Market Overview

Global Hydroponics Market size was valued at USD 5.94 Billion in 2023 and is poised to grow from USD 6.69 Billion in 2024 to USD 17.27 Billion by 2032, growing at a CAGR of 12.6% in the forecast period (2024-2032).

The global hydroponics market is a new method of cultivation, one that addresses the key problems posed by traditional methods of cultivation. Hydroponics is a soilless cultivation in which plants are cultivated with water with nutrient solutions and not soil. Hydroponics is a new method of cultivation that is a solution to growing in soil. The technique has gained a lot of traction since it is yielding more, conserving water, and maintaining agriculture year-round regardless of weather. Fast growth rate of population, urbanization, and low land access for agriculture have raised high demand for sustainable food production systems, and hydroponics stands in a good position to meet such demands.

Among its significant benefits of hydroponics is efficient use of resources. Hydroponics uses much less water than conventional agriculture in utilizing recirculation, reduced wastage, and controlled delivery of nutrients. Hydroponics also gives controlled environment agriculture (CEA) where factors such as light, temperature, and humidity are controlled, leading to better quality of crop and a definite yield. Controlled environment also limits exposure to pest and disease risks, thereby lessening the usage of chemical pesticides and leading to healthier, safer crops.

Technology progress has also supported the mass use of hydroponics. The use of sensors, automation, and artificial intelligence technology has supported the simplification of control and management of hydroponic farms at an affordable price. Hydroponics system size, varying from home-sized systems in residential urban areas to industrial-scale greenhouses, has also enabled large numbers of consumers. Hydroponics also assists the world with its sustainability and conservation by reducing carbon emissions and preventing the negative impacts of conventional farming.

Hydroponics is used not only in greenhouse crops but also in farm produce. It is used in cultivating valuable plants such as flowers and medicinal herbs, even broadening its applications. The process also addresses the growing demand for locally grown, fresh, and pesticide-free products, which has spurred the setup of urban hydroponic farms and vertical farm businesses.

Although it has numerous advantages, hydroponic enterprise has disadvantages in the form of extremely high initial installation costs and the requirement for specialized expertise to operate systems maximally. However, ongoing research and development, government assistance, and investments in new farm technology are enabling domestication of the challenges.

Market Drivers

Increased Adoption of Controlled Environment Agriculture (CEA)

The increasing application of Controlled Environment Agriculture (CEA) is primarily driving the world hydroponics market. CEA involves the use of advanced technologies to optimize growing conditions, such as light, temperature, humidity, and CO₂ levels, in a controlled environment. This process enables year-round production and high crop yields irrespective of external climatic conditions, making it a feasible choice for regions with harsh weather or limited arable land. By integrating hydroponics and CEA, the farmers can have accurate nutrient supply and water efficiency and improve the quality and yield of the crops.

CEA systems are very scalable and versatile, from small urban installation to large commercial greenhouses, to suit varied agricultural requirements. CEA systems also lower the risk of pests and diseases, which reduces the use of chemical pesticides and ensures safer, healthier crops. Increasing consumer demand for fresh, local, and pesticide-free produce has also been speeding up the adoption of CEA technologies.

Additionally, technological advancements in automation, artificial intelligence (AI), and the Internet of Things (IoT) have improved the effectiveness of CEA, making it more affordable and efficient. With the increased global emphasis on sustainable agriculture, the combination of CEA and hydroponics continues to revolutionize conventional farming methods, solving food security issues while ensuring environmental conservation.

Rising Consumer Preference for Pesticide-Free and Locally Grown Produce

Increasing consumer demand for locally grown and pesticide-free fruits and vegetables is the main driver of growth in the hydroponics industry. Increasing awareness of the health risks of chemical pesticides and the environmental damage from conventional farming has led consumers to shift to safer and greener produce. Organic produce through the use of hydroponic is one of the solutions since the use of chemicals is eliminated, considering that the controlled system reduces the possibility of pest and disease infestation. Not only does this offer healthier produce, but it also caters to the growing demand for organic and eco-friendly goods.

