Europe Hydroponics Market

Europe Hydroponic Market (2023 to 2028)

The Middle East and Africa pet food market is expected to reach USD 6.46 billion by 2028 from USD 5.39 billion in 2023, growing at a compound annual growth rate (CAGR) of 4.32% during the forecast period from 2023 to 2028.

The main factors propelling the hydroponics sector in Europe forward are the growing acceptance of controlled environment agriculture and the developments in hydroponic system technology. Agriculture makes up half of the land in the European Union, showing its important role in providing employment, economy, and environment. Over the next 20 years, the Food and Agriculture Organisation predicts a fifty percent rise in global food output, with intensification contributing to eighty percent of this development. In addition to this, there were multiple reasons for the rise of controlled environment agriculture, like Climate change, water shortages (Europe's southern part), energy crises, environmental pollution, and food problems. Therefore, the need for a smart, controlled environment agricultural system will boost the market share of Europe's hydroponic market.

The increased acceptance of hydroponics as a profitable farming method is providing future opportunities for the hydroponic companies in the region. Over seven hundred global hydroponics companies operate, with around 200 start-ups currently in the market. Furthermore, recent advances in agricultural technology are moving the European hydroponic market forward. Using cutting-edge technology, next-generation vertical farms are a growing trend that reliably supplies an abundance of high-quality crops for a whole year.

The high one-time cost of setting up hydroponics is one of the major factors limiting the growth rate of the European hydroponic market. There is a shift taking place in Europe in the vertical farming sector, and a number of firms are crowd-funding money for their requirements and technology. Also, because of the energy crisis, the major vertical farming companies are reducing their operations and employees in multiple countries. The high electricity consumption of Lights used to power plant growth caused consumer energy costs in the EU to rise by over 58% between December 2020 and July 2022.

Despite the court’s rule that qualifies the hydroponic products as organic, in order to receive their organic certification, producers have to comply with a number of soil-building standards. Such double standards in the organic label are one of the prime challenges for the European hydroponic market. Moreover, one of the main issues that could prevent the market from expanding is a lack of practical understanding of the practice.

Impact of COVID-19 on the European hydroponics market:

COVID-19 severely affected the supply of food and agricultural produce in the region. The COVID-19 pandemic brought isolation circumstances that were before globalization back to life, which highlighted the importance of agricultural engineering, sustainable agriculture, and strong supply systems. Due to this, the demand for hydroponic agriculture increased in the region. Also, the lack of access to larger retail centers in the rural areas supported local commerce, and small and medium-sized producers adopted hydroponic agriculture, which assisted in the expansion of the European hydroponics market.

REPORT COVERAGE:

This market research report on the European hydroponic market is segmented and sub-segmented into the following categories.

Europe Hydroponic Market - By Equipment:

• HVAC
• LED Grow Light
• Communication Technology
• Irrigation Systems
• Material Handling
• Control Systems

The HVAC segment held the biggest market share in Europe in 2022. With hydroponic HVAC systems, indoor farming is becoming more and more popular as a way to replicate the outdoors and keep a steady temperature.

Europe Hydroponic Market - By Type:

• Aggregate
• Liquid

The liquid segment under this category will continue to expand at a higher CAGR during the forecast period of the European hydroponic market. The rise of deep-water culture to grow and maintain producers among the home and commercial growers is driving this segment.

Europe Hydroponics Market - By Crop Type:

• Tomato
• Lettuce & Leafy Vegetables
• Cucumber
• Pepper & Strawberry

The pepper and strawberry segment is predicted to flourish at a faster growth rate under this category during the forecast period. Strawberries and other berries are some of the most popular berries grown with the help of hydroponics.

Europe Hydroponics Market - By Input Type:

• Nutrients
• Growth Medium

The Nutrient segment has largely occupied the market share in the region and is anticipated to register a prominent growth rate during the forecast period.

Europe Hydroponics Market - By Aggregate Hydroponics Systems:

• Closed Systems
• Open Systems

The closed systems segment is leading with the maximum market share because it helps the plant with 80 percent less water and fertilizers.

Europe Hydroponics Market - By Liquid Hydroponic Systems:

• Nutrient Film Technique (NFT)
• Floating Hydroponics and Aeroponics

The Nutrient Film Technique (NFT) segment is propelling the market with an elevated growth rate in Europe.

Europe Hydroponics Market - By Closed Systems:

• The Water Culture System
• The EBB and Flow System
• Drip Systems
• The Wick System

The drip system segment is moving forward prominently under this category as it is the most popular hydroponic system adopted in Europe.

Europe Hydroponics Market - By Country:

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe

The UK hydroponics market is projected to continue to have the highest market share at a steady pace due to rising awareness and adoption of hydroponic systems.

The German hydroponics market is the dominant market in the region, following the UK's because of the introduction of state-of-the-art greenhouses. The increasing population has driven the rise of the indoor farming business in Germany.

The French hydroponics market is thriving at an exponential rate due to the deep penetration of hydroponic systems in the French agricultural sector.

The Italian hydroponics market is moving forward toward maturity due to the high growth of greenhouses all over the country.

The Spanish hydroponics market is propelling with increased emphasis on smart controlled environment agriculture.

KEY MARKET PLAYERS:

Argus Control Systems, Koninklijke Philips NV, Greentech Agro LLC, Logiqs B.V., Lumigrow, Inc. and General Hydroponics, Inc. are some of the notable players in the European hydroponics market.