Hydroponics Market Outlook (2023 to 2033)

The global hydroponics market forecast is estimated to rise at a CAGR of 13.7% over the forecast period. 2023 the hydroponics industry share is expected to be valued at USD 12,644 million. The market is expected to surpass USD 45,623 million by 2033.

Demand Analysis in the Hydroponics Market

  • The demand for hydroponics is fueled by the growing trend of urban agriculture, enabling efficient cultivation in limited urban spaces.
  • Hydroponics facilitates year-round crop production, responding to consumer demands for consistent and diverse produce availability.
  • In regions facing water scarcity, the demand for hydroponics is driven by its water-efficient farming methods compared to traditional soil-based agriculture.
  • Integrating of technology, such as IoT sensors and automation, appeals to farmers seeking precision and control, driving demand for hydroponic systems.
  • Active hydroponic systems hold a notable market share, indicating a preference for technologically advanced setups among hydroponic farmers for optimal crop cultivation.
  • The growing awareness of food quality and safety drives demand for hydroponically grown produce, perceived as healthier and free from soil-borne contaminants.
  • Hydroponics allows vertical farming and other space-efficient cultivation methods, meeting the demand for agricultural solutions in densely populated areas.
  • Drip irrigation hydroponics is gaining traction as an efficient water delivery system, contributing to the overall sustainability and resource efficiency of hydroponic farming.
  • Consumers' increasing preference for sustainable and eco-friendly practices fuels the demand for hydroponics as it minimizes environmental impact compared to traditional farming.
  • Hydroponic nutrient sales are on the rise, reflecting a growing awareness among farmers about the importance of balanced and specialized nutrient solutions in maximizing crop yields.
Attributes Details
Hydroponics Market Value for 2023 USD 12,644 million
Hydroponics Market Value for 2033 USD 45,623 million
Hydroponics Market Forecast CAGR for 2023 to 2033 13.7%

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Historical Performance and Future Growth of Hydroponics Market

The hydroponics market size has exhibited impressive resilience and sustained growth from 2018 to 2022. This positive trend underscores its exceptional ability to adjust to changing consumer preferences and advancements in technology.

Moving forward, we expect this favorable momentum to continue, with a forecasted CAGR of 13.7% up to the year 2033. This projected growth rate aligns with the market's maturity and its ongoing responsiveness to evolving consumer needs. As the hydroponics market progresses, this rate reflects its enduring stability and potential for substantial expansion.

Short-term Analysis of Hydroponics Market from 2018 to 2022

The robust growth in the hydroponics market from 2018 to 2022 is driven by the industry's ability to address emerging challenges in traditional agriculture. The market's impressive CAGR of 11.5% signifies a rapid adoption of hydroponic techniques, attracting farmers and investors alike.

The hydroponic vegetable market is witnessing a surge in demand, driven by health-conscious consumers, and is expected to contribute significantly to the overall market growth. This period witnessed heightened awareness among growers regarding resource-efficient farming, with hydroponics providing an effective solution. The market's expansion from USD 7,227.3 million to USD 11,466 million underscores the increasing recognition of hydroponics as a viable and lucrative agricultural method.

Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

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Mid-term Analysis of Hydroponics Market from 2023 to 2028

The mid-term analysis anticipates sustained growth in the hydroponics market, reflecting a continuation of favorable factors. The estimated value of USD 2,644 million in 2023 is indicative of a market that retains its upward trajectory. Statistics for the hydroponics industry reveal a promising trajectory, with increasing investments and technological advancements shaping its future.

The projected growth to USD 1,789.2 million by 2028 suggests an increased acceptance of hydroponics as a mainstream agricultural practice. During this period, factors such as advancements in technology, increased investment, and a growing focus on sustainable farming practices contribute to the market's positive outlook.

Long-term Analysis of Hydroponics Market from 2028 to 2033

The long-term projection of the hydroponics market forecast to reach USD 45,623 million by 2033 emphasizes the industry's transformative potential. This substantial growth is underpinned by a paradigm shift in global agriculture, with hydroponics emerging as a cornerstone of future farming.

Factors contributing to this sustained growth include heightened environmental concerns, the need for food security, and advancements in hydroponic technology. As the market evolves, it is poised to play a pivotal role in ensuring efficient and sustainable food production on a global scale.

