Aquaponics Market

Global Aquaponics Market Size (2024 to 2029)

The Global Aquaponics market share value is expected to grow at a CAGR of 9.6% during the forecast period 2024 - 2029 to reach USD 1.85 billion by 2029 from USD 1.17 billion in 2024. 

Aquaponics is a combination of aquaculture, involving the cultivation of aquatic animals like fish, with hydroponics, which entails plant growth without traditional soil. This integrated approach creates a closed-loop system where fish waste is transformed by nitrifying bacteria into nutrients for plants. These nutrients are then absorbed by plant roots, facilitating their flourishing. Concurrently, the plant roots cleanse and purify the water, creating a symbiotic environment for the fish. Although the concept of co-cultivating plants and fish has ancient origins in Asia and Central America, modern aquaponics as we know it today emerged during the 1970s. The pioneering efforts of entities like the New Alchemy Institute and North Carolina State University, led by Dr. Mark McMurtry, paved the way for contemporary aquaponic practices. The plants best suited for aquaponics systems encompass a variety of options: vegetables, leafy greens, small root vegetables, microgreens, fruit-bearing plants, herbs, and even flowers. The specific plant selection depends on the configuration of your aquaponics setup. This innovative yet highly practiced culture serves a huge aquaponics market.

With a projected 9.7 billion people by 2050, sustainable food production is crucial. Wild fish stocks decline as farmed fish doubles in 15 years. Shifting to land-based aquaponics can revolutionize eco-friendly food production, using less space, water, and energy. Rising fish and aquatics plant-based food demand offers untapped aquaponics opportunities. Unlike conventional agriculture, aquaponics is self-regulating, eliminating chemical concerns. Agriculture uses 70% of freshwater; aquaponics reduces water use by 90%.

Global Aquaponics Market Drivers:

The major market drivers in the case of the aquaponics market can be the increasing demand for local and organic food among consumers. The popularity of organic food has experienced a noticeable upswing over recent decades, with its widespread availability now a common occurrence in major grocery stores. This increasing consumer affinity for locally sourced foods mirrors the growing demand for organic and natural products. The central concept revolves around local food systems that facilitate a direct connection between farms and consumers at the point of sale, fostering a direct link within the food supply chain. An illustrative example can be found in the domain of clean-label items and the traceability of raw materials, as this practice cultivates a sense of trust between food producers and consumers. This factor significantly contributes to the heightened demand for vegetables produced through aquaponics methods. The parallel rise in interest has catalyzed the expansion of farmers' markets, witnessed a surge in community-supported agriculture initiatives, and welcomed alternative direct-to-consumer distribution pathways. Additionally, aquaponics presents a unique advantage as it operates without the need for chemical fertilizers or crop protection chemicals. This reliance on fish waste as the primary nutrient source for plants positions it as a promising avenue within the realm of organically grown crops. For instance, citing the Organic Trade Association's findings, sales of organic fruits and vegetables exhibited a noteworthy increase of 5.6%, reaching USD 17.40 billion in 2018 from the 2017 year's USD 16.42 billion. This upward trend underscores the escalating demand for organic produce, creating a favorable landscape for aquaponics to thrive and contribute significantly to this market segment.Thus, demand for locally produced organic food will drive the market share of the overall aquaponics market.

Global Aquaponics Market Restraints:

The factors likely to hamper the market growth of the aquaponics market are the substantial initial investment and ongoing maintenance costs. The operational expenses associated with aquaculture systems remain high due to the need for consistent upkeep. Additionally, not all crops are suitable for aquaponic cultivation, and expanding production using these systems can prove prohibitively expensive. The considerable expense involved in establishing either indoor or outdoor aquaponics cultivation systems represents a major entry barrier for newcomers to the market. Depending on the technological sophistication, the cost of constructing a greenhouse can range from two to twenty times more than that required for conventional soil-based growing methods. For instance, in India, setting up and maintaining a medium-scale greenhouse currently commands an overall cost of approximately USD 376,500, significantly surpassing the investment needed for traditional farming setups. Moreover, the absence of a specialized and skilled workforce proficient in both aquaculture management and soilless farming techniques poses a challenge to the industry's expansion.

