Hydroponics uses a soilless method to cultivate plants with access to mineral nutrient solutions in a water solvent. It enables precise farming environment control and potential to grow plants anywhere including urban areas. This technology is used for a variety of crops such as tomatoes, lettuce, peppers, cucumbers, and leafy greens. The rising demand for locally grown fresh produce and need for consistent crop yield has increased adoption of hydroponics farming.
The global hydroponics market is estimated to be valued at US$ 467.17 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing demand for controllable indoor farming environment as referred in the heading is one of the major driver of hydroponics market growth. Indoor hydroponic farms allow consistent production throughout the year regardless of weather conditions and reduce dependency on climatic conditions. Hydroponics enables precise control over essential farming parameters such as temperature, humidity, lighting, irrigation and pH level of nutrient solutions. This precision farming significantly improves crop yields and quality. Further, increasing urban population has increased demand for locally grown fresh produce which has increased adoption of indoor vertical hydroponic farms in urban areas. Though hydroponics requires initial capital investment, it reduces long term operational costs by using less water, space and plant nutrition compared to traditional farming. These benefits are expected to drive market growth over the forecast period.
Segment Analysis
The hydroponics market is dominated by the equipment segment which accounts for over 45% share of the overall market. With rising popularity of hydroponic gardening among both commercial farmers and home users, the demand for equipment such as growing systems (NFT, DWC, EBB & Flow), HVAC, control systems and material handling is increasing steadily. The growing systems sub-segment of equipment segment is witnessing the highest growth owing to increasing preference for nutrient film technique and deep water culture systems which offer hassle-free growth and maximum crop per square feet.
PEST Analysis
Political: Governments across various countries are increasingly promoting hydroponics farming through subsidies and training programs. This is being done to boost local production of fruits & vegetables and reduce dependence on imports.
Economic: Rising costs of conventional agricultural inputs coupled with shortage of arable land is driving commercial farmers to adopt hydroponics. The growth of organized retail has also augmented the demand for fresh and exotic hydroponically grown herbs, lettuce etc.
Social: Younger population is more aware about the benefits of locally grown chemical-free foods. This has boosted the demand for home growing kits and systems. Growing urbanization is prompting citizens to take up hydroponic gardening as a hobby.
Technological: Advancements in growing systems, climate control technologies, nutrient delivery solutions and use of artificial intelligence in hydroponics is enhancing yields while reducing costs. Technological interventions are making hydroponics farming more profitable and sustainable.
Key Takeaways
The Global Hydroponics Market Growth is expected to witness high over the forecast period, driven by the rising demand for nutrient-rich foods grown using sustainable farming practices.
The Asia Pacific region dominated more than 35% of the global market share in 2024 led by countries like China, Japan and India. China has emerged as the largest producer and exporter of hydroponically grown greens due to incentives offered by the government and increased exports.
Key players operating in the hydroponics market are Johnson Health Tech, ICON Health & Fitness, Technogym, Precor, Nautilus, Cybex, True Fitness, Amer Sports, Sole Fitness and Life Fitness. These players are investing heavily in new product innovations, partnerships, and product upgrades focusing on equipment efficiency and ease of use.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it