Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Drip irrigation is a type of micro-irrigation system, which has the potential to save water and nutrients by allowing water to drip slowly to the roots of plants. The primary objective of a drip irrigation system is to save water directly into the root zone and minimize evaporation. Drip irrigation systems offer higher water use efficiency and minimal human intervention for water application purposes.
The MENA Drip Irrigation Systems Market was accounted for US$ 267.0 Mn in terms of value in 2019 and is expected to grow at CAGR of 18.3% for the period 2020-2027.
Market Dynamics- Drivers
- High water efficiency over other irrigation techniques is expected to drive growth of the MENA drip irrigation systems market during the forecast period
Drip irrigation is the most efficient irrigation technique for applications such as gardens and agriculture. As a matter of fact, a drip irrigation system offers water use efficiency of over 80% as compared to sprinkler irrigation systems, which offer the efficiency of 50-60%. In high-temperature regions, over 40% of total water sprayed via sprinkler irrigation gets evaporated before reaching the ground. On the contrary, drip irrigation is designed to apply water to plants at close range through drippers fixed in the tubing. This, in turn, reduces the evaporation of water to the environment. Hence, these factors are expected to drive growth of the MENA drip irrigation systems market during the forecast period.
- Increasing need for growing agricultural yield with minimal water wastage is expected to propel the MENA drip irrigation systems market growth over the forecast period
Middle East and North Africa (MENA) are among the regions with the highest food imports. These regions contain a large population, creating greater demand for food products. On average, imported goods account for more than 50% of the total food consumption in the region. Governments of these countries are increasingly focused on increasing their domestic food production, owing to high inflation in the price of food products. For instance, in August 2013, the government of Algeria launched a program for agricultural development. Since drip irrigation is among the most efficient irrigation techniques, it becomes the most suitable form of irrigation for high agricultural productivity, especially in arid regions. Therefore, these factors are expected to propel the MENA drip irrigation systems market growth over the forecast period.
North America held dominant position in the MENA Drip Irrigation Systems market in 2019, accounting for 72.1% share in terms of value, followed by Europe and Asia Pacific respectively
Figure 1: MENA Drip Irrigation Systems Market Share (%) in terms of Value, By Region, 2019
MENA Drip Irrigation Systems Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 Pandemic have adversely affected economies of many countries around the globe. According to the International Monetary fund data published in 2020, the global economy is expected to shrink down by 3% percent in the year 2020 compared to year 2019. Due to the reduction in the size of global economy the spending or purchasing power of people also decreases. Owing to the reduced purchasing power, people are less likely to spend on the agriculture equipment such as Drip Irrigation Systems during year 2020-2021. According to CMI study in 2020, the demand for the Drip Irrigation Systems is expected to reduce in upcoming years.
Market Dynamics- Restraints
- High cost drip irrigation systems are expected to restrain growth of the MENA drip irrigation systems market during the forecast period
Drip irrigation system is significantly expensive and requires large initial investment as compared to other irrigation systems. The installation cost of drip irrigation systems is much higher than sprinkler systems. Furthermore, the purchasing cost of drip irrigation systems is beyond the capacity of small and marginal farmers, hence inhibiting market growth among this demographic. Hence, these factors are expected to restrain growth of the MENA drip irrigation systems market during the forecast period.
- High maintenance cost is expected to hinder the MENA drip irrigation systems market growth over the forecast period
Apart from the initial investment, the maintenance cost required for drip irrigation is significantly high. The majority of the components used in drip irrigation systems, such as valves, tubing, and backflow preventers, are made from plastic for cost-effectiveness. However, direct sunlight causes damage to these plastic components, thus reducing their life span and leading to additional expenditures for their replacement. Hence, these factors are expected to hinder the MENA drip irrigation systems market growth in the near future.
MENA Drip Irrigation Systems Market Report Coverage
||Market Size in 2019:
||USD 267.0 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 1,029.2 Mn
- North Africa
- Middle East: UAE, Saudi Arabia, Qatar, Kuwait, Israel, Turkey and Iran
- By Component -(Emitters (Round Drippers (Pressure Compensating Drippers and Non-pressure Compensating Drippers), Flat Drippers), Tubing (Round Tubing, Flat Tubing and Plain Tubing), Backflow Preventers, Valves, Filters, Pressure Regulators and Fittings)
- By Application -(Agriculture, Gardens (Public and Residential) and Others (Nurseries and Greenhouses))
Elgo Irrigation Ltd., Netafim Ltd., Eurodrip SA, Jain Irrigation Systems Ltd., Hunter Industries, Inc., The Toro Company, and Rain Bird Corporation.
- High water efficiency over other irrigation techniques
- Increasing need for growing agricultural yield with minimal water wastage
|Restraints & Challenges:
- High cost drip irrigation systems
- Growing penetration in emerging economies can present lucrative growth opportunities in the MENA drip irrigation systems market
The penetration of the drip irrigation systems market is high in countries such as Turkey, Egypt, and Israel. Drip irrigation systems in these countries are primarily used for agriculture and greenhouse production. However, the drip irrigation systems market is expected to find immense opportunities in the Gulf Cooperation Council (GCC) countries such as Qatar, UAE, and others for public and residential gardens. In addition, with growing efforts for agricultural development in Morocco, Saudi Arabia, and Qatar, drip irrigation systems are expected to witness substantial demand in the near future.
- Increasing adoption of precision agriculture can provide key business opportunities in the MENA drip irrigation systems market
Precision agriculture refers to an approach of farm management that uses information technology (IT), in order to ensure that soil and crops receive exact nutrients for optimum health and productivity. The primary objective of precision agriculture is to ensure profitability, sustainability, and protection of the environment. Drip irrigation system plays a crucial role in precision agriculture since it provides the exact amount of water to the roots of plants without wastage. Many countries have started encouraging precision agriculture, in order to enhance product yield and improve profitability.
Figure 2: MENA Drip Irrigation Systems Market Value (US$ Mn), 2017 - 2027
The MENA Drip Irrigation Systems market was valued at US$ 267.0 Mn in 2019 and is forecast to reach a value of US$ 1,029.2 Mn by 2027 at a CAGR of 18.3% between 2020 and 2027.
- Growing adoption in MENA countries
Drip irrigation systems are most commonly found in countries such as Israel, Turkey, Iran, Morocco, and Egypt. The adoption of subsurface drip irrigation systems is on the rise in these countries, owing to growing advancements in the drip irrigation technique. For instance, Netafim Ltd., an Israel based micro irrigation systems manufacturer, is among the few companies engaged in the development of subsurface drip irrigation systems. Subsurface drip irrigation systems are designed to apply water to plants through buried tubing. This further increases the water efficiency of drip irrigation systems thereby increasing overall productivity. With rising agricultural sector in countries such as Morocco, Israel, Turkey, and others, the demand for subsurface drip irrigation systems is predicted to rise significantly during the forecast period.
- Automation of drip irrigation is another key trend
Another major trend in the MENA region is the automation of drip irrigation systems. Most of the countries in the MENA region focus on minimizing water wastage by enhancing the control over water supply thereby applying the correct quantity of water in required time intervals. Automatic drip irrigation systems are equipped with sensors, timers, and other control features that notify the user regarding soil moisture and other details. These advantages of automated drip irrigation systems are expected to boost the demand for these systems in the MENA region in the near future.
Key players operating in the MENA drip irrigation systems market are Elgo Irrigation Ltd., Netafim Ltd., Eurodrip SA, Jain Irrigation Systems Ltd., Hunter Industries, Inc., The Toro Company, and Rain Bird Corporation.