Market Overview
Drip irrigation represents a highly efficient watering system meticulously designed to deliver water in proximity to plant roots. It utilizes lateral tubing to evenly distribute water across agricultural fields, employing drippers embedded within the tubing at regular intervals. The surge in the drip irrigation systems market is primarily attributed to its superior water efficiency in comparison to other irrigation techniques. The precision in water application fosters enhanced agricultural yield while minimizing water wastage. With escalating global water scarcity issues, significant growth in the uptake of drip irrigation systems is anticipated in the forthcoming years. However, limited public awareness and substantial initial costs associated with the setup impede market growth. As of 2022, the global drip irrigation systems market was valued at US$ 5.8 billion, and it is projected to grow at a compound annual growth rate (CAGR) of 12.5% during the forecast period from 2024 to 2028.
Market Trends and Drivers
The advanced technologies associated with drip irrigation continue to command robust popularity in global agriculture due to their myriad advantages. This has, in turn, driven consistent growth within the industry, a pattern projected to persist for the foreseeable future. The adaptability of drip irrigation systems allows utilization in landscapes with unique shapes and irregular terrain or soil conditions, enabling farmers and landscapers to customize their irrigation network for optimal performance.
The heightened understanding of these benefits, coupled with the adoption of modern agricultural practices, is set to fuel the expansion of the drip irrigation market throughout the forecast period. The automatic drip irrigation system, in particular, is integral for maintaining optimal soil moisture levels, especially for specialized greenhouse vegetables. The complete automation of these systems offers a precise, straightforward approach for moisture regulation and water application. By eliminating human errors in estimation and modulating soil moisture levels, these systems enhance time management, augmenting demand for automatic drip irrigation systems.
Moreover, these systems have the potential to bolster profit margins per yield. With water scarcity being a significant concern in various European countries, including the United Kingdom and Germany, drip irrigation systems are gaining significant traction, especially in southeastern European countries. The intention is to boost the production of greenhouse vegetables while enhancing crop productivity and curtailing the usage of water and fertilizers, thereby reducing the risk of pathogen attacks.
In the United States, Canada, Japan, the Middle East, and European countries, soilless cultivation primarily drives the production of greenhouse vegetables. Consequently, the appeal and utilization of drip irrigation systems are predicted to rise in these regions.
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Market Challenges
Whilst drip irrigation technologies are increasingly adopted worldwide, certain deterrents impede their uptake in many developing economies. Primarily, the substantial initial investment required for system installation serves as a significant barrier. This financial hurdle often dissuades farmers from embracing micro-irrigation systems, thereby inhibiting market expansion. Alongside this, the extended time associated with the system’s installation and the potential damage to critical components like drip tubes due to consistent solar exposure pose further challenges for market growth. It’s worth noting that micro-irrigation’s efficacy is most pronounced in horticulture or orchard crops. However, its applicability is somewhat restricted in field crops like corn, wheat, and soybean. This limitation further constrains the widespread adoption of these systems.
Recent industry developments
- In April 2022, Rivulis, a global leader in drip irrigation technology, entered into a strategic alliance with AgriBazaar, an agritech platform, to provide the latter’s customers with access to the latest advancements in drip irrigation systems. This collaboration is poised to significantly enhance the agri-ecosystem, bolstering the viability and sustainability of the agricultural sector in India.
- In February 2022, a pioneering turfgrass technology solutions provider, POGO, entered into a partnership with Hunter Industries. This partnership aimed to develop innovative visual and sensor insight integrations for the Hunter Pilot Network. The collaboration aims to strike the optimal balance in meeting water flow demands, thus identifying the most efficient watering schedules.
- In January 2022, Bayer, a renowned pharmaceutical and biotech company, joined forces with Netafim, a leader in irrigation solutions. The partnership’s objective was to design a comprehensive defensive strategy to effectively combat nematodes. Employing Netafim’s precision drip irrigation technology, this defensive approach is expected to yield potent results, delivering a highly effective solution to the nematode problem.
Regional Analysis
The European market exhibits a high degree of saturation, given a substantial proportion of its arable land is already under the application of advanced drip and sprinkler irrigation systems. These methodologies have a long-standing history within the region, underpinned by the prevailing consciousness concerning water-use-efficiency and the employment of water-conserving technologies for crop production. This heightened awareness and practical usage significantly contribute to the market growth within Europe, particularly in countries like Spain, Italy, Greece, Cyprus, and Malta, where micro-irrigation is prevalently practiced.
Projected revenue growth in the global drip irrigation market signifies North America as the potential successor to Asia Pacific. Across the United States, drip irrigation is a common technique, largely as a result of innovative developments within the irrigation sector and a concerted emphasis on achieving superior crop yields with minimal resource expenditure. Drip irrigation’s superior water-saving capabilities in agricultural operations are instrumental in its increased adoption across both expansive and medium-sized farms within the U.S. and other North American economies. This trend showcases the far-reaching implications of this method’s efficiency in water conservation, thereby driving the growth of the broader irrigation market across North America.
Market Segmentations
The market for drip irrigation systems is classified into several end-user applications, namely Agriculture, Gardens (including Public & Residential), and others (such as Nurseries and Greenhouses). As of 2021, the Agriculture segment was the foremost contributor to the global drip irrigation systems market, accounting for over 62% of the overall market revenue. The primary driver for this dominance lies in the increasing demand for higher agricultural yield. Moreover, due to escalating water scarcity and the necessity for efficient water management, the deployment of drip irrigation systems in agricultural applications has seen a marked increase. Governmental incentives for these highly water-efficient systems further propel this trend, thereby projecting a considerable augmentation in demand for agricultural drip irrigation systems in the approaching years. Consequently, the Agriculture segment is anticipated to maintain its commanding position throughout the forecast period.
