The Global Hydroponics Market size is expected to grow from USD 7.9 billion in 2019 to USD 17.0 billion by 2025 at a compound annual growth rate (CAGR) of 13.70 percent, a study by Valuates Reports has said.
COVID-19 impact on hydroponics market
The rate of adoption of hydroponic farming systems is expected to rise dramatically due to the COVID-19 outbreak. During the initial phases of the pandemic, the agriculture industry was facing difficulties. There was a huge shortage of labour on the farm; some farmers missed their window of opportunity to harvest seasonal crops, dropping prices of agricultural products, and logistics chaos. Many countries have realised their over-reliance on food material imports and thus started to emphasise local and export supplies, the Valuates Reports has analysed.
Trends influencing the hydroponics market
According to the study, the yield of plants grown in hydroponic systems was 20 -25 percent higher than conventional farming systems, with productivity 2-5 times higher. This higher yield capacity is expected to drive the hydroponics market size during the forecast period.
The rising investments from both government and private entities are expected to fuel the hydroponics market size. Many businesses on the market are investing heavily on R&D to obtain state-of-the-art innovations that can improve productivity and bring about a number of potential cultivations.
The rising customer awareness about consuming fresh vegetables is expected to increase the growth of the hydroponics market size. Demand for exotic fruits and vegetables has been growing steadily at a higher pace owing to increased consumer buying power. As most of these products are imported, the cost of these exotic products is high. Thus many research institutions and universities are focused on developing more streamlined hydroponic systems to increase the production of exotic fruits and vegetables and meet the growing demand, the study said.
Providers of hydroponics farming systems give customers different ways to track and control their crops with various sensors and smartphone applications. The advanced approach of using Internet of Things (IoT) allows for automated and remote collection of data. These technological advancements are, in turn, expected to increase the growth of the hydroponics market size during the forecast period.
High capital investment for the system’s initial set up is a major factor that can hinder the growth of the hydroponics market size.
Hydroponics market share
Europe is expected to hold the largest hydroponics market share during the forecast period. This is due to the increasing adoption of hydroponics and vertical farming systems.
Based on type, the liquid sub-segment is estimated to account for the highest hydroponics market share. This is due to the low cost involved since all liquid systems run in a closed mode. Liquid systems also demonstrate higher efficiency compared with the closed model of aggregate systems.