be cultivated in a standard rail system using either the nutrient film technique or the ebb & and flow system. Different berries suitable for hydroponic growth include blueberries, raspberries, cranberries, and strawberries.
By region, Asia Pacific region dominated the largest market size in the global hydroponics market
Asia Pacific is anticipated to witness growth and capture the largest revenue share due to the widespread adoption of hydroponics in countries such as South Korea, China, Australia, and others. The market in India and China is projected to witness considerable growth in the forecast period due to the great emergence of urban hydroponic farms.
Top Market Players
Various notable players operating in the market include AeroFarms, Triton Foodworks, Terra Tech Corp., FREIGHT FARMS, INC., Emirates Hydroponics Farms, Signify Holding, Heliospectra AB, The Scotts Company LLC, Argus Control Systems Limited, and LumiGrow, among others.
Key Developments:
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- In 2022, GrowGeneration Corp announced the establishment of its first hydroponic 9,000-sq-foot store across Richmond, Virginia to expand its store existence across the state to benefit from the developing market of hydroponic.
- In 2022, Silal joined hands with AeroFarms to strengthen its portfolio and address the growing demand of customers.
- In 2022, InFarm agreed on a collaboration with IKEA to develop high-performance herbs in the restaurants of 3 popular stores of IKEA in Germany which further reinforces its market position.
- In 2022, Hydroponic Systems International (Spain) HS Evolution Pot would not require packaging or plastic bags for the substrate. It would help the company to expand its product offerings.
- In 2022, InFarm (Germany) merged with IKEA to produce high-quality herbs inside the restaurants of three IKEA stores in Germany. It will assist the company to strengthen its market position.
- In 2022, ScottsMiracle-Gro (US) acquired Luxx Lighting (US) in a transaction that will strengthen The Hawthorne Gardening Company’s industry-leading lighting portfolio. It will help the company to extend its product offerings
- In 2020, Freight Farms announced its partnership with Sodexo, the global leader of facilities management, organizational quality of life services, and integrated food. This partnership aims to bring hydroponics vertical farming technology to universities and schools by growing food onsite at school campuses across the U.S.
Report Coverage |
Details |
Market Revenues (2023) |
USD 13.1 billion |
Market Base Year |
2023 |
Market Forecast Period |
2024-2031 |
Base Year & Forecast Units |
Revenues (USD Million) |
Market Segment | By Type, By Crop Type, By Crop Area, By Region |
Regional Coverage | Asia Pacific, Europe, North America, and RoW |
Companies Profiled | AeroFarms, Triton Foodworks, Terra Tech Corp., FREIGHT FARMS, INC., Emirates Hydroponics Farms, Signify Holding, Heliospectra AB, The Scotts Company LLC, Argus Control Systems Limited, LumiGrow, among others; a total of 10 companies covered. |
25% Free Customization Available | We will customize this report up to 25% as a free customization to address our client’s specific requirements |
Market Segmentation
Global Hydroponics Market by Type
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- Aggregate Systems
- EBB & Flow Systems
- Drip Systems
- Wick Systems
- Liquid Systems
- Deep Water Culture
- Nutrient Film Technique (NFT)
- Aeroponics
- Aggregate Systems
Global Hydroponics Market by Crop Type
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- Tomatoes
- Lettuce
- Peppers
- Cucumbers
- Herbs
- Others
Global Hydroponics Market by Crop Area
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- Upto 1000 sq.ft.
- 1000-50000 sq.ft.
- Above 50000 sq.ft
Global Hydroponics Market by Region
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-
North America Hydroponics Market (Option 1: As a part of the free 25% customization)
- By Type
- By Crop Type
- By Crop Area
- US Market All-Up
- Canada Market All-Up
-
Europe Hydroponics Market (Option 2: As a part of the free 25% customization)
- By Type
- By Crop Type
- By Crop Area
- UK Market All-Up
- Germany Market All-Up
- France Market All-Up
- Spain Market All-Up
- Rest of Europe Market All-Up
-
Asia-Pacific Hydroponics Market (Option 3: As a part of the free 25% customization)
- By Type
- By Crop Type
- By Crop Area
- China Market All-Up
- India Market All-Up
- Japan Market All-Up
- Rest of APAC Market All-Up
-
RoW Hydroponics Market (Option 4: As a part of the free 25% customization)
- By Type
- By Crop Type
- By Crop Area
- Brazil Market All-Up
- South Africa Market All-Up
- Saudi Arabia Market All-Up
- UAE Market All-Up
- Rest of world (remaining countries of the LAMEA region) Market All-Up
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Major Players Operating the Hydroponics (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)
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- AeroFarms
- Triton Foodworks
- Terra Tech Corp.
- FREIGHT FARMS, INC.
- Emirates Hydroponics Farms
- Signify Holding
- Heliospectra AB
- The Scotts Company LLC
- Argus Control Systems Limited
- LumiGrow
Frequently Asked Question About This Report
Hydroponics Market [UP67A-00-1119]
Hydroponics Market is anticipated to grow at a 10.8% CAGR during the forecast period.
The nutrients segment is projected to grow at a higher CAGR during the forecast period. The necessity for external nutrients becomes very high for hydroponic-based crops as they grow crops without the involvement of soil
The key players operating in the market include AeroFarms, Triton Foodworks, Terra Tech Corp., FREIGHT FARMS, INC., Emirates Hydroponics Farms, Signify Holding, Heliospectra AB, The Scotts Company LLC, Argus Control Systems Limited, and LumiGrow, among others.
Europe region is expected to grow at a higher CAGR over the forecast period. This is mainly due to the growing adoption of vertical farming systems and hydroponic systems in this region.
Related Reports
- Published Date: Nov- 2024
- Report Format: Excel/PPT
- Report Code: UP67A-00-1119
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Hydroponics Market Size & Analysis Report – Global Opportunities & Forecast, 2024-2031
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