Locally grown produce preference is also picking up steam, driven by health-conscious consumers who want to eat fresher food and lower carbon footprints. Hydroponics allows for urban farming and vertical farming endeavours, moving food production closer to the consumers in metropolises. Reducing transport time and supply chain complications, hydroponic systems deliver fresh, nutrient-dense produce that is aligned with expectations of health-oriented consumers.

In addition, the COVID-19 pandemic has increased the emphasis on the supply chain resilience and food safety, also increasing the demand for locally grown, high-quality fruits and vegetables. As the consumers keep putting a premium on health, sustainability, and freshness, hydroponics is becoming a frontline solution to address such changing tastes.

Key Findings:

• In July 2021, BASF Venture Capital GmbH (BVC) is investing in the Indian startup UrbanKisaan, which specializes in hydroponic cultivation of various types of vegetables, greens and herbs in tropical urban environments.

Market Opportunities

Rising Investments and Government Support for Sustainable Agriculture

Increased investments and government subsidies for sustainable farming are growth drivers for the hydroponics market. As food security, environmental degradation, and resource depletion concerns escalate, governments across the globe are placing a high premium on sustainable agriculture to meet these challenges. Hydroponics' water, land, and nutrient efficiency makes it an ideal choice for policymakers to implement supportive policies, subsidies, and research grants to promote its use. Projects like tax credits for green technology, investments in controlled environment agriculture (CEA), and city farming initiatives have immensely contributed to the growth of the hydroponics industry.

At the same time, venture capitalists and private investors are seeing the profitability and scalability of hydroponic systems, leading to more funding for cutting-edge startups and sophisticated technologies. These investments enable the creation of automation, AI, and IoT solutions that make the system more efficient and lower the cost of operation. Public-private partnerships are also helping to increase hydroponics infrastructure and make it available to more farmers.

Market Restraining Factors

Limited Technical Expertise and Knowledge Barriers

Limited technical skills and knowledge barriers are the primary hurdles to the development of the hydroponics industry. Hydroponic cultivation involves a highly technical understanding of plant biology, nutrient management, and regulation of the system in an effort to tap the maximum out of it. Farmers who switch from conventional soil-based farms typically struggle to convert to this highly technical method. All these parameters like pH, nutrient content, and water movement need to be controlled satisfactory to obtain healthy plants and any treatment may result in crop failure.

implementation of advanced technologies like automated sensors, artificial intelligence (AI), and the Internet of Things (IOT) in modern hydroponic systems needs technical knowledge. For small farmers or start-ups with limited capability, gaining such expertise and training becomes a tall order. The challenges are particularly pronounced where agricultural education is underdeveloped or there are weak technological capabilities.

Segmentation Analysis

The market scope is segmented because of by Type, by Crop Type.

By Type

Based on the Type of the market is segmented into Aggregate Hydroponic System, Liquid Hydroponic System, Ebb & flow systems, Drip systems, Wick systems, Deep water culture, Nutrient film technique (NFT), Aeroponics.

Among all the different hydroponics systems, the Nutrient Film Technique (NFT) segment led the world hydroponics market. NFT is applied most commonly since it uses water and nutrients in the most efficient way, flowing in a thin stream over roots to provide a continuous supply of needed elements without waterlogging. The system design promotes healthy plant development via the provision of oxygenated environments and efficient nutrient uptake, and hence is particularly suited for the growth of high-yielding plants like leafy greens and herbs.

NFT systems are simple to set up and operate, offering scalability for small-scale urban agriculture and large-scale commercial farming. The modular design offers simple flexibility to different types of crops and space constraints. The absence of a growing medium also reduces the cost and the potential for root-borne disease, which makes it more appealing to commercial growers who desire high production with low input of resources.

By Crop Type

Based on the Crop Type of the market is segmented into Tomato, Lettuce and Leafy Vegetables, Pepper, Cucumber, Microgreens, Herbs, Other Crop Types.

Among the hydroponics market segments by crop type, lettuce and leafy vegetables have been market leaders. The segment's leadership can be explained by its strong demand, fast growth cycle, and compatibility with hydroponic systems. Lettuce and leafy vegetables are base crops in salads and fresh produce markets and are therefore consistently popular with consumers worldwide. Their high consumption due to the widespread use in both households and the foodservice sector guarantees a constant demand, further making them market leaders.

