Aquaponic and Hydroponic Systems and Equipment Market

Market Overview

The global aquaponic and hydroponic systems and equipment market size was valued at USD 1.57 billion in 2022. It is estimated to reach USD 5.35 billion by 2031, growing at a CAGR of 14.60% during the forecast period (2023–2031).

Recently, a high emphasis has been laid on the adverse effects of conventional agriculture on the environment. With the excessive agricultural activities over the land, land fertility globally has declined. To meet the growing global food demand with the increasing population, alternative and safer ways of growing crops that utilize less space and are more reliable and environmentally friendly have been worked upon. Due to this, both large-scale commercial productions and small-scale growers have seen a significant increase in alternative production systems. In addition, some leading alternative farming systems are aeroponics, monoculture, tissue culture, aquaponic, hydroponic, bio-dynamic farming, permaculture, and polyculture. Globally, aquaponic and hydroponic systems are setting the standard for alternative farming because they offer growers a wide range of essential advantages for growing plants while minimizing potentially hazardous environmental effects.

Hydroponics is the cultivation of plants without the use of soil. In the hydroponic growing system, the nutrient-rich aquatic solution is flushed through the plant root to provide the plant with the necessary resources for optimal growth. Using a hydroponic planting system has many advantages: it consumes fewer resources, does not require arable land, and the quality of harvestable plants is higher than that of conventional planting methods. Aquaponics is another innovative system to grow plants without soil. However, it is slightly different from hydroponics. Hydroponics and aquaculture are combined to create aquaponics. The aquatic solution gives plants the essential nutrients they require for growth directly to the roots, where they can absorb nutrients efficiently rather than from the soil.

Highlights

• Vegetable segment dominates the application segment
• Heating, ventilation, and air conditioning (HVAC) segment dominates the equipment segment
• Nutrient-Film Technique segment dominates the technique segment
• Europe is the highest shareholder in the global market

Market Dynamics

Global Aquaponic and Hydroponic Systems and Equipment Market Drivers:

Higher Yield Compared to Conventional Farming

One of the main factors driving the expansion in adopting the aquaponic and hydroponic systems and equipment market is the higher yield of the technology. Aquaponic and hydroponic food production systems help increase the field's production and efficiency. Compared to conventional farming techniques, aquaponic systems require 10% of the land and 5% of the water for vegetable and fruit production and fish farming. These systems offer temperature, heat, and water control features. Thus, food and crop production is carried out in a greenhouse or a temperature-controlled enclosure.

Hydroponic systems offer a 25% higher yield when compared to conventional farming techniques, which account for more than five times the traditional farming produce. With increased awareness of the benefits of aquaponic and hydroponic systems, growers realize the higher yield of these systems. Therefore, the high yield available with aquaponic and hydroponic systems is one of the primary drivers for the growth of the systems in the global market.

Year-Round Food Production

The primary concern with conventional agricultural food production is the dependability of soil, climate, and land conditions. In conventional systems, these conditions must be ideal for growing the crop. Some of these conditions are out of human control, such as climate, which causes irregularities in production. This causes less food production than a farm'sfarm's capacity and adds to the concern of food security.

Food may be produced all year round with hydroponic and aquaponic systems. In these systems, dependability on natural conditions such as soil, water, climate, etc., is vanished. Thus, with aquaponic and hydroponic systems, year-round food production can be achieved, which will not only disappear the dependence on climatic conditions but also increase the country's production. Therefore, aquaponic and hydroponic systems are much more reliable food production systems when compared to conventional food production systems, thereby propelling market growth.

Global Aquaponic and Hydroponic Systems and Equipment Market Restraint:

High Cost of Operation

The primary reason for the slow and limited adoption of global aquaponic and hydroponic systems is the high operation cost and initial investment. Initially, to set up a commercial aquaponic farm, increased investment is required, which can be troublesome, especially for small and medium-scale growers. As a result, the development of the market is influenced by the price of adopting the technology, the expertise required to use it, and the cost of routine maintenance. Countries with less technological awareness and knowledge might invest little in these systems. Thus, the high initial cost of setting up an aquaponic and hydroponic system is considered a significant challenge in growing aquaponic systems globally.

