Market Overview
Micro irrigation systems, renowned for their exceptional efficiency and minimal water waste, have emerged as one of the most effective solutions for sustainable agricultural practices. The escalating concerns surrounding water management and the growing need for increased food production have fueled the demand for these systems. Consequently, several national governments have initiated programs to promote the adoption of micro irrigation systems, thereby driving market growth. These systems find diverse applications in agriculture, public parks, expansive gardens, sports grounds, and more. As of 2021, the micro irrigation system market was valued at USD 599.2 million. Projections indicate industry growth from USD 633.65 million in 2022 to an estimated USD 870.16 million by 2028.
Given the pressing global issues regarding diminishing water resources, micro irrigation systems have become the preferred choice among farmers and horticulturists for their remarkable ability to reduce water usage while maintaining high crop yields. Businesses, recognizing the significance of sustainable practices, are increasingly embracing these systems as part of their corporate social responsibility efforts. By implementing micro irrigation systems, companies can demonstrate their commitment to sustainable agricultural practices and contribute to the overarching goal of water conservation.
Key market trends and drivers:
In recent times, numerous global food corporations have strategically positioned their sustainably farmed products through effective branding. The adoption of micro irrigation systems plays a critical role in ensuring the eco-friendly sourcing of raw materials by these entities. These systems are essential in mitigating environmental degradation and preventing water table depletion. Given the extensive operations of these major food corporations, there is significant growth potential within the targeted market. Drip irrigation systems, which enhance soil yield, reduce salinization rates, maintain optimal soil moisture tension in root zones, and conserve water, are gaining substantial traction in the global micro irrigation systems market. Their adoption across various countries is poised to drive market growth. Additionally, the growing trend of micro farming in the residential sector is fueling the demand for micro irrigation systems. With the prevalent cultivation of water-conserving crops such as maize, cotton, corn, and wheat on large-scale fields, there is a surge in the demand for center-pivot irrigation systems. This, in turn, propels the growth of the micro irrigation systems market over the projected timeframe.
The increasing focus on sustainable farming practices by global food corporations is a positive indication for the environment. With the implementation of micro irrigation systems, these corporations are not only promoting eco-friendly production methods but also ensuring the long-term availability of essential resources, such as water. By mitigating environmental degradation and preventing water table depletion, these companies are taking significant steps towards creating a more sustainable future. This not only benefits the environment but also guarantees a continued supply of high-quality raw materials for the food industry.
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Opportunities
The increasing alliances, collaborations, and mergers among key industry players offer a multitude of growth opportunities within the market. For instance, the partnership initiated in 2019 between Nutrien AG Solutions and Lindsay Corporation, the world’s leading provider of crop inputs and services, exemplifies this trend. Through this alliance, both Lindsay and Nutrien AG Solutions will enhance their irrigation offerings to the market by facilitating a remote irrigation management and scheduling platform. Furthermore, government-led initiatives contribute to the expansion of the market. An example of such an initiative is the Pradhan Mantri Krishi Sinchai Yojana introduced by the Indian government in July 2015. This five-year plan, with an investment of Rs 50,000 crore, aims to increase cultivable land under assured irrigation and promote the adoption of precision irrigation systems and other water-saving technologies. Additionally, the federal government in the U.S. plays a vital role in supporting agricultural producers with irrigation practices through technical assistance, financial support, research, and regular reporting and monitoring. This governmental support for the widespread adoption of micro-irrigation systems is expected to present lucrative opportunities for global market growth.
The global irrigation market is poised for significant growth due to the increasing number of strategic partnerships and government initiatives aimed at promoting sustainable agricultural practices. The collaboration between Nutrien AG Solutions and Lindsay Corporation serves as a prime example of how key players in the industry are uniting to develop innovative solutions that benefit both companies and consumers. This trend of collaborations, mergers, and alliances not only fosters growth within the market but also drives competition, leading to improved products and services for farmers.
