July 13, 2024
Hydroponics Market

Increased popularity of Urban Farming to boost the growth of Global Hydroponics Market

The global Hydroponics Market is estimated to be valued at US$ 467.17 Mn in 2023 and is expected to exhibit a CAGR of 10. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Hydroponics is a method of growing plants without soil by using mineral nutrient solutions in an aqueous solvent. In hydroponics, plants roots are growing in the nutrient rich water or aqueous solution instead of soil. Hydroponic plants are grown using mineral nutrient solutions only or sometimes substituted or mixed with inert medium and placed closely together for maximum yield. Hydroponics delivers higher yields with less water and space which makes it more sustainable farming methodology. The hydroponically grown plants deliver highly nutritious vegetables and fruits as nutrients can be controlled precisely as per the plant’s requirement.

Market key trends:

Increasing popularity of urban farming is one of the major trends witnessed in the hydroponics market. With escalating population and limited arable land, urban farming is gaining traction globally which is propelling the demand for hydroponics. Urban farming delivers fresh produces to the local community with minimal carbon footprint. Moreover, growing health consciousness among consumers regarding chemical-free vegetables is further augmenting the popularity of hydroponically grown clean label produces. Furthermore, government support for sustainable farming through subsidies and initiatives is encouraging hydroponics adoption. Advancements in IoT based smart hydroponic systems along with use of cloud computing and AI is also paving way for next generation of agriculture and likely to drive the hydroponics market over the forecast period.

Porter’s Analysis

Threat of new entrants: Low barriers to entry and availability of low-cost substrates like coco coir and rockwool makes threat of new entrants moderate.

Bargaining power of buyers: Large retailers exert high bargaining power over hydroponic farmers due to their buyer power in agriculture industry.

Bargaining power of suppliers: Availability of substitute inputs in market like LED lighting, nutrients and substrates keep supplier power in check.

Threat of new substitutes: Alternative farming techniques offer competition but superior yields and versatility of hydroponics pose low threat of substitutes.

Competitive rivalry: Intense competition exists among existing players to gain market share through innovative and cost-effective solutions.

Key Takeaways

The Global Hydroponics Market Size is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing demand for organic food and rising urban population. Hydroponics provide 30-50% higher yields while using 95% less water than traditional agriculture.

Regional analysis: North America dominates the global hydroponics market currently. However, Asia Pacific region is expected to grow at fastest pace during forecast period led by countries like China, Japan and India where there is major scope for vertical farming using hydroponics technique.

Key players operating in the hydroponics market are Argus Control System (Canada), Koninklijke Philips NV (The Netherlands), Greentech Agro LLC (U.S.), Biodynamic LLC., General Hydroponics, Inc., Logiqs B.V. (The Netherlands), Lumigrow, Inc. (U.S.), Hydrofarm Inc., Hydrodynamics International Inc., Heliospectra AB, Village Farms International, Inc., Platinum Produce Company and Millennium Pacific Greenhouses Ltd, and Soave Enterprises LLC.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it