Global precision irrigation market rises on governments subsidies, tech adoption, study
15-11-2019 06:46:28 | by: Bob Koigi | hits: 2672 | Tags:

The global precision irrigation systems market is estimated to register a CAGR of 12.8 per cent between 2019-2024 according to a study by Research and Markets.

Owing to favorable government policies regarding low-interest loans and subsidies for the implementation of modern and advanced precision irrigation systems, the precision irrigation market is likely to increase at a fast pace in developing markets such as South America and Asia-Pacific in the coming years. Increasing awareness and high adaptability of new technologies in Asia-pacific are driving the growth of the market in that region. Hence, the market is developing at a high rate.

Automatic drip irrigation is essential for controlling soil moisture, especially in the case of specialized greenhouse vegetables. Total automation of drip irrigation systems provides a simple, meticulous method for controlling soil moisture and applying water. Effective time management, elimination of human errors, in terms of estimation, and adjustment of available soil moisture levels are some of the factors augmenting the demand for automatic drip irrigation systems.

Furthermore, these systems are expected to increase profits generated per yield. Water is a scarce resource in various European countries, like the United Kingdom and Germany, which is a primary issue faced by several greenhouse vegetable farmers. Thus, precision irrigation systems are gaining immense popularity in these regions, particularly in South East European countries, primarily to increase the production of greenhouse vegetables. Furthermore, these systems improve crop productivity and minimize the use of fertilizers and water, along with the risk of pathogen attacks.

In the United States, Canada, Japan, the Middle East, and European countries, soilless culture is primarily used for the production of greenhouse vegetables. As greenhouse vegetables require ample amounts of water, farmers are switching to both sprinkler and drip irrigation systems, in order to achieve higher crop productivity. Thus, increasing production of greenhouse vegetables is expected to augment the growth of the market studied.

There is a significant need to enhance agriculture production, in order to sustain the rapidly increasing global population. Production of greenhouse vegetables is the primary means of achieving it. Considering all the aforementioned factors, the demand for drip irrigation and sprinkler irrigation systems is expected to increase significantly in the near future.

Apart from Europe and Asia-Pacific, North America is the key region for precision irrigation systems. The United States dominates the North American market with more than half of the market share. It was estimated that more than 30% of agriculture growth in the United States will come from the adoption of precision irrigation systems by farmers. Lindsay Corporation, Valmont Industries, Nelson Irrigation Corporation are some of the major players in the precision irrigation systems market based in the United States.

The major factors driving the market in the United States are large scale farmlands, need to increase the productivity of agriculture, and high labor costs. The agriculture sector in Mexico has many smallholder subsistence farmers. As farmers face innumerable challenges due to the unorganized, segregating farming methodology, there is a need for precision irrigation system practices in Mexico.

Farmers in Canada are highly skilled and are willing to embrace new technologies. Thus, high growth rates are expected to be seen in the region. Therefore, the agricultural practices in Canada are known for their high productivity and for being modern. The key factors driving the market in Canada are cost savings achieved through optimum usage of water and labor. It is estimated that around 10%-50% of the costs can be saved by the use of precision irrigation. The other factors driving the market are the overall increase in yield and quality of the crops.

The global precision irrigation systems market is estimated to be is slightly consolidated, with major companies accounting for about 60.4% of the market share. The increase in the sales of precision irrigation systems can be primarily attributed to constant exchange rates, along with a significant increase in volume.

However, the growth was offset by changes in various subsidy disbursal mechanisms, especially in developing countries. Establishment of a strong distribution network is a prime strategy followed by well-established market players. Moreover, some of the companies signed definitive dealership agreements with a wide range of dealers, in order to enhance accessibility.

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