However, the segment labeled as ‘Others’, which encompasses Greenhouses and Nurseries, is projected to experience the most rapid growth in the coming years. An increasing shift toward Greenhouses for reliable crop production, which are feasible in nearly all geographical regions regardless of climatic conditions, bolsters this expectation. Therefore, drip irrigation emerges as a highly suitable technique for Greenhouses and Nurseries, predicting a high growth rate for this segment in the future years.
Drip irrigation, also known as trickle irrigation, constitutes a subset of micro-irrigation systems. It incorporates a slow water flow, delivered directly adjacent to plant roots and varying between 2-20 liters per hour. This method thereby stands suitable even for plants with relatively high water requirements.
A drip irrigation system primarily comprises the following components:
- Tubing (Mains and Lateral)
- Drippers (Pressure Compensating/Non-pressure Compensating)
- Backflow Preventers
- Filters
- Valves
- Pressure Regulators
- Fittings
Filters serve as a critical component in the drip irrigation system, ensuring the prevention of dirt or particle ingress into the lateral tubing. Utilizing high-quality filters mitigates the risk of dripper blockage. Despite having a water efficiency exceeding 90%, making it the most efficient irrigation method, the market growth is somewhat hampered by the significant initial costs and maintenance requirements of the system. Drip irrigation, also known as trickle irrigation, has been practiced in various global regions for several centuries. Originally, clay pots filled with water were buried near plants to achieve efficient watering; however, the number of pots required was proportionate to the number of plants, leading to the inception of tubing and drippers for simpler, efficient watering. Commercially developed in Germany in the mid-1800s, and further introduced by Israel-based Netafim Ltd. in 1965, the system has since garnered worldwide recognition.
The modern agricultural landscape witnesses a constant strive for technological advancements in drip irrigation systems. Concepts such as sub-surface drip irrigation and chemigation/fertigation via drip irrigation have emerged. Sub-surface drip irrigation involves dripping through embedded tubing with evenly spaced drippers, minimizing water loss as it eliminates contact with the external environment. Suitable for permanent crops, this irrigation method requires no alterations for several years. Chemigation/fertigation via drip irrigation involves the delivery of chemicals and fertilizers through tubing and drippers, ensuring precision and reducing losses.
However, its adoption is limited due to high costs and less flexibility compared to other irrigation techniques. The drip irrigation market displays significant variance across different geographical regions, impacted by factors such as climate, agricultural practices, and water resources. While it is popular in countries like Israel, Turkey, the U.S., and some European nations, large agricultural economies such as India and China still exhibit limited penetration due to factors like low awareness, purchasing power, and abundant natural water resources. Key players in the drip irrigation system market include Netafim Ltd., Jain Irrigation Systems Ltd., Hunter Industries, Inc., Lindsay Corporation, among others.
Component Segmentation Analysis
The drip irrigation systems market is broadly classified based on components into the following:
- Drippers
- Tubing
- Backflow Preventers
- Valves
- Pressure Regulators
- Filters
- Fittings
In 2021, the significant majority stake in the drip irrigation systems market was held by the tubing segment, which constituted over 36% of the total market revenue. This segment incorporates main, sub-main, and lateral pipes, the necessity for a substantial volume of which has contributed to this dominant market share. Given their exposure to environmental elements such as precipitation and sunlight, these tubing components are subject to degradation, necessitating frequent replacement and thus ensuring the sustainability of their market dominance throughout the forecast period. The drippers segment trails closely behind the tubing segment, comprising over a fifth of the total market. The installation of these two components is often conducted in tandem, resulting in a correlative demand. Drippers, however, are susceptible to blockages from various biological and physical particles, thereby triggering an increased demand that is anticipated to secure its subdominant market position over the forecast period. Notwithstanding, the segment that is projected to demonstrate the highest growth rate is that of the fittings, including connectors, couplers, elbows, t-joints, and others. As the components that undergo the most frequent adjustments and usage, their demand outweighs that of other components.
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Geography Segmentation Analysis
The global drip irrigation systems market has been segmented, based on geographical regions, as per the following regions and countries:
North America
Europe
- Germany
- France
- Italy
- U.K.
- Russia
- Rest of Europe
Asia-Pacific
- India
- China
- Japan
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Rest of Latin America
Middle East and Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa
As of 2021, the global drip irrigation systems market is dominated by the Asia Pacific region, accounting for over one-third of the total market revenue. The Asia Pacific is majorly backed by countries such as India and China. The region is expected to remain the highest growing segment throughout the forecast period. This is because the region still holds large potential for penetration of micro irrigation systems. In addition, due to increasing water scarcity issues and the need to raise agricultural production, drip irrigation is expected to be largely used in the region.
The North American drip irrigation systems market is majorly hindered by the stronger adoption of sprinkler and mechanized irrigation systems over drip irrigation. A large proportion of agricultural fields in North America are equipped with mechanized irrigation systems such as center pivot and lateral move sprinkler systems. Similarly, Europe has significant penetration of center pivot and lateral move systems. Thus, these regions’ drip irrigation systems market is expected to remain the same in the coming years.
