Micro Irrigation System Market Size, Share & Industry Analysis, By Type (Drip Irrigation and Sprinkler Irrigation), Crop Type (Field Crops, Orchard Crops, Landscape & Turf, and Others), Application (Agriculture and Industrial), and Regional Forecast, 2020-2032

The global micro irrigation system market size was USD 7.59 billion in 2019 and is projected to reach USD 16.83 billion by 2032, exhibiting a CAGR of 6.32% during the forecast period based on our analysis in the existing report.

The growing area under micro irrigation systems across the globe is one of the prominent reasons for the tremendous growth of the market worldwide. Easy mechanization of the micro-irrigation system, their compatibility with wide as well as closed-spaced crops, and various other positive attributes associated with this type of irrigation are aiding the market growth. Moreover, amplified acceptance of this irrigation technique by commercial property owners, homeowners, and others for landscape developments is expected to drive the micro irrigation system market growth during the foreseeable years.

The current global outbreak of COVID-19, followed by lockdowns across several economies is negatively influencing the agriculture industry, especially from the perspective of labor. The crisis is expected to continue in the upcoming months owing to suspended trade across economies at present. There is no doubt that the pandemic will affect the market negatively as well, however, to what extent can only be anticipated once the pandemic ends. Less labor associated with the operation of some of the micro irrigation practices, coupled with the availability of automated systems, especially across the developed markets of North America, and Europe is expected to remain the prominent reason for the plausible market stability. However, in developing economies such as India, China, South Africa, Pakistan, and others, the economic slowdown caused due to COVID-19 can impact the number of annual installations of high-priced microirrigation systems.

MICRO IRRIGATION SYSTEM MARKET TRENDS

Rising Inclination of Growers towards Efficient and Water-Saving Irrigation Techniques to Bolster Growth

The pressure of increasing high-quality crop production by using limited water is driving the growth of this market. The launch of several programs to educate farmers about the advantages of using micro irrigation techniques and initial guidance offered by the government in some countries to install these systems in farms is affecting the market growth positively. High water application efficiency of the systems and their effectiveness in minimizing nutrient loss is predicted to further drive this market. Moreover, low labor associated with advanced micro irrigation systems due to their highly automated design is supporting the market growth across countries where agriculture labor costs are high.

DRIVING FACTORS

Rising Necessity for Conservation of Water to Aid the Market

A rapid decline in water reserves and resources, coupled with a growing population across the globe is generating the demand for efficient and sustainable crop production irrigation practices. Rising concern over water becoming a vulnerable agricultural commodity, growers across the globe are seeking drip and sprinkler irrigation techniques to enhance crop productivity with limited available water. The factor is expected to contribute greatly to driving the micro Irrigation system market growth. Rising problems associated with the effect of climatic conditions on crop growth are further boosting the adoption of micro irrigation among small, medium, and large farms.

Increasing Innovation by Market Players to Support the Market Growth

The key companies operating in this market are continuously making efforts to design and manufacture drip, sprinkler, and other types of equipment that are cost-effective and easy to operate. Increasing collaboration between companies such as Netafim and Jain Irrigation with the governments of different economies to promote micro-irrigation is expected to play a crucial role in enhancing market growth. Moreover, high subsidies offered by the government on the use of micro irrigation systems are anticipated to enhance their popularity among farmers based in developed as well as developing countries.

RESTRAINING FACTORS

High Cost Associated with the Systems to Restrain the Market Growth

The high cost of drip irrigation systems and sprinklers is a major factor that is projected to limit the growth of this market. High capital requirement for setting up the systems is a major reason for its lower adoption among less affluent farmers based in some developing economies. Moreover, low awareness about the different advanced micro irrigation systems and the advantages offered by them is another reason that can restrain this market growth. The launch of smart irrigation programs by the government and offering subsidies to small farmers can effectively push market growth and eliminate the aforementioned restraints.

MICRO IRRIGATION SYSTEM MARKET SEGMENTATION

By Type Analysis

Drip Irrigation is the Leading Type Owing to the Expanding Area under Fruit & Vegetable Crops

Drip irrigation held the largest market share in terms of revenue in 2019. The major drivers of this type are their high efficiency in saving water, along with reducing the rate of salinization and improving the crop yield. The segment is expected to exhibit tremendous growth during the foreseeable years owing to the rising adoption of drip irrigation across several developing economies for the production of a range of crops. The adoption of sprinkler irrigation is increasing among the countries where the demand for row crops is high. Prevention of soil erosion, low labor requirement, and disease reduction in plants are other prominent reasons for the future growth of sprinkler irrigation.

