The automated irrigation market is projected to reach approximately USD 9,365.02 million by 2028, at a CAGR of 5.3% from 2021 to 2028.
The automated irrigation market is projected to reach approximately USD 9,365.02 millionby 2028, at a CAGR of 5.3% from 2021 to 2028. Automated irrigation monitors water, weather, and soil conditions with the use of controllers and sensors in order to increase make it more efficient and data-driven. The augmentation of IoT-based architecture in irrigation systems is anticipated to propel the automated irrigation market. IoT-based irrigation systems help farmers to improve crop growth with the use of various controllers and sensors and to avoid the wastage of water resources. The automated irrigation systems also determine the soil moisture level and optimum water utilization for irrigation purposes. Also, the adoption of advanced technologies has enhanced organic farming practices, which is expected to create an opportunistic market for the players.
COVID-19 Impact Analysis
The impact of COVID-19 has directly affected the distribution and sales of different products across industries. Many countries were under lockdown and have sealed their borders to curb the spread of the virus. The impact of COVID-19 on logistics has disrupted the supply of raw materials, which has further reduced production capacity and, thus, product shortages. These factors are expected to cause a price rise inproducts in the short run.
The supply chain of the automated irrigation market comprises manufacturers, distributors, and end users. The COVID-19 pandemic has impacted the agricultural supply chain, as many countries are under lockdown and have sealed their borders to curb the spread of the virus. The COVID-19 outbreak flipped the growth switch in every sector of the economy, and the agricultural supply chain is no exception. As the global economy struggles with the pandemic, its impact on the global trade and supply chain is growing due to the rapid weakening of global investment flows. The reduced demand for commodities and raw materials is creating uncertainty in the transportation industry. Strict containment measures imposed by governments of various countries and preventive measures to control the impact of the outbreak have led to a significant restriction in transportation, driving a knock-on effect globally. This trend is expected to continue owing to the uncertainty in the global market and measures to address the supply/demand imbalance.
The global automated irrigation market has witnessed moderate growth in recent years. In recent years, farmers have shifted from traditional manual irrigation to automated irrigation. The adoption of automated irrigation can eliminate various glitches by using controllers that help analyze and detect the problem with real-time monitoring of irrigation systems, which in turn help the farmers to take corrective actions. According to the MRFR analysis, 35% of the world’s population is suffering from water scarcity as 70% of the water is wasted in the irrigation process in traditional irrigation methods. In this regard, replacing traditional irrigation methods with advanced features of automated irrigation is expected to increase the growth of this market during the assessment period.
Agricultural technologies are changing the way that farmers manage their crops and arebeing adopted at a growing rate. One of the major reasons for the adoption of these technologies is the increasing agricultural yield.
High cost associated with the installation can be a major restraining factor for the growth of automated irrigation market to а сеrtаіnехtеnt. The installation of high-tech irrigation systemsconsumes a lot of money, resulting in a bigger challenge for local farmers.Local farmers are not willing to pay or can afford a big amount for this irrigation system. Owing to this, the growthofthe automated irrigation market is affected negatively. This can be a restraining factor for the overall growth of the automated irrigation market duringthe forecast period.
Collaborations, expansion, partnerships, joint ventures, product innovation, and mergers & acquisitions are the top growth strategies adopted by certain market players active in the automated irrigation market. These strategies have paved the way for market players to expand their business presence and diversify their product portfolio. The global automated irrigation market is expected to emerge lucrative for the players focused on adopting new growth strategies or investing in the existing ones. The expansion hasalso proved to be opportunistic for numerous prominent brands. For instance, The Toro Company acquired German-based RegnerbauCalw GmbH in 2020. RegnerbauCalw GmbH was a manufacturer of professional irrigation equipment.
The increasing demand for organic products across the globe has led small-scale farmers in emerging economies to adopt organic farming practices. Growth is particularly high in emerging economies such as Brazil, India, China, and Argentina, owing to the rising awareness among farmers regarding the hazards of chemical fertilizers. Many market players are investing in organic production in these countries to shift away from conventional farming practices. In Asia-Pacific, there was a large market for organic consumer goods in Japan and South Korea. However, in recent years, there have been significant developments in China and India. The focus of the agricultural sector in these countries is shifting from exports to domestic consumption.
Based oncomponents, the global automated irrigation market has beendivided into controllers, sensors, valves, sprinklers, and others.The controllers segment accounted for the largest market share in 2020 and is projected to grow at a moderate pace during the forecast period. Key players are coming up with several new products to retain the competitive market share at a global level is anticipated to drive the demand.
The larger share of the controller segment is attributable to the growing demand for semi-automatic systems such as time-based and volume-based systems.This has led to increasing demand for controllers in the market. Moreover, controllers provide the required amount of water at the right time according to the desired schedule. Additionally, controllers direct the entire irrigation process, directed by sensors thathelp in fetching real-time data about the soil, weather, and plant, which directly affects the irrigation process.
