The nascent stage of development of the global hydroponics market ensures the presence of ample growth opportunities for new companies, states Transparency Market Research in a recent report. The level of competition is expected to intensify in the near future as companies start realizing the vast growth opportunities that the market offers, leading to a fairly populated vendor landscape and a rich product portfolio for business across the globe. Companies are presently focusing on advanced innovative technologies such as computer-aided drip irrigation and shrink wrapping.
Going forth, companies are expected to focus more on launch of new products, increased investment towards R&D activities, and strategic collaborations with regional companies to establish their stronghold on the market. Some of the leading vendors recognized in the market are Emirates Hydroponics Farms, AMCO Produce Inc., Soave Enterprises LLC., Thanet Earth Ltd., Bright Farms Inc., Village Farms International, Inc., Millennium Pacific Greenhouses Ltd., Hollandia Produce, L.P., Eden Farms, and Platinum Produce Company.
The report states that the global hydroponics market will exhibit a promising 6.5% over the period between 2017 and 2025, rising from a valuation of US$6.9 bn in 2016 to an opportunity of US$12.1 bn by 2025.
Developed Regions at the Fore of Market Development, to Retain Dominance
On the basis of the type of vegetable, the global hydroponics market earns its dominant share in revenue from the lettuce segment. The segment held a significant 32.9% of the overall market in 2017 and is expected to remain one of the most profitable segments throughout the forecast period as well, registering a promising 6.6% CAGR. The tomato segment is also projected to amount for a significant share in global revenue through the forecast period.
From a geographical standpoint, the report ranks the market for hydroponics market in North America and Europe as the two leading contributors to the global market. Europe alone is expected to account for a massive 41% of the global market by the end of the forecast period, with North America continuing its promising run as well. High demand for hydroponics systems across these regions is chiefly attributed to the rising consumption of hydroponic vegetables owing to the increased level of awareness among consumers. Asia Pacific is also expected to remain a key regional market on account of its vast population and healthy outlook of development of key emerging economies.
Vast Rise in Consumption from Mounting Global Population to Fuel Growth
A number of factors are contributing to the development of the global hydroponics market, including the mounting global population, vast benefits of hydroponics as compared to traditional methods of agriculture in terms production volumes, and shrinking arable lands. As world governments make food security one of their key priorities and the focus on environment-friendly methods of farming gain force, the demand for innovative ways of farming is expected to remain high, a potential trend expected to drive the global hydroponics market.
However, the high base investment required to set-up hydroponic systems and a general lack in awareness about its benefits could potentially hinder the global hydroponics market’s growth prospects to a certain extent over the report’s forecast period. Nevertheless, novel application areas such as customized farming and plantation of medicinal plants could open up growth opportunities.
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