Global Aquaponic and Hydroponic Systems and Equipment Market Opportunities:

Increasing Cultivation of Medicinal Plants

Plants with medicinal properties are a precious commodity. The desire for a wider variety of spices and the extinction of some species are consequences of unchecked human development and the excessive harvesting of medicinal plants from unmanaged natural resources. To fulfill the developing demand for these plants, it becomes critical to moderate them by domestication and cultivation or other ex-situ and in situ conservation measures for their maintainable use.

Medicinal plants are increasingly cultivated commercially to meet their demand for natural remedies. These plants usually prefer to be grown away from their native climatic zones due to emergencies. The hydroponic and aquaponic techniques are essential for medicinal plants because crops are grown in a well-managed cultivation system, regardless of season and temperature. Also, the system remains free from external environmental factors, such as diseases and pests, since it is fully closed and climate controlled. Thus, medicinal plant cultivation can provide a good opportunity for market expansion.

Regional Analysis

Based on region, the global aquaponic and hydroponic systems and equipment market is bifurcated into North America, Europe, China, the U.K., the Middle East and Africa, Asia-Pacific, and Rest-of-the-World.

Europe Dominates the Global Market

Europe is the most significant global aquaponic and hydroponic systems and equipment market shareholder and is estimated to exhibit a CAGR of 13.40% during the forecast period. The European countries generate considerable revenue in the aquaponic and hydroponic systems and equipment market. Aquaponic and hydroponic techniques help support the agriculture industry as they are both integral to indoor and vertical farming, which is gaining immense popularity in the region. One of the main drivers for the growth of the aquaponics market in the region is the increasing concern for food safety and security among the people. This increases the need in the area for innovative farming strategies. This drives the growth of the region's aquaponic and hydroponic systems and equipment market. Moreover, European initiatives such as "green crop protection" have helped manufacturers invest in product innovation and provide eco-friendly solutions for applications in the agricultural industry.

North America is anticipated to exhibit a CAGR of 16.10% over the forecast period. The high growth in the North American region for the aquaponic and hydroponic industry is attributed to the increased emphasis on alternative farming techniques and good technological development. Aquaponics and hydroponics serve as ideal solutions to the region's demand for food due to their ability to provide high-quality, nutritious, fresh crops close to urban centers wherein highly perishable items are sent to the market quickly. In addition, the North American region is estimated to grow significantly due to many leading companies operating in the region, such as Nelson & Pade Aquaponics, Backyard Aquaponics, and Aquaponics USA. The presence of research institutes in the North American region working on developing alternative farming techniques is also a significant factor in helping the development of the region's aquaponic and hydroponic systems and equipment market.

In Asia-Pacific, the countries such as India have the highest populations globally, which creates a higher food demand in these regions. This is expected to drive the Asia-Pacific region's aquaponic and hydroponic systems and equipment market. The aquaponic and hydroponic market in the Asia-Pacific region is enormous, considering countries' dependence on agriculture. In addition, agriculture is a primary occupation for a large population in the countries located in this region. These countries have adopted modern farming techniques in the face of rapid urbanization and an increased number of abandoned farms. The agricultural sector in the area is an essential contributor to the overall GDP of the region, recording extraordinary growth in the years 2008-2019.

In the Middle East and Africa, most of the population lives in rural areas. Most people in this region rely on agriculture-related activities for their livelihood. Long, dry summers and mild, rainy winters are the hallmarks of a Mediterranean climate in more tropical areas. The countries in this region depend on agriculture and focus more on developing this industry, further assisting in improving the yield and generating more revenue. With recent technological advancements in the region, the market is estimated to grow in the future, especially in Israel, Saudi Arabia, and South Africa.

