Hydroponics Market Size, Share & Trends Analysis Report By Type (Aggregate Hydroponic System, Liquid Hydroponic System, Ebb & flow systems, Drip systems, Wick systems, Deep water culture, Nutrient film technique (NFT), Aeroponics), By Crop Type (Tomato, Lettuce and Leafy Vegetables, Pepper, Cucumber, Microgreens, Herbs, Other Crop Types) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global hydroponics market size was valued at USD 4.43 billion in 2023. It is expected to reach USD 23.37 billion in 2032, growing at a CAGR of 20.3% over the forecast period (2024-32). Hydroponics offers a controlled environment agriculture (CEA) solution that enhances crop yields and enables year-round production. Growing concerns about food security, population growth, and climate change drive the adoption of hydroponic systems to produce fresh and nutritious food locally.

One of the most intensive crop production techniques in agriculture is hydroponics. The technology is used to grow plants (mainly fertilizers and water) in the presence of nutrient solutions and a soilless environment. Hydroponics has emerged as one of the most popular crop production technologies without pesticides or other artificial ripening agents. The market for hydroponic crops is expected to increase dramatically in the upcoming years due to the capacity to control soilborne infections, better manage nutrient availability in the system, and produce substantial crop yields in less time.

Market Dynamics

Global Hydroponics Market Drivers

Rapidly Increasing Focus on Food Security

The world's population is increasing exponentially, adding about 200,000 people daily to the global food demand. Globally, the amount of arable land is also decreasing, and production costs rise as crops are lost to pest infestations and natural disasters like droughts and floods, and pest infestations. As a result, much capital is being invested in commercial hydroponics systems worldwide. Hydroponics offers a practical solution for achieving food security as a space-efficient food-growing method that even landless urban and rural people can use. The importance of hydroponic farming has increased due to growing worries about environmental degradation brought on by greenhouse effects. Additionally, as agricultural infrastructures have developed and advanced, there has been a gradual increase in demand for hydroponic farming to meet the mushrooming demand for vegetables.

Eco-Friendly and Profitable Agriculture

Growing produce without pesticides or other crop protection chemicals is highly profitable because it requires less water, labor, and soil. The market for the hydroponics system is also strengthened by the rising demand for fruits and vegetables free of pesticides. The mechanical movement of plants is becoming more and more common. This expands the market for hydroponics by including unit tasks for transplanting, seeding, packaging, harvesting, and cleaning. Growing worries about food availability and security are predicted to create more creative opportunities for the industry to thrive. With the development and advancement of agricultural infrastructures, hydroponic farming has been gradually expanding to expand the production of vegetables and meet the mushrooming demand. Growing concerns about environmental degradation due to greenhouse effects increased the importance of hydroponic farming.

Global Hydroponics Market Restraints

Lower Ratio of Adoption

Despite hydroponic farming's potential, adoption has been slow. Slow market penetration is due to farmers' lack of hydroponics knowledge and adoption. Due to high costs, farmers and others find it challenging to use hydroponic farming. Using synthetic fertilizers and crop protection chemicals has hurt the hydroponics market. The current hydroponic crop model only considers high-value, quickly growing, low-impact, and quick-turnover crops, like lettuce and basil. Slow-growing grains and vegetables earn less in commercial hydroponics. Also, growing restrictions are one of the leading market restraints. Tomatoes, lettuce, and microgreens are popular crops. Some of the profitable crops include strawberries and dwarf basil, classic sweet basil, and Genovese basil. Due to the limited variety of hydroponic crops and farmers' and laborers' limited technical expertise, the market is expected to be constrained during the forecast period.

Global Hydroponics Market Opportunities

Increasing Investments

Growing investments in cutting-edge farming technologies and innovation trends are expected to change hydroponic farming. The market is growing because hydroponics uses 95% less water than traditional farming. This technology allows crops to be grown in multiple vertical and horizontal layers without soil, maximizing land use in cities. Additionally, manufacturers and researchers are attempting to increase the efficiency of hydroponics technology to improve the quality and quantity of the product in response to the growing popularity of hydroponics around the world. Many businesses invest extensively in R&D to acquire cutting-edge technology that increases production and conceives various cultivations. Strategic alliances with academic institutions and research labs promote the market for hydroponics' expansion.

