Hydroponics Technologies Market Analysis - Europe, APAC, North America, South America, Middle East and Africa - US, Canada, Japan, China, The Netherlands - Size and Forecast 2023-2027

Hydroponics Technologies Market Forecast 2023-2027

The hydroponics technologies market size is forecast to increase by USD 558.97 million accelerating at a CAGR (Compound Annual Growth Rate) of 15.4% between 2022 and 2027. The market encompasses industries engaged in creating, manufacturing, and distributing systems and equipment for cultivating plants without soil. Hydroponics technologies facilitate plant growth in nutrient-rich water solutions, resulting in increased yields and accelerated growth rates compared to conventional soil-based farming methods. In 2017, the US held the largest market share, projecting an annual revenue of USD 67.93 million. In this market research and growth report, the market size, historical data (2017-2021), and future projections are presented in terms of value (in USD million) for all the mentioned segments.

What will be the Size of the Market During the Forecast Period?

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The market is witnessing a surge in demand as consumers increasingly opt for organic foods grown using alternative farming methods. This innovative approach to agriculture, which includes hydroponic farming, offers numerous benefits such as higher yields of leafy greens and vegetables without the use of chemical solutions found in traditional farming. With climatic changes affecting traditional agriculture systems, hydroponics provides a sustainable solution by conserving resources and minimizing environmental impact. Stakeholders, including home gardeners and professional growers, are embracing indoor cultivation techniques that utilize mineral solutions instead of traditional soil. This operational simplicity, coupled with the nutritional superiority of hydroponically grown vegetables, is driving the adoption in the global market.

Market Dynamics

The global hydroponics crop industry is transforming traditional agriculture systems, offering innovative solutions for cultivating various crops, including cannabis and marijuana. By utilizing mineral solutions instead of traditional soil, hydroponic systems optimize plant root growth and nutrient absorption, resulting in nutritionally superior vegetables. However, concerns arise regarding the use of artificial ripening agents and chemical solutions in hydroponics. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.

Key Market Driver

Facilitation in soil and space-saving is the key factor driving hydroponics technologies market growth. Globally, around 6 to 7 million hectares of agricultural land every year is lost because of urbanization, industrial development, and soil degradation and erosion. In addition, the rapid increase in population would make it impossible to meet the growing food demand because of a limited amount of land for agriculture. Vertical and indoor farming would be an alternative in such a scenario. The intensification of yields is carried out through the use of hydroponics technology. Compared to land cultivation, about 10% of the area used for agricultural farming can be cultivated with hydroponics technology, indoor agriculture, or vertical farming, which produces a similar amount of fruits and vegetables. Thus, hydroponics technologies facilitate soil as well as space-saving, which will drive market growth during the forecast period.

Major Market Trends

An increase in the offering of advanced hydroponic growing systems is the primary trend shaping the growth of the hydroponics technologies market. Vendors are offering various types of hydroponic growing systems with higher yield rates that may influence growth. For instance, SuperCloset offers a Bubble Flow Buckets system manufactured using food-grade heavy-duty plastic. This leads to higher durability and the production of plants with better hygiene standards. The system is also attached to an ECO Series pump that has an oil-free high magnetic rotor, ceramic shaft, and bearings that ensure reliable and quiet operations. Also, the company offers model 32-Site Super Flow Hydroponic Grow System, a combination of many hydroponic growing systems, such as ebb and flow, AeroPonics, and NFT, into one system. Thus, these combinations will significantly improve the yield, which may positively influence the growth of the global market in focus during the forecast period.

Significant Market Challenge

 The high investment cost of hydroponics technologies is a major challenge to the growth of the hydroponic technologies market growth  Hydroponics technologies are mainly used in indoor farming or vertical farming. Many types of hydroponics technologies are required to set up full-fledged. Compared to other agricultural options, the investment costs of this type of hydroponic technology are significantly more expensive. For instance, the cost of an indoor farm is around 10 to 15 times more than the cost of a greenhouse farm, which is equipped with heaters, ventilators, thermal screens, and other equipment. Furthermore, the return on investment to cover the initial investment is around 5 to 7 years. Therefore, the demand may face a challenge during the forecast period because of the high investment cost required, which may hinder the growth of the global market in focus.

Market Segmentation

The market is witnessing a surge in interest due to its potential to address various challenges faced by traditional agriculture. By offering a sustainable option for crop cultivation, hydroponics conserves water resources and minimizes the need for chemical fertilizers, resulting in produce with enhanced nutritional value. This innovative approach leverages technological advancements in hydroponics equipment, such as LED grow lights and high-pressure sodium lamps, to create artificial growing conditions that optimize crop types and ensure year-round production. Additionally, hydroponics caters to the rising consumer demand for local produce, providing opportunities for smaller farmers and addressing concerns about food wastage and logistics costs associated with traditional farming practices. As environmental regulations tighten and the world's population continues to grow, hydroponics presents lucrative market opportunities for stakeholders seeking sustainable solutions to agricultural challenges.

The environment and climate control systems segment is dominating the market.

The environment and climate control systems segment was valued at USD 150.96 million in 2017. Environment systems such as heaters, air conditioners, coolers, fans, ventilators, carbon dioxide generators, and irrigation systems are used to create an ideal artificial environment that can imitate natural conditions. In order to monitor the various aspects of their growing area critical for plant health, environmental controllers can be used by growers. These devices are designed to provide optimum cultivation conditions without supervision. Advanced features offered by companies will drive the demand for environmental and climate control systems during the forecast period. 

