Australia Hydroponics Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Key Market Trends and Insights:

• The Australian Capital Territory region dominated the market in 2024 and is projected to grow at a CAGR of 11.9% over the forecast period.
• By product, liquid hydroponic system is projected to witness notable growth at 11.2% CAGR over the forecast period.
• By application, microgreens are set to grow at a CAGR of 12.6% over the forecast period, attributed to the growing consumer trend of cultivating homegrown veggies.

Market Size & Forecast:

• Market Size in 2024: AUD 618.80 million
• Projected Market Size in 2034: AUD 1694.73 million
• CAGR from 2025 to 2034: 10.60%
• Fastest-Growing Regional Market: Australian Capital Territory

With an allocation of USD 136 million, Smart Farms incentivizes farmers to adopt advanced practices such as hydroponics, enhancing water efficiency, soil health, and climate resilience. By providing grants for innovative projects, soil extension activities, and capacity-building programs, the government supports growers in implementing advanced technologies, improving productivity, and fostering long-term sustainability. These key initiatives are shaping Australia hydroponics market dynamics and trends.

In addition to domestic programs, Australia’s expertise in climate-smart agriculture is reinforced through international collaborations, such as the partnership between ACIAR and IITA in Africa announced in January 2025. Engagement with global research and hydroponics innovations, including semi-autotrophic hydroponic systems, allows Australian institutions to gain insights and refine best practices for local adoption. Combined with climate and land constraints that favor water-efficient, year-round crop production, these factors collectively fuel the demand growth. By aligning policy support, technological adoption, and knowledge exchange, Australia is fostering a robust, innovative, and commercially viable hydroponics industry that addresses both environmental sustainability and market demand.

Recent Developments

September 2025

Verti Gro Australia introduced its vertical hydroponic growing system that is 100% Australian-made. The planters can hold up to six times as many plants as traditional soil beds and are ideal for space-restricted areas or homes with poor soil. Such developments are expanding the Australia hydroponics market scope.

August 2025

Think Water Northern Rivers won "Project of the Year (Australia) 2025" for an irrigation rebuild at the Clarence River Jockey Club, showcasing advanced smart technologies. The project integrated IoT sensors, remote diagnostics, wireless controls, and high-efficiency pumps to create a modern, sustainable system.

March 2025

Australia’s government invested USD 3.9 million in the SuniTAFE’s SMART Farm in Sunraysia, to provide horticulture students with hands-on experience with hydroponics, automated irrigation, and precision farming. The facility prepares the next generation of farmers for modern, sustainable horticulture. This initiative highlights the growing adoption of agri-tech in regional Victoria.

January 2025

Stacked Farms secured USD 150 million to expand its automated vertical farming operations in Melbourne, producing leafy greens with minimal staff. The move addresses past challenges in robotic farming, offering a more sustainable and efficient approach. This initiative is set to boost urban farming and hydroponics growth in Australia while ensuring a reliable, environmentally friendly supply of fresh produce.

Key Drivers and Trends

Product diversification enhancing sustainability

The Australia hydroponics market value is increasing significantly as innovative product launches expand grower options. In November 2024, Hydroponic Global launched an expanded product line in Australia featuring hydroponic probiotics, root repair solutions, LED grow lighting, and nutrient delivery tools. These advancements enable both hobbyists and commercial growers to enhance plant health and yield effectively. Hydroponic Global's product launch demonstrates how technology adoption supports sustainable growing practices and industry growth.

Rising food needs propel adoption of hydroponic and city farming in urban Australia

Urbanization and rapid population growth are intensifying food requirements which is boosting the market revenue amid the increasing adoption of modern farming techniques. The Australian Bureau of Statistics projects the population, currently at 26 million in 2022, to rise to between 34.3 and 45.9 million by 2071. To address these pressures, urban centers are increasingly adopting vertical farming and hydroponic systems within rooftops, greenhouses, and warehouses. These methods support local food sourcing, minimize transportation emissions, and meet rising hydroponics demand, ensuring reliable year-round fresh produce and sustainable industry growth.

AI and precision technology adoption in Australian agriculture

Adoption of AI and precision agriculture technologies is accelerating efficiency and sustainability in the Australian vegetable and hydroponics sectors. Growers increasingly rely on smart systems to optimize resource use, improve crop yields, and reduce environmental impact. The January 2025 partnership between Ecorobotix and RDO Equipment Australia exemplifies this trend, introducing the AI-powered ARA sprayer to local farms. By enabling ultra-precise application of inputs and minimizing manual labor, this technology demonstrates how AI integration is driving operational efficiency and supporting Australia hydroponic industry.

