PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1372008
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1372008
According to Stratistics MRC, the Global Aquaponics and Hydroponics Systems & Equipment Market is accounted for $1.83 billion in 2023 and is expected to reach $5.36 billion by 2030 growing at a CAGR of 16.6% during the forecast period. Innovative and sustainable methods of producing plants, notably crops and herbs, without the use of conventional soil-based agriculture include aquaponics and hydroponics. Aquaponics is a closed-loop technology that combines hydroponics (soilless plant growing) and aquaculture (fish rearing). It includes growing plants and nurturing aquatic creatures, usually fish, in a mutually beneficial relationship. Plants may be grown hydroponically without soil using nutrient-rich water. In a medium that offers support or in a nutritional solution, the roots of the plants are suspended.
According to the Organic Trade Association, sales of organic fruits and vegetables rose by 5.6% to USD 17.40 billion in 2018 from USD 16.42 billion in 2017.
The industry for aquaponics and hydroponics has expanded in response to consumer desire for fresh, regional products. These methods allow for the year-round production of fresh, high-quality crops, satisfying customer demand for regional and sustainable food sources. To fulfil the need for fresh fruit, growers including large-scale enterprises and smaller local producers have adopted aquaponics and hydroponics more often. These systems provide a solution to traditional agriculture's problems, such as seasonal production and a lack of arable land. Leafy greens, herbs, tomatoes, and even certain fruiting plants may all be grown using these systems. The consumer desire for a range of fresh product selections is met by this diversity.
Small-scale producers, start-ups, and those interested in soilless farming may find it difficult to enter the market due to the high upfront cost. It restricts the systems' availability to a larger group of agriculture industry players. Financing for hydroponics and aquaponics projects can be challenging, especially for growers with bad credit or no collateral. Financial institutions could be reluctant to fund initiatives that they see as carrying more risk. Moreover, adoption may be further hindered by the cost of staff training and education in the use of aquaponic and hydroponic systems.
The market for aquaponics and hydroponics systems and equipment has benefited significantly from growing urbanization. The market for soilless agriculture systems has been significantly impacted by urbanization, which is the result of an increase in the number of people moving from rural to urban regions. Limited arable land is available in heavily populated metropolitan areas. With their compact designs, aquaponics and hydroponics enable year-round agricultural growing inside city boundaries. This deals with the problem of locating land that is suited for conventional agriculture.
Limited selection of crops may lead to a small market for aquaponic and hydroponic systems and equipment. Growers that want to cultivate the particular crops that do well in these systems are the only prospective customers. The economic feasibility of aquaponics and hydroponics systems may be hampered by the inability to cultivate a greater variety of high-value crops. Commercial producers can be discouraged from making investments in systems that can't sustain the crops they want to cultivate. The limits of aquaponic and hydroponic systems may dissatisfy growers who want to grow a wider variety of crops. This can result in less investment and adoption of these strategies.
The epidemic raised awareness of supply chain vulnerabilities and issues with food security. As a result, local and sustainable food production techniques like aquaponics and hydroponics gained more popularity. As individuals became increasingly aware of the value of a healthy diet, lockdowns and restrictions caused a spike in demand for fresh food. With its capacity to produce high-quality, fresh produce all year long, hydroponic and aquaponic systems were able to meet this demand. There was a noticeable rise in home gardening as more individuals spent time at home. To cultivate their own veggies and plants, many people and families started using hydroponic and aquaponic systems. For the development of indoor and sustainable agricultural practices, such as aquaponics and hydroponics, certain governments offered support and incentives.
The LED grow lights segment is estimated to have a lucrative growth, as the use of LED (Light Emitting Diode) grow lights has grown in popularity and importance for both hydroponic and aquaponic systems. They supply the essential light for plant growth in regulated indoor settings where access to natural sunlight may be restricted or non-existent. Compared to older lighting technologies like high-pressure sodium (HPS) or metal halide (MH) lamps, LED grow lights are substantially more energy-efficient. Lower operational expenses are the outcome of this effectiveness. Moreover less heat is generated by LEDs, which contributes to a stable climate for plant growth and to avoid overheating, this is particularly crucial in hydroponic and aquaponic systems.
The deep- water culture systems segment is anticipated to witness the highest CAGR growth during the forecast period, as both aquaponics and hydroponics employ the deep water culture (DWC) hydroponic technology to produce plants. In this system, plants are suspended in a solution of nutrient- and oxygen-rich water, enabling their roots to take up these elements directly. The capacity of these systems is to provide year-round manufacturing in regulated conditions is preferred, and this need is growing. The implementation of these systems is being driven by the growth of urban agriculture and an emphasis on locally produced goods. To meet the unique needs of various crops, growers are looking for tailored deep- water culture systems solutions which propels the growth of the market.
North America is projected to hold the largest market share during the forecast period owing to the commodities that are brought to the market swiftly, aquaponics and hydroponics offer as suitable answers to the region's food requirement. Additionally, the North American area is anticipated to expand considerably as a result of the presence of several top businesses there, including Nelson & Pade Aquaponics, Backyard Aquaponics, and Aquaponics USA. The growth of the region's aquaponic and other alternative farming techniques is also greatly aided by the existence of research institutes focused on creating alternative farming methods in the North American region.
Asia Pacific is projected to have the highest CAGR over the forecast period, as this region is home to some of the world's most populous nations, including India, which increases food consumption there. Moreover, the aquaponic and hydroponic markets are large given the reliance of the nations on agriculture of addition, a significant portion of the population of the nations in this region work in agriculture. In response to rising urbanization and a rise in the number of abandoned farms, several nations have adopted contemporary agricultural methods. The area's agriculture industry, which had phenomenal development from 2008 to 2019, is a crucial contributor to the region's total growth.
In August 2023, Hydrofarm Holdings Group, Inc. a leading distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture ("CEA"), announced that it has signed a definitive agreement and closed on the acquisition of Canadian nutrient company, Greenstar Plant Products, Inc. ("Greenstar")
In June 2023, Hydrofarm Holdings Group, Inc. a leading manufacturer and distributor of equipment and supplies for controlled environment agriculture ("CEA"), announced that it has entered into an exclusive strategic alliance with CEA Advisors, a global design/build consultancy to the vertical farming industry and manufacturer of Growtainers® and Growracks®
In July 2022, Pentair plc a leading provider of water treatment and sustainable solutions, announced that it has completed the previously announced transaction to acquire Manitowoc Ice from Welbilt, Inc.