Microirrigation Systems Market by Type (Drip & Micro-sprinkler), Crop Type (Orchard crops & vineyards, Field Crops, Plantation Crops), End User (Farmers, Industrial Users ), & Region( NA, Europe, APAC, South America, RoW) - Global Forecast to 2028
The microirrigation systems market size is anticipated to reach USD 17.8 billion by 2028 from USD 11.3 billion by 2023, at a CAGR of 9.4% during the forecast period in terms of value owing to the efficient usage of water resources in drought conditions, higher yield production, and cost-effectiveness. The market is driven by emerging economies due to their growing population and agriculture as major occupation. The market is also fueling due to support from the public and private sectors globally.
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Market Dynamics
Driver: Shift from traditional irrigation methods to technologically advanced irrigation systems
The growing awareness about the advantages of micro-sprinkler irrigation among farmers has led to a shift from flood irrigation toward micro-sprinkler systems. The major factor encouraging this trend is a major concern regarding water wastage in flood irrigation, as well as the leaching associated with it. Though the initial capital for the installation of the systems is high, the return on investment associated with the cost after 2-3 years, as well as the availability of a wide range of micro-sprinkler system components, encourage producers to adopt sprinkler irrigation systems. The downward trend of flood irrigation is due to its disadvantages such as poor water-use efficiency, inability to irrigate uneven terrains, and uneven water distribution.
Restraint:High initial investment
Microirrigation systems are best suited for cost-intensive agriculture, such as orchards, nurseries, greenhouses, and vineyards, where conventional irrigation methods may not be practical. Initial investment costs for installing microirrigation are high, and hence, are less suitable for low-value crops, considering that returns on investments may be low. The drawback of microirrigation is the set-up cost of purchasing tubing, emitters, and pumps, particularly for large-scale operations. The cost of microirrigation varies by crop, region, soil & water conditions, grade of pipelines, filtration equipment, fertigation equipment, and the degree of automation desired.
Opportunity: Sustainable agricultural practices of companies
In the last few years, several global food companies have adopted measures to market their products as sustainably produced. This is a differentiating factor in the end products, which has proved to be profitable for companies and has enhanced microirrigation systems market share. Microirrigation systems are one of the means by which these companies can ensure that their raw materials are produced in a sustainable manner. Microirrigation systems reduce the quantity of water consumed by crops, which limits environmental degradation and water table depletion. This is an opportunity for the microirrigation systems market as these agricultural and food companies operate on large scales, either through their farms or through contract farming with small farmers. In the case of contract farming, these companies provide equipment, such as drips and sprinklers, to resource-poor farmers that are essential for the production of crops with desired characteristics.
Challenge: The absence of a proper monitoring agency leads to product duplication
The absence of a proper global monitoring agency leads to product duplication in various regions. This results in the penetration of substandard equipment into the market, causing financial losses to both reliable manufacturers and consumers. A significant amount of revenue is spent by reputed global manufacturers in research & development. Duplication of products leads to tremendous losses borne by manufacturers. A proper monitoring agency needs to be established to monitor licensing and patent issues so that manufacturers become more confident to invest in R&D activities, which will benefit customers.
Microirrigation Systems Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of microirrigation systems. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Jain Irrigation Systems Ltd., The Toro Company, Netafim, Nelson Irrigation, and Rain Bird Corporation.
Efficient usage of water resources in drought conditions to drive the demand for microirrigation systems market
Protection of agricultural fields against drought has become a possibility with the use of advanced irrigation systems. Appropriate irrigation scheduling techniques have given various successes among farmers. Irrigation scheduling by advanced technology is gaining importance, and many farmers are increasingly applying these techniques successfully. Through microirrigation, farmers manage to sustain the same production levels even in a drought year, as minimal usage of water resources also ensures high yield with the use of such systems.
