The hydroponics
market is estimated to account for a value of USD 9.5 billion in 2020
and is projected to grow at a CAGR 11.9% from 2020, to reach a value of USD 16.6
billion by 2025. The hydroponic system
market is projected to witness significant growth due to the increasing need
for components installed for crop cultivation, the input nutrient and grow
media for hydroponic systems, and the value of crop cultivated from these
systems. Based on the system model, the hydroponic systems market can be
classified into aggregate and liquid systems, wherein aggregate systems utilize
a grow media for plant growth support and nutrition, while liquid hydroponic
systems do not require a grow media.
Download PDF
brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=94055021
Key Market Players:
Key players in this market include include major players
such as Signify Holdings (Netherlands), Argus Control Systems (Canada),
Heliospectra AB (Sweden), Scotts Miracle Gro (US), American Hydroponics (US),
LumiGrow (US), Emerald Harvest (US), Hydroponic Systems International (Spain),
Advanced Nutrients (Canada), Vitalink (UK), Hydrodynamics International
(Spain), Logiqs B.V (Netherlands), Grobo (US), and American Hydroponics (US).
These major players in this market are focusing on increasing their presence
through expansions & investments, mergers & acquisitions, partnerships,
joint ventures, and agreements. These companies have a strong presence in North
America, Asia Pacific and Europe. They also have manufacturing facilities along
with strong distribution networks across these regions.
Market Dynamics:
Driver: Higher yield
as compared to conventional agriculture practices, emphasized even more after
the outbreak of Covid-19 pandemic.
According to the UN reports on global population, plants
grown in hydroponic systems have achieved 20%–25% higher yield than the
traditional agriculture system, with its productivity being 2–5 times higher.
Also, owing to controlled environmental conditions, the effect of climatic
changes can be balanced with the help of these systems, thereby not affecting
the annual crop production.
Restraint: High
capital investment for large-scale farms
Different types of equipment including HVAC systems, fans,
ventilation, irrigation systems, control systems, rails, and lights are the key
cost factors in a hydroponic farm. On average, a 500 sq. ft. hydroponic farm
can cost up to USD 110,000 for a base level system that is not fully automated.
This huge cost for the initial set up of the system is a major factor
refraining farmers from investing in these systems.
Opportunity:
Development of innovative hydroponic technologies
With the increased adoption of hydroponics globally,
manufacturers and researchers are working on improving the efficiency of
hydroponics technology to increase the quality and quantity of the produce.
Many companies in the market are investing heavily into R&D for obtaining
state-of-art technologies that boost the porductions and also brong about variety
of ciultivations possible.
Speak to Analyst:
https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=94055021
Challenge: Spread of
waterborne diseases and algae in closed systems
In a closed hydroponic system, the threat of waterborne
diseases poses a major problem to growers. Considering that the
nutrient-enriched water is recirculated throughout the system, any kind of
waterborne disease that enters the nutrient reservoir often affects the whole
crop as it has the capability to spread throughout. Growers often keep their
plants spaced out to prevent crowding, which is often how pathogens enter the
system.
Asia has the largest greenhouse vegetable growing area of
224,974 ha across the globe, followed by Europe with 173,561 ha as per the
report on protected horticulture by FAO in 2017. Thus, with the high number of
greenhouses in Asia Pacific, the growth opportunity for hydroponic market is
the highest and hence, the region is expected to grow at the highest rate
during the forecast period.
