Hydroponics Market Segmentation, Share To 2030

(MENAFN- Straits Research) Hydroponics is one of the most intensive crop production methods in agriculture. In the presence of nutrient solutions and a soil-less environment, the technology is used to grow plants (primarily using fertilizers and water). Hydroponics is one of the most widely used methods for growing crops without pesticides or other artificial ripening agents. The demand for hydroponic crops is expected to increase significantly in the upcoming years due to the ability to control soilborne pathogens, better manage nutrient availability in the system, and produce large crop yields in less time.
Market Dynamics
Rapidly Growing Attention to Food Security Drives the Global Market
As crops are lost due to pest infestations and natural disasters like droughts, floods, and pests infestations, the amount of arable land is also decreasing globally, and production costs are rising. As a result, commercial hydroponics systems are receiving significant financial investment worldwide. As a method of space-efficient food production that even those without access to land in urban and rural areas can use, hydroponics offers a workable solution for achieving food security. Due to growing concerns about environmental degradation brought on by greenhouse effects, hydroponic farming has become more significant. The need for hydroponic farming has also gradually increased as agricultural infrastructures have grown and advanced to meet the mushrooming demand for vegetables.
Increasing Investments Creates Tremendous Opportunities
Hydroponic farming is anticipated to change due to rising investments in cutting-edge farming technologies and innovation trends. Plants grown hydroponically are more robust and freer of pesticides. Pest infestations are uncommon because plants are raised in sterilized, controlled environments, producing products free of pesticides. 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. These factors are anticipated to create opportunities during the forecast period.
Regional Analysis
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 greenhouse tomatoes in the US drives the demand for hydroponic operations. Currently, the country is home to family-run or small-business hydroponic farms that cover an area between 1/8 and 1 acre. Rooftop hydroponic gardens in cities like New York encourage market expansion. Despite the weather and monsoon seasons, hydroponics ensures a steady supply when traditional vegetable suppliers typically experience supply interruptions. High-end cafes and restaurants have an excellent off-take and provide better margins because this sub-segment prefers high-quality vegetables and is willing to pay a premium. AmHydro, Aero Farm, and BrightFarms are some notable hydroponics businesses. Giant, Walmart, and Metro Market are just a few of the impressive partners for BrightFarms. Due to the high demand for hydroponically grown vegetables, producers are increasingly choosing hydroponic over conventional methods.
Europe is expected to grow at a CAGR of 8.20%, generating USD 2,723.23 million during the forecast period. A proliferating horticultural industry supports the rapid expansion of the Spanish market. Almeria has most of the greenhouse crop production space in Spain, with hydroponic farming accounting for 10% or more of that space. In Spain, tobacco, lettuce, cucumbers, watermelons, beans, squash, peppers, and other major crops are grown hydroponically. The production of greenhouses has increased in Spain thanks to the adoption of the best management practices and technology from the Netherlands and the United Kingdom, access to the EC market, a pleasant climate all year round, and lower labor costs. Spain's hydroponic production is constrained by initial infrastructure problems, nutrient solution shortages, and early nursery stock failures.
Hydroponically grown crops in Australia include lettuce, flowers, tomatoes, cucumbers, and strawberries. Produce grown hydroponically in Australia is exported to local markets in Malaysia, Singapore, Hong Kong, and Taiwan. In addition, 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.
Key Highlights

The global hydroponics market size was valued at USD 2.58 billion in 2021. It is expected to reach USD 13.61 billion by 2030, growing at a CAGR of 20.3% during the forecast period (2022–2030).
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.
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.
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.

Competitive Players
The global hydroponics market's major key players are Bright Farms, Freshbox Farms, Thanet Earth, Village Farms International Inc., Pegasus Agritech, Argus Control Systems Limited, Hortisystems UK Ltd, Kubo Tuinbouwprojecten BV, GreenTech Agro LLC, Heliospectra AB, American Hydroponics Inc., Lumigrow Inc., General Hydroponics Inc., Growlife, Terra Tech, Hydrodynamics International Inc., Valoya, and Koninklijke Philips NV.
Market News

In May 2022, The KUBO Group announced the acquisition of Peter Dekker Installations. Less than a year later, KUBO purchased the Codema Systems divisions responsible for Cultivation Systems and Software & Web Solutions.
In March 2022, A group of enthusiastic student research teams at the Federal Institute of Science & Technology (FISAT) developed an innovative farming solution for the hydroponics method of cultivation that works both for open fields and in small closed areas. It is a smart crop protection program with a low-cost and easy-to-use design.

Global Hydroponics Market: Segmentation
By Type

Aggregate Hydroponic System
Liquid Hydroponic System

By Crop Type

Tomato
Lettuce and Leafy Vegetables
Pepper
Cucumber
Microgreens
Other Crop Types

By Regions

North America
Europe
Asia-Pacific
South America
The Middle East and Africa

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