The micro irrigation system market is projected to witness USD 10.9 billion in 2024. These micro irrigation systems are predicted to record a CAGR of 9.7% from 2024 to 2034 making a market size of USD 27.4 billion by 2034.
| Attributes | Description |
|---|---|
| Estimated Size (2024E) | USD 10.9 billion |
| Projected Value (2034F) | USD 27.4 billion |
| Value-based CAGR (2024 to 2034) | 9.7% |
Micro irrigation method uses low-pressure water emitters like drippers and micro-sprinklers or sprayers located in the plants aiming that water is not applied to areas that are not needed. The system is so constructed that the entire area receives the same amount of water over a period eliminating any unnecessary water usage while maximizing water use.
Precision farming and advanced irrigation systems based on IOT hubs have already been available why doing smart agriculture, increasing water use efficiency and decreasing costs of operation for farmers. Agriculture FAO foresees an improvement in food productivity worth 25 percent of increase in water productivity could contribute to a reduction of 41% in the volume of water needed for food production.
Moreover, with the help of modern irrigation practices and technologies, measurable in an up to 50% decline of agricultural water usage, these global visions can soon be achieved in every country’s effort.
The anticipated demand for micro irrigation systems in 2034 will be 2.5 times the estimated current value. These systems are vital in improving the water use efficiency in agriculture more so in areas that are water-stressed.
Micro irrigation systems are also critical as areas and debates on water conservation and the need for viable agricultural activities continue to grow because they help to maximize crops with considerably less water. This market is also growing due to the introduction of new water management policies together with government programs promoting the use of modern irrigation techniques.
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global micro-irrigation.
In the first half (H1) of 2023 to 2033, the business is predicted to surge at a CAGR of 9.3%, followed by a higher growth rate of 9.7% in the second half (H2) of the same period.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 9.3% (2023 to 2033) |
| H2 2023 | 9.7% (2023 to 2033) |
| H1 2024 | 9.4% (2024 to 2034) |
| H2 2024 | 9.9% (2024 to 2034 ) |
From H1 2024 to H2 2034, the CAGR is projected to increase slightly to 9.4% in the first half and relatively grow to 9.9% in the second half. In the first half (H1) the market witnessed an increase of 10 BPS while in the second half (H2), there was a slight increase of 20 BPS.
A Transition from Conventional Irrigation Practices to Modern And Technologically Advanced Irrigation Systems.
Transitioning from traditional agriculture methods to modern methods with newer equipment and machines is a key factor in the micro-irrigation market expansion. Water wastage is experienced in the traditional irrigation methods, including: flood irrigation and furrow irrigation, as efficiency rates are very low.
However, micro irrigation systems are more efficient and can apply water to the root zone of plants thanks where it’s most needed. This leads to very economical use of water, and increased productivity of land with crops.
One of the major driving forces is the rising water scarcity that has become a global problem. As water becomes scarce, greater focus is put to maximizing water efficiency in agriculture. Water is delivered in this manner with the use of micro-irrigation systems such as drip irrigation and precision sprinklers, which is efficient as water is applied on target growing areas and reduces evaporation and runoff.
This water saving mechanism ensures that water is efficiently used, and that plants are well watered to grow and produce. Technological improvement is actively influencing the level of uptake of new age irrigation methods. The irrigation industry has greatly changed with the introduction of such innovations as sensor based irrigation scheduling, remote control, and automation.
Automated Production Lines to Facilitate the Supply of Micro-Irrigation Systems
Manufacturers are leveraging top-notch processes to lower production costs. They are making micro-irrigation systems affordable and accessible to farmers. Efficient manufacturing processes like automated production lines are completing the growing demand for micro-irrigation systems.
In August 2022, the Consulate General of Israel to South India partnered with the United Planters' Association of Southern India (UPASI), Jain Irrigation Systems, and NaanDanJain Irrigation to launch the Smart IoT Irrigation Project in a tea plantation in Ooty, Tamil Nadu. This project aimed to introduce and implement an Israeli technique - Smart IoT Irrigation in the tea plantation.
In 2023, Netafim USA, a leading manufacturer of micro-irrigation systems, announced its plans to increase manufacturing of FlexNet in Fresno, California. This expansion in manufacturing capabilities aimed to improve efficiency in producing and supplying FlexNet products across America, thereby meeting the growing demand from farmers.
Integration of Micro-Irrigation Systems with Precision Farming Technologies Soar Demand
The development of new factors of competitive advantage on the market, which is associating micro irrigation systems with precision farming for precise water applications, is flourishing on the market. These two potent solutions help the farmers realize focused water management on the particular needs of their crops, thereby fine-tuning every facet of crop production.
