In a result of water depletion across the globe, micro irrigation system market is estimated to exceed US$ 12 billion by 2024; a study conducted by Market Study Report has has said.
Rising concern for depleting water resources will drive micro irrigation system market. As per United Nations report, water availability is projected to decrease in various regions with global agriculture water consumption estimated to increase by over 19% by 2050.
Growing environmental awareness and increase in income levels, along with shift in customer’s focus for eco-friendly products in developing economies is anticipated to drive micro irrigation system demand. Unpredictable precipitation in rainfall dependent nations has further supported the industry growth as this is forcing farmers to install the product for reducing seeds and crops wastage.
Enhanced support from governments for the waste water treatment particularly in India and China has incentivised the industry. For instance, Indian government launched Pradhan Mantri Krishi Sinchayee Yojna (PMKSY) in July 2015, for enhancing the effective water usage and management, creating and strengthening water distribution network.
Increasing demand for agricultural products is excepted to propel micro irrigation system market. As per the study, food industry is likely to reach at US$ 3 trillion by 2020, growing at the rate of over 4% from 2015 to 2020.
However, the high cost associated with maintenance and installation of these system may restrain the industry growth during forecast time frame. In addition, lack of proficiency in managing these systems may prove to be a significant hindrance to the micro irrigation system market growth.
Sprinkler will be valued over US$ 7.5 billion in 2024. Elimination of water conveyance channels, evenly distribution of water, and enhanced crop yields are the factors supporting the product demand. Further, suitability of product for various topographies, high irrigation efficiency and ease in operation are expected to propel this segment’s growth. However, a lot of water is wasted due to spray droplets evaporation as they fly through air which may hamper the industry demand.
Orchard crops and vineyards will grow over 12% up to 2024. Lower labour requirement and efficient control over nutrients and water has boosted the products’ demand in this segment. Effective application of water to tree lines of orchard compared to other irrigation methods including, flood & furrow and conventional sprinkler has further fueled the industry growth.
Farmers end-use segment will witness gains over 10% up to 2024. Participation of the government regulatory body due to environmental concerns coupled with reduction in water and fertilisers usage is projected to drive this segment’s growth. Increase in the number of subsidies provided by government to the farmers will support product scope.
The micro irrigation system market in Asia Pacific, led by China, India and Japan was worth around US$ 1.6 billion in 2016. Increase in adoption of the product for conserving water and reduction in labour cost in the agriculture-eccentric economies of the region is anticipated to augment the industry growth over forecast period.
North America micro irrigation system market is likely to reach US$ 3.5 billion by 2024. Growing awareness among the farmers about benefits of using the product has resulted in increased industry demand. Countries including the United States, Mexico and Canada are prominent users of the product for achieving better quality and higher yield crops for export markets which has driven the regional growth.
Changing lifestyle, improved technological innovation and increasing disposable income will favour this segment’s growth. Reduction in arable land due to industrialisation, soil erosion and deforestation along with water scarcity are key drivers of the industry.
Global micro irrigation system market is fragmented due to presence of few industry players. Some of the key players are EPC Industries, Jain Irrigation, Rain Bird Corporation, Netafim, Valmont Industries, Lindsay, Toro Company, Bhumi Polymers.