Companies are focusing on providing climate control systems that use the Internet and cloud services to provide data to farmers on a real-time basis. Thus, with these features of the environment and climate control systems, the global market will witness growth during the forecast period. They provide a versatile and effective method for growing plants without soil, allowing for precise control over nutrient delivery and optimized plant growth.

Market Trends and Analysis - Revenue Share by Technologies Segment, 2017 - 2027.   

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Which regions have a significant presence in the Hydroponics Technologies Market?

APAC Holds a Prominent Position in the  Market. APAC is estimated to contribute 34% to the growth of the global market during the forecast period.

Europe is the second largest region contributing to the market growth. The market in Europe is anticipated to witness significant growth, owing to the adoption of controlled environment agriculture for horticultural crops and the increasing development of new advanced technologies that target specific crop needs. 

Furthermore, increasing awareness among consumers about the quality difference between greenhouse-grown vegetables and culture is further fueling the hydroponics market in the region. These technologies are mainly used for growing cucumber, spinach, peppers, and lettuce, among others, in the country. General Europe and Nutriculture are some key companies that offer technologies in the country. Farmers in the country are even focusing on raising their income by reducing energy costs and carbon footprint and increasing output yield. However, high startup and energy costs, lack of workers with technical knowledge, operational and maintenance complexities, and volatility in crop prices are factors that hinder the growth prospects of the market in Europe.

Market  Size, By Region, Global, 2017- 2027.   

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Who are the key players in the Hydroponics Technologies Market?

The market is fragmented in nature. Some significant players include AmHydro, Argus Control Systems Ltd., Brio Agri Producer Co. Ltd., Cox Enterprises Inc., Fork Farms, Greentech Organic Hydroponics Systems Mfrs

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

GrowLife Inc, Hawthorne Gardening Co., Heliospectra AB, Hortisystems UK Ltd., Hydrodynamics International Inc., Koninklijke Philips NV, KUBO TUINBOUWPROJECTEN BV, LOGIQS B.V., MSc on smArt Agriculture TECHnologies, Nutrifresh Farm Tech India Pvt. Ltd., Rise Hydroponics TM, Thanet Earth Ltd., Valoya Oy, and Village Farms International Inc.

Market Analyst Overview

The hydroponics technologies market is witnessing rapid growth, driven by factors such as the increasing demand for fresh fruits and exotic vegetables in both urban and rural areas. With arable land becoming scarcer and an explosive population increase, open field production alone cannot meet the demand. Hydroponic methods, including hydroponic crops and hydroponic tomato imports, offer a solution by enabling efficient cultivation without soil. This market is characterized by innovation and advancements in farming methods and hydroponic technology, leading to greater efficiency and automation. Additionally, the integration of aquaponics and other hydroponic systems reflects emerging technological trends. As a result, the hydroponic system market and hydroponics systems market are experiencing significant expansion, fueled by the increasing adoption of hydroponic systems worldwide.

Hydroponics technologies are revolutionizing modern agriculture by offering sustainable solutions to traditional farming challenges. With advancements in hydroponic equipment and techniques, urban farming is becoming increasingly popular, providing fresh produce directly to urban centers. Utilizing various spaces such as rooftops, warehouses, and shipping containers, hydroponics enables year-round harvesting, overcoming limitations posed by land shortage and climate change. Consumers' growing demand for local and organic produce, coupled with health consciousness, drives the adoption of hydroponics, minimizing the use of pesticides and herbicides. Despite market challenges such as high initial investment and expertise requirements, hydroponics presents vast opportunities for year-round production and high-value organic crops. As technological innovations like LED grow lights enhance energy efficiency and optimize lighting conditions, hydroponics continues to expand its application sectors, offering sustainable solutions for modern agriculture.

Hydroponics farming has emerged as a sustainable solution to address global food challenges, offering a higher yield compared to traditional open-field production. With innovative hydroponic production techniques, it ensure optimal nutrition for diverse crops, influencing the dietary patterns of the global population. Particularly beneficial for landless urban and rural communities, it fosters self-sufficiency and serves as a vital food security solution. According to a USDA/ERS report, hydroponic methods contribute significantly to the production of diverse crops, ranging from hydroponic tomatoes to various leafy vegetables and microgreens. This approach not only supports sustainability but also caters to the increasing demand for fresh and nutritious produce, aligning with the dietary preferences of a growing and health-conscious consumer base.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 - 2027.   

• Technology Outlook
  • Environment and climate control systems
  • Grow lights
  • Farm management systems
  • Material handling systems
• Type Outlook
  • Aggregate system
  • Liquid system
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Industry  Scope
Report Coverage	Details
Page number	162
Base year	2022
Historic period	2017 - 2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.4%
Market growth 2023-2027	USD 558.97 million
Market structure	USD Fragmented
YoY growth 2022-2023(%)	12.4
Regional analysis	Europe, APAC, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 34%
Key countries	US, Canada, Japan, China, and The Netherlands
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AmHydro, Argus Control Systems Ltd., Brio Agri Producer Co. Ltd., Cox Enterprises Inc., Fork Farms, Greentech Organic Hydroponics Systems Mfrs., GrowLife Inc, Hawthorne Gardening Co., Heliospectra AB, Hortisystems UK Ltd., Hydrodynamics International Inc., Koninklijke Philips NV, KUBO TUINBOUWPROJECTEN BV, LOGIQS B.V., MSc on smArt Agriculture TECHnologies, Nutrifresh Farm Tech India Pvt. Ltd., Rise Hydroponics TM, Thanet Earth Ltd., Valoya Oy, and Village Farms International Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market industry across Europe, APAC, North America, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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