It seems to me that hydroponics could play a big role in reducing the amount of water ...

Many advantages, niche solution

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General advantages of Hydroponics include higher yields in a smaller space with the ability to reuse water. So yes, hydroponics plays a role in reducing the amount of water for food because it allows for a very efficient use of water.
There are, however, two major disadvantages. The first is a higher up front cost compared to other types of crop production. This typically limits commercially viable hydroponics to crops with more dense production and higher market prices. It is not economically viable to grow for example wheat, sorghum, and corn hydroponically. Tpical hydroponics crops include tomatoes, cucumbers, peppers and specialty greens.
The other disadvantage is that it takes special skills and training to successfully build and maintain a hydroponic farm.
These two disadvantages limit the use today to certain niche crops where financing and training are available.

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