Our in-depth analysis has segmented global hydroponics market into the following segments:
By System Type
By Crop Type
Global hydroponics market is further classified on the basis of region as follows:
Hydroponics market is expected to thrive at a notable CAGR of more than 15% over the forecast period. In present, where the world is standing at risk of food & water scarcity, solutions such as hydroponics are expected to witness extraordinary demand in future due to their environmental benefits. The market of hydroponics is likely to grow on the back of its advantages over traditional methods of farming such as no use of pesticide and artificial nutrient, no need for soil, fast plant growth, easy methods and others. The market is segmented in five major regions including North America, Asia Pacific, Europe, Middle East & Africa and Latin America regions. Among these regions, North America and Europe grabbed lion shares of global hydroponics market in 2017 and is expected to maintain this lead over the forecast period owing to owing to rising demand for organically grown fruits and vegetables. Further, Asia Pacific and Latin America regions are showcasing significant potential for future growth of hydroponics market in this region. The rising demand for healthy food and higher yield as compared to traditional agricultural methods is anticipated to drive the growth of the.
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Tomato segment by crop types is projected to capture major shares of market over the forecast period. Production of food products such as tomatoes, corianders, lettuce, capsicums and other vegetables through hydroponics for business purposes is more profitable and sustainable and this is a major factor that is expected to propel the growth of market in upcoming years.
Hydroponics is profitable and sustainable agriculture method of growing plants without soil. With the help of proper nutrients, plants grow faster and healthier in a hydroponics system. Owing to hydroponics system’s environmental benefits, the governments are offering subsidy for hydroponics all over the globes. For instance, In India, government is promoting hydroponics through offering subsidy for growing fodder through hydroponics. Additionally, increasing government spending on food grown locally is also expected to foster the growth of global hydroponics market in upcoming years. Apart from this, crops grow two times faster in hydroponic gardening and with hydroponics the same type of crop could get better yield compared to traditional agriculture methods. This is primarily due to shorter growth cycles of hydroponics in comparison to traditional agriculture. Further, high growth yields of hydroponics are also a key factor that is likely to drive the growth of market across all regions. The hydroponics also offers some environmental benefits as compared to traditional farming methods. Hydroponics uses 1/20th of water of traditional methods. This low water usage advantage of hydroponics is expected to emerge as a driving factor for the hydroponics market over the forecast period.
Apart from this, the arable land area worldwide is reducing at critical rate. Through hydroponics a person can make better use of space and location. Further, this space savings benefit of hydroponics is likely to boost the growth of market in future. Hydroponics is an efficient way to handle the world hunger crisis. Current world population of 7.3 billion is projected to grow to 8.5 billion by 2030, creating a need for greatly increased food production capacity. In addition to this, since 1998, food production costs have increased 57% and purchased input costs have increased 74%, but there has been no significant change in aggregate value of net farm income in the last 40 years. The hydroponics is expected to emerge as a key solution to such problems in future. However, it could be expensive to setup the hydroponics system as the initial set up cost of hydroponic system is high. Also these systems require constant supervision. Such obstacles are expected to hamper the growth of global hydroponics market in future.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Anil Kumar, Ipsheeta Dash