Key market challenges
The micro-irrigation sector requires substantial financial commitment, which may prompt farmers to opt for more modest initial investments. Moreover, the knowledge base of farmers regarding this industry provides ample room for expansion. However, it is worth noting that micro-irrigation may not be suitable for small-scale farming, limited areas, or purely personal usage. Additionally, due to administrative inefficiencies and protracted security clearance periods, numerous national governments exhibit reluctance towards endorsing micro-irrigation system projects.
In light of these challenges, it is crucial for private sector organizations to actively engage with government agencies and policymakers to promote micro-irrigation solutions. By highlighting the benefits of this technology, such as increased crop yield and water conservation, these organizations can help garner support for micro-irrigation projects.
Competitive Analysis
Prominent players in the micro irrigation system market are strategically investing in research and development (R&D) endeavors to expand their product portfolios. This strategic approach is expected to drive significant growth in the micro irrigation system market. These market participants are executing various strategic initiatives, such as product launches, contractual agreements, mergers, acquisitions, increased investments, and collaborations with other organizations, to extend their global presence.
To thrive and expand in the highly competitive micro irrigation system market, competitors must offer cost-effective products. Manufacturers in this industry are adopting key business strategies, including local manufacturing, to reduce operational costs. This not only benefits customers but also aids in expanding market share, resulting in improved yields in recent years.
Leading players like Netafim Limited (Israel), The Toro Company (US), Metro Irrigation (India), and Lindsay Corporation (US) are focused on increasing market demand through substantial investments in research and development activities.
Netafim Limited (Israel), a renowned provider of irrigation equipment and water technologies for sectors such as agriculture, landscaping, and mining, offers a wide range of products including irrigation drips, sprinklers, valves, and flexible pipes that benefit customers globally. In March 2020, Netafim announced a collaboration with FluroSat (Australia), a leader in remote sensing and analytics, to integrate FluroSat’s data into Netafim’s cloud-based platform for automated irrigation and fertigation. This collaboration enables Netafim’s customers to receive tailored irrigation recommendations based on their specific sites.
Similarly, Lindsay Corporation (US), a manufacturer and seller of irrigation equipment for crop irrigation, leverages outsourced manufacturing and production services from original equipment manufacturers within the United States. In July 2020, the company announced the acquisition of Net Irrigate, LLC (US), a provider of remote monitoring solutions to irrigation customers via the Internet of Things. This strategic acquisition is expected to enhance the company’s offerings in irrigation technology.
Key Companies in the Micro Irrigation System market include
- Nelson Irrigation Corporation (US)
- Rain Bird Corporation (US)
- Microjet Irrigation Systems (South Africa)
- Chinadrip Irrigation Equipment Co. Ltd. (China)
- Rivulis Irrigation Ltd (Israel)
Recent developments:
In January 2023, Valmont Industries, Inc., a renowned leader in driving agricultural productivity and delivering critical infrastructure, announced a new supply agreement to provide advanced mechanized irrigation equipment and cutting-edge technology for multiple agricultural development initiatives across Africa.
In a subsequent development in May 2023, Netafim, a leading provider of irrigation solutions and services, publicly shared its recent partnership with the Educational Water Pact Forum. This global initiative is committed to advancing universal access to clean and safe water.
Simultaneously, in May 2023, EPC unveiled the EPC9186, a 3-phase BLDC motor drive inverter that incorporates the EPC2302 eGaN® FET. The high-power capabilities of the EPC9186 open doors for its application in various domains such as electric scooters, compact electric vehicles, agricultural machinery, forklifts, and high-power drones.
A year prior, in April 2022, a collaborative effort between Rain Bird Corporation and Flume was solidified, promising a revolutionary new wave of whole-home water management solutions. This partnership aims to equip homeowners and water agencies with enhanced tools to achieve significant water savings.
