Global Hydroponics Market Overview
The key driver impacting the hydroponics market is the higher yields offered by hydroponic farms with a lower need for land area and resources. The plants grown in hydroponic systems can attain 20%–25% higher yield with 2–5 times high productivity as compared to the conventional agriculture system. In addition, the rising population is increasing the demand for food across the world, thus driving the need for alternative farming technologies that give high yields in less time. The UN's Food and Agriculture Organization (FAO) report estimates the world population to reach 9.1 billion by the year 2050, and demand for food is expected to increase from between 25% to 70%. This will create massive demand for hydroponic farms to produce high-yield crops. Moreover, the rising adoption of hydroponics for cannabis production due to the legalization of marijuana in countries like South Africa, Canada, the Czech Republic, etc., contributes to the development of the hydroponics market in the coming years.
According to Value Market Research, the global Hydroponics market size was valued at about USD 1.75 billion in 2020 and is estimated to grow at a CAGR of around 22.5% during the forecast period 2021 to 2027.
The high demand for nutritionally superior food is likely to augment the market demand in the forecast period. It is due to the growing awareness among consumers regarding the ill effects of pesticides and artificial ripening agents on human health. However, high capital investment for large-scale farms may hamper the market in the long run. Also, the s Slow adoption in the developing economies is negatively impacting the market growth. On the other hand, the current industry trends, such as the advancements in nutrient film technique, and sensing technologies, and rising application of hydroponic systems in grocery stores and restaurants, are expected to offer several beneficial market opportunities to the key players.
The hydroponics market is vast, with many local and global players. The hydroponics market is extensive, with many international and regional players. The market leaders pursue diverse business strategies to enhance their market position, such as extending acquisitions, product portfolio, contracts, product upgrades, amalgamation to raise their market share globally. The key market players studied in the report AeroFarms, AmHydro, Argus Control Systems Ltd., Emirates Hydroponics Farms, Freight Farms, Green Sense Farms Holdings Inc., Heliospectra AB, LumiGrow, Signify Holding, Terra Tech Corp.
In this research report, the Hydroponics market is segmented by crops, type, and region.
Analysis by Crops:
By product, the report is categorized into tomatoes, lettuce, peppers, cucumbers, herbs, and others. The tomatoes segment dominates the product segment with over 30% share in 2020. It is because tomatoes are the largest hydroponically cultivated crop worldwide. Moreover, it has a faster cultivation rate and requires less amount of water than regular farmed tomatoes, contributes to the tomatoes segment growth in the forecast period.
Analysis by Type:
By Type, the report is categorized into aggregate systems and liquid systems. The aggregate systems segment dominates the type segment with over 55% share in 2020. It is due to the extensive popularity among all the indoor hydroponic farmers due to its ease of setup and inexpensiveness. Moreover, a high preference for the ebb and flow mode of aggregate systems as it is cost-effective to build contributes to the growth of the aggregate systems segment in the forecast period.
Analysis by Region:
In the regional outlook of the global hydroponics market, the Asia Pacific region dominates globally with a 35% market share in the forecast period. It is due to the vast adoption of hydroponics in emerging countries of the Asia Pacific, such as China, Australia, South Korea, and other such countries. Moreover, rising investments from key players and the growing number of farmers shifting to this hydroponic form of cultivation In India, and high government support regarding the adoption of hydroponics in China contribute to tremendous market growth across the Asia Pacific.
Market Segmentation covered in the Report:
- Aggregate Systems
- Liquid Systems
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
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