Report Overview

Scarcity of arable land, water conservation efforts, increasing demand for fresh produce, advanced agricultural technologies, government support, and growing adoption of sustainable farming practices are propelling the growth of Israel Hydroponics Market during the forecast period between 2023 and 2029.

Israel Hydroponics Market – Industry Trends & Forecast Report, 2029

Israel hydroponics market size was estimated at USD 20.07 million in 2022. During the forecast period between 2023 and 2029, the size of Israel hydroponics market is projected to grow at a CAGR of 8.24% reaching a value of USD 32.29 million by 2029. Major factor driving the growth of the Israel hydroponics market is a growing demand for organic and locally sourced produce, driven by increasing consumer awareness of health and environmental concerns. This has led to a rise in urban farming, community-supported agriculture (CSA), and farmers' markets. Also, sustainable and eco-friendly practices are gaining momentum, with an emphasis on water conservation, efficient irrigation techniques, and integrated pest management. Further, there is a surge in indoor gardening and vertical farming, leveraging advanced technologies like hydroponics and aquaponics. The market is witnessing a shift towards ornamental plants and landscaping services, as people are investing more in beautifying their homes and outdoor spaces.

Israel Hydroponics Market - Overview

Hydroponics is a soil-less method of growing plants that utilizes water-based nutrient solutions. It involves cultivating plants in a controlled environment, such as a greenhouse or indoor setup, where the roots are submerged or misted with nutrient-rich water. The absence of soil allows for precise control over plant nutrition and growth conditions. Hydroponics offers numerous benefits, including increased crop yields, efficient water usage, faster growth rates, and the ability to grow plants in areas with limited arable land. This technique is widely employed in commercial agriculture as well as home gardening, offering a sustainable and innovative approach to modern plant cultivation.

Growth Drivers

Innovations Driving Sustainable Agriculture

In recent years, the Israel hydroponics market has witnessed a remarkable surge, driven by a combination of technological advancements and growing demand for sustainable agriculture. Hydroponics, a soil-less farming technique, has gained immense popularity due to its ability to maximize crop yields and conserve water resources. Israel, known for its agricultural expertise, has embraced hydroponics to overcome its water scarcity challenges. The market has witnessed increased investment in research and development, leading to innovative solutions and optimized production methods. The integration of automation, vertical farming, and advanced nutrient management systems has significantly enhanced efficiency and scalability, positioning Israel as a global leader in hydroponics technology.

Restraints

Regulatory Restraints amidst Rapid Growth

In recent years, the Israel hydroponics market has experienced impressive growth, driven by advancements in agricultural technology and a growing demand for sustainable and efficient farming practices. However, this flourishing industry now confronts regulatory restraints. The Israeli government has implemented stricter guidelines and licensing requirements for hydroponic farming operations, posing challenges for both new entrants and existing players. These regulations aim to ensure the safety and quality of hydroponically grown produce while maintaining environmental sustainability. While these measures intend to improve industry standards, they also present hurdles in terms of compliance and increased costs for hydroponic farmers, impeding the market's expansion potential in Israel.

Impact of COVID-19 on Israel Hydroponics Market

Amid the COVID-19 pandemic, the hydroponics market in Israel has experienced a significant positive impact. As traditional agriculture faced disruptions, hydroponics, a soilless farming technique, gained traction. With hydroponics' ability to optimize space, conserve water, and minimize labor, Israeli farmers swiftly embraced this innovative approach. The pandemic-induced restrictions and uncertainties highlighted the importance of local food production and food security, further boosting the hydroponics sector. Israel's advanced technological expertise in agriculture and strong government support also contributed to its growth. Hydroponics not only ensures a stable supply of fresh produce but also reduces reliance on imports, making it a sustainable solution for Israel's food needs.

Israel Hydroponics Market

Segmental Coverage

Israel Hydroponics Market – By Type

On the basis of type, Israel hydroponics market is segmented into Non-aggregate System and Aggregate System segments. The Non-aggregate System is further subdivided into Liquid System, Deep Water Culture, Nutrient Film Technique (NFT), Aeroponics System, and the Aggregate System segment is further segmented into Ebb and Flow System, Drip System, and Wick System.