Hydroponics is a perfect place to cultivate lettuce and leafy greens since they grow well in controlled environments with limited space and resources. Their short growth period, usually between 4 to 6 weeks, enables multiple harvests per year, which maximizes yield and profitability. Also, lettuce and leafy greens are light and need less structural support than heavy crops such as tomatoes or cucumbers, which makes them simpler and less expensive to grow in vertical farming systems.

Regional Snapshots

By region, Insights into the markets in North America, Europe, Asia-Pacific, Latin America and MEA are provided by the study. North America is dominating the globe with hydroponics, and its reasons mainly are superior farming technology, well-built infrastructure, and rising interest in sustainable farming. The US in particular has been dominating the acceptance of hydroponics with plenty of urban agricultural initiatives, vertical farms, and government-promoted sustainability measures. Access to modern technologies such as automation, artificial intelligence, and IoT is another factor facilitating economical building of hydroponics setups. Also, consumer demand for locally grown pesticide-free fruits and vegetables and a healthier diet has pushed demand for hydroponic products like leafy greens and herbs. A solid market in North America for organic produce exists as well, where hydroponic fruits and vegetables consistently deliver consumers' needs for freshness and sustainability.

As far as the fastest growing region is concerned, Asia-Pacific will experience unprecedented growth in the hydroponics sector. There are several reasons behind this quick development, including increasing population, reducing arable land, and rising demand for food security. Japan, China, and India are some of the nations that are increasingly turning towards hydroponics as the solution to address these problems. The region is also experiencing government subsidies, technological revolutions, and an increasing number of urban agriculture projects that enable hydroponics to become more economical. As the Asia-Pacific becomes increasingly urbanized and faces pressure on traditional agriculture, hydroponic technology will become increasingly integrated into food production. In addition to this, growing consciousness about green farming in countries across the region makes Asia-Pacific the most rapidly growing market for hydroponics over the next several years.

List of Companies Profiled

• AeroFarms
• AmHydro
• Argus Control Systems Limited
• Emirates Hydroponics Farms
• Freight Farms, Inc.
• Heliospectra
• Signify Holding
• Nutrifresh India
• UrbanKisaan

Key Industry Developments

• FAO Director-General and La Sapienza University of Rome's Rector feature a state-of-the-art, eco-friendly hydroponic garden in June 2024 in the expansion of their partnership. Research on innovative water-based cultivation methods prompted the establishment of a hydroponic garden on the FAO patio, furthering the collaboration between the Food and Agriculture Organization of the United Nations (FAO) and La Sapienza University of Rome in sustainable agriculture.
• L S Industries, Bairsen, Solan, and Punjab Agricultural University (PAU), Ludhiana, signed an agreement in May 2024 to commercialize "Hybrid hydroponics technology with enhanced water and nutrient perforation and re-circulation system." Ajmer Singh Dhatt, director of research, PAU, and Mr. Sanju Laroia, senior vice-president (global operations), L S Industries Limited, signed the agreement for their respective organizations.

Report Coverage

The report will cover the qualitative and quantitative data on the Global Hydroponics Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations

Global Hydroponics Market Regional Analysis

North America accounted for the highest xx% market share in terms of revenue in the Hydroponics market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Hydroponics. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Hydroponics companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Hydroponics Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Hydroponics Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Reasons to Purchase

• To gain insightful analyses of the Hydroponics market and have comprehensive understanding of the global market and its commercial landscape.
• Assess the production processes, major issues, and solutions to mitigate the development risk.
• To understand the most affecting driving and restraining forces in the market and its impact in the global market.
• Learn about the Hydroponics market strategies that are being adopted by leading respective organizations.
• To understand the future outlook and prospects for the Hydroponics market. Besides the standard structure reports, we also provide custom research according to specific requirements.

Research Scope of Hydroponics Market

• Historic year: 2019-2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in $US Billion

Hydroponics Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: