Hydroponics Market by Type (Aggregate System, Non-aggregate System), Equipment (HVAC System, LED Grow Lights, Irrigation System, Control System, Material Handling), Input (Nutrients, Growth Media), Crop Type (Vegetables, Fruits)—Global Forecast to 2030

The Hydroponics Market is expected to reach $35.4 billion by 2030, at a CAGR of 15.6% during the forecast period of 2024–2030.

The growth of this market is mainly driven by the growing population and reduction in arable land, changing climatic conditions and erratic weather patterns, rising need to increase agricultural productivity, increase in demand for fresh food products among the urban population, and growing demand for chemical-free fruits and vegetables. In addition, the rising adoption of hydroponics farming for cannabis cultivation further supports the growth of this market.

Moreover, technological advancement in the hydroponics sector and increasing adoption of urban farming using vertical hydroponics systems are expected to provide significant growth opportunities to the stakeholders operating in this market. However, the critical management requirement, lack of knowledge and expertise in developing countries, and high capital investment for large-scale farms are some factors that hinder the growth of the hydroponics market to some extent.

The Impact of COVID-19 on the Hydroponics Market

The COVID-19 outbreak caused by the SARS-CoV-2 virus created a severe public health emergency globally, spreading quickly in more than 150 countries. Numerous countries worldwide declared emergencies and announced complete nationwide, statewide, or citywide lockdowns to combat & control the spread of this disease, halting all travel, transport, manufacturing, educational institutions, and non-essential trade, significantly impacting many industries globally.

In the agriculture sector, the hydroponics market registered a strong slowdown in sales during the first quarter of 2020 due to disrupted logistics and transportation. The hydroponics market has also witnessed interruptions in the complete value chain, from input materials supply to production, packaging, and distribution of the produce. The effects of the COVID-19 outbreak on the hydroponics market were noticed in early 2020 in Europe and Noth America, one of the world's largest producers and consumers of hydroponics.

Furthermore, the agriculture industry faced many challenges during the initial phases of the spread of the pandemic; there was a huge work shortage on the farm, and a few farmers missed their window of opportunity for harvesting seasonal crops. The decline in prices of agricultural produce and disruption in logistics also added to the challenges.  

After the initial phase of the outbreak of the COVID-19 pandemic, people started to avoid outdoor food, with food safety and health becoming key to focus. This resulted in a positive impact on the hydroponics industry since mid-2020. People around the world have shown an inclination towards self-made meals. As the demand for indoor food increased, the urban hydroponic farming systems sector experienced a sharp increase worldwide. Further, the COVID-19 pandemic also prompted some countries to use hydroponics to deal with disruptions in the global supply chain. For instance, countries like Netherlands and Singapore, which have limited agricultural land and majorly rely on imports to meet the food demand, have focused on investing billions after the pandemic to build industrial hydroponics farms. Thus, after the initial phase of the outbreak of COVID-19, the global hydroponics market has experienced rapid growth and is expected to remain the same in the forthcoming years.

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Changing Climatic Conditions Fuel the Growth of the Global Hydroponics Market

Day-by-day changing earth’s energy balance leads to changes in the global climatic conditions. The current climate conditions bring new stresses to agricultural production and prevent sustainable vegetation production in many areas. As a result, demand for alternative agricultural practices that will be sustainable in the long term, such as hydroponics farming, is increasing throughout the globe. Moreover, strains on the environment from food production have caused declines in biodiversity, soil carbon, and air quality. Issues such as soil erosion, high groundwater salinization from fertilizer/pesticides, and decreased water availability further increase global demand for sustainable agricultural production practices.

Furthermore, climate change challenges food security with its influence on food production, costs, and security. Excessive heat or shortage of water impedes crop growth, reduces yields, and influences irrigation, soil quality, and the ecosystem on which agriculture depends. Nowadays, around 32–39% of global crop yield is sensitive to extreme climatic conditions, which leads to fluctuations of 2–22 million tonnes of production of the crops such as maize, rice, wheat, and soybean. Agriculture and livestock also contribute about 11% of global greenhouse gas emissions. In addition, by 2050, the world will need to increase food production by about 70% to meet the caloric needs of a population of 9.8 billion. Thus, it has become essential to increase agricultural productivity to maintain this food demand-supply gap. The amount of resources used by traditional agriculture is astronomical. With most crop production already pushed to its ceiling both genetically and chemically (a significant increase in fertilizer or pesticide use will not sufficiently increase yields), intensification and the expansion of land used for food production have been seen as the only viable options to meet these growing food demands.

However, hydroponic farming has strong potential to mitigate the threats these issues pose to the current agricultural system. Growing crops in near-optimal conditions using controlled environment agriculture (CEA) technology is one of the biggest benefits of hydroponic farming. Crops grown hydroponically can be grown anywhere on earth at any time of the year, regardless of weather conditions, availability of cultivable land, or soil quality. Hydroponic farming has the potential to provide fresh, local food for areas with extreme droughts and low soil quality, such as in sub-Saharan Africa, where access to leafy green vegetables is often limited. Thus, all these factors are expected to drive the demand for alternative sustainable crop production systems across the globe, such as hydroponics systems.

