|Status : Published||Published On : Mar, 2021||Report Code : VRFB11012||Industry : Food & Beverage||Available Format :||Page : 110|
The Global Drip Irrigation market is anticipated to reach 11.3 billion USD by 2027, up from an expected 6.5 billion USD in 2020 at 10.8% CAGR for the said period. This growth of the Drip Irrigation market can be said, would be a result of factors such as water conservation activities, decreased production cost, government initiative and enhancement of production. Due to wide agricultural sector driven by exports adopting drip irrigation facilities and regional demand, markets like India and China are among the dominant markets targeted by manufacturers and distributers of drip irrigation.
Impact of COVID-19 on the Drip Irrigation Market:
The coronaviruses, COVID-19, pandemic has had a notable global impact, because of which many industries are facing heavy consequences. This pandemic continues to have far-reaching and complex impacts all over the water-energy-ecosystem-food nexus. The irrigation sector, being an enabler for hundreds and millions of agricultural jobs across the rural areas, allows the world’s most critical production systems, the livelihoods of the majority of worldwide poor and is also responsible for moving to sustainable water saving practices. The Drip irrigation companies all around the world have carried on to function despite the challenging circumstances. Nevertheless, there have been numerous shocks impacting the service delivery, like lack of availability of labour, fiscal constraints, and interruption of supply chains because of travel restrictions.
Drip irrigation is the most potent method to get higher yield using minimum amount of water. The main aim is to enable poor and small-scale farmers to utilize efficiently marginal quantities of water and to cultivate home gardens and other land for the production of food needed for the family and some trade. Many types of field trials and research projects were implemented to give answers to key questions on the suitability and profitability of these techniques on a sustainable commercial basis for nearly millions of poor farmers across the globe. In the drip irrigation method, water is supplied to each plant separately in precise, small, and frequent quantity through the dripper emitters.
1. Based on Crop Type: The largest Drip Irrigation market share in the forecasted period to be held by the field crops segment.
Based on the Crop Type, the Drip Irrigation market is segmented into-
a. Field Crops
b. Fruits & Nuts
c. Vegetables Crop
d. Other Crops (turf, ornamental and spice crops)
The demand for field crops is very likely to top Drip Irrigation market share between the years 2020 and 2025. The Drip irrigation technology has been gaining importance among the field crop growers for its accurate application to the crops, and hence, is offering greater benefits like lesser fertilizer and water requirements, reduced costs and higher profit margins. Drip irrigation provenly profitable for orchard crops, growing vegetables, and lawns & turf; but, in the past 10years, its usage in field crops like cotton, corn, and sugarcane, has also been profitable. The increasing prices of field crops have also fuelled the market growth.
2. Based on Application: Increasing demand and high costs for the cash crops in export and regional Drip Irrigation markets factor in the growth of surface drip irrigation systems.
Based on application, the Drip Irrigation market is segmented into-
As per application, the Drip Irrigation market is segmented into sub-surface and surface systems. A well-designed irrigation tool is capable of boosting the agricultural production and hence, the reassures economic vitality of farmers. Operational agronomical methods are very essential components of any irrigation system. The Surface drip irrigation equipment is largely used to irrigate annual row crops, perennial crops (trees and vines) and vegetable crops. The Surface equipment uses water, which is poured over the soil by equipment’s’ like drip tubes or laterals.
3. Based on Emitter Type: Higher efficiency and ease of installation are the major prospects for the inline emitters in the drip irrigation market for the forecasted period.
Based on Emitter Type, the Drip Irrigation market is segmented into-
The drip irrigation market is segmented according to the mode of emitter type, i.e., inline and online emitters. The inline emitters are mostly present with equal spacing within the laterals. They may be cylindrical, attached to the inner wall of the lateral, or flat boat-shaped. The Inline emitters are normally used for field crops or row crops like chilli, onion, turmeric, potato, cotton, vegetables, and sugarcane. Also, they are prepared from low-density, superior-quality and linear polyethylene material. It helps provide maximum resistance against clogging. These emitters are suitable for both sub-surface irrigation and surface irrigation.
4. Based on Component:
Based on component, the Drip Irrigation market is segmented into-
b. Pressure Pumps
c. Drip Tubes/Drip Lines
f. Fittings & Accessories
With the highest CARG of 8.9%, the emitter segment is rapidly growing in the drip irrigation market in the forecast period. The emitters discharge’s water at a pre-determined pace and avoids clogging. The end users of in-line emitters save greatly on labour as emitters are pre-installed.
TRENDS IN DRIP IRRIGATION MARKET
1. Rapid Growth in green house vegetable production:
Drip irrigation is an essential for the control of soil moisture, typically in specialized greenhouse vegetables. The full automation of drip irrigation systems gives a meticulous and simple method for controlling the soil moisture by determined water application. Elimination of human errors, adjustment of soil moisture levels and effectiveness of time management, are some of the key factors augmenting the demand for drip irrigation systems. Also, profits generated per yield for these systems are expected to increase.
2. Water scarcity:
Decreasing water reserves and rising population leads to the need for water conservation playing a key role in drip irrigation market. Increasing concern regarding water becoming a very threatened commodity, the farmers and other stakeholders in the agricultural sector have been switching to drip irrigation technology for enhancing their productivity from limited amount of water available.
3. Increasing demand for food production:
With rapid increase in population, there is a raising shortage of not only water but also food. To curb this issue, it requires more land for the cultivation and more production. But because of increasing population, the cultivation land is reducing. This has increased the need for advance agriculture.