Regional Analysis

By region, the global hydroponics market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant shareholder in the global hydroponics market and is expected to grow at a CAGR of 6.5% during the forecast period. The demand for hydroponic operations is driven by the demand for greenhouse tomatoes in the United States. The nation currently has family-run or small-business hydroponic farms that range in size from 1/8 to 1 acre. Urban environments like New York foster the market's expansion with rooftop hydroponic gardens. Despite the weather and monsoon seasons, hydroponics ensures a smooth supply when supply is typically interrupted for traditional vegetable suppliers. High-end cafes and restaurants offer an outstanding off-take and superior margins because this sub-segment wants high-quality veggies and is willing to pay a premium. Some significant companies involved in hydroponics are AmHydro, Aero Farm, and BrightFarms. Among the impressive list of partners for BrightFarms are Giant, Walmart, and Metro Market. Vegetables grown hydroponically are in high demand, so producers are increasingly choosing hydroponic production over conventional production.

Europe is expected to grow at a CAGR of 8.20%, generating USD 2,723.23 million during the forecast period. A quickly expanding horticultural industry supports the Spanish market's rapid expansion. Most Spanish greenhouse crop production space is in Almeria, with 10% or more of that space devoted to hydroponic farming. With less water and no land, Almeria has grown fruits and vegetables. Major crops grown hydroponically in Spain include lettuce, cucumbers, watermelons, beans, squash, peppers, and tomatoes. The production of greenhouses has expanded in Spain due to the adoption of the most acceptable management practices and technology from the Netherlands and the United Kingdom, as well as access to the EC market, a pleasant environment all year round, and cheaper labor costs. Initial infrastructure issues, nutrient solution shortages, and early nursery stock failures limited Spain's hydroponic production. However, by adopting the Dutch hydroponics industry as a model, the early difficulties were solved, which contributed to the development of the Spanish hydroponics industry in a reasonably short period of time.

Asia-Pacific is anticipated to grow steadily during the forecast period. Regarding hydroponic technology, Australia is regarded as one of the top nations. The nation is engaged in cultivating crops like tomatoes and cucumbers, but the market is dominated by lettuce. 90% of the lettuce consumed in the nation is grown hydroponically. Crops grown hydroponically in Australia primarily include lettuce, cut flowers, tomatoes, cucumbers, and strawberries. Produce grown hydroponically in Australia is exported to local markets in Malaysia, Singapore, Hong Kong, and Taiwan. The country's farmers use the standard wholesale and retail network to distribute their crops. The country's most significant sales are concentrated in the markets of Sydney and Melbourne. The arid climatic conditions in some Australian regions have helped the market growth because crops may be grown in a controlled environment to boost output and fulfill the demands of the nation's rising population. Due to the increased adoption of hydroponics systems to produce higher yields over the forecast period, the Australian hydroponics market is expected to expand.

Salanavo, Batavia (lettuce), Italian arugula, watercress, tomato, pepper, strawberry, and coriander are grown hydroponically in Brazil. Given the variety of pure or mixed media used in soilless culture, there is no ideal substrate. Due to international conferences, seminars, congresses, and symposiums, Brazil's soilless farming area is growing. Farmers use hydroponics to reduce their reliance on chemicals and their environmental impact. These factors have caused the switch from traditional to hydroponic farming.

The climate in South Africa is perfect for growing any vegetable. However, the country's market for fruits and vegetables is constrained by a lack of water for irrigation and significant crop losses due to soil diseases. These issues in the nation are resolved by hydroponics as a substitute. Hydroponics requires less water to grow crops because most water is recycled. The main crops grown in South Africa using hydroponic systems are tomatoes, cucumber, and lettuce. When crops are grown hydroponically, weeds and diseases spread by soil-borne pests are less likely to occur, ultimately improving the quality of the final product. The increased demand for high-quality goods was brought on by consumers' rising standard of living and higher disposable incomes. The hydroponics market in South Africa is anticipated to expand during the forecast period due to the rising demand for high-quality products and food security.

