Middle East And Africa Hydroponics Market

Middle East and Africa Hydroponics Market Size (2024 to 2032)

The Middle East and Africa hydroponics market was expected to be valued at USD 12.9 billion in 2023 and is anticipated to reach USD 14.85 million in 2024 from USD 47.19 billion by 2032, growing at a CAGR of 15.5% from 2024 to 2032.

MARKET OVERVIEW

Hydroponics is a soilless cultivating technique used to create high-return crops. It is a part of hydroculture, which utilizes mineral arrangements and supplements to develop different plants. Hydroponics utilizes two fundamental mediums to develop crops: selection culture and strong medium culture. This strategy is a compelling substitute that defeats the defects of typical agribusiness methods to a superior degree.

MARKET DRIVERS

One of the essential drivers is that hydroponics gives higher yields compared with conventional agricultural techniques. It also allows farmers to develop crops in regions that can't support crops in soil. Moreover, hydroponics removes the use of counterfeit maturing operators and pesticides, which helps in making nutritiously superior vegetable items. The presence of limited land space and water scarcity in the region is majorly driving the cultivators to adopt these techniques, fueling the market growth. Various advantages of hydroponics, such as efficient water use, faster growth rates, and the ability to grow crops in limited space, are accelerating the market growth. Countries like the UAE and Saudi Arabia mainly depend on imports, where hydroponics and vertical farming act as good choices to overcome certain factors like climate, water scarcity, and limited arable land issues affecting agricultural practices. The growing technological advancements in the agricultural industry, growing awareness among people, government support, and R&D activities are expected to augment the market with growth opportunities during the forecast period.  

MARKET RESTRAINTS

The high initial investment costs for hydroponic setup and maintenance will be challenging for the cultivators, restraining the market growth. Most low- and middle-income farmers will face restricted access to these advanced and modern agricultural techniques due to budget issues. The need for awareness and complete knowledge regarding hydroponics, mainly among the uneducated or minimally educated farmers from lower developed regions, is expected to hinder the market growth rate across the Middle East and Africa. The limited crop varieties can be cultivated through hydroponics compared to traditional farming, limiting the market revenue. The hydroponically grown crops are highly prone to waterborne diseases, and there is a high risk of disease spreading as all the plant roots emerge in the media; this requires constant observation. These factors are estimated to impede the market growth across the region.

SEGMENT ANALYSIS

Middle East and Africa Hydroponics Market Analysis By Equipment

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

The HVAC segment held the most significant share of the MEA hydroponics market revenue.  HVAC dominates the market as heating, ventilation, and air-conditioning are the significant elements required to create a controlled environment for hydroponic cultivation. Heating, ventilation, and air conditioning (HVAC) use various technologies to control the air temperature, humidity, and purity in an enclosed space. Hydroponic farmers need to control and monitor different conditions in their growing area, enhancing the adoption of HVAC and leading to segment growth.

The LED grow light segment is estimated to grow fastest during the forecast period. LED grow lights are the most used type of bulb in hydroponic lighting as they are readily available, use less energy, and produce less heat compared to other options, which drives the segment's growth. The LEDs offer light intensity and no need for a warm-up period to produce bright light, which fuels its adoption rate.

The other segments are projected to grow considerably during the forecast period due to the increasing adoption of hydroponic cultivation practices across the Middle East and African region.

Middle East and Africa Hydroponics Market Analysis By Type

• Aggregate

• EBB & Flow Systems
• Drip Systems
• Wick systems

• Liquid

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

The Aggregate systems segment dominated the Middle East and Africa hydroponics market revenue and is anticipated to maintain the domination in the coming years. The aggregate systems provide optimal root support, aeration, and nutrient delivery, enhancing crop yields and enabling scalable hydroponic operations across diverse environments. These benefits of the aggregate systems are escalating the demand, leading to regional market growth. The inert and solid media like peat, rock wool, vermiculture, sand, sawdust, perlite, or coconut coir support the plant growth.

The liquid segments segment is anticipated to have the highest CAGR during the forecast period due to the growing preference for closed-system cultivation among the Middle East and Africa cultivators. The deepwater culture and nutrient film technique (NFT) systems are increasingly employed to cultivate leafy vegetables, driving the segment growth rate in the coming years. The liquid systems directly submerge the plant roots into the nutrient solution, which makes the cultivation process simple, fueling the adoption rate among cultivators.

Middle East and Africa Hydroponics Market Analysis By Crop Type

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

The tomatoes segment dominated the regional market revenue with a significant share of 44.8% in 2023. Tomatoes are the most extensively cultivated hydroponic crop worldwide, primarily due to the rapid cultivation rate and the necessity of lower water requirements compared to conventionally farmed tomatoes, which primarily drives the segment growth. Most indoor farmers employ growing materials such as rock wool, perlite, or coconut coir for hydroponic tomato cultivation, enhancing yield production. For Instance, in October 2023, Abu Dhabi University launched AirFarm, a new portable farm that can grow tomatoes without needing soil. The AirFarm utilizes hydroponics, minimizes water wastage, enhances food security, and promotes sustainable farming practices by meeting the demand for high-quality and locally grown.

The lettuce and leafy segment is projected to have notable growth during the forecast period. Among the leafy vegetables, red and green lettuce are the largest hydroponically grown vegetables among indoor farmers due to their raw consumption among consumers, which is accelerating the demand for the crop and positively impacting market growth.   

Middle East and Africa Hydroponics Market Analysis By Input Type

• Nutrients
• Growth Medium

The growth medium segment held the most significant share in the Middle East and Africa hydroponics market. The most common media options used in hydroponics are coconut coir, rock wool, peat moss, and perlite, which are highly adopted by cultivators as they enhance crop growth and provide good yields.

The nutrients segment is anticipated to grow considerably in the coming years, as nutrients are essential for plant growth.

COUNTRY ANALYSIS

• KSA
• UAE
• Israel
• Rest Of GCC Countries
• South Africa
• Ethiopia
• Kenya
• Egypt
• Sudan
• Rest Of MEA

The UAE region held a significant share of the MEA hydroponics market due to several ambitious projects in Saudi Arabia and the UAE. The availability of limited land space for agriculture and limited resources are escalating the farmers to adopt various modern agricultural techniques like hydroponics and vertical farming to enhance crop yield with high quality. The growing government initiatives that encourage investments in the agricultural industry positively impact the growth of market revenue across the region. The expanding food and beverage industry across the region is projected to accelerate the adoption of these techniques among farmers to meet the demand for food products.

The African region held a considerable growth share in the regional market revenue. The increasing awareness among the people, government support, and better results observed compared to traditional methods are augmenting the market growth in the country.

KEY PLAYERS IN THE MIDDLE EAST AND AFRICA HYDROPONICS MARKET

Major players dominating the Middle East hydroponics market are Argus Control Systems, Koninklijke Philips NV, Greentech Agro LLC, Logiqs B.V., and Lumigrow, Inc.