Hydroponics Market Forecasts to 2032 - Global Analysis By Type (Aggregate Systems and Liquid Systems), Equipment, Input, Crop Type, Crop Area, Application and By Geography

According to Stratistics MRC, the Global Hydroponics Market is accounted for $5.72 billion in 2025 and is expected to reach $14.67 billion by 2032 growing at a CAGR of 14.4% during the forecast period. Hydroponics is a modern method of growing plants without soil, using nutrient-rich water solutions to deliver essential minerals directly to the roots. Urban areas and areas with poor soil quality are perfect for this technique because it enables crops to grow more quickly, use less water, and flourish in controlled environments. Without soil, hydroponics allows for year-round production in any climate while lowering the risk of pests and diseases. Crop type and scale determine the use of different systems, including aeroponics, deep water culture, and nutrient film technique. Moreover, hydroponics is becoming more and more popular for growing vegetables, herbs, and leafy greens because it provides environmentally friendly, space-efficient, and sustainable farming solutions for the future.

According to the United States Department of Agriculture, more than 19 million people in the United States live in low-income neighborhoods with limited access to supermarkets or large grocery stores... in these contexts, hydroponic systems can be used as a method to grow vegetables such as lettuce, spinach, and herbs indoors.

Market Dynamics:

Driver:

Growing demand for year-round food production

One of the main factors propelling the hydroponics market is the requirement for a steady, year-round supply of food. The Food and Agriculture Organization (FAO) claims that by establishing ideal growing conditions independent of external climate fluctuations, controlled-environment agriculture (CEA), which includes hydroponics, can stabilize production. This lessens dependency on imports and seasonal availability by guaranteeing a consistent supply chain for fresh fruits, vegetables, and herbs even during off-seasons. In addition to reducing transportation times, hydroponic farms situated nearer to urban populations enhance freshness and minimize post-harvest losses.

Restraint:

High upfront investment expenses

The high initial setup costs of hydroponics are one of the main barriers to its widespread use. In contrast to conventional farming, hydroponics necessitates specific infrastructure, including climate control devices, grow lights, pumps, and nutrient delivery systems. The Food and Agriculture Organization (FAO) claims that compared to open-field farming, the capital cost per square meter of controlled-environment agriculture can be several times greater. Small and medium-sized farmers may find the price tag to be a challenge, especially in developing nations where financing for agriculture is scarce. Furthermore, higher yields and fewer inputs may eventually result in lower operating costs, but many people still find the initial investment to be a barrier.

Opportunity:

Technological advancements in IoT and automation

Automation, artificial intelligence, and Internet of Things (IoT) technologies are being incorporated into hydroponics, creating new opportunities for scalability and efficiency. Automatic monitoring of temperature, humidity, light, and nutrient levels can maximize plant growth while lowering labor costs and human error, according to NASA's Advanced Life Support Program. Predictive analytics can be used to optimize crop cycles for optimal yield, and cloud-based systems can enable growers to manage farms from a distance. Moreover, hydroponics will become more accessible to small and medium-sized businesses as these technologies become more reasonably priced.

Threat:

Competition from conventional farming

Hydroponics offers technological benefits, but for many crops, traditional soil-based farming is still much more established and economical. The Food and Agriculture Organization (FAO) observes that because of their high scalability and low production costs, traditional methods continue to be used to produce staple crops like rice, maize, and wheat. Comparing hydroponics to less expensive, locally tailored agricultural methods may make it economically impractical for farmers in developing nations. Additionally, this cost difference may hinder the uptake of hydroponics, particularly in areas where infrastructure and subsidies heavily favor conventional farming.

Covid-19 Impact:

The COVID-19 pandemic affected the hydroponics industry in a number of ways, posing both obstacles and chances for expansion. Farm operations were impacted by labor shortages in the early phases of the crisis, and global supply chain disruptions delayed the delivery of crucial hydroponic supplies, including seeds, nutrients, and equipment. However, hydroponics gained popularity due to its capacity to produce fresh, pesticide-free crops locally and year-round in controlled environments as lockdowns and movement restrictions upset traditional food supply chains. As consumers, retailers, and governments realized the need for resilient, decentralized food systems, the pandemic sped up interest in indoor and urban farming solutions, according to the Food and Agriculture Organization (FAO). This change has aided in the ongoing post-pandemic investment in hydroponic systems.

The leafy greens segment is expected to be the largest during the forecast period

The leafy greens segment is expected to account for the largest market share during the forecast period, mainly because of their good suitability for controlled-environment agriculture, short growth cycles, and strong market demand. Crops that can be harvested several times a year, grow quickly, and receive precise nutrient delivery, like kale, spinach, and lettuce, flourish in hydroponic systems. The FAO states that leafy greens are particularly well-suited for vertical and urban farming systems, which allow for reliable, superior production near consumer markets. Because they are popular in salads, ready-to-eat meals, and health-conscious diets, and because they use water and nutrients efficiently, they are the most widely grown and economically viable segment of hydroponic farming in the world.