Segmental Analysis

The global hydroponics market is segmented by type and crop type.

Based on type, the global hydroponics market is bifurcated by the aggregate hydroponic system and liquid hydroponic system.

The aggregate hydroponic system segment is the highest contributor to the market and is expected to grow at a CAGR of 8.6% during the forecast period. The aggregate hydroponic system segment is subdivided into an open and closed system. Plants are transplanted into plastic troughs filled with inert supporting material in an aggregate open system, and drip irrigation is used to provide a nutrient solution. Aggregate and sand culture are examples of open systems because the nutrient solution is not recycled. The excess nutrient solution is typically recovered in open systems. But instead of going to the plants, the excess is either dumped in evaporation ponds or used for irrigation. Open systems are less sensitive to water salinity and the mediums used because the nutrient solutions are not recycled. Coconut coir, perlite, peat, vermiculite, Rockwool, sand, sawdust, and other materials are frequently used in open systems; Rockwool is the most popular type. Therefore, it is anticipated that during the forecast period, demand for the system will be driven by open cultivation's effects on productivity and the system's affordability for farmers.

Liquid hydroponic systems are closed systems in which the nutrient solution is reused, and the plant roots are exposed to it directly without any other growing medium. Except for the time of sowing, as in the case of vegetables where urethane sponges are used to raise seedlings, no solid substrate is used in liquid hydroponic systems. The plant's roots are periodically or continuously submerged in the nutrient solution. One of the most popular liquid hydroponic techniques is the nutrient film technique (NFT), in which nutrients are dissolved in water and taken up by the plants. Despite having a straightforward design, the N.F.T. system is widely utilized because it scales to various applications. The market is anticipated to expand during the forecast period due to increased investments businesses make in developing cutting-edge liquid hydroponics system techniques.

Based on crop type, the global hydroponics market is bifurcated into tomato, lettuce and leafy vegetables, pepper, cucumber, and microgreens.

The tomato segment owns the highest market share and is expected to grow at a CAGR of 7.7% during the forecast period. Tomato is one of the most common crops grown using a hydroponic system. Tomato propagation, germination, and production have all been successfully commercialized using hydroponic techniques. This system allows tomatoes to be raised in a controlled environment with a lower risk of disease, faster growth, and a higher fruit yield. Large and medium-sized growers account for most of the hydroponic tomato production. Future developments in the market for hydroponic tomatoes are expected to be influenced by several market factors, including technological advancement and regulatory frameworks. The most popular method for growing tomatoes hydroponically is Rockwool.

Many businesses that manufacture hydroponic equipment are finding a great investment opportunity due to the growing understanding of the advantages of leafy vegetables grown hydroponically. Every 35 days, hydroponically grown lettuce can be harvested, allowing for year-round production and quick turnover. Hydroponic lettuce has a short production time, is available all year long, and has consistent product qualities. The traditional field-grown lettuce that Americans consume is almost entirely domestically grown. Kale is one of many leafy vegetables that can be grown with much less effort than conventional techniques. However, this leafy vegetable comes in various tastes and dark hues. Tuscan kale is one of the varieties that is frequently grown. You can grow kale indoors. Other leafy vegetables widely grown hydroponically in addition to lettuce and kale include mustard greens, spinach, arugula, and chard.

Recent Developments

• June 2024 - The Rector of La Sapienza University of Rome and the Director-General of the FAO expand their collaboration and showcase a cutting-edge, environmentally friendly hydroponic garden. The launch of a hydroponic garden on the FAO terrace, the outcome of research into novel water-based growing methods, strengthened the research partnership between La Sapienza University of Rome and the Food and Agriculture Organization of the United Nations (FAO) in sustainable agriculture.
• May 2024 - A deal was signed by L S Industries, Bairsen, Solan, and Punjab Agricultural University (PAU), Ludhiana, for the commercialization of "Hybrid hydroponics technology with improved water and nutrient perforation and re-circulation system." The agreement was signed on behalf of their respective organizations by Mr. Sanju Laroia, senior vice-president (global operations), L S Industries Limited, and Ajmer Singh Dhatt, director of research, PAU.