April 15, 2024
Irrigation Machinery Market

Irrigation Machinery Market is Estimated to Witness High Growth Owing to Advanced Irrigation Technologies

The irrigation machinery market comprises machinery and equipment used for application of water to agricultural crops and landscape vegetation for enhancing agricultural productivity. Irrigation systems aid in increasing crop yield and quality by supplying a supplemental supply of water during periods of inadequate rainfall. Center pivot systems, lateral move systems, and solid set systems are among the widely used mechanized irrigation systems across the world. The irrigation machinery market is estimated to be valued at US$ 9.35 Bn in 2024 and is expected to exhibit a CAGR of 16.% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the irrigation machinery are TomTom International BV, Zonar Systems Inc., Harman International Industries Inc., Bridgestone Europe NV/SA, Trackunit A/S, ORBCOMM Inc., Omnitracs LLC, Topcon Corporation, Navman Wireless, Wacker Neuson SE, and MiX Telematics Limited, Stoneridge, Inc., Trackunit. The irrigation machinery market offers significant opportunities for manufacturers owing to the growing need for sustainable farming practices globally. Technological advancements such as precision irrigation technologies, moisture sensors, and automatic motor controls have boosted productivity and farming efficiency.

Market drivers

Rising global food demand driven by rapid urbanization and growing population is a major factor driving the irrigation machinery market. According to the United Nations, the world population is expected to reach nearly 10 billion by 2050 putting pressure on the agricultural sector to increase food production. Adoption of advanced irrigation systems allows maximizing crop yields from existing farmland. Water scarcity in many parts of the world is another factor augmenting the demand for irrigation machinery systems that optimize water usage. Precision irrigation technologies deliver the right amount of water uniformly across fields improving farming efficiency.

Current Challenges in Global irrigation machinery market size:

The irrigation machinery market is facing several challenges currently. Supply chain disruptions caused by the ongoing Covid-19 pandemic have created delays and shortages for key components and raw materials. Rising costs of labor and raw materials such as steel and polymers due to inflation are squeezing manufacturer margins. The market also faces challenges from increasing concerns about water scarcity and shortage in many agricultural regions globally. More efficient irrigation solutions are required to optimize water usage. Dependence on fossil fuels for powering equipment is another issue being addressed through new solar and electric powered irrigation system models. Overall, high initial investment costs remain a barrier to irrigation machinery adoption in developing agricultural economies.

SWOT Analysis

Strength: Robust demand from the agriculture sector driven by the need to boost productivity and cope with water scarcity issues. Established global players with strong distribution and service networks.

Weakness: High initial capital costs of irrigation systems pose affordability challenges. Dependence on imported components increases supply chain risks.

Opportunity: Advancements in solar powered irrigation technologies provide an opportunity to reduce operating costs through renewable energy use. Government initiatives and subsidies in countries to promote precision irrigation adoption present an attractive market.

Threats: Rising raw material and component costs due to inflationary pressures squeeze margins. Trade barriers and regional price disparities affect the competitive landscape.

Geographical Regions

The North American region currently accounts for the largest share of the global irrigation machinery market in terms of value due to extensive cultivable land and developed agricultural practices in countries such as the US and Canada. However, the Asia Pacific region excluding Japan is emerging as the fastest growing regional market driven by the rapid expansion of mechanized and scientific farming in nations such as China and India to boost agricultural yields.

The Middle East and Africa region is also witnessing significant growth in irrigation equipment demand to combat chronic water shortages faced by farmers through efficient water management technologies and solutions. Countries experiencing rapid urbanization and industrialization like Saudi Arabia, UAE, South Africa are majorly contributing to regional market revenues.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it