Growing adoption of smart farming solutions

The adoption of advanced technologies that improve efficiency and crop yields is transforming the Australia hydroponics market outlook. Innovations such as automated plant spacing, nutrient optimization, and climate-controlled systems enable growers to maximize productivity while reducing costs. For instance, in March 2025, Melbourne-based startup Gaia Project Australia raised USD 1.7 million to commercialize its Omni-Yield technology, which increases leafy green yields by up to 40% through dynamic plant spacing, illustrating how technological innovation is accelerating Australia hydroponics market growth and profitability.

Adoption of renewable energy microgrids in agriculture

The hydroponics market in Australia is increasingly benefiting from renewable energy adoption, which boosts sustainability and lowers operating costs. Solar-powered microgrids help hydroponic farms reduce reliance on diesel, stabilize electricity expenses, and minimize carbon emissions. For example, in May 2024, AGL Energy installed a solar-powered microgrid at Cadell Orchards in NSW Riverina, cutting diesel use by 85% and reducing emissions by 4,700 tons annually. Such initiatives strengthen productivity and resilience in controlled-environment farming.

Australia Hydroponics Market Share

By product, liquid hydroponics gain notable traction

Liquid hydroponics are witnessing significant uptake in Australia is resulting from the rising demand for precision nutrient management and water-efficient farming solutions. A notable example is the Green Space Tech hydroponic project on Christmas Island, launched in 2025, which produces around 100 kilograms of fruits and vegetables weekly, including leafy greens, herbs, and trial crops like tomatoes. The controlled greenhouse environment allows precise regulation of nutrients, water, and climate, optimizing growth and resource efficiency. Initiatives like this highlight the growing adoption of liquid hydroponic systems in the country.

Meanwhile, the efficiency of aggregate hydroponic systems is contributing to their growing demand in the Australia hydroponics market landscape, enabling large-scale, high-yield cultivation with optimized resource use. These systems provide superior aeration, consistent nutrient delivery, and stable root support, reducing waste and labor requirements. Commercial growers benefit from streamlined operations and predictable harvests, supporting urban and vertical farming expansion. Innovations in these systems allow growers to meet rising consumer demand for fresh, high-quality produce while maximizing operational productivity.

By application, tomatoes amass the highest revenue

Hydroponics systems are highly preferred in advanced greenhouse systems for tomato farming in Australia for enabling year-round high-quality yields. Goodness Grown’s 20-hectare greenhouse announced in March 2025, in Victoria exemplifies this trend. The greenhouse combines AI-driven plant health monitoring, robotic pollination, and renewable energy integration to enhance productivity and sustainability. By optimizing growing conditions, reducing fossil fuel dependence, and delivering consistent gourmet and Roma tomatoes, such high-tech facilities support efficiency, circularity, and environmental responsibility, reinforcing the demand for technologically advanced tomato cultivation.

Microgreens are generating notable Australia hydroponics market revenue, attributed to the rising consumer interest in home-grown, nutrient-dense leafy vegetables and herbs is driving the use of hydroponics. Compact indoor hydroponic systems like Aquatree, introduced in June 2025, allows urban consumers, cafes, and community gardens to grow fresh produce year-round with minimal effort, reduced water use, and no chemicals. By supporting sustainable, soil-free growth, these systems meet the increasing demand for convenient, high-quality greens while enhancing local food resilience, illustrating how technology adoption fuels market expansion.

By equipment, HVAC represent the biggest portion of the market

HVACs continue to witness steady demand as temperature and humidity control are vital for stable growing conditions and to maintain the crop quality and yield. Advanced HVAC systems allow growers to precisely manage airflow, temperature, and moisture levels, reducing plant stress and minimizing losses. This technology is particularly important for vertical farms and large-scale greenhouses, where environmental variability can significantly impact productivity. As growers prioritize year-round, high-quality production, investment in HVAC equipment continues to fuel demand in the Australia hydroponics market.

