The Hydroponics Market is estimated to be valued at US$ 467.17 Mn or Mn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hydroponics is a technique of growing plants without soil by using mineral nutrient solutions in an aqueous solvent. It is a form of hydroculture where the roots are growing in nutrient-rich water rather than soil and has various advantages such as higher crop yield, produce can be grown throughout the year, less requirement of space, water and pesticides. Hydroponics systems uses various growing mediums such as aggregates, liquid, air and hybrid which improves the growth and quality of plants. The hydroponics produce includes leafy greens, tomatoes, peppers, herbs and different fruits.
Market Dynamics:
The growth of the hydroponics market is primarily driven by increasing popularity of urban farming. Additionally, rising demand for organic foods due to changing consumer preference towards healthy eating and concerns regarding soil health is augmenting the demand for hydroponics produce. Moreover, scarcity of fertile agricultural land and detrimental effects of climate change on conventional farming are encouraging adoption of hydroponics for sustainable crop cultivation. Furthermore, government initiatives to support protected cultivation agriculture is positively impacting the market growth. However, high initial investments and complexities in hydroponics techniques require technical expertise which may hamper the market expansion during the forecast period.
Segment Analysis
The hydroponics market is segmented into equipment, material type, crop type and application. The equipment segment dominated the market in 2022 owing to rising demand for hydroponic equipment such as HVAC, LED grow lights, irrigation systems and material handling equipment. The equipment segment is anticipated to continue its dominance over the forecast period.
PEST Analysis
Political: Favorable government initiatives for adoption of innovative farming techniques and subsidies on hydroponic equipment purchase are fueling market growth.
Economic: Rising prices of conventionally grown foods are compelling consumers to opt for hydroponically grown products. Investments in hydroponic farms are increasing.
Social: Consumers are preferring chemical-free hydroponic foods due to increasing health awareness.
Technological: Automation and use of IoT, AI and cloud technologies in hydroponic farms has improved productivity and yield.
Key Takeaways
The Global Hydroponics Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing urbanization and need to enhance agricultural productivity. The market size is projected to increase from US$ 467.17 Mn in 2023 to over US$ 1 Bn by 2030.
Regional analysis: North America dominates the global hydroponics market currently owing to significant greenhouse cultivation and demand for organic foods. Asia Pacific is expected to depict fastest growth during the forecast period attributable to rising adoption of hydroponics driven by growing population and space constraints for agriculture.
Key players: Key players operating in the hydroponics market are Argus Control System, Koninklijke Philips NV, Greentech Agro LLC, Biodynamic LLC., General Hydroponics, Inc., Logiqs B.V., Lumigrow, Inc., Hydrofarm Inc., Hydrodynamics International Inc., Heliospectra AB, Village Farms International, Inc., Platinum Produce Company and Millennium Pacific Greenhouses Ltd, and Soave Enterprises LLC.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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