The hydroponics market is estimated at USD 9.5 billion in 2020; it is projected to grow at a CAGR of 11.3% to reach USD 17.9 billion by 2026. 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.
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 shown an inclination towards home cooking and self-made/homemade meals. This has put the food and hotel industry in jeopardy. After the devastating outbreak of the 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 internal and domestic productions.
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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 production and also bring about a variety of cultivations possible. Strategic 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 nutrient segment, on the basis of input, is estimated to hold the largest share in the hydroponic inputs market, in terms of value, in 2020
The nutrient segment is projected to hold the largest market share in the hydroponic inputs market in 2020. Nutrients are one of the basics of hydroponic systems as it caters to the nutritional requirement of the plant. There are two major types of nutrients used in hydroponics, macronutrients, and micronutrients. Hydroponics helps the grower to take complete control over the implementation of fertilizers, in terms of type and concentration. During the application of nutrients, nutrient concentration to suffice plant needs at every growth phase and EC strength at the stage of growth must be monitored.
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Asia Pacific is projected to grow at the highest CAGR during the forecast period
Asia has the largest greenhouse vegetable growing area of 224,974 ha across the globe, followed by Europe with 173,561 ha as per the report on protected horticulture by FAO in 2017. Thus, with the high number of greenhouses in Asia Pacific, the growth opportunity for hydroponic market is the highest and hence, the region is expected to grow at the highest rate during the forecast period.
This report includes a study on the marketing and development strategies, along with a survey of the product portfolios of the leading companies operating in the hydroponics market. It includes the profiles of leading companies, such as Signify Holdings (Netherlands), Argus Control Systems (Canada), Heliospectra AB (Sweden), Scotts Miracle Gro (US), Logiqs B.V (Netherlands), Grobo (US), American Hydroponics (US), and LumiGrow (US).