The global micro and mechanized irrigation systems market was valued at USD XX million in 2021. It is forecasted to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
Micro-irrigation is the continuous delivery of water above or below the soil surface in the form of drips, tiny streams, or small sprays. Compared to traditional surface irrigation, the micro irrigation system is more effective in conserving water and increasing water usage efficiency. It also aids in the reduction of water usage, undesirable plant growth, soil erosion, and cultivation costs. Micro-irrigation improves crop quality and productivity because water and nutrients are applied slowly, consistently, and uniformly. Micro & mechanized agricultural systems result in minimal water wastage, owing to which the demand for these systems has observed a significant rise among developing countries. Marginal farmers aim to carry out these systems to boost crop yields by using the least water resources.
Source: DataM Intelligence Analysis (2021)
Rising necessity for conservation of water to aid the market
The demand for efficient and sustainable crop production irrigation systems is being driven by a rapid loss in water reserves and resources and an increasing global population. With growing concern that water may become a sensitive agricultural commodity, growers worldwide are turning to drip and sprinkler irrigation techniques to boost crop yield while conserving water. The aspect is likely to play a significant role in propelling the expansion of the micro and mechanized agricultural systems. Small-scale farmers are emphasizing on implementing these systems to increase crop yields by utilizing minimum water.
On the other hand, the high cost of drip irrigation systems and sprinklers is one of the primary factors expected to hamper the market's growth. The high cost of setting up the systems is one of the main reasons for its limited adoption among less affluent farmers in developing countries. Another factor that may limit market expansion is a lack of awareness about the many innovative micro-irrigation systems and their benefits. The government's launch of smart irrigation schemes and subsidies to small farmers can successfully boost market growth while removing the limitations above.
Micro irrigation practices are being used in orchards to keep crop production high
Orchard crops accounted for a significant portion of the market. This sort of irrigation is a good fit for fruits, vegetables, and other horticulture crops that require a specific atmosphere to thrive effectively. This market is expanding due to the rising demand for high-value cash crops worldwide. The segment's growth is being fueled by the high applicability of methods like drip irrigation for the production of various orchard crops such as tomato, banana, beetroot, and others. The use of localized irrigation in the production of water-intensive field crops like soybean, maize, and others is on the rise due to its effectiveness in decreasing water waste while also yielding high crop yields. Furthermore, increased efforts by market participants to develop low-cost and budget-friendly solutions are expected to boost the field crops segment's growth throughout the forecast period.
Agriculture will continue to be the primary use for micro-irrigation systems. Because traditional agriculture consumes the majority of the world's water, declining water resources are driving the adoption of water-efficient agricultural production irrigation techniques like micro-irrigation. The development of drip and sprinkler irrigation systems suitable for various crops, including orchard crops, cereals, oilseeds, and others, is boosting the use of this approach in agriculture. Furthermore, government subsidies for employing this sort of irrigation for crop production and increased private sector involvement in constructing agricultural projects and systems are likely to boost the segment's growth.
Asia-Pacific is the fastest growing region during the forecast period
The Asia Pacific currently holds the largest market share and is predicted to grow fastest during the forecast period. Increased adoption of smart farming and innovative agricultural instruments in APAC's major crop-growing countries, such as China and India, is predicted to boost market size. Concerns over food security have arisen due to high population growth in several Asian developing economies. To address this, governments in Asia's agro-dominant countries are urging farmers to use irrigation techniques that consume less water to embrace a more sustainable mode of food production. Governments in nations like China and India are providing large subsidies to encourage technologically advanced micro-irrigation methods like sprinkler and drip irrigation. The market is expected to rise as a result of increased investments by international key market players such as Netafim in the Asian market and an increase in the number of local market players in the region.
North America is expected to hold a significant market share in the worldwide micro and mechanized irrigation systems market throughout the forecast years. The market is growing due to increased awareness of modern precision farming techniques in countries such as the United States and Mexico and their widespread adoption by farmers in these nations. Furthermore, leading global market players throughout the region, such as Reinke Manufacturing, Lindsay Corporation, and others, are helping to drive market expansion in North America.
Source: DataM Intelligence Analysis (2021)
The market structure is extremely consolidated, with only a few firms controlling a significant portion of the global market. To strengthen their market presence and strength, the main market players aggressively pursue acquisitions of important companies in several key economies. Furthermore, new launches, digitization, base expansion, and mergers are all common techniques used by global market participants to get a competitive advantage. Some of the most important key participants in the global industry include Jain Irrigation Systems Ltd., Netafim Limited, Lindsay Corporation, and Rain Bird Corporation. In April 2017, Jain Irrigation Systems, a prominent irrigation system company headquartered in India that manufactures drip and micro-irrigation systems, acquired 80% stake in two U.S. companies - Irrigation Design and Construction Inc. (IDC) and Agri-Valley Irrigation Inc. (AVI). The company invested about USD 48 million in the acquisition.
Negative impact on the global micro and mechanized irrigation systems market
The current global outbreak of COVID-19, which has resulted in lockdowns in some economies, is harming the agriculture industry, particularly in terms of labor. Less labor associated with the operation of some micro-irrigation practices, combined with the availability of automated equipment, remains the primary cause for market stability, particularly in developed markets such as North America and Europe. The economic slowdown caused by the COVID-19, on the other hand, may influence the number of annual installations of high-priced micro irrigation systems in developing nations such as India, China, South Africa, Pakistan, and others.
The global micro and mechanized irrigation systems market report would provide an access to approximately 45 market data tables, 45 figures and 180 pages
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