Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Hydroponics Market Insights
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, sufficient amount of water, and selected nutrients to grow. Hydroponics farming allows a plant to grow 50% faster than conventional method. It eliminates the need of pesticides and herbicides. In hydroponic gardening, any type of water can be use that can be recycle and re-used, which reduces the need of fresh water and uses less space. Increasing consumption of salad crops and vegetables is expected to boost the growth of hydroponics market during the forecast period. Furthermore, higher yield of hydroponic crops as compare to conventional soil crops, increasing need of food security with increasing population, rise in cultivation of medicinal plants, and environmental friendly techniques are some of the divers for the growth of +hydroponic market.
Hydroponic is classified on the basis of equipment such as HVAC (Heating, Ventilation, and Air Conditioning), communication technology, LED grow light, irrigation system, material handling, control systems, and others. HVAC equipment segment accounted for the largest market revenue in hydroponics market, owing to increasing adoption of HVAC systems in hydroponics for basic usage. Hydroponics is also classified on the basis of systems, such as aggregate hydroponic system and liquid hydroponic system. The aggregate hydroponic system is segmented into closed and open system where closed system is furthermore classified as the water culture system, the EBB and flow system, drip systems, and the wick system. The aggregate system segment is expected to account for largest market share as compared to that of liquid hydroponics systems, in global hydroponics market, as this system offers support medium for the crops to grow, whereas the liquid hydroponic system does not provide supporting medium to the crops.
Europe is the most dominant region in global hydroponics market and accounted for 36.44% market share, owing to the advanced techniques availability in hydroponic smart greenhouse agriculture. The European economies such as Spain, Netherlands, and France have large greenhouse agricultural areas, which is expected to fuel the growth of this market. The farmers cultivate their plants in tunnel like greenhouses in Netherlands without using technologies related to climate control. The Scandinavian economies such as Finland, Sweden, Denmark, and Norway use hydroponic method of agriculture as growing crops is difficult during winter.
Asia Pacific is the second largest region in terms of revenue in global hydroponics market. The market is driven by large investment in R&D to provide facilities and launching new products. In October 2017, Rough Brothers Inc., launched hydroponic Hops Greenhouse, which is designed to optimize yield through precision farming. China, India, and Japan are the major economies where hydroponic farming is performed. According to Food & Agricultural Organization (FAO), Global Hunger Index (GHI) of India is 28.5 having 194 million hungry peoples and that of china in 7.7 having 133 million hunger peoples. Although China has improved its GHI, it has large population of hungry peoples. China has improved its agriculture practices by emerging technologies in hydroponics and green farming. This region is expected to have the largest market in hydroponics over the forecast period.
North America is the fastest growing region in hydroponics market. Major contributing economies are the U.S, Mexico, and Canada. HVAC based farming market has the largest share, followed by LED based. According to United States Department of Agriculture (USDA), the production of greenhouse tomato is doubled between the years 2007 to 2013.
The hydroponics market was valued at US$ 231.81 Million in 2016 globally and is expected to expand at a CAGR of 10.53% in terms of revenue during 2017 – 2025.
Figure 1. Global Hydroponics Market Share, By Equipment, 2016
Source: Coherent Market Insights (2017)
HVAC equipment segment accounted for 37.42% market share in global hydroponics market. This is attributed to high adoption of heating, ventilation, and air conditioning systems in hydroponics system. High initial cost and lack of awareness related to soil less agriculture techniques is hindering the market growth.
Major Players in the Global Hydroponics Market
Some of the key market players in hydroponics are 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.