[150 Pages Report] Global Micro irrigation Systems Market is predicted to reach a high CAGR of 12% during the forecast period (2022-2029).
Micro irrigation Systems Market - Strategic Insights
By Type, By Application and By Region
Report Insights Covered
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.
Fastest Growing Region
Largest Market Share
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Micro irrigation is a modern irrigation practice that involves the controlled application of water and nutrients with the help of equipment such as drippers, sprinklers, and foggers. This irrigation method is applicable for a wide variety of crops and increases the water intake efficiency whereas reducing fertilizer loss and soil erosion.
Government programs and subsidies driving acceptance of micro irrigation systems
Governments globally are encouraging the use of micro irrigation systems to limit the water shortage.
Various water conservation programs are administered by the USDA and various other state and regional water conservation programs that will increase the total overall production and enhance farmer sales that will lead to the growth of the industry in the given forecasted period (2021-2028).
Moreover in India, government provide micro irrigation subsidy covered under the Pradhan Mantri Krishi Sinchayee Yojna (known as PMKSY), which was launched on the 1st of July 2015 to encourage micro irrigation and promote its benefits through heavier subsidies based on the category of farmers. The main aim of this program is to relieve the farmers of the initial irrigation investment burden.
Through the micro-irrigation subsidy proposition of PMKSY, both state and the central government, on average, contribute 55% and 45% of the total finances incurred in setting up irrigation systems for small and marginal farmers and other farmers respectively.
Most governments in developing nations provide subsidies for the procurement and installation of micro irrigation systems to lower water depletion due to agricultural practices.
For instance, in July 2018, Asian Infrastructure Investment Bank approved USD 250 million to improve irrigation services and management accountability in Indonesia.
Increase in greenhouse cultivation driving the micro irrigation market
The cultivation of vegetables and flowers is becoming popular in recent years to overcome the yield issues, therefore, greenhouses ensure all-year production and most farmers are interested in it. Greenhouses are mostly equipped with micro irrigation systems in which drip irrigation is the most common method. Many state governments in the country are giving subsidies for the construction of greenhouses.
Therefore, the introduction of subsidies by the state government and product innovation will drive the market in the upcoming years.
Telangana and Andhra Pradesh is a major market
Andhra Pradesh and Telangana have been characterized by very low groundwater levels which were 15.75 MGBL (meters below ground level) and 14.14 MGBL respectively in early 2019.
As a result, the state governments in the respective states have initiated micro irrigation projects to tackle the scarcity of water.
With the deficit groundwater levels and supportive government-funded projects to promote micro irrigation in the region, the market for micro irrigation systems is expected to grow in the forecast period of 2021-2028.
However, there are some restraining factors like the high initial cost of large-scale drip irrigation systems and the clogging that happens in the micro irrigation systems due to excessive salinity.
The installation of drip systems is time taking process and it needs to be maintained properly. Sun heat may affect the tube and sometimes they get broken due to excessive heat production.
Global Micro Irrigation Market has witnessed a negative impact due to pandemics on the agriculture industry in recent months due to the lockdowns imposed in most of the countries due to the COVID-19 outbreak. Global economies have contracted by 5% to as much as 20% in the first half of 2020. The rising number of cases and the uncertainties in the production of the vaccine is posing the GDP to decline till the end of 2020. But after vaccination and a reduction in the cases in 2021, the GDP should will slowly and steadily increase.
During the pandemic, there have been multiple shocks impacting the service delivery, such as fiscal constraints, interruption of supply chain due to travel restrictions, and lack of availability of labor. In developing economies, the economic slowdown that is caused by COVID-19 can impact the installation of high-priced micro irrigation systems. One of the key players in the micro irrigation market is Valmont Industries which has reported a decrease in its net sales in the second quarter ended June 27, 2020.Net sales of $688.8 million declined by 1.7%. Under the irrigation segment of the company, global sales of $150.6 million decreased by 3.0%.
The Global Micro Irrigation Market has been segmented based on, Product Type, Crop Type, End-use and Region
The Global Micro Irrigation market has been divided based on the product type into drip irrigation and sprinkler irrigation.
Drip irrigation is one of the most efficient ways to deliver water and nutrients for growing crops. This method directly delivers water and nutrients to the roots zone, in the right amounts, at the right time so that the plant gets exactly what it needs, at the right time, to grow optimally. Due to drip irrigation, farmers can produce higher yields saving water and fertilizers. Among all the micro irrigation practices drip irrigation is the most efficient method to reduce water evaporation. It can be effectively used for all soil types and can control soil erosion. Moreover, the drip system can also provide organic matter and nutrients to the crops and is a most used method as it uses less amount of water and wets only the required area. This system has the potential to provide a high yield with limited resources, which has driven its demand for agricultural use.
