Hydroponics Market Is Estimated To Witness High Growth Owing To Automation.
The Hydroponics Market is estimated to be valued at US$ 6285.02 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hydroponics is a method of growing plants using mineral nutrient solutions in a water solvent, without soil. It is gaining popularity as it can produce yields up to 10 times greater per units area than conventional agriculture and uses only 10% of the water required for traditional soil-based agriculture. The hydroponics system uses advanced irrigation techniques to offer nutrients, oxygen and water directly to the roots.
Market key trends:
The hydroponics market in North America is witnessing high growth owing to increasing adoption of automation solutions. Hydroponic farms are increasingly implementing automated fertigation systems, climate control systems, harvesting systems and other equipment to maximize yields. Automation enables precise monitoring and delivery of nutrients and improves environmental control. It also reduces labor costs. For instance, several players are offering automated hydroponics greenhouses with sensors, valves and controllers that precisely deliver nutrients and water according to the plants' needs. Automation is enabling year-round production and consistency in harvests from hydroponic farms.
Porter’s Analysis
Threat of new entrants: The North America Variable Frequency Drive market requires high initial investments for establishing manufacturing units which acts as a barrier for new players. Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiation in product offerings from different vendors.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due presence of many component manufacturers. Threat of new substitutes: Technological advancements may lead to the development of new substitutes which can impact the existing market dynamics. Competitive rivalry: Competition is high among the existing players due to presence of well-established players.
SWOT Analysis
Strength: Variable frequency drives offer improved speed control, energy savings, smooth starting and accelerating of motors. Weakness: High initial costs associated with VFD installation act as a major restrain. Opportunity: Growing industrial automation and increasing infrastructural development projects areExpected to create new opportunities. Threats: Threat from emerging technologies like all-electric vehicles which don't require variable frequency drives.
Key Takeaways
The North America Variable Frequency Drive Market Analysis is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing industrialization and infrastructure development projects. The US dominated North America Variable Frequency Drive market and is expected to grow at CAGR of around 6.1% during the forecast period.
Regionally, US is expected to maintain its dominance in terms of market size in North America, followed by Canada. This is attributed to rising investments towards upgrading existing infrastructure and growing manufacturing industry.
Key players operating in the North America Variable Frequency Drive market are Fuji Electric Co., Ltd, Schneider Electric, Mitsubishi Electric Corporation, Toshiba International Corporation, Siemens AG, Emerson Industrial Automation, ABB Ltd., Johnson Controls Inc., American Electric Technologies Inc. (AETI), Rockwell Automation Inc., General Electric Company, Honeywell International Inc., and Hitachi Limited.