Hydroponics Market Forecasts to 2028 – Global Analysis By Crop Type (Fruits, Vegetables, Herbs), Equipment (Reservoir, Irrigation System), End User, and By Geography

Hydroponics Market Forecasts to 2028 – Global Analysis By Crop Type (Fruits, Vegetables, Herbs), Equipment (Reservoir, Irrigation System), End User, and By Geography

According to Stratistics MRC, the Global Hydroponics Market is accounted for $2.53 billion in 2021 and is expected to reach $8.42 billion by 2028 growing at a CAGR of 18.7% during the forecast period. Hydroponics is the process of growing plants by using mineral nutrient solutions in sand, gravel, or liquid in absence of soil. Hydroponics has become one of the most preferred crop production technologies where nutritionally superior crops are grown without using pesticides and other artificial ripening agents.

Market Dynamics:

Driver:

Higher yield

Plants grown in hydroponic systems have achieved better yields than the conventional agriculture system, with its efficiency being higher. In addition, because of controlled environmental circumstances, the effect of climatic changes can be balanced with the assistance of these systems, thereby not affecting the annual crop production. Controlled environment horticulture methods directly affect the crop harvest cycle. Since climatic changes show a minimal effect on such systems, crops can be produced all year round, thereby again increasing the produce.

Restraint:

High capital investment

Various kinds of equipment including HVAC systems, fans, irrigation systems, control systems, rails, and lights are the main cost factors in a hydroponic farm. The hydroponic farm can cost high for a base-level system that is not fully automated. This huge cost for the initial setup of the system is a major factor refraining farmers from investing in these systems. However, the yield obtained from these systems is higher, and the product can also be marketed as premium products, thereby increasing the ROI for growers.

Opportunity:

Development of innovative hydroponic technologies

Increasing the adoption of hydroponics, manufacturers and researchers are focusing on improving the efficiency of hydroponics innovation to build the quality and quantity of the produce. Many organizations in the hydroponics market are investing in R&D for acquiring state-of-art technologies that help the production and furthermore bring about a variety of cultivations possible. Strategic partnerships with research labs and institutes further provide ample opportunities for the growth of the hydroponics market.

Threat:

Waterborne diseases and algae in closed systems

In a closed hydroponic system, the threat of waterborne illnesses poses a major issue to growers. Considering that the nutrient-enriched water is recirculated all through the system, any kind of waterborne disease that enters the nutrient reservoir often affects the whole crop as it has the ability to spread throughout. Growers frequently keep their plants spaced out to prevent crowding, which is often how pathogens enter the system. To combat the instances of waterborne diseases, growers are resorting to utilizing screen or paper filters and additional filtration systems to curb the spread of waterborne diseases in the system.

The liquid hydroponics segment is expected to be the largest during the forecast period

The liquid hydroponics segment is estimated to have a lucrative growth as liquid systems have been proved to be efficient and furthermore cost-effective in comparison to essential models in the hydroponics market. Liquid systems operate in a closed mode, which reduces the expense of the nutrient solutions. Also, in comparison with the closed model of aggregate systems, liquid systems show higher productivity, and hence, the majority of the growers have been installing liquid systems for their crop production.

The heating, ventilation & air conditioning (HVAC) segment is expected to have the highest CAGR during the forecast period

The heating, ventilation & air conditioning (HVAC) segment is anticipated to witness the fastest CAGR growth during the forecast period as the system is responsible for cooling, dehumidification, and maintaining the optimum temperature inside the facility. HVAC systems are fundamental for the operation of hydroponic and aeroponic farms and should be reliable and well-controlled.

Region with highest share:

Europe is projected to hold the largest market share during the forecast period due to advancements in greenhouse farming, growing expansion of genetically modified crop technology, rapid industrialization, and scarcity of land. Europe is home to developed economies, such as France, Germany, Greece, Italy, Spain, and the Netherlands.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period owing to the substantial adoption of hydroponics in Asia Pacific countries and emerging urban hydroponic farms. Increasing the implementation of advanced techniques in hydroponics to increase enhance the quality and quantity of crop yield in the Asia Pacific is anticipated to play a crucial role in augmenting the Asia Pacific hydroponics market growth.

Key players in the market

Some of the key players profiled in the Hydroponics Market include Heliospectra AB, Terra Tech Corp., Signify Holding, LumiGrow, Kubo Group, Hydrodynamics International Inc, AMHYDRO, AeroFarms, Green Sense Farms Holdings, Inc., Freight Farms, Emirates Hydroponics Farms, Circle Fresh Farms, Bright Farms Inc, Argus Control Systems Limited and Hortisystems Uk.

Key Developments:

In April 2020, Aerofarms expanded with the establishment of the biggest Aerofarms center which is the largest of its kind spread across 90,000 sqft. The facility is dedicated to state-of-art R&D equipment and the commercialization of locally demanded crops.

In August 2019, LumiGrow Inc. launched a new TopLight Hybrid smart fixture. The Hybrids will enable users to benefit from the enriched white spectrum, which is completely wireless and can be controlled via SmartPAR software of the company.

Types Covered:
• Liquid Hydroponics
• Aggregate System

Crop Areas Covered:
• 10000-50000 Square Feet
• 5001-10000 Square Feet
• 1000-5000 Square Feet
• Up 1000 Square Feet

Crop Types Covered:
• Fruits
• Flowering and Foliage
• Vegetables
• Herbs

Equipments Covered:
• Control Systems
• Submersible Pump
• Reservoir
• Material Handling
• Light-Emitting Diode (LED) Growing Lights
• Irrigation System
• Heating, Ventilation & Air Conditioning (HVAC)
• Growing Chamber
• Delivery System
• Communication Technology

Inputs Covered:
• Nutrients
• Growth Media

Farming Types Covered:
• Indoor Farming
• Outdoor Farming

Services Covered:
• Conventional/Inorganic Hydroponic Solutions
• Natural and Organic Hydroponic Solutions

Distribution Channels Covered:
• Business-to-Business (B2B)
• Business-to-Consumer (B2C)

End Users Covered:
• Residential
• Commercial

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances