Hydroponics Market Size & Share 2024 – 2032
Market Size by Systems (Aggregate Systems, Liquid Systems), by Crops (Tomatoes, Lettuce, Peppers, Cucumbers, Herbs), by Area (Up to 1, 000 Sq. Ft., 1, 000-50, 000 Sq. Ft., Above 50, 000 Sq. Ft), by Farming Method, by Equipment & Forecast.
Report ID: GMI8423
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Published Date: March 2024
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Hydroponics Market Size
Hydroponics Market was valued at USD 5.2 billion in 2023 and is estimated to register a CAGR of over 8.5% between 2024 & 2032. Governments increasingly incentivize hydroponic farming through subsidies, grants, and policy support to promote food security, sustainable agriculture, and economic development. Such initiatives foster innovations and technology adoption while addressing environmental concerns and enhancing local food production capabilities.
Hydroponics Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
For instance, in December 2023, the Uttarakhand Rural Development and Panchayati Raj Institute (UIRD) announced the launch of a hydroponics-based polyhouse project in Rudrapur. This innovative farming initiative aims to empower farmers in Uttarakhand by providing them with opportunities to cultivate a variety of crops. The project signifies a development in the region, offering a modern & sustainable approach to agriculture. This initiative supports the hydroponics industry growth by demonstrating practical implementation and promoting inclusive economic development in the region.
The expansion of vertical farming in urban areas serves as a significant factor propelling the hydroponics market growth. With limited space in cities, vertical farming maximizes land use efficiency, enabling high-yield crop production in a smaller footprint. This trend is fueled by the increasing demand for locally sourced, fresh produce in urban populations, attracting investments in hydroponic systems tailored for vertical farming and fostering innovations in urban agriculture practices.
High initial investment costs for hydroponic setups pose a significant pitfall for the market. Implementing hydroponic systems requires substantial upfront expenditure on infrastructure, equipment, and technology. This hurdle may deter potential growers, particularly small-scale farmers, or new entrants to the market. Additionally, the need for specialized knowledge and training adds to the overall cost, limiting the accessibility of hydroponics to a broader range of agricultural practitioners and investors.
Hydroponics Market Trends
A prominent market trend in the hydroponics sector is the increasing adoption of vertical farming techniques. Vertical farming optimizes space utilization, enabling efficient crop production in urban areas. This trend is attributed to the rising demand for locally grown, fresh produce and the need to address food security challenges in densely populated regions. For instance, in February 2024, Masdar City, a sustainability and innovation hub located in Abu Dhabi, launched a smart vertical farm in partnership with an AgriTech firm. This initiative aims to address food security challenges and contribute to climate change mitigation efforts. The indoor vertical farm will be equipped with advanced agricultural technology to optimize crop growth and resource efficiency.
The hydroponics industry is witnessing a growing awareness of sustainable agriculture practices. Consumers and businesses are increasingly prioritizing environment-friendly farming methods. Hydroponics, with its reduced water usage, minimal pesticide requirements, and land efficiency, aligns well with this trend. This awareness is fueling the demand for hydroponically grown produce, leading to further adoption of hydroponic systems and fostering innovations in sustainable farming techniques within the industry.
Hydroponics Market Analysis
Based on systems, the market is divided into aggregate systems and liquid systems. The aggregate systems accounted for a market share of over 57% and is projected to grow significantly through 2032. Aggregate systems, such as expanded clay or rockwool, foster the growth of the market by offering versatile and efficient growing mediums. These systems provide optimal root support, aeration, and nutrient delivery, enhancing crop yields and enabling scalable hydroponic operations across diverse environments. For instance, in October 2023, AIMPLAS, the Plastics Technology Centre, began the development of foams made from poultry feathers for use in sustainable hydroponic crop systems. The primary objective is to foster a circular bioeconomy by establishing innovative value chains for underutilized byproducts, such as poultry feathers, which are typically disposed of. These feather foams offer unique properties, such as tailored biodegradation rates and organic nitrogen release, enhancing sustainability and efficiency in hydroponic crop systems while repurposing underutilized byproducts.
Based on crops, the hydroponics market is categorized into tomatoes, lettuce, peppers, cucumbers, herbs, and others. In 2023, the tomatoes segment holds over 30% in the overall market. A significant market trend in hydroponics is the increasing focus on cultivating tomatoes to cater to high demand. Tomatoes are a popular choice for hydroponic growers due to their adaptability to controlled environments, resulting in higher yields and quality compared to traditional methods. For instance, in October 2023, Abu Dhabi University launched AirFarm, a new portable farm that can grow tomatoes without the need for soil. By utilizing hydroponics, AirFarm minimizes water wastage, enhances food security, and promotes sustainable farming practices, addressing the key concerns in agricultural sustainability and meeting the demand for high-quality & locally grown produce.
Asia Pacific holds a market share of over 37% in 2023. The hydroponics industry in the region is experiencing the rapid adoption of hydroponic farming methods. With population growth, urbanization, and the need for sustainable agriculture, Asia Pacific countries are increasingly investing in hydroponic systems to enhance food security and promote efficient land use. For instance, in May 2023, Azelis and Novozymes expanded their partnership in the Malaysian market, focusing on agricultural & environmental solutions. The collaboration aims to meet the increasing demand for sustainable agriculture practices. Novozymes' bio-based hydroponic products offer innovative solutions that enhance crop performance, nutrient efficiency, and stress management through natural processes, contributing to the advancement of hydroponic farming in Asia Pacific.
Hydroponics Market Share
Infarm and Signify Holding hold over 20% of the market share in the hydroponics industry. Companies in the hydroponics industry employ several key strategies to enhance their market foothold. Infarm invests in research and development to innovate new hydroponic technologies and systems. Embrace advancements in automation, sensor technologies, and data analytics to improve efficiency and productivity. Also, the company develops tailored hydroponic solutions for commercial clients such as restaurants, grocery stores, or food service providers. Offering customized packages and services attract larger-scale customers.
Signify Holding partners with other companies, research institutions, or agricultural organizations to leverage complementary expertise, share knowledge, and jointly develop solutions for the market. The company increases production capacity by expanding hydroponic farming facilities. This could involve establishing new vertical farms, greenhouses, or partnering with existing facilities to reach a broader market.
Hydroponics Market Companies
Major players operating in the global market are:
Hydroponics Industry News
The hydroponics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 - 2032, for the following segments:
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Market, By Systems
Market, By Crops
Market, By Area
Market, By Farming Method
Market, By Equipment
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
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Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
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5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Verified data sources
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