The cannabis cultivation segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the cannabis cultivation segment is predicted to witness the highest growth rate, motivated by the high economic value of the crop and the growing legalization of cannabis for both medical and recreational purposes in different areas. Hydroponic systems are especially well-suited for cannabis because they give exact control over environmental factors, pH, and nutrients, which leads to faster growth cycles, higher yields, and consistent quality-all of which are essential for satisfying stringent regulatory requirements. Agricultural extension programs and industry associations have found that cannabis growers are increasingly using hydroponics to increase product potency and space efficiency while lowering the risk of pests and diseases. This quick adoption, along with the expanding global cannabis market, makes this hydroponics segment the fastest-growing in terms of growth rate.

Region with largest share:

During the forecast period, the Europe region is expected to hold the largest market share, driven by the widespread use of soilless farming methods, robust government support for sustainable agriculture, and sophisticated greenhouse infrastructure. Commercial-scale hydroponic production is most prevalent in nations like the Netherlands, Spain, and France. The Netherlands is frequently recognized as a global center for controlled-environment agriculture because of its advanced technology and export-focused horticulture sector. The adoption of hydroponics has been further accelerated by the European Union's emphasis on lowering pesticide use, conserving water, and encouraging year-round local food production. Furthermore, Europe's dominance of the market has been cemented by consumer demand for fresh, premium produce as well as the region's proficiency in precision agriculture.

Region with highest CAGR:

Over the forecast period, the Asia-Pacific region is anticipated to exhibit the highest CAGR, driven by rising population pressures, fast urbanization, and growing awareness of sustainable farming practices. Hydroponic systems are being adopted more quickly in nations like China, India, Japan, and Australia in response to the need for year-round food production, water scarcity, and the reduction of arable land. Moreover, growth is also being fueled by government programs supporting modern agriculture and an increase in private agritech company investments. Together with developments in affordable hydroponic technologies, the region's growing middle class and rising demand for fresh, pesticide-free produce have made Asia-Pacific the world's fastest-growing market segment.

Key players in the market

Some of the key players in Hydroponics Market include Koninklijke Philips NV., American Hydroponics Inc., Freight Farms, Inc., Heliospectra AB, AeroFarms, LLC, Hydroponic Systems International, BrightFarms Inc, LumiGrow, Inc., Argus Control Systems Limited, Village Farms International Inc., General Hydroponics Inc., Advanced Nutrients, Emirates Hydroponics Farms Inc, Signify Holding Inc, Pegasus Agritech Inc and Urban Kisaan Inc.

Key Developments:

In May 2025, Village Farms International, Inc. announced a new strategic partnership, entering into a Framework Agreement with Vanguard Food GP LLC, Vanguard Food LP, and other entities. The agreement outlines the contribution of Village Farms' produce business assets to Vanguard, alongside a $55 million investment from initial investors Kennedy Lewis Capital Partners Master Fund II LP and Sweat Equities SPV LLC.

In March 2025, Royal Philips announced the expansion of its partnership with Ibex Medical Analytics (Ibex) and a new release of Philips IntelliSite Pathology Solution (PIPS) to further accelerate the adoption of AI-enabled digital pathology to address the pressure pathologists face because of the global shortage of pathologists and the growing number of cancer patients.

In October 2023, Freight Farms, Inc. and Agrinam Acquisition Corporation has announced they have entered into a definitive business combination agreement among Freight Farms, Agrinam, and Agrinam Merger Sub, Inc., a wholly owned subsidiary of Agrinam, which sets out the terms of a business combination whereby Agrinam will acquire all of the issued and outstanding shares of Freight Farms by way of a triangular merger.

Types Covered:

• Aggregate Systems
• Liquid Systems

Equipments Covered:

• HVAC (Heating, Ventilation, and Air Conditioning)
• LED Grow Lights
• Irrigation Systems
• Control Systems
• Material Handling Equipment
• Growing Medium
• Nutrient Solution Delivery Systems
• Other Equipments

Inputs Covered:

• Nutrients
• Rockwool
• Other Inputs

Crop Types Covered:

• Tomatoes
• Leafy Greens
• Peppers
• Cucumbers
• Herbs
• Microgreens
• Flowers & Ornamentals
• Fruits
• Other Crop Types

Crop Areas Covered:

• Upto 1000 sq.ft.
• 1000-50000 sq.ft.
• Above 50000 sq.ft

Applications Covered:

• Commercial Food Production
• Cannabis Cultivation
• Urban Agriculture
• Research & Education
• Home Gardening
• Hospitality & Culinary
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances