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The global hydroponics market is valued at USD 12.1 billion in 2022 and is projected to reach USD 25.1 billion by 2027. The global hydroponics crop market is estimated to be valued at USD 37.7 billion in 2022 and is projected to reach USD 53.4 billion by 2027, recording a CAGR of 7.2%. The emergence of indoor farming led to the evolution of artificial lighting technology to assist plant growth. LED technology has proved to be more energy-efficient and long-lasting in general lighting applications. This is anticipated to drive the market.
In terms of equipment, the LED grow light segment dominates the hydroponics market. Grow lights, such as high-pressure sodium lights (HPS), metal halide bulbs (MH), and fluorescent bulbs, emit different spectra of light that stimulate and promote plant growth. Grow light technology has created opportunities for the majority of indoor farming systems.
The nutrient segment is a significant player in the hydroponics market. During nutrient application, nutrient concentration must meet the plant's needs at every growth phase, and EC strength at the growth stage must be monitored. Trace elements also play a vital role in plant growth, and trace minerals are nutrient catalysts that provide auxins, gibberellins, and cytokinins to promote cell division, enlargement, differentiation of cells, development of chloroplasts, and a delay in aging.
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The vegetables segment has the largest market share in the hydroponics market, producing vegetables such as tomatoes, leafy greens, and cucumbers. Hydroponic systems protect crops from harsh conditions such as cold, wind, pests, drought, and more. Growing vegetables in these systems allows for creating the most suitable conditions for crops, such as moisture, light, temperature, fertilization, humidity, and irrigation.
The European region accounted for the largest share of the global hydroponics market, followed by North America due to the availability of required infrastructure to run a hydroponic farm and the adoption of modern farming techniques. The Asia Pacific region is experiencing high growth in the market due to the increasing demand for fresh food among the urban population and government support in establishing hydroponic farms by means of subsidies.