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Key Hydroponics Market Trends

  • Rapid Adoption of Vertical Farming: Hydroponics is increasingly integrated into vertical farming systems, optimizing space and enhancing crop yields.
  • Smart Hydroponic Systems: The industry witnesses a surge in smart hydroponic setups, incorporating IoT devices and sensors for precise monitoring and control.
  • Focus on Sustainable Practices: Hydroponic systems are aligning with sustainable agriculture, emphasizing reduced water usage and minimal environmental impact.
  • Nutrient Film Technique (NFT) Dominance: NFT systems gain prominence for their efficiency in delivering nutrients directly to plant roots, contributing to increased productivity.
  • Integration of AI in Crop Management: Artificial intelligence is leveraged for advanced crop management, predicting plant needs, and optimizing hydroponic conditions.
  • Emergence of Indoor Hydroponic Farms: The trend of establishing indoor hydroponic farms gains momentum, offering controlled environments for year-round crop production.
  • Hydroponic Cannabis Cultivation: The cannabis industry embraces hydroponics for precise control over growing conditions, influencing cannabinoid profiles and overall quality.
  • Hydroponics in Urban Agriculture: Urban farming projects increasingly adopt hydroponic techniques to address space constraints and meet the demands of city-dwellers.
  • Hydroponic Kits for Home Gardening: Consumer interest drives the availability of compact hydroponic kits, enabling enthusiasts to practice hydroponic gardening at home.
  • Blockchain for Traceability: Hydroponic farms explore blockchain technology to enhance traceability, providing consumers with transparent information about the produce's journey from cultivation to market.

Category-wise Insights

In this dedicated section, our FMI analysts conduct a thorough examination of the hydroponics sector. We intricately analyze pivotal segments, offering valuable insights into current consumer preferences and emerging market dynamics that will shape the industry's trajectory. In a landscape marked by significant growth and evolution, understanding the factors fueling demand for these segments is of paramount importance for industry participants and stakeholders alike.

Aggregate Systems Dominating the Hydroponics Market with a Share of 43.5% in 2023

Attributes Details
Top Product Type Aggregate System
Market Share in 2023 43.5%

With a commanding market share of 43.5% in 2023, Aggregate Systems emerge as the powerhouse in the market. This dominance can be attributed to their versatility and efficiency in managing nutrient solutions.

The adaptability of aggregate systems allows for better control over plant nutrition, driving their popularity among growers. This segment's unique selling proposition lies in its ability to provide a comprehensive solution, simplifying the hydroponic cultivation process and contributing significantly to its market share.

Rising Demand for Nutrient Management Makes the Nutrient Segment Maintain Dominance

Attributes Details
Top Input Type Nutrient
Market Share in 2023 56.5%

As of 2023, the nutrient segment claims a substantial market share of 56.5%, showcasing its pivotal role in hydroponics. This dominance stems from the critical function of nutrients in plant growth, and hydroponic systems relying on this input type gain favor among growers.

The nutrient segment's ascendancy is driven by its effectiveness in maximizing crop yields and optimizing plant health. The ease of nutrient management offered by this segment positions it as a key player in shaping the hydroponics market landscape during the forecast period.

Country-wise Insights

In this dedicated section, our team of FMI analysts delves into the intricate dynamics of the hydroponics market from a global standpoint. We embark on a meticulous examination of the market's multifaceted landscape, intricately dissecting the unique dynamics within individual countries. Through this comprehensive exploration, we unveil a spectrum of opportunities and evolving trends that are poised to shape the future trajectory of the global hydroponics industry.

Attributes Details
Value Share of the United States Market in 2023 27.6%
Value Share of the Germany Market in 2023 5.2%
Value Share of Japan Market in 2023 3.9%
Value Share of Australia Market in 2023 2.9%
Value Share of China Market in 2023 5.4%

Hydroponics Market in the United States Leading the Way in Sustainable Farming

In 2023, the United States spearheads hydroponic innovation with a substantial 27.6% market share. The United States hydroponics sector is marked by a convergence of advanced technologies, innovative farming practices, and a robust ecosystem for research and development.

American farmers leverage cutting-edge hydroponic solutions, such as vertical farming and aquaponics, to maximize crop yields sustainably. The United States commitment to sustainable agriculture and continuous technological advancements cements its leadership role, making it a trendsetter and significant influencer in the global hydroponics landscape.

