Hydroponics Industry Overview

The global hydroponics market was valued at USD 5.00 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 12.4% from 2024 to 2030. This robust growth is largely attributed to the expanding use of hydroponic systems for the indoor cultivation of vegetables. Additionally, the rapidly growing acceptance of alternative farming methods for cultivating cannabis is contributing to the market's expansion. The increasing legalization of marijuana in countries such as Canada, the Czech Republic, South Africa, and others is driving this trend. Moreover, there is rising awareness among consumers about the negative health effects of pesticides and artificial ripening agents used in conventional agriculture. Hydroponic farming eliminates the need for such chemicals, offering the benefit of producing nutritionally superior vegetables. The relatively low installation costs and operational simplicity of hydroponic systems are also expected to encourage broader adoption, further accelerating the market's growth throughout the forecast period.

Hydroponic agriculture is an innovative method of plant cultivation that eliminates the need for traditional soil. Instead, plants are grown with their roots submerged in a nutrient-rich mineral solution, which is carefully monitored to ensure optimal growth conditions. This technique reduces the risk of soil-borne diseases and pests, making it an attractive alternative to conventional farming. Additionally, hydroponically grown plants tend to have higher yields compared to those grown in soil, as growers can precisely control nutrient levels, ensuring the plants receive exactly what they need for maximum productivity. This ability to tailor the growing environment has made hydroponics a popular choice for both vegetable cultivation and high-value crops such as cannabis.

As the global population continues to rise, the demand for food is also increasing significantly. According to the Food and Agriculture Organization (FAO) of the United Nations, the world’s population is expected to reach 9.1 billion by 2050, which will require an increase in food production by 25% to 70%. This growing need for food is expected to drive the demand for alternative farming technologies that can produce high yields in shorter timeframes. In particular, regions such as Asia Pacific and Europe, where arable land and water resources are becoming increasingly scarce, are witnessing a shift toward the adoption of high-yield farming methods like hydroponics. This trend is expected to contribute significantly to the growth of the hydroponics market, as these regions seek to maximize food production while conserving valuable resources.

Gather more insights about the market drivers, restrains and growth of the Hydroponics Market

Regional Insights:

Asia Pacific Hydroponics Market:

• Asia Pacific dominated the hydroponics market, accounting for the largest revenue share of 35.6% in 2023.
• Significant adoption of hydroponics in countries like China, Australia, and South Korea contributed to the market leadership in the region.
• The market in China and India is anticipated to experience substantial growth due to the rise of urban hydroponic farms, addressing food production needs in cities with limited agricultural space.

North America Hydroponics Market:

• North America holds significant growth potential, driven by numerous companies in the region and increasing adoption of alternative farming techniques in urban areas.
• Prominent market players include AeroFarms (U.S.), AMHYDRO (U.S.), Argus Control Systems Limited (Canada), and LumiGrow (U.S.), helping fuel the market’s expansion.

Europe Hydroponics Market:

• Europe is expected to register the fastest compound annual growth rate (CAGR) of 13.6% from 2024 to 2030.
• Hydroponic systems provide an efficient and controlled solution for indoor cultivation, overcoming limitations of traditional farming.
• Developed economies such as France, Germany, Italy, Spain, and the Netherlands have the infrastructure and resources to support advanced agricultural technologies.
• The increasing adoption of genetically modified crop technologies is also enhancing the appeal of hydroponics, contributing to market growth in Europe.

Canada Hydroponics Market:

• The hydroponics market in Canada is expected to capture a significant revenue share within North America.
• Government initiatives and support programs designed to foster agricultural innovation and entrepreneurship are further driving the growth of the hydroponics industry in the country.

  U.K. Hydroponics Market:

• The hydroponics market in the U.K. is projected to hold a significant revenue share within Europe.
• Hydroponics has gained traction due to growing demand for sustainable agricultural practices and locally grown produce, aligning with the region’s green initiatives.