In addition, hydroponics farming allows a plant to grow 50% faster than the conventional method. It eliminates the need for pesticides and herbicides. In hydroponic gardening, recycled and reused water reduces the need for fresh water and requires less space. It is considered that hydroponics consumes 20 times less water than conventional agriculture. All these factors are further expected to boost the demand for hydroponics systems in the near future.

Key Findings in the Hydroponics Market Study:

In 2024, the Non-aggregate System Segment to Dominate the Overall Hydroponics Market

Based on type, the hydroponics market is segmented into non-aggregate systems (liquid systems) and aggregate systems. In 2024, the non-aggregate system (liquid system) segment is expected to account for the larger share of the global hydroponics market. The large share of this segment is mainly due to the increasing popularity of liquid system cultivation among growers. In addition, non-aggregate (liquid) systems eliminate the use of a solid medium, and the roots are directly submerged in the nutrient solution, making the cultivation process easier. Moreover, as the nutrients are directly provided to the roots of a plant, liquid systems expedite the growth, thereby giving maximum yields. Although this soilless farming method mitigates the risk of soil-borne diseases, the risk of dispersal of pathogens increases by recirculating nutrient solutions in closed systems.

In 2024, the HVAC System Segment to Dominate the Hydroponics Equipment Market

Based on type, the hydroponics equipment market is segmented into HVAC systems, LED grow lights, irrigation systems, control systems, and other equipment. In 2024, the HVAC system segment is expected to account for the largest share of the global hydroponics equipment market. HVAC system plays a major role in the development of indoor growers, as the system is accountable for cooling, dehumidification, and maintaining the optimum temperature inside the facility.

However, the LED grow lights segment is projected to grow at the highest CAGR during the forecast period of 2024–2030. The fast growth of this segment is mainly attributed to the growing indoor farming and rising adoption of the grow light in indoor farming, as they play a vital role in plant photosynthesis as it emits essential light required by plants for photosynthesis. Also, growers can experiment with the light recipes to change the flavor, size, and other aspects using spectrum-chargeable LED grow lights. Further, the ban on older and inefficient halogen units in the European Union from September 2018 is increasing the adoption of LED grow lights during the forecast period.

In 2024, the Nutrients Segment to Dominate the Hydroponics Input Market

Based on type, the hydroponics input market is segmented into nutrients and growth media. In 2024, the nutrients segment is expected to account for a larger share of the hydroponics market. The large market share of this segment is attributed to its necessity to grow crops in both aggregate and non-aggregate systems. Nitrogen, phosphorus, and potassium are the major nutrients required for the growth of plants. The deficiency of these nutrients caters to the growth of discoloration, stunted growth, and scattered spots in the plants.

In 2024, the Vegetables Segment to Dominate the Overall Hydroponics Market

Based on crop type, the hydroponics market is segmented into vegetables, fruits, flowers, and other crop types. In 2024, the vegetables segment is expected to account for the largest share of the global hydroponics market. This segment's large market share is attributed to the growing demand for premium quality and exotic vegetables. The demand for exotic vegetables has constantly been growing at a higher rate due to the increased purchasing power of consumers in most developed and developing countries. The cost of these exotic products is high, and thus hydroponics farmers are highly focusing on establishing more simplified hydroponics systems to accelerate the production of exotic vegetables and meet the escalating demand. Also, with the rapid urbanization, the demand for hydroponically grown vegetables has been increasing from QSRs, hotels, fast food chains, railway catering, NGOs, and defense, supporting the growth of this global market.

Europe: The Largest Regional Market for Hydroponics

Based on geography, the global hydroponics market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2024, Europe is expected to account for the dominant position in the global hydroponics market. The dominant position of this region is primarily attributed to the presence of key players, technological advancements, high adoption of hydroponics driven by rapid industrialization and scarcity of land, availability of required infrastructure to run hydroponics farms, and rising demand for fresh and chemical-free food. Moreover, the rising government support for hydroponics farming further drives the growth of this market.

Key Players

The key players operating in the hydroponics market are Argus Control Systems Ltd. (Canada), Signify Holding B.V. (Netherlands), The Scotts Miracle-Gro Company (U.S.), Hydroponic Systems International (Spain), Hydrodynamics International Inc (U.S.), AmHydro (U.S.), Emerald Harvest (U.S.), Heliospectra AB (Sweden), Freight Farms, Inc. (U.S.), Logiqs BV (Netherlands), AirLogix (U.S.), and Nutriculture Grow Systems (U.K), among others.

Scope of the report:

Hydroponics Market, by Type

• Non-aggregate System (Liquid System)
  • Deep Water Culture
  • Nutrient Film Technique (NFT)
  • Aeroponics System
  • Other Non-aggregate System
• Aggregate System
  • Ebb and Flow System
  • Drip System
  • Wick System
  • Other Aggregate System

Hydroponics Equipment Market, by Type

• HVAC System
• LED Grow Lights
• Irrigation System
• Control System
• Other Equipment

Hydroponics Input Market, by Type

• Nutrients
• Growth Media

Hydroponics Market, by Crop Type

• Vegetables
• Fruits
• Flowers
• Other Crop Types

Hydroponics Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • Netherlands
  • Spain
  • France
  • U.K.
  • Greece
  • Rest of Europe (RoE)
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia-Pacific (RoAPAC)
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of Latin America
• Middle East & Africa

Key questions answered in the report: