Aquaponics Systems Market

Market Overview

The global aquaponics systems market size was valued at USD 1.12 billion in 2023. It is estimated to reach USD 2.80 billion by 2032, growing at a CAGR of 10.72% during the forecast period (2024–2032).  In recent years, the world has witnessed a flourishing rise in the population, which has ultimately increased the demand for food and the number of people to be fed. Aquaponics can help fulfill this demand, driving the global market. Moreover, aquaponics also gives better food yield than conventional agricultural methods, which is estimated to boost the growth of the global market.

Highlights

• Media-filled bed systems dominate the type segment
• Fish dominates the cultivation segment
• Commercial food production dominates the application segment
• North America is the highest shareholder in the global market

Aquaponics is a sustainable farming technique that combines aquaculture (raising aquatic animals like fish) and hydroponics (growing plants in water) in a symbiotic atmosphere. Fish waste generates ammonia, converted by beneficial bacteria into nitrates, serving as nutrient-rich water for plants. In hydroponic beds, plants absorb these nutrients, filtering and purifying the water before it returns to the fish tank.

This closed-loop cycle fosters sustainable food production, utilizing minimal water and no external fertilizers or pesticides. Aquaponics systems can vary in scale, from small home setups to large commercial operations. They offer several advantages, including efficient water use (as it's recirculated within the system), minimal need for external fertilizers or pesticides, and the ability to grow fish and plants in the same system, providing a diverse and sustainable food source.

Market Dynamics

Global Market Drivers:

Growing Global Food Demand

According to the United Nations, the global human population surpassed 8.0 billion in mid-November 2022, up from an estimated 2.50 billion in 1950, with an increase of 1 billion people since 2010 and 2 billion since 1998. The global population is projected to expand by around 2.0 billion people over the next three decades, reaching 9.7 billion by 2050 from 8 billion. FAO forecasts indicate that to feed a global population of 9.71 billion in 2050, food production must increase by around 70-75% between 2005/07 and 2050.

Consequently, there is a growing demand for food globally, leading to added pressure on agricultural lands to produce significant food crops to sustain the rising population. It is imperative to switch to more adaptable, fertilizer-free alternative food production systems to counteract the increasing effects of climate change, such as droughts and floods. Aquaponics systems offer a superior alternative to conventional agricultural methods, which is anticipated to drive market demand in the future.

Higher Yield Compared to Conventional Farming

One of the main factors driving the expansion and adoption of the aquaponic systems market is the higher technology yield. Aquaponic 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. With increased awareness of aquaponic systems' benefits, growers realize these systems' higher yields. Therefore, the high yield available with aquaponic systems is one of the primary drivers for the growth of the systems in the global market.

Global Market Restraint:

High Initial Investment 

One significant restraint restricting the widespread adoption of aquaponics systems is the substantial initial investment required for setup. The cost encompasses infrastructure, technology, and specialized knowledge, posing a considerable barrier, especially for small-scale farmers and new entrants.

For instance, as per an article published by Ohio State University, the total cost to build an aquaponic system in 2018 was around USD 3,000, which rose to approximately USD 4,800 in 2022. This financial burden limits accessibility to the technology, particularly in regions with resource-constrained agricultural sectors. Moreover, the complexity of aquaponics systems may deter potential adopters who lack the expertise or resources to manage such operations effectively.

Global Market Opportunities:

Adoption in Emerging Nations

Emerging nations can drive the aquaponics system market through several strategies to leverage their unique resources, address local challenges, and capitalize on the growing global demand for sustainable agriculture practices. There has been a rise in the deployment of novel aquaponics projects in these nations. For instance, in September 2023, The Jordan Agricultural Engineers Association launched a project to set up an aquaponics farm in the Jordan Valley to enhance water efficiency and generate employment opportunities.

The Director of the Directorate of Agriculture in the Jordan Valley informed The Jordan Times that the Ministry of Agriculture signed an agreement with the association last week to allot ten dunums of land for the project. The UN Food and Agriculture Organization (FAO) is participating in the project by providing a USD 75,000 grant. Hammouri predicts the initiative will generate employment opportunities for more than 15 agricultural engineers and 20 more positions for individuals in different industries. Such factors are anticipated to create opportunities for aquaponics systems market expansion.

