Mechanized Irrigation Systems Market

Market Overview

The global mechanized irrigation systems market size was valued at USD 15.23 billion in 2022. It is projected to reach USD 56.58 billion by 2031, growing at a CAGR of 15.7% during the forecast period (2023-2031).

Mechanized irrigation is a system of applying water to crops and fields where mechanical aids are primarily used, such as pumps, sprinklers, spray nozzles, pressure regulators, or other mechanical means. Decreasing surface and groundwater levels and soil fertility are expected to accelerate the use of mechanized irrigation systems. Farmers are progressively using it and others owing to its benefits, such as reducing the wastage of water and appreciating the convenience and the reduction in the labor force required for watering purposes. Increasing adoption of modern agriculture practices to produce food grains on a larger scale by utilizing minimum water with respect to conserving water and focusing on meeting future food grain demand is projected to witness considerable growth in the mechanized irrigation system. For instance, according to The United Nations Food and Agriculture Organization, global food production will double by 2050, and 70% of the world's additional food needs can be produced only by adopting modern agriculture, which includes the use of hybrid seeds, technologically advanced equipment, mechanized irrigation system, and others.

Market Dynamics

Global Mechanized Irrigation Systems Market Drivers

Rising Scarcity of Water for Agriculture

The scarcity of water has a significant impact on food production. Without water, people cannot water their crops and thus provide food for the rapidly increasing population. According to the International Water Management Institute, agriculture, which holds roughly 70% of global water withdrawals, constantly competes for a limited water supply for domestic, industrial, and environmental uses. Many people have tried to develop more effective water management methods to solve this ever-growing problem. Irrigation management is one such method. Irrigation is a technique of transporting water to crops to maximize crop yield. Farmers are using modern irrigation techniques such as sprinkler and drip irrigation to make the best use of local water resources, helping the industry grow.

Increasing Demand for Organic Agricultural Products

During the COVID-19 pandemic, consumers perceived organic foods to be healthier and better for their immunity. However, overall, the demand for organic food is increasing at a steady rate. Following the COVID-19 pandemic, there was a paradigm shift in India, with consumers beginning to buy more organic foods as a preventive health measure. This shift in perception will likely fuel future growth in the organic food market. Indeed, there has been an increase in the organic food and beverage market worldwide, particularly for fruits and vegetables. Furthermore, the constantly growing health-conscious population has increased demand for organic agricultural produce, pushing farmers to use mechanized irrigation methods to maximize agricultural yield.

Global Mechanized Irrigation Systems Market Restraint

High Investment Involved with Mechanized Irrigation Systems 

The high cost of installing, operating, and maintaining micro irrigation systems continues to inhibit mechanized irrigation market expansion. Only crops with the highest return on investment are considered for mechanized irrigation implementation. Small-scale farmers rely on the natural source of water and manual mode of irrigation for farming due to their small area of land that gives lower yield. Farmers with non-profitable crops will find it difficult to implement the mechanized irrigation system, and the majority of farmers in India work in a small area of land, due to which they cannot install mechanized irrigation system because of its high cost. Thus, this can result in a hurdle for the growth of the mechanized irrigation systems market. 

Global Mechanized Irrigation Systems Market Opportunities

Government Initiatives Worldwide 

Governments worldwide are providing subsidies, training farmers, and promoting irrigation systems for efficient farming and saving water for future generations. Canals have traditionally been one of the most important irrigation mediums in India. The disadvantage of canals is that water evaporates en route, preventing adequate water supply to crops and increasing farmers' reliance on rain. However, things have begun to change with the government's intervention in the current situation. The government is now looking for solutions to reduce water loss due to evaporation while ensuring that water is used optimally for agriculture. Drip irrigation increases water use efficiency (WUE) by over 85%. So, in addition to the central government, states such as Karnataka, Maharashtra, Haryana, Orissa, Gujarat, Telangana, AP, and MP have begun efforts to improve WUE. In this regard, using micro-irrigation techniques in the command area has been found to improve WUE. Drip irrigation doubles crop yield while also improving crop quality. The uniform water distribution to every inch of the field increases yield while decreasing labor costs.

Regional Analysis

The global Mechanized Irrigation Systems market share is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant shareholder in the global mechanized irrigation systems market and is expected to grow at a healthy CAGR during the forecast period. The larger share is due to climatic changes, drought, and water shortages. Water conservation potential was assessed in a heavily agricultural Texas region where center pivot and drip irrigation are utilized by 60% and 5% of irrigators, respectively. They discovered that a one-time subsidy covering 80% of the upgrade costs would make the transition from center pivot to drip irrigation profitable. Water-efficient irrigation technology has begun to spread throughout the United States. For example, 39% of farms in California had already begun to use drip irrigation, which is highly water-efficient.

