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The Global Hydroponics Market was valued at USD 23.94 billion in 2018 and is expected to register a CAGR of 6.8% during the forecast period (2019-2024). In 2018, Europe is the largest geographic segment of the market studied and accounted for a share of around 47.3% of the overall market.
Hydroponics is an environment-friendly and profitable technology. It has been promoted by the various governments and non-governmental organizations for its benefits in terms of food security. High-cost is the only major drawback in technology. However, a lot of R&D activity is being carried out globally to reduce the cost involved in technology. The major industry drivers include high profits, growing emphasis on food security, and increasing consumption of salad and exotic vegetables.
Scope of the Report
Hydroponics involves the process of growing plants by using mineral nutrient solutions in sand, gravel, or liquid, without using soil. Due to the increasing success rates associated with the commercial hydroponics industry and the increasing difficulty of growing crops on soil, the hydroponics market is expanding exponentially. Along with the market expansion, manufacturers of hydroponic equipment are focusing on the development of new efficient systems.
Key Market Trends
Increasing Food Demand and Security
Global population is increasing exponentially, and every day nearly 200,000 people are adding up to the world food demand. Supplying food to this growing population has become a global threat. On the other side, agricultural land is also shrinking globally. Adding to this, crop pests are causing 10-16% of global crop losses annually, making the situation worse. To attain self-sufficiency in food, hydroponics provide an effective solution, as the technology uses space efficiently and can be applied even by landless urban and rural people. Currently, the technology has been successfully standardized for various vegetable crops, and it has great potential, especially in regions, like the Middle East, where billions of dollars are invested to import food and grains, due to water scarcity and unfavorable environmental conditions for agriculture. The aforementioned global food demand coupled with rising quality concerns is expected to drive the hydroponics trend, thereby resulting in the overall growth of the hydroponics industry.
Europe Dominates the Global Market
Europe is traditionally the largest market, that is implementing advanced techniques in hydroponics smart greenhouse horticulture. The matured European market demand is led by countries, such as the Netherlands, Spain, and France. In Europe, Holland is the largest producer of hydroponic crops and is expected to maintain the lead for the next 10 years. This is because of the vast expansion of hydroponics technology in the Netherlands. Germany is expected to register a higher pace, among the European countries. The major vegetable and fruit crops that are grown using hydroponics in European countries include, cucumber, tomatoes, roses, and peppers among others. As consumers are becoming increasingly aware of the quality difference in greenhouse-grown vegetables, the demand for hydroponics culture is increasing in Europe.
The global hydroponics market is a niche market, with various small and medium-sized companies coining a very minimal share in the world. This has resulted in very stiff competition. The development of regional markets and local players in different parts of the world is the major factor for the fragmented nature of the market. Europe and the Asia Pacific are the two regions showing maximum competitor activities.
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