Hydroponics Market Trends: Automation, IoT, and Smart Farming Integration

The global hydroponics market is experiencing robust growth, driven by increasing concerns over food security, climate change, and the need for sustainable farming practices. According to recent industry analysis, the market is projected to grow significantly in the coming years as consumers, governments, and agricultural businesses turn to soilless farming techniques to meet the rising demand for fresh, high-yield crops.

Hydroponics, a method of growing plants without soil by using mineral nutrient solutions in water, offers numerous advantages over traditional agriculture. These include reduced land usage, higher productivity per square foot, lower water consumption, and year-round cultivation capabilities. As urbanization accelerates and arable land becomes scarce, hydroponic farming is being increasingly adopted in urban centers, vertical farms, and controlled environment agriculture (CEA) systems.

The global hydroponics system market in terms of revenue was estimated to be worth $12.1 billion in 2022 and is poised to reach $25.1 billion by 2027, growing at a CAGR of 15.6% from 2022 to 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%.

Hydroponics Market Growth Drivers:

Sustainable and Resource-Efficient Farming: Hydroponics uses up to 90% less water than traditional farming, making it ideal for regions facing water scarcity.
Rising Demand for Locally Grown Produce: Urban hydroponic farms enable fresh, pesticide-free produce to be grown closer to consumers.
Technological Advancements: Innovations in automation, LED lighting, nutrient management, and AI-powered monitoring systems are improving efficiency and scalability.
Government Support: Policy incentives, funding, and research initiatives promoting sustainable agriculture are accelerating market development.

Emerging Trends and Innovations in the Hydroponics Market

AI and Automation: AI-driven systems analyze sensor data to optimize water, nutrient delivery, and climate conditions in real-time, enhancing yields and reducing labor costs. Robotics are increasingly used for tasks like seeding, transplanting, and harvesting.
Smart Nutrient Management: Automated nutrient delivery systems, guided by AI and IoT, ensure plants receive the exact nutrients they need, improving growth rates and produce quality.
Advanced LED Grow Lights: Next-generation LED systems offer customizable light spectra and energy efficiency, supporting optimal plant development while reducing operational costs.
Vertical and Urban Farming: Vertical farming, often combined with hydroponics, is gaining traction in urban environments, making fresh produce accessible in cities and reducing supply chain vulnerabilities.

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Europe Leads the Global Hydroponics Market

Europe holds the largest share of the global hydroponics market, driven by the widespread adoption of greenhouse agriculture across the region. Key European companies, such as General Hydroponics and Hydroponic System International, have played a pivotal role by introducing advanced tools, technologies, growth media, and nutrient solutions that support hydroponic farming. This has significantly encouraged growers in the region to embrace hydroponic methods.

North America follows Europe in terms of market share, supported by well-developed infrastructure and the early adoption of modern agricultural practices. Meanwhile, the Asia Pacific region is witnessing rapid market growth, fueled by rising demand for fresh produce among urban consumers and increasing government support in the form of subsidies for hydroponic farm development.

Leading Hydroponics Companies:

Key players in this market include ScottsMiracle-Gro (US), Triton Foodworks Pvt. Ltd. (India), Green Sense Farms (US), Emirates Hydroponic Farm (UAE), Gotham Greens (US), Hydrodynamics International (US), American Hydroponics (US), Advanced Nutrients (US), Emerald Harvest (US), VitaLink (UK), Freight Farms (US), AeroFarms (US), Nature’s Miracle (India), Bright Farms (US), InFarm (Germany), Badia Farms (UAE), Argus Control Systems (Canada), Logiqs B.V. (Netherlands), LumiGrow, Inc. (US), Hydroponic Systems International (Spain), Signify Holding (Netherlands), and Heliospectra AB (Sweden).

The Future of Hydroponics

The hydroponics market is set for continued innovation and expansion. With ongoing advancements in automation, data analytics, and sustainable practices, hydroponics is poised to play a critical role in addressing global food security, reducing environmental impact, and meeting the evolving demands of consumers worldwide.

Hydroponics is evolving rapidly with new technologies emerging in 2025. Innovations will focus on sustainability, efficiency, and automation. Enhanced nutrient delivery systems will improve plant growth and yields. Commercial and home gardening practices will benefit significantly from these advancements.

Hydroponics is not just a trend—it’s a sustainable solution for the future of agriculture. As technology and awareness grow, expect this market to flourish, reshaping how the world produces and consumes food.

Hydroponics Market is Expected to Grow $25.1 billion by 2027

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.