Precision Agriculture is the Germany's Strategic Hydroponic Approach in 2023

Germany, holding a 5.2% market share in 2023, distinguishes itself through precision in hydroponic farming. German growers prioritize meticulous cultivation practices and embrace state-of-the-art greenhouse technologies.

The country's hydroponics landscape is characterized by an emphasis on resource efficiency, sustainable practices, and a high degree of automation. This focus on precision aligns with Germany's reputation for engineering excellence, positioning the nation as a key player shaping the future of hydroponics in Europe.

Urban Farming Innovations Driving Japan's Hydroponic Market Dynamics in 2023

Japan, with a 3.9% market share in 2023, navigates challenges related to limited arable land and a growing need for food security. Japanese hydroponics is marked by the adoption of compact urban farming solutions, leveraging space efficiently.

The country's hydroponics industry aligns with Japan's commitment to sustainable practices and technological innovation. As hydroponics gains prominence, it becomes an integral part of Japan's agricultural landscape, contributing to increased food production and environmental sustainability.

Hydroponics Industry Players Overcoming Arid Landscapes in Australia

Australia, claiming a 2.9% market share in 2023, thrives in hydroponics due to its unique environmental challenges. The arid climate and water scarcity concerns drive the adoption of hydroponic systems, offering a solution for efficient water usage and year-round cultivation.

Australian hydroponics is characterized by a strong emphasis on sustainable agriculture, aligning with the country's commitment to environmental stewardship. Hydroponics emerges as a strategic choice for Australian farmers seeking resilience in the face of climate variability and changing agricultural dynamics.

The Rise of Hydroponics in China's Agricultural Landscape

China, with a robust 5.4% market share in 2023, is on an upward trajectory in the hydroponics sector. The country's agricultural landscape is undergoing a profound transformation, marked by a shift towards high-tech farming practices.

Hydroponics, with its resource-efficient and technology-driven approach, seamlessly integrates into China's agenda for modernizing agriculture. The substantial market share reflects the widespread adoption of hydroponics by Chinese farmers, contributing significantly to the nation's food security and sustainable agricultural practices.

Key Players Shaping the Future Outlook of the Hydroponics Industry

In the dynamic hydroponics industry forecast, several key players are shaping the competitive landscape, each contributing to the sector's growth and innovation.

Market leaders such as Korber AG and Ocean Associate Co. Ltd. are at the forefront, driving innovation and setting industry benchmarks. With diverse product portfolios and a global presence, these giants play a pivotal role in shaping the direction of the hydroponics market.

Companies like Jori Group Co. Limited focus on specific segments within hydroponics, leveraging niche expertise to cater to unique market demands. Their agility allows them to capture specialized markets and adapt quickly to changing trends.

Beston (Henan) Machinery Co., Ltd. and A.Celli Group emerge as innovation hubs, constantly introducing novel technologies and solutions to enhance hydroponic farming efficiency. Their commitment to research and development ensures a continuous influx of new ideas into the industry.

Recognizing the collaborative nature of the hydroponics landscape, players engage in strategic partnerships. These collaborations extend across the value chain, fostering synergies between hydroponic system manufacturers, nutrient suppliers, and technology developers.

While entering the hydroponics market presents challenges due to the dominance of established players, it also offers opportunities for startups to bring fresh perspectives. New entrants can focus on innovative technologies, sustainable practices, and niche markets to carve their space in the competitive arena.

Recent Developments in the Hydroponics Industry

Acquisitions and partnerships

  • GrowGeneration acquired Hydroponics Depot, an online and retail hydroponics retailer, for USD 38.5 million in cash and stock in September 2022.
  • Netafim acquired HydroSource, a leading provider of hydroponic and aquaponic solutions, in July 2022.
  • Horticulture Lighting Group acquired Gavita, a leading manufacturer of high-pressure sodium (HPS) and metal halide (MH) grow lights, in June 2022.

New product launches

  • GrowGeneration launched its own line of hydroponic nutrients, pH adjusters, and other grow supplies in September 2022.
  • Netafim launched its new Hydroponics Toolkit, a complete solution for setting up and managing hydroponic systems, in August 2022.
  • Horticulture Lighting Group launched its new ParPro series of LED grow lights, which are designed to deliver optimal light levels for all stages of plant growth, in July 2022.

Funding

  • Plenty, a vertical farming company, raised USD 475 million in Series E funding in September 2022.
  • Bowery Farming, a vertical farming company, raised USD 200 million in Series C funding in August 2022.
  • FarmWise, a robotic farming company, raised USD 130 million in Series C funding in July 2022.

