IRRIGATION MACHINERY MARKET ANALYSIS

The global irrigation machinery market size was valued at US$ 7.54 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.6% from 2022 to 2030. A wide range of factors contribute to the growth of the Irrigation Machinery market, including the increase in food demand and concerns over water scarcity. Moreover, the rise in awareness about precision agriculture techniques and the increasing adoption of irrigation equipment have also contributed to the market growth. 

Global Irrigation Machinery Market: Regional Insights

North America is anticipated to show significant growth in the global irrigation machinery market over the forecast period. This is attributed to rising adoption of water quality management for conserving water to develop adequate crop production systems, increasing involvement of federal government to assist agricultural producers with irrigation practices in the U.S. Moreover, growing farm labor deficit in Canada along with technical support for combating water scarcity in the region is also expected to augment growth of the global irrigation machinery market in North America.

Furthermore, Asia Pacific is also expected to show robust growth in the global irrigation machinery market during the forecast period. The factors such as increasing area of agricultural land as equipped for irrigation in China leading to high demand for irrigation machinery, and increasing water-intensive agricultural practices in the region, are driving growth of this market in Asia Pacific. For instance, according to Coherent Market Insights, the yearly cereal production in China increased to 44,804 metric tons in 2019 from 41, 847 metric tons in 2016. Thus the region is likely to show high growth in the global irrigation machinery market.

Figure 1: Global Irrigation Machinery Market Share (%), By Region, 2022

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Global Irrigation Machinery Market Drivers:

Lucrative subsidies and policies from government of countries to drive the market growth

Government organizations of several countries around the world are increasingly promoting irrigation systems in as they encourage farmers to use advanced irrigation technologies and by offering several subsidies or benefits to farmers. For instance, in 2017, many water user associations (WUAs) in Spain received 40% subsidy from the Alimentació i Aigua and Conselleria d’Agricultura, Pesca, for installing drip irrigation systems. Similarly, in the U.S. government is offering water conservation subsidies for drip irrigation. Due to such favorable government subsidies and policies, the demand for drip irrigation systems is increasing, which in turn is driving growth of the global irrigation machinery market during the forecast period.

Increasing technological innovations in irrigation machinery to fuel the market pace

Farmers in several developed countries are making use of advanced irrigation technologies for reducing water wastage. Due to this several major market players are offering drip irrigation systems with advanced features, such as drip irrigation systems that can be implanted in pipes for simplifying the process of installation, while it also creates sustainable production in agriculture. The Agilo Research Pvt. Ltd. in India is planning to introduce a wireless drip irrigation systems. Such innovations by market players are likely to augment growth of the global irrigation machinery market during the forecast period.

Global Irrigation Machinery Market Opportunities:

Increasing support from government is expected to bring multiple growth opportunities in the global irrigation machinery market during the forecast period. Several government organizations around the world are promoting irrigation machinery to provide help to farmers in order for them to adopt developed irrigation technologies through providing different subsidies or benefits to farmers. Owing to such lucrative government policies having low-interest loans and subsidies for use of advanced and new irrigation systems, market vendors are likely to witness several opportunities.

Rising concerns regarding water scarcity to generate business opportunities in the global irrigation machinery market during the forecast period. The water scarcity concerns are increasing rapidly all over the world. Water scarcity is a major factor driving growth of irrigation machinery market across several countries. Performing irrigation through machines has become one of the newest advancement in the agricultural industry. Thus, irrigation equipment are increasingly being preferred by several farmers to increase the yield per hectare, productivity, and to cut down water consumption. This in turn is likely to create potential opportunities in the global irrigation machinery market during the forecast period.

Global Irrigation Machinery Market Trends:

Growing shift from conventional to technologically developed irrigation system is a recent trend

The growing knowledge regarding the benefits of irrigation in farmers is leading to a rapid shift traditional methods of irrigation toward use of technologically advanced systems of irrigation. Furthermore, the development of technologically developed irrigation system is being determined by this shift from conventional approach of irrigation. This in turn is likely to boost the demand for irrigation machinery around the world. Thus, the trend is anticipated to continue in the market over the forecast future.

Increasing innovation by market players is a growing trend in the market

Many of the market players are increasingly investing in research and development work for creating innovative products and maintaining a strong market position. Still, the increasing use of effective irrigation systems for their better yield output and other benefits along with the launch of novel systems by market players is expected to drive the demand for irrigation machinery. This trend is likely to augment growth of the global irrigation machinery market during the forecast period.