The wide range of systems available, including the most basic techniques of recording the readings of water drawn from the resource to the advanced ones that monitor the soil moisture, has helped farmers of different demographics combat water shortages during drought conditions. Farmers can maintain their production levels to ensure high yields with the help of these irrigation systems that require minimal usage of water resources. In addition, with the help of smart irrigation tools, the efficiency of sprinkler irrigation systems is less as compared to those of drip irrigation systems. This is a key factor contributing to the growth of the microirrigation systems market in tropical countries where droughts occur frequently.
Higher yield requirement from a limited area to augment the market growth
Water resources are an essential and critical requirement for crop production, and the extent, regularity, and frequency of water application can be a determining factor in crop quality and yield. Microirrigation systems lead to optimal crop yield by distributing water uniformly to crops. This method is best suited when the water supply is available in insufficient quantities to fulfill the needs of a crop, as it enables farmers to apply water to plant roots. In this way, high crop yield can be achieved with high application efficiency. As the cropland decreases globally with rise in urbanization, the demand for high yield from limited area is expected to rise, thereby augmenting the market for microirrigation systems.
North America is projected to be the second fastest-growing region during the forecast period
North America is the second-fastest growing market for microirrigation systems, and this market is projected to grow at a significant CAGR between 2023 and 2028. North America has traditionally been a large consumer of microirrigation systems. This region has continued to be a major consumer of drip irrigation systems. Freshwater resources are of great environmental and economic importance to the region. However, the distribution of these resources varies across regions. Small farmers in the US are gradually adopting microirrigation systems, primarily due to concerns over water allotment in the midwestern states.
Key players in the North American market include Lindsay Corporation (US), Nelson Irrigation (US), Rain Bird Corporation (US), T-L Irrigation (US), and The Toro Company (US). To gain microirrigation systems market share, these companies are adopting strategies, such as innovative product developments, partnerships, acquisitions, and expansion of existing facilities. The dynamic nature and industry ecosystem coupled with projected rise in demand for microirrigation systems, is catering to the growth of the region in the market.
Key Market Players
The key players in this include Jain Irrigation Systems Ltd., The Toro Company, Netafim, Nelson Irrigation, and Rain Bird Corporation. These players in this market are focusing on increasing their presence through acquisitions, product launches, mergers, and collaborations. They have manufacturing facilities along with strong distribution networks across various regions.
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Scope of the Report
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Report Metric |
Details |
Market size estimation |
2018–2028 |
Base year considered |
2022 |
Forecast period considered |
2023–2028 |
Units considered |
Value (USD Million/Billion) and Volume (Thousand Hectare) |
Segments Covered |
By Type, By Crop Type, By End User, and Region |
Regions covered |
North America, Europe, Asia Pacific, South America, and RoW |
Companies studied |
|
Report Scope:
Microirrigation Systems Market Segmentation:
By Type
- Drip
- Micro-sprinkler
By Crop Type
- Orchard crops & vineyards
- Field crops
- Plantation crops
- Other crop types (turf & ornamentals, silage, and forage crops)
By End-user
- Farmers
- Industrial users
- Other end users (government authorities, community parks, and playgrounds)
By Region
- North America
- Europe
- Asia Pacific
- South America
- RoW
Recent Developments
- In March 2020, The Toro Company announced the acquisition of Venture Products, Inc (US), which is a premier innovator of equipment for turf and landscape grounds management. The acquisition would help the company to expand its product portfolio in the US.
- In May 2021, Netafim launched the ‘filter’ which will protect irrigation systems against clogging caused by organic contaminants and enable growers to more uniformly irrigate crops, leading to better productivity, cost savings, and peace of mind. AlphaDisc provides the ultimate in irrigation system protection with its combination of precise depth filtration, substantial capacity to contain dirt, and a unique easy-to-scale modular design that helps manage changing flow rates and water quality needs.
Frequently Asked Questions (FAQ):
Which are the major companies in the microirrigation systems market? What are their major strategies to strengthen their market presence?
The major companies in this market include Jain Irrigation Systems Ltd., The Toro Company, Netafim, Nelson Irrigation, and Rain Bird Corporation. These players are focusing on increasing their presence through acquisitions, innovating through product launches, expanding their market shares and strengthening their positions through mergers, and collaborations.
