Press Release

Government Measures for Sustainable Agriculture Stems UAE Hydroponics Market

The UAE Hydroponics Market is projected to grow at a CAGR of around 15.2% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. The market imputes the rising water challenges, problems with food security, and government policies such as the National Food Security Strategy, Ghadan 21, etc., which are the main causes of the expansion of hydroponic farming in the UAE. The only available water source in the UAE is seawater & groundwater, which is saline in nature & hence, cannot be used for agriculture. In addition, the low yearly rainfall & scarce water supplies in the UAE have led to the current water crisis. Thereby, the adoption of sustainable agriculture options such as hydroponics systems is facilitated as these systems use water efficiently & aid in water conservation.

Furthermore, one of the primary reasons for the prevalence of smart farming methods is the scarcity of arable land in the UAE. According to the UAE Government, the total arable land area in the UAE as of 2022 was approximately 1600 square kilometers. This results in less or negligible crop cultivation. Owing to this, the UAE relies heavily on other nations, such as India & others, for its crops & vegetables. Thus, the smallest change in the price of a product in the world market causes a fluctuation in the price of that crop domestically. As a consequence, the UAE is experiencing challenges with food security. To reduce its reliance on other countries, the government is promoting sustainable farming practices.

Further, the UAE government has launched programs like the Ziraai program and the National Food Security Strategy 2051 to support sustainable agriculture & it has established several funds to boost investment in the sector's expansion. For instance, a coalition between the governments of the US and the UAE announced in 2022 that it would boost its investment in sustainable agriculture from USD4 billion to USD8 billion. Hence, the government-led programs & investments to enhance local production in the UAE would have a favorable impact on the market, further states the research report, “UAE Hydroponics Market Analysis, 2024.”

Rising Need for the Controlled Atmosphere to Boost the Requirement of HVAC Equipment

Based on the equipment type, the market is classified as HVAC, LED Grow Light, Control Systems, Irrigation Systems, and Others (Air pimps, Hydroponic tubing, etc.). With the growing need for a controlled atmosphere for farming, HVAC is predicted to gain the largest market share over the next few years. The HVAC systems provide adequate ventilation; therefore, they are commonly used in indoor farming methods. In addition to this, the demand for HVAC equipment arises majorly from indoor farms to maintain airflow, temperature, humidity, lighting, and other factors required for maximum crop growth. Hence, the rising number of indoor farms in the UAE, such as Badia farms, is likely to drive up the demand for HVAC equipment in the forecast period as well.

Presence of Large Commercial Farms in Abu Dhabi & Al Ain Escalated the Demand for Hydroponics Systems

Due to the availability of extensive cultivation areas & the presence of large commercial farms in the region, the demand for hydroponic systems is primarily driven by Abu Dhabi & Al Ain regions. Additionally, the region's municipal corporation is providing improved opportunities for agricultural investments. As a result, the Abu Dhabi & Al Ain regions account for the majority of the demand for these systems. In 2022, Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) signed a contract worth USD84 million with Emirates Hydroponics Farm to build & operate these farms in Abu Dhabi. Thus, the development of such farms in the region of Abu Dhabi & Al Ain to promote sustainable farming would escalate the sales of these systems in the coming years.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including H2O Hydroponics, Artechno Growsystems, Gulf Hydroponic Agriculture Services LLC., Argus Control Systems Ltd, VeggieTech, Beyond Hydroponics, GreenOponics Agricultural Services LLC, Beyond Hydroponics Green Houses Trading LLC, The Growin are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends that have shaped the industry to its current form?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition shaped across the country, followed by their comparative factorial indexing?
6. How have buying behavior, customer inclination, and expectations from Products manufacturers evolved during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?