Asia Pacific is anticipated to hold a significant share of the global mechanized irrigation systems market owing to government programs and the growing adoption of drip and sprinkler irrigation by small and large-scale farmers. For instance, in the report of Global Water Forum, Due to droughts in the years 2012, 2015, and 2016 impelled Indian government promoted the irrigation method. It launched Prime Minister's Agriculture Irrigation Programme. Furthermore, the think tank of India, i.e., NITI Aayog, has drafted a concept of seeking private participation in managing and boosting the reach of micro irrigation across the country, which augments the mechanized irrigation framework in the region. The sprinkler irrigation system has achieved remarkable water saving and yield increase results in China. Simultaneously, the continuous advancement of sprinkler irrigation technology has yielded significant benefits in the precision control of water and fertilizer, as well as promoting the modernization and industrialization of China's agriculture.

Europe is projected to gain significant traction in the global mechanized irrigation systems market in further years, owing to the growing maintenance cost of sports pitches and the increasing trend of maintaining lawn areas for school and college playgrounds. For instance, the European Seed Association said the artificial turf in pitches heated to 47°C to 69°C, where irrigation is extensively used to maintain temperature. Furthermore, Europe has around 1,234 stadiums, due to which the use of mechanized irrigation techniques has gained significant demand in the region. Strong promotion of water management practices is expected to boost the market's growth over the forecast period.

LAMEA is likely to witness moderate growth in the mechanized irrigation systems market. According to a study conducted in the tropical Xingu Basin of Mato Grosso, Brazil, agricultural water usage is expected to climb because the government of Brazil announced and aimed to double crop yields by 2030. Therefore, mechanized irrigation systems will get installed in the coming years. 

Segmental Analysis

The global mechanized irrigation systems market share is segmented by product type and crop type.

Based on product type, the global market is bifurcated into drip irrigation systems, central pivot, lateral move and sprinkler irrigation systems.

The drip irrigation system is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period due to its higher water use efficiency and its low cost of installation. Drip irrigation uses water more efficiently, allowing water to be applied only where it is needed. Harvesting and tilling can also occur during drip irrigation events because it does not wet the foliage, which contributes to disease, and it can take place at any time with minimal evaporation when plants require the most water. The increasing adoption of sustainable irrigation systems is contributing to the growth of the drip irrigation segment. 

The Centre pivot irrigation system segment is likely to gain significant popularity the farmers due to its cost-effectiveness and other advantages such as a high degree of uniformity of water applied, and it can be used at a lower pressure which helps in conserving energy and in addition, it is related to almost all crops.

Based on crop type, the global market is bifurcated into cereals and grains, fruits and vegetables, pulses and oilseeds, and others.

The fruits and vegetable segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. The increased adoption of drip irrigation and its benefits for fruit and vegetable farming contribute to the market's growth. Drip irrigation has repeatedly proven to be a better water application method for many fruit and vegetable crops. The demand for organic fruits and vegetables has also been initiated using mechanized irrigation systems, as they are rich in vitamins, minerals, fibers, and other nutrients. 

The pulses and oilseeds segment is expected to grow at a significant CAGR throughout the forecast period due to the increasing demand for pulses and oilseeds worldwide for edible and healthcare purposes. Sprinkler and drip irrigation systems are widely used to meet the growing demand for pulses and oilseeds and increase farm yield.

Based on application, the global market is bifurcated into agricultural crops, wastelands, lawns & gardens, nursery crops, and others.

The agricultural crops segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. Developing countries dependent on agriculture are looking for ways to increase their production to meet demand and earn profits by exporting surplus crops. The government initiatives in countries like India to promote mechanized irrigation system for agricultural crops has contributed heavily to the segment's growth. 

Lawns & Gardens majorly use mechanized irrigation systems, which allows them to save time and water. Additionally, they don't need to maintain a separate labor force for watering purposes. For instance, according to the information given by Foodbank- a non-profit organization, In the United States, 15 organizations have planned to create edible landscapes on lawns, schools, and gardens, and it is assumed to demand 34 billion liters of water per day due to which the implementation of mechanized irrigation systems will result in saving water.

Recent Developments

• October 2022, Reinke manufacturing company, Inc. is expanding its business by partnering with CropX Technologies for enhancing crop data management with AI.

• March 2022, Lindsay and Blyncsy have announced a partnership to improve its RoadConnect platform with AI and machine learning.