[249 Pages Report] The market for hydroponic systems is estimated at USD 9.5 billion in 2020; it is projected to grow at a CAGR of 11.9% to reach USD 16.6 billion by 2025. The pressure on the agriculture industry to meet the growing demand for grains and food leads to the search for high-yielding farming techniques, such as precision farming and urban farming. Hydroponics thus is looked upon as a potential solution for the growing concern about food security in the coming years.

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COVID-19 Impact on the Global Hydroponics Market

Amid the spread of Covid-19 pandemic, many individuals have developed a critical point of view towards outdoor food. With health and food safety becoming the key focus, the populations around the globe have showed an inclination towards home cooking and self-made/homemade meals. This has put the food and hotel industry into jeopardy. After the devastating outbreak of coronavirus pandemic, the adoption rate of urban hydroponic farming systems around the world are estimated to rise sharply. The agriculture industry faced challenges during the initial phases of the spread of the pandemic. There were huge labour shortages on the farm, some farmers missed their window of opportunity for harvesting for seasonal crops, the falling prices of agricultural products and the disruption of logistics. Many countries also realized their over dependence on imports of food materials and hence began emphasizing on internal and domestic productions.

Feed Hydroponics 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. CEH techniques directly affect the crop harvest cycle. Since climatic changes show a minimal effect on such systems, crops can be produced all year round, thereby again increasing the produce.

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. However, the yield obtained from these systems are higher, and the produce can also be marketed as premium products, thereby raising the ROI for growers.

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 he porductions asnd also brong about variety of ciultivations possible. Startegic partnerships with research labs and institutes further drive the growth of the market.

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. To combat the instances of waterborne diseases, growers are resorting to using screen or paper filters and additional filtration systems to curb the spread of waterborne diseases in the system.

The liquid sub-segment is estimated to account for the highest market share in the by type segment for hydroponics market .

Liquid systems have been proved to be efficient and also cost-effective in comparison to basic models. The initial cost associated with the setup of hydroponic systems is exorbitant, which is also one of the major restraints of this industry. However, the economics of liquid systems are observed to be feasible, since all liquid systems operate in a closed mode, which reduces the cost of nutrient solution. Also, in comparison with the closed model of aggregate systems, liquid systems show higher productivity, and hence, the majority of the growers have been installing liquid systems for their crop production.

By Equipment , the HVAC system is estimated to occupy the largest market share in Hydroponics market.

Heating, Ventilation & Air Conditioning or HVAC plays a key role in the development of indoor growers, as the system is responsible for cooling, dehumidification, and maintaining the optimum temperature inside the facility. HVAC systems are essential for the operation of hydroponic and aeroponic farms and should be reliable and well-controlled. Further the economic costs of the system over other equipment and utilities that go into hydroponics the HVAC is estimated to experience an increasing demand.

The nutrients sub-segment is estimated to observe the fastest growth in the by input segment of hydroponics market over the forecst period.

As the crops under hydroponics grow without soil, the need for external nutrients is very high for hydroponic-based crops. With the increase in the use of soilless growing techniques in hydroponics, most of the crops are directly grown with the roots in the nutrient medium. This leads to an increase in demand for nutrients in this industry.

By crop type, the fruits sub-segment is projected to grow at the fatsest CAGR in the hydroponics market until 2025.

Fruits grown using hydroponics can be grown and harvested throughout the year due to the interior conditions of the greenhouse or indoor farming unit. Water-adaptable fruits such as watermelon, cantaloupe, and tomatoes are among the ideal choice for farmers as they are easier to grow using hydroponic methods. With more and more varieties of frutis taken under cultivation in the hydroponics the market is estimated to grow faster.

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The increasing adoption of hydroponics and vertical farming systems in the European, accounted for the highest market share in the region.

Europe has traditionally been at the forefront of implementing advanced techniques in hydroponic smart greenhouse horticulture. Countries such as the Netherlands, Spain, and France have large areas under greenhouse cultivation. However, in the Netherlands, the growers mostly cultivate their plants in simple tunnel-like greenhouses without the use of climate control technologies. Advancement in greenhouse farming has supported the growth of hydroponics in Europe. According to national government statistics, the adoption of hydroponics has been witnessed to be the highest across all European countries.Thus the market is highly developed in the region.

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.

