Hydroponics Market - Segmented by Type, Crop Type, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The Global Hydroponics Market has been estimated to cross USD 21203.5 million in 2016. The market is expected to register a CAGR of 6.5% during the forecast period, 2018 to 2023. Europe is traditionally the largest market that is implementing advanced techniques in hydroponics. Asia-Pacific forms the second largest market for hydroponics, which is expected to grow at a steady pace during the forecast period.
Growing Emphasis on food security driving the market
Global population is increasing exponentially, and with nearly 200,000 people getting added to the population, the world food demand is increasing. It is expected that by 2030, the per-capita farmland availability will decrease to 1800m², from an area that was 2,200m² in 2005. Adding to this, crop pests are causing 10-16% of global crop losses annually, making the situation worse. To attain self-sufficiency in food, hydroponics provides an effective solution. The technology uses the space efficiently and produces higher yields in comparison to traditional agricultural techniques. Along with increased profits from improved yields, the growing demand for exotic, salad crops and increasing need for global food security is expected to drive the market upwards.
By type, the global hydroponics market is segmented into the aggregate hydroponic system, liquid hydroponic system, and others. While aggregate hydroponics systems lead the market with a larger share, the demand for the liquid system is set to rise faster, given the continuous technological innovations. The aggregate hydroponic system has the largest market share of 82.6%. Moreover, the market is expected to witness faster growth in case of liquid hydroponics system, which is expected to register a CAGR of 10.8%. Among aggregate hydroponics, a closed system would grow at a faster pace, given the increasing scope of product and system innovations.
By crop type, the global hydroponics market includes products, such as tomato, cucurbits, lettuce & leafy vegetables, peppers, and other food crops. Tomato forms the largest market segment and it accounts for 30.4% share of the global market, during 2018. As the consumers are becoming increasingly aware of the superiority of quality in greenhouse-grown vegetables, the demand for hydroponics culture is rising in Europe and Asia-Pacific. Hydroponics crop production is expected to be more in tomatoes, lettuce and other leafy vegetables.
Europe is traditionally the largest market that is implementing advanced hydroponics techniques in smart greenhouse horticulture. The matured European market demand is led by countries, such as the Netherlands, Spain, and France. The Netherlands is the largest producer of hydroponic crops and is expected to maintain the lead for the next 10 years. All the major vegetable and fruit crops are grown using hydroponics in European countries.
Key Developments in the Market
In August 2017, Lawn-and-garden giant Scotts Miracle-Gro spent USD 136 million for Gavita, a Dutch grow lighting and Hardware Company. Through its subsidiary, Hawthorne Gardening Co., Scott has invested in companies such as Boulder’s AeroGrow, an indoor gardening company and acquired California’s General Hydroponics Inc. for USD 130 million. They also spent USD 77.1 million to acquire Botanicare.
Major Players - Greentech Agro LLC (U.S.), Argus Control Systems (Canada), Logiqs B.V. (The Netherlands), Lumigrow, Inc. (U.S.), General Hydroponics, Inc., Village farms international., Hydrodynamics International, Inc., among others.
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- To have an understanding of the fastest growing or/and largest regions during the forecast period in global hydroponics market
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