Segmental Analysis

The global aquaponic and hydroponic systems and equipment market is bifurcated into application, equipment, and technique.

Based on application, the global market is bifurcated into vegetables, fruits, herbs, fish, and others.

The vegetable segment dominates the global market and is projected to exhibit a CAGR of 15.09% over the forecast period. Aquaponic and hydroponic techniques are primarily used for the cultivation of vegetables. Through aquaponic and hydroponic growing systems, fish and vegetables are grown together. The vegetables and the fish both reap the benefits from each other through the aquaponic system. This circulating water contains fish excrement, which is rich in beneficial bacteria and nutrients and can provide nutrients to plants without fertilizers. In addition, the waste excreted by fish serves as a natural source of organic nutrients, and helpful microorganisms turn the waste into a source of nutrients that plants can use. Plants also naturally filter the water, giving fish and microbes a clean environment. Therefore, the need for pesticides and fertilizers is not present in aquaponics.

Herb cultivation through aquaponic and hydroponic techniques has been increasing. Herbs are grown aquaponic and offer better aroma and flavor than those produced through conventional farming systems. As per the study done by the University of Minnesota, it is a fact that herbs grown with the help of aquaponic and hydroponic systems have more than 30% more aromatic oils than those produced with the help of conventional farming.

Based on equipment, the global market is bifurcated into LED grow lights, heating, ventilation, and air conditioning (HVAC), irrigation system, water heaters, aeration system, and others.

The heating, ventilation, and air conditioning (HVAC) segment owns the highest market share and is predicted to grow at a CAGR of 12.97% over the forecast period. The process of aquaponic and hydroponic food production requires constant monitoring and control over food production. This includes maintaining an adequate temperature and heat in the system. Heating, ventilation, and air conditioning are the primary technologies used to maintain temperature and heat in an aquaponic system. These systems are designed to consider internal and external environment fluctuations across the region where aquaponic and hydroponic systems must be set up.

In any agricultural production, water plays a significant role in crop production. Water provides nourishment to the crop and helps in crop production. The irrigation system is integrated within the substrates to provide a nutrient solution directly to the plant's roots in hydroponics and aquaponics. With the usage of the irrigation system, the rigorous farming method is capable of functioning using only 5% of water and 25% of fertilizers and pesticides.

Based on technique, the global market is divided into nutrient-film technique, deep-water culture, ebb and flow system, media-filled grow bed systems, and others.

The nutrient-film technique segment is the most significant contributor to the market and is anticipated to exhibit a CAGR of 15.95% over the forecast period. The nutrient-film technique is a hydroponic growing technique that all aquaponic and hydroponic growers mostly use because of its adaptability to some harsh environments, such as regions with low arable land and poor climatic conditions. The technique is preferred because it is simple and works well with many common garden plants, including lettuce and herbs. In this technique, shallow streams of nutrient-rich water flow through horizontal pipes. The plants are planted in the holes at the top of the pipes and can take advantage of this nutrient-rich film of water.

A deep-water culture system is another aquaponic and hydroponic farming technique often used for large-scale production. The deep-water culture technique is a low-maintenance setup and is ideal for fast-growth plants like lettuce and leafy greens and can be scaled to almost any size easily. Like other aquaponic and hydroponic growing techniques, the deep-water culture technique also required constant monitoring to ensure the health of the fish, bacteria, and plants.

Recent Developments

• June 2022- GrowGeneration Corp., the nation's largest chain of specialty hydroponic and organic garden centers, announced the opening of a new hydroponic garden center to serve the growing Mississippi market.

• February 2023- Springworks Farm, an aquaponic greenhouse company based in Lisbon, Maine, received USD 22 million in new funding to fuel its regional expansion. According to a press release, the funds will be used to construct Springworks' fourth and largest greenhouse, adding 120,000 square feet of production space.