The Non-aggregate System segment is a higher contributor to the Israel hydroponics market, which provides flexible options for cultivating plants without the use of solid medium. This segment is further divided into subcategories, including the Liquid System, Deep Water Culture, Nutrient Film Technique (NFT), and Aeroponics System. On the other hand, the Aggregate System segment also offers different techniques, with the largest subsegment being the Drip System. Other options within the Aggregate System include the Ebb and Flow System and the Wick System. These diverse segments provide growers in Israel with a wide range of hydroponic solutions to meet their specific needs.

Israel Hydroponics Market – By Equipment Type

By equipment type, Israel hydroponics market is divided into HVAC System, LED Grow Lights, Irrigation System, and Control System segments. HVAC stands for Heating, Ventilation, and Air Conditioning, and it plays a crucial role in maintaining optimal growing conditions for hydroponic crops. Hydroponics relies on precise control of temperature, humidity, and airflow to ensure the plant's health and growth. The HVAC system helps regulate these environmental factors by providing the necessary heating, cooling, and ventilation. With Israel's focus on advanced agricultural technologies, the demand for efficient HVAC systems in hydroponics is high, making it the largest segment in the market.

Israel Hydroponics Market – By Input Type

By input type, Israel hydroponics market is divided into Nutrients, Growth Media segments. Nutrients play a crucial role in hydroponic systems, providing essential elements for plant growth and development. These nutrients are carefully formulated to meet the specific needs of plants grown in a soilless environment. On the other hand, Growth Media refers to the materials used to support plant roots and provide anchorage. This segment includes various substrates such as coco coir, rockwool, perlite, and vermiculite. Both Nutrients and Growth Media segments are essential components of hydroponics, ensuring optimal plant nutrition and support for efficient and sustainable cultivation practices in Israel.

Israel Hydroponics Market – By Crop Type

Based on crop type, Israel hydroponics market is divided into Vegetables, Fruits, Flowers segments. The vegetables segment is the largest one in terms of market size and demand. Israel has made significant advancements in hydroponic technology, allowing for the cultivation of a wide range of vegetables in controlled environments. The country's favorable climate conditions, water scarcity challenges, and focus on agricultural innovation have propelled the growth of hydroponic vegetable farming. This segment encompasses various types of vegetables, including leafy greens, tomatoes, cucumbers, and peppers, catering to both domestic and international markets. The popularity and market demand for hydroponically grown vegetables contributes to the dominance of this segment in the Israel hydroponics market.

Israel Hydroponics Market – By Farming Type

Based on farming type, Israel hydroponics market is split into Indoor and Outdoor segments. Indoor hydroponics refers to the practice of growing plants in controlled environments, such as greenhouses or warehouses, using artificial lighting, climate control systems, and nutrient solutions. This segment is gaining popularity due to its ability to overcome the limitations of traditional agriculture, allowing year-round cultivation and enhanced crop yields. On the other hand, outdoor hydroponics involves growing plants in open fields or protected structures, utilizing natural sunlight and weather conditions while implementing hydroponic techniques. While both segments contribute to Israel's hydroponics market growth, the indoor segment holds the larger share, driven by its ability to optimize production, minimize environmental impact, and provide consistent crop quality regardless of external factors.

Competitive Landscape

Major players in the Israel hydroponics market include GrowPonics Limited, LivinGreen, Ariel Global Links Limited, Growee Smart Hydroponics, Teshuva Agricultural Projects Ltd., Netafim, Greentech Agro, Roots Sustainable Agricultural Technologies, Seedo Corp, and Green Automation. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

By Type

•  Non-aggregate System (Liquid System)

1. Deep Water Culture

2. Nutrient Film Technique (NFT)

3. Aeroponics System

• Aggregate System

1. Ebb and Flow System

2. Drip System

3. Wick System

By Equipment Type

• HVAC System

• LED Grow Lights

• Irrigation System

• Control System

By Input Type

• Nutrients

• Growth Media

 By Crop Type

• Vegetables

• Fruits

• Flowers

• Others

By Farming Type

• Indoor

• Outdoor