Hydroponics is the method of growing plants without using soil or soil-less gardening using important nutrients in a mineral-rich water solution. A plant only needs sunlight, a sufficient amount of water, and selected nutrients to grow. Globally, hydroponics is the fastest-growing market. On the basis of equipment, the hydroponics market is classified/segmented into HVAC (Heating, Ventilation, and Air Conditioning), communication technology, LED grow light, irrigation system, material handling, control systems, and others. The HVAC equipment segment accounted for the largest market revenue share in the hydroponics market in 2021, owing to the increasing adoption of HVAC systems in hydroponics for basic usage. Hydroponics market is also classified on the basis of system type, such as aggregate hydroponics systems and liquid hydroponics system. The aggregate hydroponics system is segmented into closed and open systems, where the closed system is furthermore classified as water culture system, EBB and flow system, drip systems, and wick system. The aggregate hydroponics systems is expected to account for a larger market share as compared to liquid hydroponics systems in the global hydroponics market, as this system offers a support medium for the crops to grow whereas the liquid hydroponic system does not provide a supporting medium to the crops.
The hydroponics market is expected to surpass US$ 770.7 Million by the end of 2028, in terms of revenue, and exhibit a CAGR of 10.53% during the forecast period (2021 to 2028).
Hydroponics farming allows a plant to grow 50% faster than the conventional method. It eliminates the need for pesticides and herbicides. In hydroponic gardening, any type of water can be used that can be recycled and reused, which reduces the need for fresh water and uses less space. The increasing consumption of salad crops and vegetables is expected to boost the growth of the hydroponics market during the forecast period. Furthermore, a higher yield of hydroponic crops as compared to conventional soil crops, increasing need for food security with increasing population, rising cultivation of medicinal plants, and increasing adoption of environment-friendly techniques such as farming, agriculture are some of the growth drivers of the hydroponics market.
Among regions, Europe is the most dominant region in the global hydroponics market and accounted for 37.4% market share in 2020, owing to the availability of advanced techniques in the hydroponic such as smart greenhouse agriculture, vegetable production. European economies such as Spain, The Netherlands, and France have large greenhouse agricultural areas, which is expected to fuel the market growth. Farmers cultivate their plants in tunnel-like greenhouses in The Netherlands without using technologies related to climate control. Scandinavian economies such as Finland, Sweden, Denmark, and Norway use the hydroponic method of agriculture as growing crops is difficult during winter.
Figure 1. Global Hydroponics Market Revenue Share (%), By Region, 2020
Different types of equipment including fans, irrigation systems, ventilation, control systems, rails, lights, and HVAC systems are the key cost factors in a hydroponic farm. On average, a 500 sq. ft. hydroponic farm can cost up to US$ 110,000 for a base level system that is not completely automated. This huge cost for the initial setup of the system is the main factor refraining farmers from investing in these systems. However, the yield obtained from these systems are higher, and the produce can also be marked as premium products, thereby raising the rate of interest (ROI) for growers.
|Base Year:||2020||Market Size in 2021:||US$ 382.4 Mn|
|Historical Data for:||2017, 2018, and 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||10.53%||2028 Value Projection:||US$ 770.7 Mn|
Argus Control System (Canada), Koninklijke Philips NV (The Netherlands), Greentech Agro LLC (U.S.), Biodynamic LLC., General Hydroponics, Inc., Logiqs B.V. (The Netherlands), Lumigrow, Inc. (U.S.), Hydrofarm Inc., Hydrodynamics International Inc., Heliospectra AB, Village Farms International, Inc., Platinum Produce Company and Millennium Pacific Greenhouses Ltd, and Soave Enterprises LLC.
|Restraints & Challenges:||
The demand for vegetables and exotic fruits has been constantly growing at a higher rate due to the increased purchasing power of consumers because of health concern. The cost of these exotic products is high, as most of these products are imported. Accordingly, several research institutions and universities are focusing on establishing more simplified hydroponics systems to accelerate the production of exotic fruits and vegetables and meet the escalating demand. Increasing awareness among buyers about the trend of eating fresh vegetables may also fuel the market growth. The demand for exotic vegetables such as yellow and red capsicum and red lettuce in food and retail chains such as KFC and Burger King is expected to boost the hydroponics market growth during the forecast period.
Figure 2. Global Hydroponics Market Revenue Share (%), By Equipment, 2020
On the basis of equipment in 2020, the Heating, Ventilation & Air Conditioning (HVAC) equipment segment accounted for the largest market revenue in hydroponics market. HVAC, plays a key role in the development of indoor growers, as the system is responsible for dehumidification, cooling and maintaining the optimum temperature inside the facility .HVAC systems are essential for the operation of aeroponic farms and hydroponic and should be reliable and well-controlled. Further the economic costs of the system over utilities and other utilities that go into hydroponics the HVAC is estimated to experience an increasing demand.
Global Hydroponics Market - Impact of Coronavirus (COVID-19) Pandemic
Amid the spread of Covid-19 pandemic, many people have developed a critical point of view towards outdoor food. With food safety and health becoming the key focus, the population around the globe has shown an inclination towards self-made meals. This has placed the food and hotel industry in jeopardy. After the devastating outbreak of the COVID-19, the adoption rate of urban hydroponic farming systems around the world is estimated to rise sharply. The agriculture industry faced many challenges during the initial phases of the spread of the pandemic; there was a huge work shortage on the farm and a few farmers missed their window of opportunity for harvesting for seasonal crops. The falling prices of agricultural products and disruption in logistics also added to the challenges. Many nations also realized their over-dependence on imports of food materials, and subsequently, started emphasizing internal and domestic productions.
Major players operating in the global hydroponics market include Argus Control System (Canada), Koninklijke Philips NV (The Netherlands), Greentech Agro LLC (U.S.), Biodynamic LLC., General Hydroponics, Inc., Logiqs B.V. (The Netherlands), Lumigrow, Inc. (U.S.), Hydrofarm Inc., Hydrodynamics International Inc., Heliospectra AB, Village Farms International, Inc., Platinum Produce Company and Millennium Pacific Greenhouses Ltd, Soave Enterprises LLC (United states).
Hydroponics plays a vital role in changing the way people think about the future of gardening and plant growth and farming. Hydroponics farming has become a new trend in the Agricultural sector, especially with the growing need for limited resources and agriculture sector. It simply means growing fresh fruits and vegetables in nutrient-rich water instead of soil require less resources and space Global, modernized techniques, soil-less farming result in higher productivity in a controlled climate and with no risk of insects and pests.
According to the World Economic Forum, the worldwide population is expected to reach at almost 10 Billion by 2050, making the requirement of food 60% higher than it is today. Thegrowingneedforexotic vegetables such as herbs, cucumber, tomatoes, lettuce, pepper, and others used in intercontinental cuisines is a prime factor driving the global Hydroponics Market. Besides, the increasing awareness among the consumers of eating fresh vegetables and fruits is also expected to fuel the market in the future. The demand for exotic vegetables like red lettuce and tomatoes retail chains like KFC and burger king anticipated to boost sales during the forecast period
The hydroponics market is expected to be dominated by Europe. This is mainly attributed to the increasing need for food security and a higher yield of hydroponic system than conventional soil-based crops. In Asia Pacific, the increasing use of commodity prices, increased competition among market players, and the need to curtail costs of products, are some of the factors fueling the growth of the hydroponics market in the Asia Pacific region. Key players in the global hydroponics market are mainly focusing on Research and development (R&D) activities investments, and launching of new products. Various mergers, acquisitions, joint ventures, and agreements are also being carried out by the hydroponics market players to expand their presence globally.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.