4. Application in Non-Agriculture sector
The acceptance of drip irrigation systems is driven by various government subsidies and programs:
Most developing countries like India and China are among the major countries adopting the drip irrigation systems, and the key factor is the support from public-private partnerships and government agencies, through their prominent industry participants. The Government programs like “India’s Pradhan Mantri Krishi Sinchayee Yojana” (PMKSY) looks to extend micro-irrigation’s coverage in the country through their subsidies on kits and systems to improve acceptance among farmers. State-sponsored projects are another factor that continues to drive the growth of drip irrigation systems in developing countries.
The increase in adoption of sustainable practices and precision agriculture
The Commercial horticulturalists are consistently trying to use the resources to maximize the profits. Of these sustainable agriculture and precision farming play a major role. Taking into account the rising production cost, now farmers are trying to utilize drip irrigation to maximize crop productivity and irrigation efficiency. Also, there is an up-coming trend for an increasing production greenhouse vegetable. An increase in expense under protected farming systems is expected to affect the drip irrigation market. The use of drip irrigation procedures reduces minimizes groundwater table depletion and environmental degradation. As the rate of water usage is gallons per hour instead of gallons per minute, that also reduces runoff and evaporation, it is considered highly sustainable. Regulatory reforms, agricultural policy and growing awareness for sustainably produced foods drives the growth of the drip irrigation market.
High initial cost of large-scale drip irrigation systems
The cost of the initial investment is very high, making the use of drip irrigations systems largely uneconomical for any low-value crops. The cost for drip irrigation equipment greatly varies as per region, crop type, water conditions, soil, fertigation, and filtration equipment. This type of irrigation is contemplated to be feasible for cash crops and horticultural crops like grapes, tomatoes, onions and sugarcane, as per on their high economic value. The requirement for large quantities of filtration & piping equipment makes Drip irrigation very expensive.
Bio clogging and soil salinity hazards in drip irrigation systems
Drip irrigation systems are usually limited by the high saline content present in water, that poses a threat to the crops being grown there. This excessive salt content is one of the key concerns with the water used for irrigation purposes. Presence of a high salt concentration in the soil and water negatively affects the crop yields, pollute groundwater and degrade the land. There is no foliar accumulation of salts is caused by the use of drip irrigation systems; but the salt does accumulate near the region of the wetted area. when the placement of emitter does not coincide with the plant row location, then this salt accumulation is a major cause for concern, especially for the crops that are sensitive towards soil salinity.
Based on Geography, the Drip Irrigation market is segmented into-
a. North America – US, Canada
b. Europe – Germany, UK, France, Italy, Spain, Rest of Europe
c. Asia Pacific (APAC) – India, Japan, China, Rest of APAC
d. Rest of the World
The APAC’s drip irrigation market is expected to be the largest during 2021-2027 and is estimated to grow with the highest CAGR. In 2020, APAC was the biggest consumer of drip irrigation market. This region is marking a significant shift from the installation of the basic irrigation facilities to the adaptation of the precision irrigation systems by upgrading technologically. The main focus of agriculture has moved to more commercial crops from traditional crops. Because of these changes, the irrigation facilities are expected to upgrade and modernize their irrigation management and also preferably their infrastructure. As commercial crops are very sensitive to the amount of water supplied and the time taken for water delivery, the drip irrigation has already become an essential aspect.
In the drip irrigation market, the key players are adopting a strategy involving new product launches, collaborations & agreements and acquisitions to significantly improve their market position and also extend their competitive advantage dramatically.
The key manufacturers are:
• Jain Irrigation Systems Ltd. (India)
• The Toro Company (US)
• Lindsay Corporation (US)
• Netafim Limited (Israel)
• Chinadrip Irrigation Equipment Co. Ltd. (China)
• Rain Bird Corporation (US)
• Elgo Irrigation Ltd. (Israel)
• Antelco Pty Ltd. (Australia)
• Shanghai Huawei Water Saving Irrigation Corp. (China)
• EPC Industries (India)
• KSNM Drip (India)
• Microjet Irrigation (South Africa)
• Sistema Azud (Italy)
• Grupo Chamartin Chamsa (Italy)
• Metzer Group (Israel)
• Dripworks Inc. (US)
Other companies include Golden Key Middle East (UAE), Alkhorayef Group (Saudi Arabia), Irritec S.P.A (Italy), Metro Irrigation (India), Raindrip (US), Agrodrip S.A (Greece), and Irrigation Direct Canada (Canada)
• In June 2020, Lindsay Corporation has declared the acquisition of Net Irrigate, LLC (US). It is an agriculture IoT technology company which provides irrigation customers with remote monitoring solutions. This acquisition would help in enhancing the company’s irrigation technology offerings.
• In May 2020, The Toro Company had launched a clog-resistant drip tape called Toro Aqua-Traxx Azul drip tape. This drip tape provides optimized flow passages which pass through debris and a filter inlet design, to help maximize product performance and clog resistance.
• In May 2019, The Metzer Group has launched new ring connectors for its drip tapes. These new ring connectors come in four different variants and are perfect for use in thin-walled pipes.
• In February 2019, by opening a new factory in Leon, Rivulis had expanded its business in Mexico. Its factory is expected to go on to become the largest drip irrigation factory in the Americas and also start manufacturing operations.
• In March 2019, Rain Bird Corporation had announced the launch of its new sprinkler, the LG3HE In-Ground Sprinkler with the Click-n-Go Hose Connect. Rain Bird Corporation is a provider and manufacturer of irrigation services and products. The aim of the product was to ease installation of a sprinkler system for the homeowners.
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from the industry experts. The key profiles approached within the industry includes, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads and Others. Also, end user surveys comprising of consumers are also conducted to understand consumer behavior.
Source: VynZ Research
Source: VynZ Research