Other developments

  • The American Society for Horticultural Science (ASHS) launched a new division dedicated to hydroponics in January 2023.
  • The University of California, Davis opened a new USD 25 million hydroponics research facility in December 2022.
  • The National Science Foundation (NSF) awarded a USD 10 million grant to develop new hydroponic systems for growing food in space in November 2022.

Key Players

  • AeroFarms, LLC
  • Scotts Miracle Gro
  • AmHydro
  • Emerald Harvest
  • Argus Control Systems Limited
  • Hydroponic Systems International
  • Emirates Hydroponics Farms
  • Advanced Nutrients (Canada)
  • Freight Farms, Inc.
  • Vitalink (United Kingdom)
  • Green Sense Farms Holdings, Inc.
  • Heliospectra AB
  • LumiGrow, Inc.
  • Signify Holding B.V.
  • Hydrofarm LLC
  • Terra Tech Corp

Hydroponics Market Segmentation

By Product Type:

  • Aggregate Systems
  • Liquid Systems

By Equipment:

  • HVAC
  • Irrigation Systems
  • Control Systems
  • LED grow Lights
  • Material Handing
  • Others

By Input:

  • Nutrients
  • Rockwool

By Crop Type:

  • Tomato
  • Lettuce and Leafy Vegetables
  • Pepper
  • Cucumber
  • Microgreens
  • Herbs
  • Fruits
  • Others

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East and Africa

Frequently Asked Questions

How Big is the Hydroponics Market?

The hydroponics market is expected to be worth USD 12,644 million By 2023.

What is the Projected Size of the Market by 2033?

The global hydroponics market size is estimated to reach USD 45,623 million by 2033.

Which Key Trends Fuel the Demand for Hydroponics?

The rising demand for sustainable, locally sourced produce, driving innovations in controlled environment agriculture.

Which Product Type Dominates the Market In 2023?

The aggregate systems segment dominates the market in 2023.

Which Countries Hold Significant Market Shares In 2023?

The United States leads with 27.6% in the global hydroponics market.

Is Hydroponic Business Profitable?

The hydroponic business is proving profitable due to demand for sustainable, locally grown produce and the efficiency gains of controlled environment agriculture.

Table of Content
  • 1. Executive Summary
  • 2. Market Overview
  • 3. Market Background
  • 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
  • 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type
    • 5.1. Aggregate Systems
    • 5.2. Liquid Systems
  • 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Equipment
    • 6.1. HVAC
    • 6.2. Irrigation Systems
    • 6.3. Control Systems
    • 6.4. LED Grow Lights
    • 6.5. Material Handling
    • 6.6. Others
  • 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Input
    • 7.1. Nutrients
    • 7.2. Rockwool
  • 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Crop Type
    • 8.1. Tomato
    • 8.2. Lettuce and Leafy Vegetables
    • 8.3. Pepper
    • 8.4. Cucumber
    • 8.5. Microgreens
    • 8.6. Herbs
    • 8.7. Fruits
    • 8.8. Others
  • 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
    • 9.1. North America
    • 9.2. Latin America
    • 9.3. Western Europe
    • 9.4. Eastern Europe
    • 9.5. South Asia and Pacific
    • 9.6. East Asia
    • 9.7. Middle East and Africa
  • 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 17. Key Countries Market Analysis
  • 18. Market Structure Analysis
  • 19. Competition Analysis
    • 19.1. AeroFarms, LLC
    • 19.2. Scotts Miracle Gro
    • 19.3. AmHydro
    • 19.4. Emerald Harvest
    • 19.5. Argus Control Systems Limited
    • 19.6. Hydroponic Systems International
    • 19.7. Emirates Farms
    • 19.8. Advanced Nutrients (Canada)
    • 19.9. Freight Farms, Inc.
    • 19.10. Vitalink (Value (USD Million) & Volume (Units)ed Kingdom)
    • 19.11. Green Sense Farms Holdings, Inc.
    • 19.12. Heliospectra AB
    • 19.13. LumiGrow, Inc.
    • 19.14. Signify Holding B.V.
    • 19.15. Hydrofarm LLC
    • 19.16. Terra Tech Corp
  • 20. Assumptions & Acronyms Used
  • 21. Research Methodology
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