Market Overview 

Hydroponics refers to agricultural practices that primarily make use of mineral nutrients in an aqueous solvent for crop cultivation. Hydroponics does not deploy the application of soil for plant growth. It is generally done in indoor settings, with artificial lighting and cooling equipment to modify growing conditions. The medium used for agriculture includes water-based liquid solvents and solid inert mediums such as rock wool and perlite. 

Market Dynamics  

The growing global need to increase crop production and agricultural yield for an ever-increasing population and rising shift towards adoption of farming methods that promote low utilization of natural resources are the primary factors driving the market growth. The shortage of cultivation lands and the necessity to bring barren areas under crop cultivation using artificial means would further improve the prospects of market growth. The practice of hydroponics cultivation ensures faster crop growth and higher yield while incorporating methods of water conservation and greater nutrient control. The indoor development of agricultural cultivation further enables full utilization of available land, with complete elimination of soil use promoting the lack of soil erosion. However, high initial capital investment and risks of crop susceptibility to microorganism contamination might hamper the market growth. The setting up of adequate indoor spaces with sufficient lighting and cooling systems is a cost-intensive affair, which might act as barriers to market growth. The perils of power outrages and quick spread of waterborne diseases in some cases might further hamper the market growth prospects. The consistent efforts of technological advancement and development of hydroponic agricultural practices would provide lucrative opportunities for the market in the coming years. The expansive R&D initiatives would enable heightened chances of hydroponics integration in barren regions, which would present crucial vendors with new possibilities of product application and business expansion throughout the forecast period. 

Market Segmentation 

The global Hydroponics market is mainly classified based on Type and Application. Type is segmented into Aggregate Hydroponics System and Liquid Hydroponics System. By Application, the market is categorized into Vegetables, Fruits, Flowers, and Others. 

The Liquid Hydroponics System segment by Type holds a significant market share in terms of the overall value owing to the benefits of efficient water use leading to the increased efforts of natural resource conservation. The rapid growth of crops and plants undergoing hydroponics agriculture practice, in comparison to traditional methods, would propel the development of the segment in the coming years. 

In terms of Application, the Vegetables segment holds a significant share and is leading in terms of overall market volume. The rising need to increase the yield of essential vegetables for human consumption, in direct response to the incremental global population growth, is one of the primary factors that would influence a surge in hydroponics use for vegetable cultivation. 

Regional Analysis 

Based on geography, the global Hydroponics market is divided into North America, Europe, Asia-Pacific, South America, and Middle East & Africa. North America is further divided in the U.S., Canada, and Mexico, whereas Europe consists of the UK, Germany, France, Italy, Russia, and Rest of Europe. Asia-Pacific is segmented into India, China, Japan, South Korea, and Rest of Asia-Pacific. The South America region includes Brazil, Argentina, and the Rest of South America. At the same time, the Middle East & Africa is categorized into GCC Countries, Egypt, South Africa, and Rest of Middle East & Africa. 

Europe is the leading region and holds a substantial share in terms of overall market value owing to the incremental awareness in consumers about the benefits of hydroponics methods among local farmers and agricultural corporations. The improved financial investments and funding into extensive adoption of hydroponic practices would bolster prospects of regional market growth during the forecast period. 

Competitive landscape 

The Hydroponics market is moderately fragmented, with many innovative companies operating on a global basis aiming for expansive geographical reach and product incorporation in demand-rich regions to capture substantial market share during the forecast period. 

Key players operating in the Hydroponics industry include American Hydroponics, Argus Control Systems Limited, BrightFarms Inc., Emirates Hydroponics Farms, Freight Farms, Inc., General Hydroponics Inc., GreenTech Agro LLC, GrowLife, Inc., Heliospectra AB, Hortisystems UK Limited, Kubo Group, LumiGrow, Inc., SproutsIO, Inc., and Terra Tech Corp. 

The launch of new products and solutions that assist in the growth and cultivation of crops using the hydroponics agricultural method and diversification of business opportunities through strategic partnerships are the primary business strategies of top players looking to capture substantial market share during the forecast period. 

Covid-19 Impact Analysis 

The ongoing implications of the Covid-19 pandemic have spurred a plethora of challenges and hurdles to the Hydroponics market growth, with severe doubts being raised on the staff numbers working in close proximity in confined indoor spaces. As the risks of virus contraction and spread increases in indoor facilities, the reduced number of workforce staff in hydroponic facilities has influenced a reduced volume of agricultural produce. The crops and plants growing under hydroponics practices require meticulous care and attention from trained staff members, which is being hindered during the pandemic. The supply and procurement of essential chemicals and plant nutrients have also been disrupted during such unprecedented times, as restrictions on the movement of goods and people are implemented in all major countries. The hydroponics crops, however, present a sustainable solution to limitations of seasonal crops grown using traditional methods. The shortage in yield would be quickly completed using the agricultural produce grown under hydroponic practices, which would provide vendors with opportunities of product sales and business expansion in the ensuing years. 

Hydroponics Market Key Segments: 

By Type 

• Aggregate Hydroponics System 
• Liquid Hydroponics System 

By Application 

• Vegetables 
• Fruits 
• Flowers 
• Others 

Key Global Hydroponics Industry Players 

• American Hydroponics 
• Argus Control Systems Limited 
• BrightFarms Inc. 
• Emirates Hydroponics Farms 
• Freight Farms, Inc. 
• General Hydroponics Inc. 
• GreenTech Agro LLC 
• GrowLife, Inc. 
• Heliospectra AB 
• Hortisystems UK Limited 
• Kubo Group 
• LumiGrow, Inc. 
• SproutsIO, Inc. 
• Terra Tech Corp. 

What Report Provides 

• Full in-depth analysis of the parent Industry 
• Important changes in the market and its dynamics 
• Segmentation details of the market 
• Former, on-going, and projected market analysis in terms of volume and value 
• Assessment of niche industry developments 
• Market share analysis 
• Key strategies of major players 
• Emerging segments and regional growth potential