What are the drivers and opportunities for the microirrigation systems market?
The microirrigation systems market is expected to witness significant growth in the forecast period owing to a shift from traditional irrigation systems to more advanced systems, concerns regarding droughts and high yielding pressures on limited land. Opportunities in the market include companies shift towards sustainable agriculture practices.
Which region is expected to hold the highest market share?
The market in Asia Pacific is expected to have the largest market share in 2023, showcasing strong demand for microirrigation systems due to government support to farmers and irrigation projects. The region is also driven by macroeconomic factors such as rise in disposable incomes, a growing population, and fast-growing economies.
What are the challenges that could restrict market growth of the microirrigation systems market?
High initial costs associated with the establishment of advanced irrigation systems along with frequent maintenance are some of the challenges that could restrict the market growth.
What is the total CAGR expected to be recorded for the microirrigation systems market during 2023-2028?
The microirrigation systems market is expected to record a CAGR of 9.4 % during the period 2023-2028.
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This research study involved the extensive use of secondary sources—directories and databases, such as Bloomberg Businessweek and Factiva—to identify and collect information useful for a technical, market-oriented, and commercial study of the global microirrigation systems market. In-depth interviews were conducted with various primary respondents—such as key industry participants, subject matter experts (SMEs), C-level executives of key market players, and industry consultants—to obtain and verify critical qualitative and quantitative information, as well as to assess prospects.
Secondary Research
The secondary sources referred to for this research study include government sources (such as the Food and Agriculture Organization (FAO), the International Commission on Irrigation & Drainage (ICID), The Organization for Economic Co-operation and Development (OECD), United States Department of Agriculture (USDA), and the World Bank, corporate filings (such as annual reports, press releases, investor presentations, and financial statements)), and trade, business, and professional associations, among others. The secondary data was collected and analyzed to arrive at the overall microirrigation systems market size, which was further validated by primary research.
Primary Research
The market comprises several stakeholders in the supply chain; these include suppliers, manufacturers, and end-use product manufacturers. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders, executives, vice presidents, and CEOs of the agriculture industry. The primary sources from the supply side include research institutions involved in R&D activities, key opinion leaders, and manufacturers of microirrigation systems.
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Microirrigation Systems Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the microirrigation systems market. These approaches were also used extensively to determine the size of various subsegments in the market. The research methodology used to estimate the market size includes the following details:
- The key players in the industry and the markets were identified through extensive secondary research.
- The microirrigation systems market was determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All macroeconomic and microeconomic factors affecting the growth of the microirrigation systems market were considered while estimating the market size.
- All parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain final quantitative and qualitative data.
Market Size Estimation: Bottom-up Approach
The figure represents the overall market size estimation process employed through the bottom-up approach for this study.
The bottom-up approach was implemented for data extracted from secondary research to validate the market segment sizes obtained, which is explained below:
- The market for microirrigation systems was identified based on factors, such as COVID-19 impact on the trade and supply of agricultural inputs, company presence, and their revenues and product availability; crop production, exports, and imports; the adoption of organic farming based on key crops, and average usage of drip & micro-sprinkler irrigation systems on crop application rates in the industry.
- For each country, the increase in microirrigation area was considered, along with the replacement rate of microirrigation equipment in the existing area to arrive at the market demand. This area with potential market demand was then multiplied with the average selling price (ASP) of microirrigation equipment per hectare to arrive at the country's market size. Similar ASP was considered across all the countries in the region, with certain price variations done based on product availability and export/import dependency of the country for drip equipment. After arriving at each country's market value, these market values were summed to arrive at the regional microirrigation systems market size. This was checked with the microirrigation systems market share splits provided by the industry experts. A similar approach was performed for other regions as well.
- Following this, the market size for each region was estimated by summing up the country-level data. Further, the market size at the global level was estimated by summing up the regional level data, which has been validated through primary interviews conducted with microirrigation system manufacturers, government institutions, research organizations, suppliers, and distributors.
- The global number for microirrigation systems was arrived at after giving certain weightage factors for secondary sources, and primary sources obtained.