Global Irrigation Machinery Market Restraints:

High initial cost associated with use of irrigation machinery to restrain growth of the market

Sprinkler and drip irrigation systems are known to be technically complex procedures. The cost of installation for these irrigation systems is high, which further impacts adoption of such systems in emerging countries. In such countries, small-scale farmers are highly reluctant for adopting irrigation systems, owing to the high cost of investment required initially. Thus, adoption of rate for drip irrigation systems is impacted by lack of capital for purchasing and installing the equipment. This factor in turn is expected to hinder growth of the global irrigation machinery market during the forecast period. However, major market players are focusing on development of cost effective equipment with higher efficiency, which is likely to drive the market growth in the near future.

High cost associated of maintenance to hinder the market pace

The use of irrigation machinery involves high initial capital investment and along with it the cost of maintenance for these machineries is also high. These machines require constant inspection and maintenance for irrigation systems. This factor in turn acts as a major constrain in the irrigation machinery market. Moreover, the additional cost of drip-tape disposal, leak repairs and high-quality water also add into the cost of maintenance. Thus, this factor in turn impacts adoption of these systems, which in turn is likely to hinder growth of the global irrigation machinery market during the forecast period.

Figure 2: Global Irrigation Machinery Market Share (%), By Type, 2022

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Global Irrigation Machinery Market Segmentation:

The global irrigation machinery market report is segmented into Type and Application.

Based on Type, the market is segmented into Precision Irrigation, Traditional Irrigation. Out of which, Precision Irrigation is expected to dominate the global market over the forecast period and this is attributed to the rising concerns regarding water-saving, and several benefits of using drip irrigation. Moreover, the demand for precision irrigation is increasing in emerging countries, which is also expected to drive growth of this segment.

Traditional Irrigation segment is also expected to witness significant growth in the near future and this is owing to the rising demand leading to major market players forming agreements with local government authorities for supporting irrigation projects with efficient tubing. In traditional irrigation various accessories are used, such as fertilizer injector is widely used in backyard gardener to maintain larger areas. Thus, the segment is expected to show strong growth in the global irrigation machinery market.

Based on Application, the market is segmented into Agriculture, Ornamental and Sports, Industrial. Out of which, Agriculture is expected to dominate the global market over the forecast period and this is attributed to the rise in population further creating demand for high water scarcity and food security in the arable land. This in turn is driving the demand for irrigation machinery in agricultural sector, which in turn is driving growth of this segment.

Ornamental and Sports segment is also expected to witness significant growth in the near future and this is owing to the increasing demand for enhanced sports grounds, growing adoption of irrigation for outdoor and indoor landscapes.

Global Irrigation Machinery Market: Key Developments

In November 2020, Nelson Irrigation Corporation introduced All-Flow Precision Plug Resistant, which helps reduce plugging, and minimizing friction loss, as well as helps increase accuracy. This new product of the company also received the 2020 Agricultural New Product Award from Irrigation Association.

In January 2022, Netafim Limited, announced the partnership between its Netafim USA subsidiary and Bayer for development of the Precise Defense program that will represent a comprehensive solution designed for combating nematodes.

In March 2020, Jain Irrigation Systems Limited introduced the release of Jain Unity, an automatic irrigation system, which increases the efficiency and reduces wastage of water.

In March 2022, T-L Irrigation Co. launched Gooseneck Cradle Corner System Attachment, which can drop of 24 inches in corner connection point. This helps to lower the center of gravity of the corner span and gooseneck cradle corner system attachment option.

Global Irrigation Machinery Market: Key Companies Insights

The global irrigation machinery market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global irrigation machinery market are Finolex Pipes, Nelson Irrigation Corporation, Rivulis Irrigation Inc., Netafim Limited, Rain Bird Corporation, EPC Industries Limited, Lindsay Corporation, Jain Irrigation Systems Limited, Deere & Company, T-l Irrigation Co., Valmont Industries, and The Toro Company.

*Definition: Irrigation Machinery is a type of equipment that uses controlled amounts of water to help grow crops, landscape plants, and lawns. It is a major aspect of agriculture for over 5,000 years and has been developed by many cultures. It is also used for other purposes, such as cooling livestock, reducing dust, and disposing of sewage.