Energy-efficient LED grow lights are substantially contributing to growing usage of hydroponics systems, enabling growers to achieve higher yields with lower operational costs. Advanced lighting systems enhance plant growth, optimize resource use, and support year-round production, making them a critical tool for industrial greenhouses. For instance, in July 2025, LED iBond’s launched HORTISABER lamps deliver up to 60% energy savings while improving harvest output in industrial greenhouses, illustrating how technological innovation in LED lighting is shaping productivity and sustainability in hydroponic farming.

Australia Hydroponics Market Regional Analysis

By region, Australian Capital Territory lead the market growth

The Australian Capital Territory has seen strong revenue growth in the hydroponics sector, driven by sustainable nutrient management solutions. Innovative hydroponic-inspired systems are increasingly applied in urban water infrastructure to filter and reuse nutrient-rich water, improving both biodiversity and water quality. A key example is the Belconnen Wetland project, completed in April 2025, which uses subsurface flows to recycle nutrients before they enter Lake Ginninderra. This approach reduces environmental impact, supports cleaner waterways, and enhances ecosystem health for regional communities across the country, thereby supporting Australia hydroponics market growth.

On the other hand, Western Australia is experiencing a growing consumer demand for nutrient-dense microgreens and seedlings, resulting in surging investment for hydroponics farming systems across the country. Health-conscious consumers increasingly prefer crops rich in vitamins and antioxidants, encouraging growers to adopt efficient cultivation methods. Innovative systems like Fork Farms’ Flex Micro, launched in September 2025, help produce thousands of microgreens in just 7–14 days. The compact, rapid-growth design enables faster harvest cycles and consistent, high-quality yields, supporting both local chefs and community growers while maximizing productivity in regional settings.

Competitive Landscape

The industry has witnessed significant innovations in Australia, as major hydroponics companies focus on enhancing yield, reducing resource consumption, and improving sustainability. Major firms are investing in advanced vertical farming systems, IoT-based monitoring, and climate-controlled greenhouses to optimize plant growth. Partnerships with technology providers and research institutions are enabling the adoption of smart nutrient delivery systems and energy-efficient LED lighting. These strategic initiatives not only boost productivity but also position companies as environmentally responsible leaders in a market increasingly driven by eco-conscious consumers.

Leading Australia hydroponics market players are also emphasizing expansion and diversification to capture emerging opportunities in Australia’s hydroponics sector. Companies are broadening their product portfolios to include leafy greens, herbs, and specialty crops, while exploring new distribution channels such as online grocery platforms and farm-to-table initiatives. Strategic collaborations with agricultural startups and government programs facilitate knowledge sharing, R&D, and access to financial incentives. By leveraging technology, sustainability, and market outreach, these companies aim to strengthen their competitive edge and drive long-term growth in the hydroponics landscape.

AeroFarms

AeroFarms, headquartered in Newark, New Jersey, the United States, has been revolutionizing vertical farming since its establishment in 2004. By adopting aeroponic technology, the company ensures efficient use of resources while consistently delivering fresh leafy greens.

AmHydro

Since 1984, AmHydro has operated from Arcata, California, the United States, offering advanced hydroponic solutions for growers worldwide. Its expertise lies in nutrient film and deep-water culture systems, which support both commercial farms and smaller producers, thereby making it a notable player in the Australia hydroponics market.

Argus Control Systems Limited

Operating out of Surrey, British Columbia, Argus Control Systems Limited has been driving automation in agriculture since 1984. The company’s precision control technologies enable efficient management of irrigation, nutrient delivery, and greenhouse environments.

Emirates Hydroponics Farms

Founded in 2005 and based in Abu Dhabi, Emirates Hydroponics Farms is recognized for its premium production of herbs and leafy greens. With its focus on sustainable hydroponic practices, the farm meets the UAE’s growing demand for fresh, high-quality produce.

Other prominent players in the Australia hydroponics market landscape include Freight Farms Inc., BrightFarms, Heliospectra, Signify Holding, among others.

Key Highlights of the Australia Hydroponics Market Report

• Historical performance and accurate forecasts through 2034.
• Insights into product innovations and adoption of advanced hydroponic techniques.
• In-depth competitive landscape profiling leading domestic and international hydroponic solution providers.
• Regional analysis identifying emerging demand centers and growth opportunities.
• Investment-focused outlook supported by data-driven insights.

Why Choose Expert Market Research?

• Trusted insights backed by extensive primary and secondary research.
• Actionable data to support strategic decision-making.
• Region-wise and product-specific analysis for targeted opportunities.

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