Irrigation machinery includes sprinkler systems, drip irrigation systems and other related equipment that are used to supply water to farmland and agricultural crops. Irrigation systems aid in the efficient application of water directly to plant roots ensuring high crop yields while conserving water. These systems play an important role in agriculture providing reliable irrigation practices. Water scarcity and growing food demand have made irrigation equipment indispensable in agricultural production.
The global irrigation machinery market is estimated to be valued at US$ 8.11 Mn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Water efficient technologies such as drip irrigation and precision irrigation help optimize water usage and reduce wastage. They deliver water directly to plant roots with minimal losses due to evaporation or runoff. This is crucial to ensure food security amid water constraints. With agriculture accounting for over 70% of freshwater withdrawals globally, efficient irrigation equipment can play a significant role in water conservation. The development and uptake of advanced water saving irrigation technologies will be crucial to address the dual challenge of rising food demand and limited water resources, presenting lucrative opportunities for irrigation machinery providers.
Threat of new entrants: Low capital requirements and availability of substitute technology poses moderate threat. However, established brands, distribution channels and economies of scale enjoyed by incumbents pose barriers.
Bargaining power of buyers: Fragmented buyers with varied irrigation needs exert moderate pressure on pricing and product development. Switching costs are relatively low.
Bargaining power of suppliers: Supply of raw materials like plastic, steel is commoditized. However, specialized components require long-term relationships. Suppliers wield limited bargaining power.
Threat of new substitutes: Alternate irrigation technologies like drip systems, plastic piping pose threats. Buyers consider total cost of ownership over lifespan.
Competitive rivalry: Intense competition amongst key global players to gain market share. Players differentiate through product innovation, partnerships and brand promotions.
Strengths: Strong brand presence, distribution networks and access to financing for some major players. Product innovation tailored to farming needs.
Weaknesses: Seasonal demand subjects operations to volatility. High fixed costs from infrastructure necessitates economies of scale.
Opportunities: Expand in emerging organic, contract and hydroponic farming segments. Tap opportunities in land consolidation, custom hiring of equipment.
Threats: Climate change impacts monsoon pattern impacting demand. Energy costs influence switch to other technologies.
The Global Irrigation Machinery Market Size is expected to witness high growth aided by expanding cultivated area, investments in automation and water scarcity. The Asia Pacific region currently dominates owing to major agriculturally focused economies of China and India. Government initiatives to promote precision irrigation and subsidies on machinery purchases support development.
Regional analysis indicates South Asia and Middle East & Africa to emerge as fastest growing regional markets due to efforts to boost productivity on limited cultivable land through sustainable irrigation. Lack of public distribution networks spurs private investments in these regions.
Key players operating in the irrigation machinery market are Finolex Pipes, Nelson Irrigation Corporation, Rivulis Irrigation Inc., Netafim Limited, Rain Bird Corporation, EPC Industries Limited, Lindsay Corporation, Jain Irrigation Systems Limited, Deere & Company, T-l Irrigation Co., Valmont Industries, and The Toro Company. These prominent manufacturers focus on acquisitions and tie-ups to consolidate leadership with new technologies and expansion into high growth markets.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it