Characterized
with the presence of a large pool of players, the global micro
irrigation systems market is marked with intense competition and high
fragmentation, reveals Transparency Market Research (TMR) in a new
report. Despite this, Netafim Ltd., The Toro Company, and Jain
Irrigations Systems Ltd. held majority share of the market in 2014 on
account of their broad product portfolio. Strong R&D capabilities
and technological expertise are expected to present higher growth
opportunities for these companies in the future thereby paving way to
surge ahead in the competition.
In
this intensely competitive market, product innovation and integration
of novel technologies in existing products is the focus of companies
which they are attaining by means of strategic alliances and
acquisitions. For instance, in August 2014, Netafim Ltd. announced a
strategic alliance with T-L Irrigation Company for the development of
a precision mobile drip irrigation system.
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Development
of cost effective and efficient micro irrigation systems is also on
the growth chart of companies in the micro irrigation systems market.
According
to the TMR report, the global micro irrigation systems market is
projected to clock a CAGR of 15.3% between 2017 and 2023, for the
market to be worth US$9140.6 mn by 2023-end. The demand in the market
translated into opportunities worth US$3886.3 mn in 2017. Sprinkler
irrigation, among key product types, holds prominence in the micro
irrigation systems market; the growth of this segment is attributed
to its extensive use in landscaping and agriculture. In particular,
sprinkler irrigation is viable in regions with low water availability
that require highly efficient mechanized irrigation systems.
Application-wise, large private and corporate farming segment holds
the leading share vis-à-vis revenue in the global micro irrigation
systems market. Large private and corporate farming segment is
anticipated to hold 52.4% of the overall market by 2023.
global
micro irrigation sysrems market
Government
Subsidies for Sustainable Irrigation Methods Boosts Uptake in Asia
Pacific
Government
encouragement for adoption of micro irrigation systems is a key
factor behind the growth of micro
irrigation systems market. The declining level of ground
water has necessitated an urgent resolution for the problem such as
adoption of micro irrigation. Micro irrigation is viable as it helps
save 50-60% water than what is used in flow irrigation and other
traditional methods of irrigation. Due to this, several governments
are encouraging the use of micro irrigation and offering subsidy on
the installation cost of micro irrigation systems. Several
governments such as those of India, Norway, and Switzerland are also
providing subsidies for micro irrigation systems. For example, in
India, the state government of Tamil Nadu has announced 100% subsidy
for small farmers adopting micro irrigation and 75% subsidy for other
farmers.
Secondly,
rising water scarcity especially in agrarian economies of Asia
Pacific and Africa is necessitating sustainable water irrigation
systems. Increasing atmospheric temperatures and bout of droughts in
recent years have resulted in declining surface and ground water
necessitating alternative methods for irrigation of agricultural
crop. Adoption of micro irrigation systems not only helps conserve
water but also helps optimize overall water consumption for
irrigation of large areas.
Lastly,
need to increase crop yield to feed the growing population in Asia
Pacific and Africa necessitates sustainable irrigation solutions.
Drip irrigation helps crop mature earlier than traditional irrigation
methods.
High
Initial Capital Restrains Growth
However,
high initial capital involved for micro irrigation systems makes them
less suitable for low-value crops, considering that returns on
investment may be low. High cost of micro irrigation systems makes
them unaffordable by small and marginal farmers, and make them
suitable for cost-intensive agriculture.
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