Micro and Mechanized Irrigation Systems Market Analysis By Product (Sprinkler, Drip, Central Pivot, Lateral Move), By Crop (Plantation Crops, Orchard Crops, Field Crops), By Application, By Region, And Segment Forecasts, 2018 - 2025

Report Overview

The global micro and mechanized irrigation systems market size to be valued at USD 33.4 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 16.3% during the forecast period. The increasing global food demand is expected to drive the market growth. The rising need for water conservation, primarily in arid regions, is further accelerating the demand for these systems.

Micro and mechanized agricultural systems help in reducing water wastage, due to which the market is witnessing phenomenal demand among emerging nations. Small-scale farmers are emphasizing on implementing these systems to increase crop yields by utilizing minimum water.

Micro and mechanized irrigation systems such as drip and sprinklers reduce the water consumption of crops and increase the yield. Local governments across the globe are encouraging farmers to implement these products, which favors the market growth and stimulates various market participants to develop efficient and low-cost micro-irrigation products.

Emerging economies in regions such as the Asia Pacific and Latin America are expected to drive the demand for these products due to favorable government policies such as low-interest loans and subsidies for farming. Such benefits are anticipated to energize the industry growth prospects.

Micro and Mechanized Irrigation Systems Market Trends

Rising concerns regarding water availability for agricultural activities is driving the market demand. According to the United Nations Water (UNWATER), around 72% of freshwater withdrawal is used for agricultural activities, and the remaining 28% is used for household and industry purposes. Farmers are adopting modern irrigation techniques such as sprinkle and drip irrigation to utilize local water sources optimally. The aforementioned factor is contributing to the industry growth.

Moreover, the steadily growing health-conscious population has further increased the demand for organic agricultural produce which, in turn, has forced farmers to implement advanced irrigation methods for optimizing agricultural yield. Furthermore, advancements in research and development by major industry players to develop efficient irrigation equipment to aid optimal agricultural yield is anticipated to propel the market demand during the forecast period.

The high investment associated with advanced irrigation equipment, coupled with high maintenance costs, are expected to hinder the market growth among small-scale farmers. However, government initiatives such as farm loans, irrigation schemes, and high-yielding variety seeds are expected to promote awareness among the farmers regarding the benefits related to the utilization of advanced agricultural equipment. This is likely to boost the industry demand during the projected period.

Product Insights

The drip product segment dominated the product segment and was valued at USD 2,878.3 million in 2015. The suitability of these systems for the cultivation of food crops is expected to foster their market growth over the forecast period.

The high water consumption efficiency and low cost of drip systems are the major factors impelling the segment growth. Furthermore, the increasing trend of sustainable irrigation stimulates the adoption of drip systems on a large scale. The adoption of sprinklers helps to displace water over large distances, thereby improving water consumption efficiency.

Crop Insights

Orchard crops are presumed to emerge as the fastest-growing segment and gain traction over the forecast period. The segment would register a CAGR of 16.2% from 2016 to 2025. The growth is attributed to the increasing cultivation and export of fruits and nuts mainly from the Asia Pacific region. Plantation crops also depict remarkable growth owing to the high consumption of tea and coffee products across the globe.

The growing trend of micro-farming of plantation and orchard crops in residential properties is remarkably contributing toward the growth of this segment over the forecast period. The cultivation of field crops such as cotton, wheat, maize, and corn further promotes the usage of products such as central pivot and lateral move. These products cater to the water conservation requirements over a large area.

Application Insights

Agriculture is the major occupation in various regions is expected to be the largest contributor to the growth of the market. The market is anticipated to grow at a CAGR of 15.8% over the next nine years. Emerging economies practice agriculture on a large scale, which consequently increases the adoption of such equipment in these regions.

The low cost of production makes it easily affordable for customers in emerging nations of the Asia Pacific and Latin American regions. Advancements made in irrigation techniques, such as spraying equipment and pumping units, have stimulated the demand for these systems in the greenhouse application segment.

Regional Insights

North America occupied a significant share in the global market and is expected to grow at a CAGR of over 12% over the forecast period. The Asia Pacific regional market is presumed to emerge as the fastest-growing region with a CAGR of over 17% from 2016 to 2025.

The growth in North America is characterized by the concentration of key market participants such as Lindsay Corporation, Nelson Irrigation Corporation, and Rain Bird Corporation that develop reliable products. The Asia Pacific is primarily an agricultural region with its major income coming from crop cultivation.

Key Companies & Market Share Insights

Prominent players dominating the market include Jain Irrigation Systems Ltd., Mahindra EPC Irrigation, Nelson Irrigation Corporation, Lindsay Corporation, Netafim Limited, Rain Bird Corporation, T-L Irrigation Co., The Toro Company, Rivulis Irrigation, and Valmont Industries, Inc., among others.

Industry players primarily focus on developing sophisticated and innovative products based on extensive research & development. These products offer features such as high efficiency, reliability, and low cost. The market is fairly competitive with most of the players focusing mainly on growth opportunities in developing regions such as the Asia Pacific.

Recent Developments

• In May 2021, Netafim launched the AlphaDisc filter, which is capable of preventing irrigation systems from clogging due to various contaminants, besides aiding in enhanced crop irrigation.

• In February 2021, Rain Bird Corporation introduced an app known as Rain Bird Resources. This application is expected to assist irrigation professionals to gather required information whenever they need it.

Micro and Mechanized Irrigation Systems Market Report Scope

Global Micro and Mechanized Irrigation Systems Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global micro and mechanized irrigation systems market based on the product, crop, application, and region:

• Product Scope (Revenue, USD Million; 2014 - 2025)

  • Sprinkler

    • Tubing

    • Pumping unit

    • Fittings/Sprinkler head

    • Coupler

  • Drip

    • Tubing

    • Backflow Preventers

    • Valves

    • Filters

    • Pressure Regulators

    • Pressure Compensators

  • Central Pivot

  • Lateral Move

• Crop Scope (Revenue, USD Million; 2014 - 2025)

  • Plantation Crops

  • Orchard Crops

  • Field Crops

  • Forage & Grass

  • Others

• Application Outlook (Revenue, USD Million; 2014 - 2025)

  • Agriculture

  • Landscape

  • Greenhouse

  • Nursery

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • UK

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)