Moreover, the government is providing subsidies to the farmers for using drip irrigation which is a major boost to the drip irrigation market. Developing countries like India and China are the major users of the drip irrigation system, and the key driver is the support from government and public-private partnerships through key players in the industry.
For instance, the Union Bank of India has entered into a partnership with Jain Irrigation Systems to finance farmers purchasing drip irrigation systems manufactured by the latter. Key players are developing strategies such as acquisitions and product launches to expand their position in the market.
For instance, in May 2020, The Toro Company launched clog-resistant drip tape, Toro Aqua-Traxx Azul drip tape. The drip tape offers a filter inlet design and optimized flow passages that pass through debris to maximize clog resistance and product performance. In May 2019, The Metzer Group launched new ring connectors for its line of drip tapes. The new ring connectors are available in four different variants and are ideal for use in thin-walled pipes.
The global micro irrigation system market has been segmented, based on crop type, into plantation crops, field crops, orchard crops, and vineyards.
The global micro irrigation system market is divided into four major regions- North America, Europe, Asia-Pacific, and the rest of the world.
Asia Pacific- The dominant micro irrigation systems market
Among all the regions Asia-Pacific dominated the global micro irrigation systems market and is expected to grow at the highest CAGR during the forecasted period of 2021-2028 due to the large availability of agricultural land and the support from the government with a variety of subsidy programs for the irrigation of the farm.
It accounted for nearly 33% of the global sales revenue in 2020. China, India, and Australia are the major national markets in the Asia-Pacific region that hold a significant share of regional revenue.
According to FAO, in 2012 India and China had around 42% of the world’s irrigation system due to government schemes and rising global food demand. China leads in the manufacture of micro irrigation system components and exports them to various other nations. Asian Development Bank is also encouraging small farmers to use micro irrigation systems in agriculture. India is mostly dependent on rain-fed agriculture and the use of micro irrigation systems will reduce the dependence on rain and will increase productivity. Drip irrigation has the highest market share in India among all the micro irrigation systems. Furthermore, the Indian government approved a corpus of 5000 crores for the setting up of a dedicated micro irrigation fund (MIF) under the National Bank for Agricultural and Rural Development (NABARD). This fund is registered under the (PMKSY) Pradhan Mantri Krishi Sinchayee Yojana.
The global micro irrigation market is highly competitive with many companies but the key players acquire more than 60% of the market share. The major players in the market include Valmont Industries, Hunter Industries, The TORO company, Jain Irrigation Systems Ltd, Nelson Irrigation, Netafim Ltd, Lindsay Corporation, T-L Irrigation Co., and Rain Bird Corporation, and Rivulis Irrigation.
Jain Irrigation Systems is one of the prominent players in the micro irrigation market in India and focuses on both drip and micro sprinkler systems The company’s core competencies are advanced manufacturing and quality-control systems, regulatory expertise, market knowledge, and R&D capabilities. Recently, the company signed an agreement with Tata Trust (India). The agreement encompasses working towards the improvement of agribusiness and research, an extension of agriculture, and development structures in India.
R&D investment, joint ventures new product launches, mergers & acquisitions, strategic collaborations, and manufacturing capacity expansion are among the major strategies adopted by the industry participants for enhancing their market share.
In June 2020, Lindsay Corporation announced the acquisition of Net Irrigate, LLC (US), an agriculture Internet of a Things technology company that provides remote monitoring solutions for irrigation customers. The acquisition would help the company to enhance its irrigation technology offering. In May 2020, The Toro Company launched clog-resistant drip tape, Toro Aqua-Traxx Azul drip tape. The drip tape offers a filter inlet design and optimized flow passages that pass-through debris to maximize clog resistance and product performance. In May 2019, The Metzer Group launched new ring connectors for its line of drip tapes.
The new ring connectors are available in four different variants and are ideal for use in thin-walled pipes.
Overview: Hunter Industries located in San Marcos, CA, the United States since 1981, Hunter is a market leader in producing and marketing a full range of water-efficient, easy-to-use irrigation solutions for residential, commercial, and golf course applications. Designed with the demands of irrigation professionals in mind, the current Hunter irrigation product line includes pop-up gear-driven rotors, high-efficiency rotary nozzles, spray sprinklers, valves, controllers, central controllers, and professional landscape drip, and weather sensors.
Product portfolio: The Company offers products such as pop-up gear-driven rotors, rotary nozzles, spray sprinklers, valves, controllers, central controllers, professional landscape drips, golf rotors, golf accessories, and tools
Key Developments: In June 2017, Hunter Industries acquired Dispensing Dynamics International (DDI). DDI specializes in the development of unique dispensing solutions for towels, tissue, wiper, napkin, and air care products. The acquisition will allow Hunter to expand into a new market that will diversify its business operations and grow its customer base while working with familiar materials and processes.
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