The global hydroponics market size is estimated to be valued at US$ 9.7 billion in 2024 and is expected to exhibit a CAGR of 12% over the period 2022-2024.
Key Takeaways
Key players operating in the hydroponics market are Heliospectra AB, Argus Control Systems, American Hydroponics, Hydrofarm, Lumigrow Inc.
The rising Hydroponics Market Growth for organic foods without the usage of pesticides is opening lucrative opportunities for players in the hydroponics market. Moreover, advancements in IoT and sensor technology is enabling real-time monitoring of nutrient levels and environmental conditions.
Key players are focusing on integrating IoT, LED lighting, and sensor technology into their hydroponic systems to provide added convenience and maximize yields for cultivators. Several players are offering hydroponic gardening starter kits for hobbyists and small businesses.
Market Drivers
One of the primary growth drivers for the hydroponics market is the rising global population and declining availability of cultivatable land which is intensifying the need for sustainable agricultural practices. Moreover, hydroponics allows cultivators to produce crops throughout the year regardless of weather conditions. It also enables localized production to minimizetransportation costs and carbon footprint. The demand for organic foods and nutrients is another key factor fueling the adoption of hydroponic farming practices globally.
Current challenges in Hydroponics Market
The hydroponics market is facing various challenges currently which are hampering its growth. One of the major challenges is the high initial investment required for setting up a hydroponics facility. It requires a sizable capital expenditure for purchasing equipment like growing beds, growing racks, nutrient film technique system, etc. The maintenance and operational costs are also high due to requirements like nutrients, electricity, and labor. Another challenge is the shortage of technical skills and expertise in hydroponics farming techniques. Very few farmers have the required know-how and experience to successfully cultivate plants hydroponically. This leads to low yields and wastage in the initial stages of learning. Moreover, hydroponics farming is dependent on a continuous supply of electricity and nutrients. Any disruption can negatively impact plant growth and productivity. High transportation costs for supplying equipment and imported nutrients from other countries is an additional barrier.
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