With a projected 9.7 billion people by 2050, sustainable food production is crucial. Wild fish stocks decline as farmed fish doubles in 15 years. Shifting to land-based aquaponics can revolutionize eco-friendly food production, using less space, water, and energy. Rising fish and aquatics plant-based food demand offers untapped aquaponics opportunities. Unlike conventional agriculture, aquaponics is self-regulating, eliminating chemical concerns. Agriculture uses 70% of freshwater; aquaponics reduces water use by 90%.

Impact of COVID-19 on the Aquaponics Market:

During the global COVID-19 pandemic, businesses across diverse sectors confronted significant upheaval as governments implemented lockdown measures to curb the virus's spread. Manufacturing operations experienced temporary closures, leading to production standstills. The agriculture sector and its associated industries worldwide carried the brunt of the pandemic's impact. Labor shortages profoundly disrupted the operations of aquaponics facilities. Moreover, challenges arose in finding markets for the produced goods. Nevertheless, the pandemic served as a catalyst for the adoption of alternative and sustainable farming methods, including aquaponics systems. It underscored the significance of urban and peri-urban farming in catering to local markets and supplying fresh produce. Thus, the demand for aquaponics equipment and components surged among hobbyists and home gardeners. Many individuals installed aquaponics systems at home due to increased free time resulting from lockdowns and home confinement measures.

REPORT COVERAGE: 

This research report on the Global Aquaponics Market has been segmented and sub-segmented based on equipment,  component, facility type, growing mechanism, application, production & region.

Global Aquaponics Market - By Equipment:

• Pumps & valves
• Grow lights
• Aeration Systems
• Water heaters
• Others

Based on equipment, the pumps & valves segment dominated the aquaponics market with a market revenue of 28.43% in 2022, and it is anticipated to grow at the highest CAGR during the projected period. Pumps play a vital role in aquaponics systems by facilitating the movement of water. They not only transport water but also contribute to oxygenation and the distribution of nutrients within the system. The system incorporates different types of pumps, including submersible pumps and inline pumps. Conversely, the grow light segment is predicted to grow at the fastest CAGR through the forecast period. Diverse plants and fish species demand varying light conditions to support their healthy development. Within aquaponics systems, a range of grow lights can be harnessed, including LED grow lights, induction lights, high-intensity discharge lights, and fluorescent lights. These grow lights play a pivotal role in enabling year-round plant cultivation while also enhancing the growth and yield of crops. 

Global Aquaponics Market - By Component:

• Rearing tanks
• Bio-filters
• Settling Basins
• Sump tanks
• Others

Based on the components, the rearing tank segment is expected to dominate the aquaponics market during the forecast period. Aquaponic systems offer the flexibility of employing various kinds of rearing tanks. Even a compact aquarium can serve as a suitable option for home-based setups. Options for rearing tanks encompass glass tanks, plastic tanks, Rubbermaid stock tanks, as well as intermediate bulk container totes.

Moreover, the bio-filters segment is anticipated to grow at the fastest CAGR through the forecast period. Bio-filters within aquaponic systems play a pivotal role in converting ammonia into plant-nourishing nutrients. Varied types of bio-filters include moving bed filters, static filters, and drop filters. While not an absolute prerequisite for aquaponics, the incorporation of bio-filters enhances system efficiency, thereby motivating their consistent integration. Thus, overall rearing tanks, bio-filters, settling basins, etc., will fuel the aquaponics market during the projected period.

Global Aquaponics Market - By Facility type:

• Greenhouse
• Building-based indoor farms
• Others

Based on facility type, the greenhouse segment dominated the aquaponics market in 2022, with a market share of 45.59%. Aquaponics systems find their optimal match in passive solar greenhouses. These greenhouses prove highly compatible with various cultivation methods such as deep-water culture, nutrient film technique, media-filled grow beds, and vertical aquaponics. They provide a suitable environment for accommodating these diverse growing mechanisms.

Moreover, the building-based indoor farms segment is expected to grow at a considerable CAGR throughout the forecast period. These indoor farms are on the rise, serving the purpose of year-round crop cultivation even in climates unfavorable for plant growth, like arid regions. While aquaponics can be implemented outdoors as well, indoor installations hold an advantage due to their controlled environment, which mitigates the risk of crop harm. These facilities are expected to drive the aquaponics market in the 2023-2028 forecast period.