By Crop Type Analysis

Deployment of Micro Irrigation Practices in Orchards Crops Production to Remain High

The orchard crops segment accounted for a major share of the market. A variety of fruits, vegetables, and other horticulture crops require a specific environment to grow properly and hence this type of irrigation is a good fit for these crops. Rising demand for high-value and cash crops across the globe is fueling the growth of this market. High suitability of systems such as drip irrigation for the production of various orchard crops such as tomato, banana, beetroot, and others are further escalating the segment’s growth. The use of localized irrigation in the production of water-intensive field crops such as soybean, maize, and others is increasing due to their efficiency in significantly reducing the wastage of water along with fetching good crop yields. Moreover, rising efforts by market players to come up with low-cost and budget-friendly systems are anticipated to contribute to the growth of the field crops segment during the forecast period.

By Application Analysis

Agriculture to Remain the Major Application Area of Micro Irrigation Systems

As the traditional agriculture sector utilizes most of the water present on the planet, the depleting water resources are pushing the use of water-effective crop production irrigation techniques such as microirrigation. The development of drip and sprinkler irrigation systems that are compatible with growing a range of crops such as orchard crops, cereals, oilseeds, and others is increasing the use of this technique in agriculture to grow these crops. Moreover, subsidies offered by the government for using this type of irrigation for crop production and the rising involvement of private entities in developing agricultural projects and systems are expected to positively influence the segment’s growth.

MICRO IRRIGATION SYSTEM MARKET REGIONAL ANALYSIS

Asia Pacific to Register the Fastest Growth Owing to Increasing Area under Micro Irrigation

The Asia Pacific holds a dominant share in the market and is expected to grow at the fastest rate during the forecast period. Rising adoption of smart farming and advanced agricultural tools across prominent crop-growing countries of APAC such as China and India is expected to aid the market size within the region. The rapid rise in population across several developing economies of Asia is raising concern over food security. However, to deal with this, governments across agro-dominant countries of Asia are encouraging farmers to adopt sustainable methods of crop production by using irrigation techniques that consume less water. Government bodies in countries such as China and India are offering high subsidies to promote technologically advanced micro irrigation practices such as sprinkler and drip irrigation. Rising investments by foreign major market players such as Netafim in the Asian market, coupled with the rising number of local market players in the region are projected to fuel the market growth.

North America is anticipated to hold a considerable market share in the global microirrigation system market throughout the forecast years. High awareness about advanced precision farming techniques across countries such as the U.S., and Mexico and their high adoption among farmers across these countries is boosting the market growth. Moreover, the presence of key global market players such as Reinke Manufacturing, Lindsay Corporation, and others across the region is playing a major role in stimulating the market growth in North America.

The increased adoption of localized irrigation in South American economies such as Brazil and Argentina is predicted to be propelled by rapidly declining water resources and a shift in agricultural practices within the region. Initiatives taken by governmental bodies and private sectors to develop beneficial schemes and run programs such as PROVARZEAS-KFW in Brazil are anticipated to support the market growth exclusively within the region.

KEY INDUSTRY PLAYERS

Rising Consolidation to Influence Market Competition

The market structure is seen as highly consolidated, with few players holding a major share in the global marketplace. The leading market players are intensively embarking on the acquisition of relevant companies across several prominent economies to increase their market presence and strength. Moreover, product launches, digitalization, base expansion, and mergers are other prominent strategies that the global market players are adopting to create their edge over their competitors. Jain Irrigation Systems Ltd., Netafim Limited, Lindsay Corporation, and Rain Bird Corporation are some of the most relevant market players existing in the global market.

LIST OF KEY COMPANIES PROFILED:

• Lindsay Corporation (U.S.)


• Jain Irrigation Systems Ltd. (India)


• Valmont Industries (U.S.)


• Rain Bird Corporation (U.S.)


• Reinke Manufacturing Co. Inc. (U.S.)


• Netafim Limited (Israel)


• The Toro Company (U.S.)


• Hunter Industries (U.S.)


• Nelson Irrigation Corporation (U.S.)


• Rivulis Irrigation Ltd. (Israel)

KEY INDUSTRY DEVELOPMENTS:

• In March 2019, Rain Bird Corporation, a prominent player in the irrigation market, announced the launch of its new In-Ground sprinkler LG3HE. The new sprinkler system is easy to install and does not need trenching for the underground tubing.


• In April 2017, Jain Irrigation Systems, a prominent irrigation system company headquartered in India, that manufactures drip and micro irrigation systems acquired an 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 for the acquisition.

REPORT COVERAGE 

The rising concern over the depletion of water resources across the globe and increasing research & innovation in manufacturing budget-friendly systems is projected to contribute crucially to driving market growth worldwide.

The micro irrigation system market report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of its types, crop types, and applications for which they are used, their market size, and growth rate for all possible segments in the market.

Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

Report Scope & Segmentation