With growing population across the world, requirement of food is constantly escalating. Owing to limited availability of land suitable for farming, it becomes imperative to make the most of each resource. Irrigation is an essential part of farming, and mechanized irrigation system helps in proper application of water to the crop fields, utilizing machineries such as sprinklers, pumps, and drip hoses. As the adoption of new technology escalates across the world, the demand in the global mechanized irrigation systems is expected to expand at a healthy CAGR during the forecast period of next five years.
pivot irrigation and lateral move irrigation systems. Out of these, center pivot systems account for the maximum demand at 60% in 2016 and is expected to remain most profitable throughout the forecast period. This demand is a reflection of the widespread usage of center pivot systems in a variety of field sizes, topographic features, and crop types. Though installation of these systems is costly, the return of investment is quick and profitable, which is also favoring the adoption.
Application-wise, the global market for mechanized irrigation systems is segmented into land application of wastes, agricultural crops, nursery crops, and lawns and gardens.
Asia Pacific is the Most Lucrative Region
India has the maximum irrigated area at approximately 163 million acres, followed by China at about 155 million acres. These two emerging economies collectively made Asia Pacific the most lucrative region in the global mechanized irrigation systems market, not only because of the vast farming land but also due to the lack of penetration of modern technology for farming unlike North America and Europe. Efficient mechanized irrigation systems, such as lateral move and center pivot systems, moving water nozzles, impact sprinklers, and advanced water management processes assure incremented profitability and hence is driving the adoption, especially in areas with limited water supplies. The U.S. dominates the North American market for mechanized irrigation systems with 65 million acres of irrigated areas, and high adoption rate of new technology.
Industry Leading Players
The global mechanized irrigation systems market is fragmented in nature with the presence of several domestic players. The leading players often indulge in acquisitions and agreements in order to increase their geographical reach and consumer base.
High return of investment for the crop producers, limited availability of freshwater resources, reduced labor cost, incremented yield, and government support are some of the factors augmenting the demand in the global mechanized irrigation systems market. Mechanized irrigation systems can also be customized according to the weather, soil type, crop, and field conditions, which is another driving the adoptability.