Hydroponics Market: Asia Pacific Dominated With A Revenue Share
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.
Based on type, the market is categorized into aggregate systems and liquid systems. The aggregate systems segment is projected to continue holding the largest market share over the forecast period. The liquid systems segment is expected to expand at a high CAGR over the forecast period. Aggregate hydroponics farming encompassed multiple technologies, namely, drip, wick, and ebb and flow. Herein, the plants are grown with the presence of a medium such as rock wool, perlite, and others. It is essential for the farmers to choose the right kind of media for certain crops, as they vary in terms of pH and thickness, which may hinder the smooth growth of roots. However, the liquid systems eliminate the use of such as media and provide the nutrients directly to the roots, reducing the time required for yield. Hence, the adoption of liquid systems, such as deep-water culture and Nutrient Film Technique (NFT) is expected to witness significant growth over the forecast period.
The primary crops cultivated through the hydroponics method are tomatoes, lettuce, cucumber, and herbs. The majority of indoor farmers use hydroponic systems to grow tomatoes. As a result, the tomatoes segment dominates the entire market in 2020 and is estimated to continue its dominance over the forecast period. Europe held the largest share of the hydroponically grown tomatoes market in 2020 owing to the high cultivation rate in the Netherlands and Italy. Rising demand for organically grown, pesticide-free, and highly nutritious vegetables is expected to drive the adoption of hydroponics for the cultivation of lettuce and other leafy vegetables along with other indoor farming techniques. Among all the leafy vegetables, green leaf lettuce is increasingly gaining popularity among the growers owing to its high consumption rate and worldwide demand. However, owing to the changing and favorable regulations about the growth of legalized marijuana, cannabis farmers across the globe are increasingly adopting the hydroponic farming method.
Asia Pacific held the largest market share in 2020, as countries such as China, South Korea, and Japan are finding lucrative opportunities in hydroponics farming to cater to the rising food demand. However, Europe is expected to register the fastest CAGR over the forecast period owing to the favorable government scenario regarding the development and adoption of alternative farming technologies.
Hydroponics Market Segmentation
Grand View Research has segmented the global hydroponics market based on type, crops, and region:
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.
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.
- 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.
Hydroponics Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
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.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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