The trend towards the application of advanced technologies such as the integration of precision farming with micro-irrigation systems is increasingly becoming attractive to manufacturers in agricultural field as it seeks to address the rising demand for increased efficiency. There is an active pursuit and development of integrated solutions that assist farmers in eliminating wastages of water and increasing crop output.
Leading manufacturers such as Netafim, Jain Irrigation Systems, and Lindsay Corporation is among those leading this direction. They have been putting efforts in emergence of research and development in order to bring out products that fall within the category of precision farming integrated with micro irrigation systems.
They are not only designing integrated solutions for the farmers but also coordinating the equipping and training of farmers on the effective use of these technologies. They understand the need for knowledge transfer and supporting farmers in integrating micro irrigation and precision farming systems effectively.
Water Conservation and Sustainability Trend to Ignite Demand for Micro Irrigation Systems
The growing emphasis on water savings and sustainability poses a broader opportunity for the micro irrigation system market. It positions itself as an important solution for effective and sustainable agriculture.
As many regions experience water shortage, it has become very important to avoid wasting the water used in agricultural practices. Since water is supplied directly to the root zones of the plants, such systems eliminate water runoff responsible for transporting pollutants into water bodies. This also encourages environmental sustainability by reducing the chances of water contamination.
Manufacturers, agricultural entities, and governments can promote knowledge and encourage the use of these systems. The use of micro-irrigation systems, especially by small farmers, can be increased by provision of financial incentives, subsidization and education.
Jain Irrigation has undertaken large scale projects across the globe including in areas such as Africa and Middle East where water is an acute resource. Solutions of the company have been implemented in the Central Valley of California and in some regions of India which experience water shortages.
Principal Consultant
From 2019 to 2023, the segment recorded a CAGR of 4.1%. The revenue of the industry is estimated to reach around USD 10.1 billion in 2023. It is expected that sales at a global scale will earn a CAGR of 9.7% for the forecasted period.
Demand for micro irrigation systems is expected to grow throughout the study period as the agriculture sector keeps on adopting better water management practices to increase crop production. Overcoming issues related to water scarcity has been an ongoing practice. Farmers and the agriculture sector do their level best to minimize water wastage.
A disruption was seen in farming activities and supply lines due to the emergence of the pandemic and the subsequent enforcement of strict lockdowns. Thus, there was a rationale behind the postponement of the installation of micro irrigation systems and even a reduction in their market. On the other hand, the growth of expectations was rekindled as the relaxation of the restrictions came into effect towards the end of the year.
Looking into the future in 2024 to 2034, the micro irrigation system market is expected to expand considerably owing to a number of converging factors. Persistent water shortage and the need for conservation measures have made farmers and the authorities put on their thinking caps and deconstruct and modify the old methods of irrigation.
The emergence of numerous local and transnational water regulations has led to new practices in agricultural activities that attach a premium on water use and optimum crop production.
Tier 1 companies include industry leaders with annual revenues exceeding USD 150 million. These companies are currently capturing a significant share of 40% to 45% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. The firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within the tier I players include Netafim Ltd., Jain Irrigation Systems Ltd., The Toro Company, Rain Bird Corporation, Hunter Industries, Valmont Industries, and Others.
Tier 2 companies encompass most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues between USD 70-150 million. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 2 segment. They are small-scale participants with limited geographical presence.
In this context, Tier 2 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. Tier 2 players such as Lindsay Corporation, Reinke Manufacturing Company Inc., EPC Industries Ltd., and many others. Have been considered in this tier where they are projected to account for 30-35% of the overall market.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 70 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. The manufacturers such as include Nelson Irrigation Corporation, Chinadrip Irrigation Equipment Co. Ltd., Kisan Irrigation Ltd., and., and local-level vendors are expected to hold 10-15% of the market share.
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The section below covers the analysis of micro irrigation system sales for different countries in several regions of the globe.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 12.4% |
| China | 11.7% |
| Japan | 9.6% |
| United States | 8.7% |
| Spain | 8.4% |
High initial costs were a big hurdle in the widespread adoption of these systems in China. The introduction of thin-walled drip lines has reduced costs making micro irrigation more accessible.
The acreage under micro irrigation in China has grown at an annual rate of around 27%, covering over 5.2 million hectares, or 8% of the irrigated area. China now ranks first globally in micro irrigation usage, with acceptance across all provinces. This method is particularly popular for greenhouse vegetable cultivation, improving pest and disease control.
China's large food requirements and the ongoing expansion of micro irrigation show a positive curve. The micro irrigation system market in China is projected to soar at a CAGR of around 11.7% through 2034.