Based on types, the liquid systems segment gained the largest market share in the hydroponics market. Liquid system consists of different hydroponic systems such as deep water culture, NFT, and aeroponics. NFT systems is becoming widely popular across the globe. Some key benefits of NFT include low water and nutrient consumption, avoiding the need to use a lot of growing media, easy-to-disinfect roots and setup, easy-to-see root quality and health, and recirculating minimal groundwater contamination.Request Sample Pages: https://www.marketsandmarkets.com/requestsampleNew.asp?id=94055021Based on equipment, the LED grow light segment accounted for the largest market share in the hydroponics market. Grow lights of different types are available in the market, including high-pressure sodium lights (HPS), metal halide bulbs (MH), and fluorescent bulbs. The types of grow lights are based on the spectrum of light emitted by the equipment, which can stimulate and increase plant growth. The emergence of grow light technology in plant breeding has created market opportunities for the majority of indoor farming systems.The vegetables segment gained the largest share in the hydroponics market based on crop type during the review period. Producing vegetables like tomatoes, leafy greens, cucumbers, among others, in hydroponic systems protects crops from harsh conditions such as cold, wind, pests, drought, etc. Growing vegetables in such systems also allow for creating the most suitable condition for crops owing to the controlling factors available, such as moisture, light, temperature, fertilization, humidity, and irrigation.Greenhouse agriculture in European region supported the growth of hydroponics in Europe. Many European players such as General Hydroponics and Hydroponic system international entered the market with hydroponic tools and technologies, along with growth mediums and nutrients to grow crops hydroponically; this encouraged the growers to use such technologies. Europe is followed by North America in terms of market share due to availability of required infrastructure to run a hydroponic farm and adoption of modern farming technique. Asia Pacific region is experiencing high growth in the market due to increasing demand for fresh food among urban population and government support in establishing hydroponic farms by means of subsidies.

Attractive Opportunities In Hydroponics Market

The increasing population and urbanization have led to a decline in the arable land, globally. According to the United Nations Department of Economic and Social Affairs, about 55% of the world’s population lives in urban areas as of 2018, and that figure is expected to grow to 68% by 2050. Considering the overall growth in population, up to 2.5 billion additional people are expected to be added to urban areas by 2050. Hydroponics is the technique of growing plants with water and nutrients without the use of soil. This technique makes use of containers or specially designed benches with troughs to enable the suspension of plants in water. The hydroponics market is estimated to be valued at USD 8.1billion in 2019 and is projected to reach USD 16.0 billion by 2025, at a CAGR of 12.1% during the forecast period.

Major developmentsthat can change the business landscape as well as market forecasts

With the increased adoption of hydroponics globally, manufacturers and researchers are working on improving the efficiency of hydroponics technology to increase the quality and quantity of the produce. For instance, Preferred Produce, an organic and kosher greenhouse in Deming, New Mexico, introduced a new patented technology that combines hydroponics with aeroponics. It was developed in partnership with Russian scientists. This new patented technology includes a large plastic urn filled with water and includes tubes for circulating oxygen. This new technology was introduced due to the restricted supply of oxygen when plants are submerged in oxygen in a hydroponics system.

Another technology was developed by Phytoponics, a UK-based hydroponic systemcompany. It introduced a similar technology called the Hydrosac, in which the roots of the plant are held in contact with an oxygenated, nutrient-rich solution. The concentration of liquid nutrients facilitates high growth rates and resource efficiency. The Hydrosac acts like a long thin container connected to a pump and nutrient solution reservoir. Sitting on the fluid’s surface are integrated flotation chambers in which

plants sit within a healthy, rot preventing air gap above water. An inbuilt aerator blows oxygen bubbles through the solution to maintain dissolved oxygen levels for healthy roots. The bubbles burst at the surface, spraying a nutrient-rich mist on to the plant roots,nourishing the plant to grow strong.

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Geographical Prominence

The Asia Pacific hydroponics market has strong potential to become the leading market in the coming years. The region has also been susceptible to the effects of climate change that have had a profound impact on agriculture produce. The increasing instances of droughts, floods, and other natural disasters in countries such as India, China, and Japan have raised concerns over food security. This has spurred the adoption of indoor hydroponic agriculture in the region. China is projected to be the fastest-growing market for hydroponic farming in the region and has displayed notable growth potential. Not only in AsiaPacific but globally has the growth in hydroponics market been observed, with the increasing investments in this market. For instance, Larry Ellison, the founder, chairman, and CTO of Oracle, launched a hydroponic farming start-up named Sensei in Los Angeles, which plans to build 10 greenhouses covering 200,000 square feet on the Hawaiian island of Lanai. Also, Future Farms based in Chennai, India, has developed effective and accessible farming kits to facilitate hydroponics. Also, there are new technological innovations tapped by start-ups that can further propel the growth of this market.

Coverage of new market players and change in the market share of existing players

Company Profiles: Company profiles give a glimpse of the key players in the market, with respect to their business overview, financials, product offerings, and recent developments. In the new edition of the report, Freight Farms (US), Terra Tech Corp (US), Emirates Hydroponics (UAE), Advanced Nutrients (Canada), Emerald Harvest (US) and Green Sense Farms (US) were profiled, as they have emerged as key players in the recent years due to various strategic investments, agreements, and product launches performed in the hydroponicsmarket. These strategic developments have challenged the status-quo of industry leaders,and it was prudent to analyze the changing business landscape. Company share analysis has been added in the new report, which was not provided in the earlier one. Competitive leadership mapping and competitive benchmarking of key players (crop producers and system input providers) are also added as new segments.

Updated financial information/product portfolio of players

Newer and improved representation of financial information: The new edition of the report provides updated financial information in the context of the hydroponicsmarket till 2017/2018 for each listed company in the graphical representation in a single diagram (instead of multiple tables). This would help to easily analyze the present status of profiled companies in terms of their financial strength;product portfolio strength;key revenue generating region/country; business segment focus in terms of the highest revenue generating segment; and investment on R&D activities.