Germany Hydroponics Market:

• Germany's hydroponics market is expected to account for a notable revenue share in Europe.
• The steady growth is attributed to increasing consumer demand for locally grown, sustainable produce and technological advancements in agricultural practices.

France Hydroponics Market:

• France’s hydroponics market is projected to hold a significant revenue share in Europe.
• The industry includes a range of applications, from large-scale commercial farms to smaller urban and vertical farms, offering benefits like higher crop yields, efficient water usage, and the ability to grow in limited urban spaces.

China Hydroponics Market:

• China’s hydroponics market is expected to hold a significant share in the Asia Pacific region.
• Adoption of hydroponics has surged due to factors such as urbanization, rising demand for high-quality produce, and the need for sustainable farming practices.

  India Hydroponics Market:

• The hydroponics market in India is anticipated to hold a substantial share in the Asia Pacific market.
• As India modernizes its agriculture sector to address food security and environmental sustainability, hydroponics is expected to play a growing role in food production.

Malaysia Hydroponics Market:

• Malaysia’s hydroponics market is projected to hold a significant share in Asia Pacific, driven by government support and investments in agricultural technology and innovation.

Japan Hydroponics Market:

• Japan's hydroponics market is expected to hold a significant share in Asia Pacific.
• The country’s focus on sustainability and agricultural innovation, along with government support for urban farming and research, is expected to further drive the expansion of the hydroponics sector.

South Africa Hydroponics Market:

• South Africa's hydroponics market is expected to capture a significant share in the Middle East & Africa region.
• Hydroponics offers advantages such as higher crop yields, efficient water usage, and the ability to produce year-round, addressing the challenges posed by seasonal farming variations.

Middle East & Africa Hydroponics Market:

• The hydroponics market in the Middle East & Africa is anticipated to see notable growth, with small-scale farmers and entrepreneurs increasingly turning to hydroponic farming.
• This method offers opportunities for food security, income generation, and job creation, further fueling the growth of the hydroponics industry in the region.

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• The global farming as a service market size was valued at USD 4.09 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 15.0% from 2024 to 2030.
• The global mobile application market size was valued at USD 252.89 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 14.3% from 2024 to 2030.

Key Hydroponics Company Insights

The market participants are focusing on several strategies to gain a higher market share. Mergers, acquisitions, partnerships, and other contractual agreements are being announced by them to emerge as the top hydroponics company.

Some prominent players in the market include AeroFarms, AmHydro, Argus Control Systems Limited, BrightFarms., Heliospectra and UrbanKisaan, among others.

• AeroFarms is a company  that is engaged in providing sustainable indoor agriculture solutions. AeroFarms' hydroponic systems use a patented cloth medium as a substitute for soil, providing optimal support for plant roots while enabling precise nutrient delivery. The company leverages advanced technologies, including data analytics and machine learning, to monitor and control the growing conditions. This ensures that plants receive the exact nutrients they need, resulting in efficient resource use and high-quality crop yields.
• AmHydro is a company specializing in hydroponic systems for agricultural cultivation. The company offers complete hydroponic growing systems, including nutrient delivery systems, growing channels, and other essential components. AmHydro's systems are designed to optimize plant growth by providing precise control over environmental factors such as nutrient levels, pH, and oxygenation. This allows for efficient resource use and can result in higher yields compared to traditional soil-based farming.
• Freight Farms and Urban Crop Solutions are some of the emerging market participants in the target market.
• Freight Farms is a hydroponic solution provider. The company, through its innovative Leafy Green Machine, offers customers hydroponics solutions. The Leafy Green Machine is a shipping container converted into a hydroponic farm, allowing for year-round cultivation.
• Urban Crop Solutions company offers end-to-end hydroponic Indoor vertical farming solutions. The company offers solutions for indoor farming, including hydroponics and vertical farming systems, with a focus on smart and automated technologies.

Key Hydroponics Companies:

The following are the leading companies in the hydroponics market. These companies collectively hold the largest market share and dictate industry trends. Financials, strategy maps & products of these hydroponics companies are analyzed to map the supply network.

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

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