The India micro irrigation system market is expected to be worth USD 3,634.4 million by 2034. Furthermore, over the forecast period, the demand for micro irrigation system in the United States is set to grow strongly at 12.4% CAGR.
The growth of micro irrigation in India has been rapid, at a CAGR of 9.6%, leading to a total of 7.73 million hectares of micro-irrigated area, sprinklers leading the way, followed by drip irrigators.
The Indian market is quite fierce, with more than 200 manufacturers and distributors actively participating in the business. Looking ahead, factors like the existing market condition for micro irrigation systems in India are of growing importance because of the vast and largely untapped agro sector in India.
The Spain micro irrigation system market is projected to reach USD 2,413.3 Million by 2034. Over the assessment period, demand for micro irrigation system in the Spain is set to rise at 8.4% CAGR.
Spain is a leading user of micro irrigation in the European Union, driven by government reforms aimed at managing water demand. These reforms include environmental taxes, public water rights, and subsidies for modernizing irrigation systems.
Regions like Murcia and Cartagena are at the forefront, with 84% and 96% of their irrigated land using micro irrigation systems, respectively. The incorporation of remote control systems and geographic information systems is further enhancing micro irrigation's efficiency and adoption in Spain, positioning the country as a leader in this field.
The section explains the growth trajectories of the leading segments in the industry. Regarding vehicle type, the drip irrigation systems will likely disseminate and generate a share of around 76.6% in 2024.
Based on farming technique, the Orchard Crops segment is projected to hold a share of 35.4% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Drip Irrigation Systems(By Mechanism) |
|---|---|
| Value Share (2024) | 76.6% |
Drip irrigation systems hold 76.6% of the total micro irrigation system market in 2024. This market leadership can be attributed to drip irrigation’s efficiency in water management, making it a preferred choice for farmers aiming to optimize water usage. The systems' lower purchase and installation costs also contribute to their widespread adoption. Drip irrigation is particularly versatile, catering to both small-scale and large-scale farming operations.
The effectiveness of drip irrigation in reducing water waste by delivering water directly to the plant roots makes it an essential tool in regions facing water scarcity.
Additionally, the relatively simple installation process and compatibility with various crop types enhance its appeal to farmers globally. As water conservation continues to be a critical issue, the demand for drip irrigation systems is expected to remain robust.
| Segment | Orchard Crops (Farming Technique) |
|---|---|
| Value Share (2024) | 35.4% |
The orchard crops segment has acquired 35.4% of the share in this industry. Orchard crops, including fruits, vegetables, and horticulture crops, often require specific environmental conditions to thrive, and this system is well-suited for meeting these requirements.
The precise and targeted water delivery of drip irrigation systems ensures that orchard crops receive the right amount of water directly to their root zones, promoting healthy growth and optimal yields.
There is a growing global demand for high-value and cash crops, which has contributed to the expansion of orchard crop cultivation. As farmers and agricultural businesses strive to meet this demand, they are increasingly adopting these systems, particularly drip irrigation, for orchard crop production.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the.
A few key players in the micro irrigation system are actively enhancing capabilities and resources to cater to the growing demand for the compound across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster resource base.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2034, thereby making it more competitive.
Key companies are investing in continuous research for producing new products and increasing their production capacity to meet end-user demand. They are also showing an inclination toward adopting strategies, including acquisitions, partnerships, mergers, and facility expansions to strengthen their footprint.
Industry Updates
Mechanisms included in the study are sprinkler irrigation (centre pivot, towable pivot, rain gun, impact sprinkler, pop up sprinkler, and linear move sprinkler), drip/trickle irrigation (surface drip irrigation, subsurface drip irrigation, family/gravity fed drip irrigation, in-line drip), bubbler irrigation, and spray irrigation.
Component segments included in the study are drippers, tubing, control valves, filters, digital flow meters, smart watering controllers, and others.
Farming techniques segments included in the study are open field and protected cultivation.
Crop type segments included in the study are Field Crops, Orchards and Vineyards, Plantation Crops and Other Crop Types.
End users segments included in the study are farmers, large private and corporate farms, government, and others.
Regions considered in the study include North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, and the Middle East and Africa.
The global market was valued at USD 10.1 billion in 2023.
The global industry is set to reach USD 10.9 billion in 2024.
Global demand is anticipated to rise at 9.7% CAGR.
The industry is projected to reach USD 27.4 billion by 2034.
Netafim Ltd., Jain Irrigation Systems Ltd., and The Toro Company.
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Micro Irrigation System Market