Global Aquaponics Market Segmentation - By Growing Mechanism:

• Deep water culture
• Nutrient Film Technique
• Media-filled grow beds
• Vertical aquaponics

Based on the growing mechanism, the media filled grow beds segment dominated the aquaponics market in 2022. The media-filled grow beds represent a straightforward and cost-effective category within aquaponics systems. These beds provide ample support for numerous fruit and vegetable plants with substantial root structures. Conversely, the vertical aquaponics segment is anticipated to experience substantial growth in its CAGR throughout the projected period. Within this system, stacked grow beds are positioned above the rearing tank, enabling the cultivation of plants like strawberries and leafy greens that require less physical support. Furthermore, the Nutrient Film Technique is projected to undergo significant expansion over the forecast period, primarily due to its space-efficient design and the reduced labor expenses it entails.

Global Aquaponics Market - By Production:

• Fish
• Fruits & vegetables
• Others

Based on produce, the fish segment held the most revenue share of 54.00% in 2022. For instance, Tilapia fish ranks among the most frequently cultivated fish species in aquaponics due to its remarkable adaptability. The choice of fish species influences the dimensions of the rearing tank, as certain fish demand larger areas for optimal development. In the aquaponics market, the fruits & vegetables segment secures the second-highest position in terms of revenue generation throughout the projected period. For instance, a range of plants, including tomatoes, herbs, lettuce, spinach, kale, marijuana, watercress, peppers, squash, leafy greens, zucchini, cucumber, and eggplant, are among the widely and effectively cultivated crops using aquaponic systems.

Global Aquaponics Market - By Application:

• Commercial
• Home production
• Research & Education

Based on application, the commercial application segment dominated the aquaponics market in 2022, with a market revenue share of 56.88%. Aquaculture has gained substantial traction among commercial cultivators, as it facilitates the simultaneous cultivation of both vegetables and diverse fish species. This dual output of aquatic life and plants has significantly enhanced its appeal within the commercial growing sector. Various fish varieties, including tilapia, bass, trout, carp, catfish, koi, fingerlings, and an assortment of ornamental fish, can be successfully raised through aquaculture methods.The research & education application segment is anticipated to record the quickest CAGR during the projected period. Aquaponics systems serve as essential tools for research institutions, enabling them to carry out experiments through controlled adjustments of growth parameters such as temperature, humidity, light, and nutrient levels. 

Global Aquaponics Market - By Region:

• Asia-Pacific
• Middle East
• Latin America
• Europe
• North America

Based on region, North America dominated the global aquaponics market, commanding a substantial 31.69% share of the revenue in 2022. This dominancy can be accredited to the widespread uptake of controlled environment agriculture within the region. Moreover, the surge in consciousness regarding eco-friendly and viable farming methods, coupled with a growing desire for organic produce, has bolstered the acceptance of aquaponics systems. To bolster sustainable agriculture, foster local food networks, and mitigate farming's ecological repercussions, the U.S. government has enacted diverse initiatives to promote indoor farming.

The Asia Pacific region is poised for remarkable expansion. This projection rests on the robust governmental backing for sustainable agriculture in nations with strong agricultural roots, including India, China, and Southeast Asian countries. For instance, the Indian administration extends subsidies of up to 50% through initiatives like the National Horticulture Mission (NHM), which primarily aims to establish vertical farms nationwide. Complementing this, several state governments within India offer supplementary 10-15% subsidies to encourage the integration of modern agricultural technologies.

On the other hand, the rest of the world is expected to record a noteworthy CAGR during the forecast period.

KEY MARKET PLAYERS:

Key Market Players Of Global Aquaponics Market are Nelson and Pade Aquaponics, Pentair Aquatic Eco-System, Inc. (PAES), The Aquaponic Source, Hydrofarm Holdings Group, Inc, Practical Aquaponics (Pty)Ltd, Greenlife Aquaponics, Backyard Aquaponics Pty Ltd, My Aquaponics, Aquaponic Lynx LLC, Portable Farms Aquaponics Systems, Aquaponik Manufactory GmbH, Aponic Ltd.

RECENT HAPPENINGS IN THE MARKET:

In April 2021, Les Nouvelles Fermes, an indoor farming company headquartered in France, successfully secured EUR 2 million (equivalent to approximately USD 2.4 million) in its inaugural funding round. The investment was provided by notable entities, including IRDI, Banque des Territoires, Crédit Agricole Aquitaine, and CIC. Armed with this capital injection, the company envisions the construction of the most extensive aquaponic farm in Europe.