Scope of the report

Report Metric Details Market size estimation 2016�2025 Base year considered 2019 Forecast period considered 2020�2025 Units considered Value (USD) & Volume (KT) Segments covered Type, Equipment, Input, Crop Type and Region Regions covered North America, Asia Pacific, Europe, and RoW Companies studied The major market players include 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). (Total 25 companies)

This research report categorizes the hydroponics market based on Type, Equipment, Inputs, Crop Type and Region.

On the basis of type, the hydroponics market has been segmented as follows:

Aggregate Systems Ebb & Flow Systems Drip Systems Wick Systems

Liquid Systems Deep Water Culture Nutrient Film Technique Aeroponics



On the basis of equipment, the hydroponics market has been segmented as follows:

HVAC

LED Grow Lights

Irrigation Systems

Material Handling

Control Systems

Others

On the basis of input, the hydroponics market has been segmented as follows:

Nutrients NPK Trace Minerals Others

Grow Media Rockwool Perlite & Vermiculite Coco Fiber Others



On the basis of crop type, the hydroponics market has been segmented as follows:

Vegetables Fruits Flowers Others



On the basis of region, the hydroponics market has been segmented as follows:

North America

Europe

Asia Pacific

Rest of World (RoW)*

*Rest of the World (RoW) includes Brazil, South Africa, UAE, Israel and Other countries in RoW.

Recent Developments

In May 2020, InFarm recently started its new outlet in Netherlands at Nijmegen. The facility will built at various locations such as supermarkets, restaurants and distribution centers so that vegetables are grown and harvested at areas close to point of purchase.

In April 2020, Scotts Miracle moved its operations of Temecula, California manufacturing plant to produce face shields, due to shortage of personal protective equipment�s so as to contribute to the fight against Covid-19 outbreak.

In April 2020, Aerofarms has intiated the establishment of a the biggest Aerofarms center which be the largest of its kind spread across 90,000 sqft. The facility is dedicated fore sate-of-art R&D equipments and commercialisation of locally demanded crops.

In November 2019, Aerospace invested USD 42 Million for building the largest indoor farming facility at Cane Creek Center, a joint industrial park for City of Danville and Pittsylvania County.

In August 2019, Terra Tech Corp has commenced the operation of constructiing its brand new facility at Santa Ana, CA, US. The faility will be a large scale one of a kind cannabis complex aimed at benefitting the company�s sales by the highy polpulation and traffic benefit.

In August 2019, LumiGrow Inc. launched a new TopLight Hybrid smart fixture. The Hybrids will enable users to benefit from the enriched white spectrum, which is completely wireless and can be controlled via SmartPAR software of the company.

Frequently Asked Questions (FAQ):

Who are some of the key players operating in the hydroponics market and how intense is the competition? The key players in the feed mycotoxin binders and modifiers market are Signify Holdings (Netherlands), Argus Control Systems (Canada), Heliospectra AB (Sweden), Scotts Miracle Gro (US), American Hydroponics (US), and LumiGrow (US). The competition amongst the key palyers is strong in the growing regions such as Middle East and African countries wherein there is crucial issue of food secutrity and heavy investments are beng made for becoming self sufficient in terms of food demand. Thus the developing nations experience feirece competiontion amongst the stsrt-ups and leading companies in the markets. What kind of competitors and stakeholders would be interested in this market? What will be their go-to-market strategy, and which emerging market will be of significant interest? Some direct and indirect stakeholders identified for the hydroponics markets could be given as semiconductor foundries, horticulture lighting, irrigation, and remote sensing equipment manufacturers, original device manufacturers (ODM) and Original Equipment Manufacturers (OEM) technology solution providers, grow media, crop protection chemical, and fertilizer manufacturers and raw material suppliers, hydroponic crop growers, horticulturists and floriculturists, government regulatory authorities and research organizations, hydroponic and smart greenhouse associations and industry bodies, organic certification agencies, and crop producers and exporters. Row being the highly growing market the region is attracting interests of the leading businesses. The countries in the region are mainly dependent in imports for food materials and hydroponics can be a potential solution for these countries for cultivation all year long with dependency on climatic and economic environments. Thus the market is estimated to be steadily growing. What are the potential challenges to the hydroponics market? The prices of hydroponically grown produce are higher than that of conventionally grown produce, which can be attributed to the high costs of production associated with hydroponic farming. While tax cuts in certain locations can help ease the burden on growers, in developing regions, the high-cost factor is the key reason for the inflated costs of hydroponically grown produce. Further, 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. These concerns pose potential challenges to the overall hydroponics market. .

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