Hydroponics Industry Overview
The global hydroponics market size is estimated to reach USD 9.76 billion by 2028, exhibiting a CAGR of 20.7% from 2021 to 2028, according to the new study conducted by Grand View Research, Inc. The adoption of smart farming technologies, such as vertical farming, which has helped the evolution of hydroponics, is expected to spur market growth. Continuous improvements in hydroponics technologies and the introduction of innovative, state-of-the-art technologies, including environmental and temperature sensing, remote growth monitoring, and automatic nutrient reading, are likely to fuel the demand.
This high growth rate is attributed to the increasing use of hydroponic systems for the indoor farming of vegetables. Also, the adoption of alternative farming methods for cannabis cultivation is rapidly rising, owing to the legalization of marijuana in countries like Canada, the Czech Republic, South Africa, and others. Increasing awareness among consumers regarding the effects of pesticides and artificial ripening agents on their health is expected to drive the demand for hydroponics, as the method eliminates the need for such products, thereby providing nutritionally superior vegetables. Low installation cost and ease of operation of these systems are also expected to boost the adoption in near future.
Hydroponics Market Segmentation
Grand View Research has segmented the global hydroponics market based on type, crops, and region:
Based on the Crops Insights, the market is segmented into Tomatoes, Lettuce, Peppers, Cucumbers, Herbs, and Others.
- The tomatoes segment dominated the market with a share of more than 40% of the total market share in 2020.
- Tomatoes are the largest hydroponically cultivated crops across the globe owing to the faster cultivation rate and as it requires very less amount of water compared to regular farmed tomatoes.
- The indoor farmers use rock wool, perlite, or coconut coir as growing materials for tomato hydroponic cultivation.
- Leafy vegetables, such as spinach, arugula, kale, and lettuce are increasingly gaining popularity among hydroponic growers. Among these, green and red leaf lettuce is the largest hydroponically grown vegetable among indoor farmers owing to its raw consumption in relatively large quantities.
- The hydroponic cultivation of lettuce is rising in North America on account of its rising demand from households and fast-food chains across the region. The global market size for lettuce is estimated to register the fastest CAGR of more than 23% over the forecast period.
Based on the Type Insights, the market is segmented into Aggregated systems and Liquid systems.
- The aggregate systems held the largest market share of approximately 55% in 2020 owing to its widespread popularity among all the indoor hydroponic farmers owing to its ease of setup and inexpensiveness.
- In such systems, inert and solid media such as peat, rock wool, vermiculite, sand, sawdust, perlite, or coconut coir provides support for the plants.
- The liquid systems segment is estimated to expand at the fastest CAGR from 2021 to 2028, owing to the increasing popularity of closed system cultivation among growers.
- Deepwater culture and Nutrient Film Technique (NFT) systems are being increasingly used to cultivate lettuce and other leafy vegetables.
Hydroponics Regional Outlook
- North America
- Europe
- Asia Pacific
- Rest of World
Key Companies Profile & Market Share Insights
A few of the major industry players include AeroFarms (U.S.), Illumitex, Inc. (U.S.), and American Hydroponics (U.S.). These players are involved in strategies such as partnerships, business expansions, new product developments, and contracts to expand their market share. The companies are focusing on building greenhouses and expanding hydroponic farms to meet the end-market requirements. For instance, In April 2021, AeroFarms announced the commencement of the construction of its second commercial 136,000 square foot indoor vertical farm in Danville-Pittsylvania County, Virginia. Danville Farm is strategically located close to more than 1,000 grocery stores in the area, serving approximately 50 million people in a day's drive. Similarly, Numerous vendors are investing in research and development activities to develop differentiated products that help them stay ahead of the competition. For instance, in 2020, Signify Holding, a Netherland-based company, invested 4.8% of its revenue in research & development. This investment is expected to help the company in enhancing its product offerings.
Some of the prominent players operating in the global hydroponics market are:
- AeroFarms
- AmHydro
- Argus Control Systems Ltd.
- Emirates Hydroponics Farms
- Freight Farms
- Green Sense Farms Holdings, Inc.
- Heliospectra AB
- LumiGrow
- Signify Holding
- Terra Tech Corp.
Order a free sample PDF of the Hydroponics Market Intelligence Study, published by Grand View Research.
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