Market Size Estimation: Bottom-up Approach
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Microirrigation Systems Market Size Estimation Methodology: Top-Down Approach
The top-down approach was used to triangulate the data obtained through this study:
The top-down approach was also implemented for the data extracted from secondary research to validate the share of the market segment obtained. For the calculation of the global microirrigation systems market, the revenues of the major players operating in the microirrigation systems market were considered. The global share of the major players in the microirrigation systems market was validated with the primary respondents. The regional splits were arrived at by considering the presence and number of products sold by the company in the particular region alongside the land area being brought under microirrigation systems.
Data Triangulation
After arriving at the overall microirrigation systems market size from the above estimation process using both top-down and bottom-up approaches, the total market was split into several segments and subsegments. To complete the overall microirrigation systems market estimation and arrive at the exact statistics for all segments and subsegments, the data triangulation and market breakdown procedures were employed wherever applicable. The data was triangulated by studying various factors and trends from the demand and supply sides
Market Definition
According to US EPA (United States Environmental Protection Agency), microirrigation is a low-pressure, low-flow-rate type of irrigation that can reduce the likelihood of overwatering a landscape. This form of irrigation delivers water directly to where it is needed most-the root zone of plants. It also delivers the water slowly and over a longer period of time, preventing runoff and reducing evaporation. Microirrigation systems use 20 to 50 percent less water than conventional sprinkler systems and can reduce residential or commercial landscape irrigation water use.
According to F.R. Lamm, J.E. Ayars, and F.S. Nakayama in the book titled ‘Microirrigation for Crop Production: Design, Operation and Management,’ microirrigation is defined as:
“Microirrigation is the slow application of water on, above, or below the soil by surface drip, subsurface drip, bubbler, and micro sprinkler systems. Water is applied as discrete or continuous drips, tiny streams, or miniature spray through emitters or applicators placed along a water delivery line adjacent to the plant row.”
Microirrigation systems include drip method and micro-sprinkler method of irrigation systems. The approach in both systems involves a controlled supply of water in small quantities with the required consistency. Microirrigation is low pressure and low-volume irrigation system suitable for high-return value crops such as fruit and vegetable crops. Microirrigation is a modern method of irrigation; by this method, water is irrigated through drippers, micro-sprinklers, foggers, and other emitters on the surface or subsurface of the land
Key Stakeholders
- Microirrigation systems manufacturers
- Microirrigation systems importers and exporters
- Microirrigation systems traders, distributors, and suppliers
- Government and research organizations
-
Government regulatory agencies
- Food and Agriculture Organization (FAO)
- United States Department of Agriculture (USDA)
- Environmental Protection Agency (EPA)
- Department of Environment, Food, and Rural Affairs (DEFRA)
Report Objectives
Market Intelligence
- To determine and project the size of the microirrigation systems market with respect to type, crop type, end user, and region
- To identify the attractive opportunities in the market by determining the largest and fastest-growing segments across regions
- To provide detailed information about the key factors influencing the market growth (drivers, restraints, opportunities, and challenges)
- To provide the regulatory framework and market entry process related to the microirrigation systems market
- To analyze the micromarkets with respect to individual growth trends, prospects, and their contribution to the total market
Competitive Intelligence
- To identify and profile the key players in the microirrigation systems market
- To provide a comparative analysis of market leaders based on the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Key financials
- To understand the competitive landscape and identify the major growth strategies adopted by players across countries
To provide insights on key product innovations and investments in the microirrigation systems market
Customization Options
MarketsandMarkets offers customizations according to client-specific scientific needs with the given market data.
The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Geographic Analysis
- Further breakdown of the Rest of Europe's microirrigation systems market forecast into Germany, UK, the Netherlands, and other EU and non-EU countries.
- Further breakdown of the Rest of Asia Pacific market into South Korea, Malaysia, and Vietnam.
- Further breakdown of the Rest of the South American microirrigation systems market forecast into Cuba and Uruguay.
Company Information
- Detailed analyses and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Microirrigation Systems Market
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