Revenue Forecast

The estimated revenue for the base year 2023 is $13,992.5 million with a CAGR of 12.2% for the study period from 2023 to 2030.

The Impact of the Top 3 Strategic Imperatives on the Irrigation Systems Industry

Disruptive Technologies

Why:

• Several developed technologies aid in decision making and simplify activities by providing complex and detailed data and information that escape the eye.
• Robotics and automation devices can reduce the need for human labor and control, delegating these tasks according to the data gathered by novel sensors, cameras, and satellites.
• Intelligent assistants and decision-support software combine these new technologies to provide reliability and ease of mind across different industries.

Frost Perspective:

• Agriculture and irrigation have traditionally relied on human intervention and control to keep track of crop health and growth. Imagery and sensor solutions that employ artificial intelligence (AI) and machine learning (ML) can provide a more efficient alternative, considering infinitely more variables.
• Automating irrigation according to plant needs and weather conditions (assessed through these new tools) reduces water use and waste by avoiding evaporotranspiration, overflows, and unnecessary watering.

Competitive Intensity

Why:

• The irrigation market remains highly concentrated, with the top companies amassing over half of the overall revenue because of their long-standing positions and wide product offerings.
• While traditional segments, which include micro and mechanical irrigation and pumps, appear to be driven by a logic of cost effectiveness, reliability, and credibility, the smart irrigation segment presents considerable opportunities for growth among newer companies, especially those venturing into novel technologies.

Frost Perspective:

• The smart irrigation segment is becoming increasingly competitive because customers appear to value innovative solutions with promising results over traditional offerings, even if the latter are more reliable.
• Start-ups with innovative solutions can easily displace market leaders by positioning into some of the key issues that farmers are facing, such as costs and water waste.

Transformative Mega Trends

Why:

• Sustainability concerns have transformed the market’s hierarchy of priorities, superseding profitability and cost advantages.
• Technologies that can avoid water waste will likely experience the most growth in the coming years because of a combination of concerns over the impact of water scarcity and over cost reduction.
• The undergoing transformation of the energy market is affecting the development of new technologies that aim to reduce the reliance on fossil fuels.

Frost Perspective:

• Farmers have transformed sustainability concerns into a market demand, compelling companies to introduce and promote climate-friendly irrigation systems.
• With the many countries that are under high levels of water stress having great potential for wind or solar energy generation, irrigation powered by renewables will likely become an important growth opportunity for the market.
• Growing demand for biofuels will urge farmers to maximize yield and crop health.

Scope of Analysis

Segmentation by Technology

• Pumps are employed to both transport water from the source up to the location of the field and to raise the pressure head for adequate use. The pumped water flows through channels composing the system and can be used on crops through pipes and other devices. Some of the different types of irrigation pumps are centrifugal, submersible, deep-well turbine, and propeller pumps.
• Micro irrigation delivers reduced and controlled quantities of water directly to the plant’s roots, either above or below the surface, depending on the technique used. This type of irrigation is the most efficient in terms of water use and comprises sprinkler systems, drip irrigation (both surface and subsurface), and micro-sprinklers.
• Mechanical irrigation is characterized by using structures that move around a field in varying patterns, irrigating different sections at a time with sprinkler devices that are connected to the machine. This solution usually demands a high initial investment and has high energy consumption but can prove to be economically viable for large-scale operations under controlled weather conditions.
• Novel advances in technology have allowed for the incorporation of sensors, controllers, drones, satellites, and cloud-based platforms into traditional irrigation techniques. These solutions gather data and information on weather, soil, and plant health conditions to monitor, adapt, and automate irrigation, thus avoiding under- and over-irrigation and water waste.

Competitive Environment