Regional Analysis

Based on region, the global aquaponics systems market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global aquaponics systems market shareholder and is expected to expand substantially during the forecast period. The high growth in the aquaponic system market in North America is due to the rising focus on alternative agricultural methods and technological advancements. The North American region is expected to grow substantially, driven by prominent companies, including Backyard Aquaponics, Nelson & Pade Aquaponics, and Aquaponics USA. Research institutes in North America focusing on developing alternative farming techniques are crucial in advancing the region's aquaponic systems market. Moreover, there has been a rise in educational programs, research institutions, and public outreach efforts that contribute to the increasing awareness and understanding of aquaponics among people. These initiatives provide training, technical assistance, and resources to support the development and expansion of the aquaponics industry.

For instance, in February 2024, the University of Arkansas at Pine Bluff is collaborating with local preK-12 schools in Pine Bluff and Fayetteville, Arkansas, to address food insecurity and food deserts, as stated by Dr. Karleah Harris, assistant professor in UAPB's Department of Human Sciences. The project specifically aims to educate children on cultivating fish, vegetables, and fruit indoors using aquaponic systems. At Watson Chapel Junior High School, students and teachers have gained practical experience using their aquaponics system to raise channel catfish and cultivate various fruits, vegetables, and herbs such as strawberries, mustard, turnip greens, and spearmint. Consequently, all these factors drive the regional market growth.

The Asia-Pacific aquaponics system market is experiencing robust expansion, propelled by rapid urbanization, changing dietary preferences, and government initiatives supporting smart agriculture. The region is home to a huge population base. As per the United Nations, Asia and the Pacific region house 60% of the global population, which amounts to over 4.3 billion individuals. The region is home to the world's two most populous countries, i.e., China, with a population of 1.4 billion, and India, with 1.25 billion people. Moreover, it is a predominant occupation for a significant portion of the population in the countries of this region. Agriculture is a vital sector for the region's economy, showing remarkable growth from 2008 to 2019. India is a major worldwide food producer, serving around 20% of the world's population. Such factors are anticipated to fuel the Asia-Pacific aquaponics systems market growth. This is expected to drive the global market in the Asia-Pacific region.

Segmental Analysis

The global market is segmented by type, cultivation, and application.

Based on type, the global aquaponics systems market is bifurcated into deep water culture systems, media-filled bed systems, and nutrient film techniques. 

The media-filled bed systems segment is estimated to be the largest contributor to the market. Media-filled bed systems in aquaponics utilize containers filled with porous media like gravel or clay pellets. Water from fish tanks, rich in nutrients, flows into these beds, nourishing plants while facilitating the bacterial breakdown of fish waste into plant-friendly compounds. The media offer ample surface area for beneficial bacteria, aiding in biofiltration. Plant roots anchor in the media, absorbing nutrients. The cycle continues as water circulates back to the fish tank, purified and enriched. Media-filled bed systems are a popular and effective method for growing plants in aquaponics, offering a sustainable and efficient way to produce fish and vegetables in a symbiotic environment.

Based on cultivation, the global aquaponics systems market is divided into fish, fruits, vegetables, and others. 

The fish segment owns the highest market share. Tilapia, carp, trout, perch, and catfish, among others, are some of the most commonly raised fishes in aquaculture. The choice of fish species in aquaponics influences the system's other circumstances. The rearing tank's size depends on the fish species, as certain types require more space for optimal growth and development. For instance, catfish can grow to weights of 45 to 50 pounds, requiring a tank of over 250 gallons.

In aquaponics, fish are raised at low stocking densities to maintain optimal water quality and promote the well-being of the fish by reducing stress. Moreover, certain aquaponics fish grow in cold water, whereas others only survive in warm water. The fish species should be strong enough to thrive indoors or outdoors. In order to generate its own stock, the species needs to be able to adapt and reproduce in a closed aquaponics tank.

Based on application, the global market is divided into hobby and home food production, commercial food production, education, research, and others. 

The commercial food production segment dominates the global market. Aquaponics farms are very productive, producing about 200,000 pounds of food per acre and utilizing at least 90% less water and land than traditional dry-land farms. Thus, this system is widely used for commercial food production. In a commercial aquaponics system, the setup is typically larger in scale and designed for the commercial production of both fish and plants. Large industrial facilities and small-scale operations are just two examples of these systems' wide range in size and complexity. They often utilize tanks or ponds for fish rearing and specialized grow beds or trays for plant cultivation.

Recent Developments

• July 2023- Nelson and Pade introduced new aquaponic system options to help individuals begin aquaponic farming.
• October 2023- The Italian aquaponic company, The Circle, secured €2.1 million to build new production facilities in Rome and Milan for sustainable food innovation.