Hydroponics Market Size, Share & Trends Analysis Report By Type (Indoor Vertical Farming, Commercial Greenhouse, Others), By Crop Type, By Region, And Segment Forecasts, 2023 - 2030

Hydroponics Market Size, Share & Trends Analysis Report By Type (Indoor Vertical Farming, Commercial Greenhouse, Others), By Crop Type, By Region, And Segment Forecasts, 2023 - 2030

Hydroponics Market Growth & Trends

The global hydroponics market size is estimated to reach USD 10.98 billion by 2030, exhibiting a CAGR of 11.9% from 2023 to 2030, according to the new study conducted by Grand View Research, Inc. The integration of smart farming technologies, notably exemplified by the adoption of vertical farming, has played a pivotal role in advancing hydroponics and is projected to be a key driver of market growth. The continuous improvement in hydroponics technologies, coupled with the introduction of state-of-the-art innovations such as environmental and temperature sensing, remote growth monitoring, and automatic nutrient reading, is expected to significantly bolster the demand for hydroponic solutions in the market.

Based on type, the market is categorized into aggregate systems and liquid systems. The aggregate systems segment is projected to continue holding the largest market share over the forecast period. The liquid systems segment is poised for substantial growth at a high Compound Annual Growth Rate (CAGR) during the forecast period. In contrast, aggregate hydroponics farming involves a range of technologies, including drip, wick, and ebb and flow systems. In these methods, plants are cultivated using a medium like rock wool or perlite. Selecting the appropriate medium is crucial for farmers, considering variations in pH and thickness that can impact root growth. However, liquid systems, such as deep-water culture and Nutrient Film Technique (NFT), eliminate the need for such media by delivering nutrients directly to the roots. This streamlined approach not only enhances efficiency but also accelerates the time required for yielding crops. Consequently, the adoption of liquid systems is anticipated to experience substantial growth throughout the forecast period.

The primary crops cultivated through the hydroponics method are tomatoes, lettuce, cucumber, and herbs. The majority of indoor farmers use hydroponic systems to grow tomatoes. As a result, the tomatoes segment dominates the entire market in 2022 and is estimated to continue its dominance over the forecast period. Rising demand for organically grown, pesticide-free, and highly nutritious vegetables is expected to drive the adoption of hydroponics for the cultivation of lettuce and other leafy vegetables along with other indoor farming techniques. Among all the leafy vegetables, green leaf lettuce is increasingly gaining popularity among the growers owing to its high consumption rate and worldwide demand. However, owing to the changing and favorable regulations about the growth of legalized marijuana, cannabis farmers across the globe are increasingly adopting the hydroponic farming method.

Asia Pacific held the largest market share in 2023, as countries such as China, India, and Japan are finding lucrative opportunities in hydroponics farming to cater to the rising food demand. However, Europe is expected to register the fastest CAGR over the forecast period owing to the favorable government scenario regarding the development and adoption of alternative farming technologies.

The market is fragmented and has the presence of several key market players. Some prominent players in the market include AeroFarms, AmHydro, Argus Control Systems Limited, BrightFarms., Heliospectra and UrbanKisaan, among others. These players are adopting strategies such as partnerships and collaborations to gain a competitive edge. For instance, AeroFarms and Silal, a prominent fresh produce and agri-tech company in Abu Dhabi, have entered into a Memorandum of Understanding (MoU) to establish a durable research and development partnership focused on knowledge and technology exchange in advanced farming methods such as verical farming and hydroponics farming with local farmers.

Hydroponics Market Report Highlights

• The market is expected to grow due to factors such as increasing demand for high-quality and pesticide-free crops, limited availability of arable land, and advancements in technology for efficient cultivation.
• The aggregate systems holds a significant market share in the market due to factors such as their ability to provide controlled environments for plant growth, efficient nutrient delivery systems, and the flexibility to cultivate a wide range of crops.
• The lettuce segment is projected to grow at the fastest CAGR of 14.8% over the forecast period. The online distribution channel segment growth is attributed to the factors such as its relatively short growth cycle, rising demand from households and fast-food chains, and its raw consumption in large quantities.
• Europe is likely to emerge as the prominent segment, holding the largest market share by 2030. The countries such as the Netherlands, Turkey, and Spain witness a high adoption rate of hydroponics.

Please note The report will be delivered in 4-6 business days upon order notification.