Hydroponics Market Size

Hydroponics Market Analysis

The Hydroponics Market size is estimated at USD 5.06 billion in 2024, and is expected to reach USD 7.36 billion by 2029, growing at a CAGR of 7.80% during the forecast period (2024-2029).

• Hydroponic farming offers benefits beyond environmental protection, including higher crop yields than traditional open-field cultivation. Moreover, the rising health consciousness among consumers has spurred increased demand, driving the adoption of hydroponic production methods. Factors such as the growing global population, limited cultivable land availability, government incentives, and a rising demand for fresh, high-quality food contribute to the trend.
• The adoption of hydroponics has been particularly high in urban areas, where approximately 56% of the world's population resides, as the World Health Organization and the Population Council reported in 2023. The scarcity of land in urban settings has led to the adoption of innovative solutions such as hydroponics, which allow growers to optimize space for cultivating crops efficiently. Hydroponics offers a way to grow high-quality produce year-round, regardless of the season or weather conditions. This has led to a significant increase in the demand for hydroponic produce, particularly in urban areas with higher demand for fresh produce.
• According to the International Research Journal of Modernization in Engineering Technology (IRJETS), adopting hydroponics significantly conserves resources and boosts productivity. Soilless media saves 80% to 85% of irrigation water and 55% to 80% of fertilizer while increasing vegetable productivity by 100% to 150%. Hydroponics can save 85% to 90% of irrigation water in a nutrient solution system, reduce fertilizer use by 68% to 85%, and increase vegetable productivity by 200% to 250%.
• Additionally, hydroponics provides an effective food security solution to attain self-sufficiency in food, as the technology uses space efficiently and can be applied even by landless urban and rural people. For instance, Pure Food Technology, a startup based in the UAE specializing in sustainable agriculture and food technology, has developed an innovative hydroponic prototype. This prototype consumes 95% less water than traditional farming methods and delivers a crop yield 100 times higher. The breakthrough technology is projected to significantly reduce the UAE's USD 7.7 billion expenditure on fresh vegetable imports and contribute to the country's goal of achieving self-sufficiency in nutrient-rich plant-based foods.
• Moreover, hydroponics is an eco-friendly and profitable technology, particularly in North America, Europe, and Asia. Countries in these regions have received support from governments and non-governmental organizations due to hydroponics' positive impact on food security. For instance, Wucheng County in Dezhou, Shandong Province, China, has launched a program that allows a new generation of growers to apply their technical knowledge and skills to advance the regional horticulture industry. As part of this program, they have developed a hydroponic cabbage that matures in 20 days, allowing up to 15 harvests per year.
• Also, the increasing demand for food, driven by the projected population growth by 2050, has fueled the expansion of the hydroponics market. Moreover, as commercial hydroponics ventures achieve greater success and soil-based crop cultivation becomes more challenging, the hydroponics market is anticipated to experience rapid growth during the forecast period.