May 18, 2024
Hydroponics Market

Hydroponics Market Growth Is Driven By Increasing Organic Food Consumption

Hydroponics involves cultivating plants without soil and using a nutrient solution to feed plants. Hydroponic farming is beneficial as it uses 90% less water than traditional agriculture and produces higher yields throughout the year. With rapid urbanization, arable land has diminished significantly leading to higher demand for hydroponic systems to attain food security. Hydroponics helps grow crops anywhere including rooftops, warehouses, and controlled environments with minimal resources. The growing need for locally-grown organic food has boosted adoption of hydroponic greenhouses across regions.

The global Hydroponics Market is estimated to be valued at US$ 467.17 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the hydroponics market is the increasing usage of Internet of Things (IoT) and automation. IoT devices such as sensors help to continuously monitor the parameters of the hydroponic systems such as pH, temperature, nutrient levels, etc. This data is transmitted to the farmer’s mobile device through an application. Automated feeding systems, water pumps, and lights improve the efficiency in hydroponic farms. Real-time data aids in effective decision making and provides insights to optimize crop yields through precision agriculture. Additionally, innovations in hydroponics systems through automation and IoT technologies are expected to boost the global market during the forecast period.

Porter’s Analysis

Threat of new entrants: Low barriers to entry as the hydroponics method requires relatively low investments compared to traditional farming. However, established players have significant brand recognition and resources.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternatives like traditional farming. However, demand for hydroponically grown crops is increasing.

Bargaining power of suppliers: Suppliers of hydroponic equipment and accessories have low to moderate bargaining power due to the availability of substitute suppliers. Established suppliers may have an edge.

Threat of new substitutes: Threat from substitutes like aquaponics and aeroponics is moderate as each method has its own advantages. Traditional farming remains the biggest substitute.

Competitive rivalry: Intense as major players compete based on technology, quality, and service. Increasing demand is driving players to launch innovative products and expand geographical footprint.

Key Takeaways

The Global Hydroponics Market Demand is expected to witness high growth over the forecast period supported by growing demand for organic foods and limited availability of cultivable land. North America currently dominates the market owing to widespread adoption of hydroponic farming among commercial growers and individual users.

Europe accounts for a significant share and is expected to grow at a steady pace during the forecast period. This can be attributed to increasing organic food consumption and government support for sustainable farming practices across various countries. The Asia Pacific region presents lucrative opportunities for market expansion, especially in countries like China, India, and Japan. Rapid urbanization and rising disposable incomes are fueling the adoption of technology-driven farming methods in the region.

Key players operating in the hydroponics market are Johnson Health Tech, ICON Health & Fitness, Technogym, Precor, Nautilus, Cybex, True Fitness, Amer Sports, Sole Fitness and Life Fitness. Major players are focusing on product innovation and the development of smart hydroponic systems to gain a competitive edge. Partnerships with commercial farming companies and expansion of distribution networks are other strategies being adopted.

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