By type, the global automated irrigation market has been segmented as time-based,volume-based, real-time-based, and computer-based control systems. The time-based segment accounted for the largest market share in 2020 and is projected to grow at a moderate pace during the forecast period. The high adoption of time-based automated irrigation owing to the productivity of the harvest is anticipated to drive the demand.
The larger share of the time-based segment is mainlyowing to the benefits provided by time-based systems such as full less labor cost, control of the irrigation process, and less amount of fuel used, as compared to other systems. The time-based automation system allows the user to intervene, control,and monitor crops regularly at different irrigation stages. Due to this, the time-based system is preferred more for the productivity of the harvest.
Based on application, the global automated irrigation market has been segmented into water resource management, soil management, and groundwater management. The groundwater managementsegment accounted for the lower market share in 2020; however, the segment is projected to grow at the highest growth rate during the forecast period. The growth of this segment can be attributed to the strengthening of groundwater sources by water conservation measures.
By End Use
Based on end use, the global automated irrigation market has been segmented into agricultural and non-agricultural. The non-agricultural segment is expected to grow at a higher growth rate during the forecast period. Non-agriculture end use includes gardens, residential, golf courses, sports grounds, pastures, and turf.
Thefastest market growth of the non-agriculturalsegment is attributed to the increasing number ofsports grounds, golf courses, gardens, pastures, turf, residential,and landscapes across the world. The automatedirrigation systems providetimely watering and the essential amount of water forall thenon-agricultural applications while reducing the water bills. Furthermore, automated irrigation systems in golf courses help the owners and growers in modifying the irrigation based on volume or time and control it remotely.
Global Automated Irrigation Market Share, by Region, 2020 (%)Sources: MRFR Analysis
By region, the global automated irrigation market has been divided into North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.North America accounted for the largest market share in 2020. Europewas the second-largest market in 2020.The market in Asia-Pacific is expected to register the highest CAGR during the forecast period.
North America dominated the global automated irrigation market in 2020 and is also expected to dominate the market during the forecast period. The significant factors for the rising growth of automated irrigation are the presence of key manufacturers coupled with government regulations on strict water footprint.
Asia-Pacific is expected to exhibit a significant growth rate during the forecast period. The consumer inclination towards automation in agriculture is anticipated to boost the demand for the automated irrigation market. Moreover, strong government support and vast agriculturalland arefurther propelling the growth of the automated irrigation market.
The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have reach across the globe with diverse product portfolios. Companies such asThe Toro Company (US),Hunter Industries (US), and Netafim (Israel)dominate the global automated irrigation market due to brand reputation, product differentiation, financial stability, strategic developments, and diversified regional presence. The players are focused on investing in research and development. Furthermore, they adopt strategic growth initiatives, such as expansion, product launches, joint ventures, and partnerships, to strengthen their market position and capture a large customer base.
Prominent players in the global automated irrigation market include The Toro Company (US), Hunter Industries (US), Netafim (Israel), Stevens Water Monitoring Systems Inc. (US), Valmont Industries, Inc. (US), Lindsay Corporation (US), Jain Irrigation Systems Ltd (India), HydroPoint Data Systems, Inc. (US), Nelson Irrigation (US), and Galcon (Israel).
Scope of the Report
Global Automated Irrigation Market, byComponents
Global Automated Irrigation Market, by Type
Global Automated Irrigation Market, by Application
Global Automated Irrigation Market, by End Use
Global Automated Irrigation Market, by Region
|Market Size||USD 9,365.02 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Component, Type, Application, End user, and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World|
|Key Vendors||Toro Company (US), Hunter Industries (US), Netafim (Israel), Stevens Water Monitoring Systems Inc. (US), Valmont Industries, Inc. (US), Lindsay Corporation (US), Jain Irrigation Systems Ltd (India), HydroPoint Data Systems, Inc. (US), Nelson Irrigation (US), and Galcon (Israel)|
|Key Market Opportunities||Adoption of Growth Strategies, Increasing Adoption of Organic Farming Practices in Emerging Economies|
|Key Market Drivers||Adoption of improved agricultural technologies|
The global automated irrigation market is growing at a CAGR of 5.3% over the forecast period.
North America is expected to register the highest CAGR during 2021-2028.
The major contenders in the global market are The Toro Company (US), Hunter Industries (US), Netafim (Israel), Stevens Water Monitoring Systems Inc. (US), Valmont Industries, Inc. (US), Lindsay Corporation (US), Jain Irrigation Systems Ltd (India), HydroPoint Data Systems, Inc. (US), Nelson Irrigation (US), and Galcon (Israel).
Automated irrigation industry is estimated to reach a valuation of approx. USD 9,365.02 million by the end of 2028.