Segmentations Analysis
Product Type Segmentation Analysis
Micro irrigation systems have been extensively categorized based on their product types. The classification includes:
- Sprinkler Irrigation Systems
- Traditional Sprinklers (Impact Sprinklers)
In 2018, the segment of sprinkler irrigation systems dominated the micro irrigation systems market, contributing to more than three-quarters of the total market revenue. This segment is further categorized into traditional, center pivot, and linear move sprinklers. Notably, traditional sprinklers hold the majority share of the global sprinkler systems market, accounting for over sixty percent of the revenue. Their popularity stems from their affordability, user-friendliness, and low maintenance requirements.
On the other hand, mechanized sprinkler irrigation systems such as center pivot and linear move sprinklers have gained significant traction in North America and Europe. However, looking ahead, the drip irrigation systems segment is projected to witness the highest growth rate. This anticipated growth can be attributed to the exceptional water efficiency of drip irrigation systems, which deliver water directly to the vicinity of plant roots, minimizing water loss and improving yields.
Given the critical concerns surrounding water scarcity and the escalating need for enhanced agricultural production, numerous national governments across the globe are actively promoting the adoption of drip irrigation systems in agriculture. As a result, a strong demand for this segment is anticipated in the forthcoming years.
Application Segmentation Analysis
Based on applications, the micro irrigation systems market is segmented into the following categories:
- Agriculture
- Gardens, Public Places, and Sports Grounds
- Others (Nurseries, Greenhouses, Residential, etc.)
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Agriculture was the leading segment of the global micro irrigation systems market in 2018, with a revenue-based market share exceeding 62%. It is crucial to enhance agricultural productivity while minimizing the waste of natural resources, considering the rising population, water scarcity issues, and food demands. Governments are striving to strengthen their agricultural sectors by incorporating micro irrigation as a key element. As a result, the demand for micro irrigation systems in agriculture is expected to remain strong in the foreseeable future.
India and China are expected to drive notable demand due to their efforts to modernize their agricultural sectors. Therefore, the agriculture segment is likely to maintain its market dominance. However, the “others” category, driven by the increasing popularity of greenhouse farming and small-scale micro irrigation systems, is anticipated to experience significant growth during the forecast period.
Irrigation, the artificial supply of water to agricultural lands, has been practiced for centuries. Traditional methods like flood, furrow, and lift irrigation, although dominant, resulted in substantial water losses. Micro irrigation systems emerged with a focus on water conservation across various applications. Drip and sprinkler irrigation, popular micro irrigation systems, are gaining traction worldwide due to their improved efficiency compared to traditional methods.
While drip and sprinkler irrigation systems were introduced over a century ago, their commercial application was only achieved in the mid-twentieth century. Sprinkler irrigation systems currently hold the largest share of the micro irrigation systems market due to their broader applications. This report specifically focuses on the sprinkler irrigation systems segment, including traditional sprinklers (impact sprinklers), center pivot, and linear move sprinkler systems. Mechanized sprinkler systems like center pivot and linear move, despite higher costs, offer precise water supply and have gained popularity since their invention in the U.S.
The micro irrigation systems market varies significantly from a geographical standpoint, influenced by differing agricultural and climatic conditions across regions. Developed markets like the U.S., Israel, and Australia have a high penetration of these systems, while countries with considerable arable land like India and China have a relatively low penetration, indicating substantial growth potential for the micro irrigation system market.
Geography Segmentation Analysis
The global micro irrigation systems market has been segmented, based on geographical regions, as per the following regions and countries:
- North America
- Europe
- Germany
- France
- The U.K.
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- South-east Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of the Middle East and Africa
In 2018, North America dominated the global market for micro irrigation systems, accounting for over a third of the total revenue. This can be attributed to the region’s advanced agricultural sector, characterized by extensive utilization of micro irrigation systems. The region is also renowned for its widespread implementation of mechanized irrigation systems such as center pivot and linear move systems. As a result, North America is expected to maintain its market leadership in the coming years. Meanwhile, the Asia Pacific region, led primarily by India and China, is projected to witness the most rapid growth. Despite being global agricultural powerhouses, these countries currently have relatively low adoption of micro irrigation systems, making them significant areas for growth in micro irrigation technology. Additionally, North Africa and Latin America are anticipated to experience substantial adoption of these systems in the future.
