Drip Irrigation Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Drip Irrigation Market is segmented By Component (Pipes & Tubes Network, Filters, Valves, Emitters, Pressure Pumps and Others), By Type (Surface, Sub-Surface), By Crop Type (Fruits & Vegetables, Cereals & Pulses, Ornamental Plants,Turf Grass & Others), and By Application (Agricultural, Non-Agricultural), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Overview

Global Drip Irrigation Market is expected to grow at a CAGR of 15.5% during the forecast period 2024-2031

Drip irrigation is a micro-irrigation technique that involves adequate water supply directly to the roots of the plants at regular intervals to minimize evaporation and save water. Effective practice of drip irrigation systems ensures superior water utilization rate, enhances productivity and improves the overall economic viability of farming.

Market Scope

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Market Dynamics

The potential benefits of the drip irrigation method in increasing water efficiency and the capability of irrigating more land with minimal water resources are the primary factor for the growth of the global drip irrigation market. The population of the world is expected to be 8.6 billion in 2030 and 9.8 billion in 2050 which will raise the food demand to the World cereal equivalent (CE) of around 10,094 million tons in 2030 and 14,886 million tons in 2050. The growing demand for food and depletion of arable land and other natural resources is forcing farming communities to produce the most out of limited resources. Water is the most critical resource of any agricultural practice. The declining groundwater levels globally have been surging the need for the preservation of available water sources, thus forcing for the optimization of irrigation methods. According to Researchers from the University of California - Santa Barbara, US, 20% of all the groundwater wells in the world are at risk of going dry if groundwater levels decline by only a few meters. Drip irrigation evolved as an effective solution for minimizing the utilization of water without lowering the quality or quantity of produce. These factors are also motivating the governments towards the promotion of drip irrigation in farming applications.

Several state and federal governments are providing financial assistance to farmers for the procurement of drip irrigation systems. In India, there is a provision to provide a 90 percent subsidy under drip irrigation and a 75 percent subsidy under the sprinkler to all categories of farmers by providing additional top-up by the state government. The rising precision farming and sustainable agriculture practices are also supporting market growth. Large-scale farmers in developed economies of the U.S. and Europe region are also focusing on micro-irrigation methods to increase their productivity.

However, the environmental impact of drip waste residues is the major restraint for the market. Clean-up of drip pipes and tubes, which are made up of plastic, is a complex, labor-intensive process and incurs additional costs to the farmers. Also, Sun heat affects the tubes, sometimes they get broken for excessive heat production and plastic degrades sometimes due to heat which may affect the soil quality.

Covid-19 Impact on Market

While global trade came to halt during the lockdowns imposed to control the spread of novel coronavirus, the food and agriculture industry has been impacted by severe freight challenges. The sales declined in the food industry, particularly in food service and HoReCa. Most of the food categories witnessed a decline in sales volume due to a lack of demand and supply chain disruptions. Agriculture is the largest market segment for drip irrigation systems, which had a huge negative impact on the market. The decline in the agriculture industry meant the initial investments, required for the drip irrigation systems, were not possible to be met, which resulted in the lack of sales in the markets severely affected by the pandemic, like the USA, India, and China, which also happens to be dominant markets for the drip irrigation system. However, urbanization, a decrease in groundwater levels, and growing food demand across the globe will inevitably drive the market once the pandemic comes to an end.

Market Segmentation Analysis

The global drip irrigation market has been segmented by application into agricultural and non-agricultural installations. Agriculture is by far the largest segment holding about 85% of the global market. Drip irrigation is widely used in field crops, horticulture, ornamental, and greenhouse farms across the globe. Countries such as Israel, China, and the Netherlands are significantly using drip irrigation methods in the production of food crops and commercial crops. In Tong Liao, China, the area covered by drip irrigation systems reached 667,000 hectares in 2020, which is 70 percent of the city's total farmland area.

By Type, Drip irrigation is segmented into surface and subsurface irrigation. Surface irrigation leads the market owing to the lower costs and easy installation process. Surface irrigation is also less susceptible to clogging of pipes and is also easier to repair than subsurface irrigation. However, subsurface irrigation is more efficient and could be used in many types of land from desert sands to heavy clays.

Market Geographical Share

By geography, the Asia Pacific region evolved as the largest market for drip irrigation systems owing to the large-scale adoption of this technique in countries such as India and China. These countries are considered the world’s top two spots in terms of area under micro-irrigation. The large potential for the installation of micro-irrigation systems in India is likely to provide growth opportunities in this region. According to Fifth Minor Irrigation Census, the groundwater level in India declined by 61% between 2007 and 2017. Urbanization in the developing country is also decreasing the arable land in the country, which raises the need for efficient micro-irrigation techniques. The active role of the Indian government in giving subsidies is also expected to increase the drip irrigation market in the country in the forecast period.

Drip Irrigation Market Companies

The global drip irrigation market is consolidated with the top 6 companies holding nearly 60% of the global dollar sales in 2020. Netafim (owned by Orbia), Jain Irrigation Systems Ltd., Chinadrip Irrigation Equipment Co. Ltd., Metzer Group, Rivulis Irrigation Ltd., and Lindsay Corporation are the leading companies globally. The large potential for micro-irrigation in developing countries is posing significant opportunities for these global leaders. Most of these companies are focusing on the development of data-driven platforms for the effective management of water.

• On July 7, 2020, Lindsay Corporation announced the acquisition of Net Irrigate, LLC, a North American agriculture Internet of Things technology company that provides remote monitoring solutions for irrigation customers. Net Irrigate will join Lindsay's FieldNET brand of remote irrigation monitoring and control solutions.

Netafim (owned by Orbia):

Netafim is the world's largest irrigation company and the global leader in precision irrigation solutions. With 33 subsidiaries and 17 manufacturing plants worldwide, Netafim delivers irrigation and fertigation in over 110 countries.

Product Portfolio of Netafim:

• Drippers
• Dripper lines
• Sprinklers
• micro-emitters
• crop management technologies
• Agriculture Services

Key Developments

• In 2017, Orbia, a global leader in specialty products and innovative solutions acquired 80% of Netafim, Kibbutz Hatzerim holds the remaining 20%.
• On 8th Match, 2021, Netafim, an Orbia company, announced that it has signed a definitive agreement to acquire Dutch Greenhouse Company Gakon Horticultural Projects to Meet the Growing Demand for Local Food Production in All Climates
• On 6th June 2021, Netafim Launched AlphaDisc Filter Designed for Sustainable Irrigation. This new filter is designed to protect irrigation systems against clogging caused by organic contaminants and enable growers to irrigate crops more uniformly, leading to better productivity and cost savings.

Other key players in the drip irrigation market include The Toro Company, Elgo Irrigation Ltd., Shanghai Huawei Water Saving Irrigation Corp., Hunters Industries Incorporated, Grupo Chamartín Chamsa, and DIG Corporation.

Why Purchase the Report?

• Visualize the composition of the global drip irrigation market across each indication, in terms of type, component, and application, highlighting the key commercial assets and major players.
• Identify commercial opportunities in the global drip irrigation market by analyzing trends and co-development deals.
• Excel data sheet with thousands of data points of the global drip irrigation market-level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in Excel for the key products of all major market players

Target Audience:

• Irrigation System Manufacturers
• Farming Communities
• Environment & Natural Resource Conservation Bodies
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals