Smart Irrigation Market Size By Component (Controllers, Sensors, Water Flow Meters), Application (Agricultural, Non-Agricultural), System (Weather-based Controller, Sensor-based Controller), & Region for 2024-2031

Smart Irrigation Market

Valuation - 2024-2031

The smart irrigation market is experiencing a rise in popularity. It is expected to grow quickly in the future years as precision farming methods gain popularity and water conservation becomes increasingly important in agriculture. Different factors impacting market growth include the advancement of sensor technology, the increased use of lot-based irrigation systems, and government initiatives to promote sustainable agriculture practices. The market size surpass USD 1.16 Billion valued in 2024 to reach a valuation of aroundUSD 3.48 Billion by 2031.

Some of the major factors driving the smart irrigation market share growth include governments' active participation in providing rebates and subsidies to encourage the adoption of smart irrigation technology, raising farmer awareness of the benefits of smart irrigation adoption, and increasing crop yield with minimal waste of water and fertilizer. The rising demand for smart irrigation is enabling the market to grow at aCAGR of 14.74% from 2024 to 2031

Smart Irrigation Market: Definition/ Overview

The smart irrigation system monitors soil conditions, weather, plant water consumption, and the weather. These devices can automatically change watering schedules to guarantee that watering takes place at the appropriate moment. Water management is the most critical factor affecting agricultural expansion. To meet the capital demands of the agricultural sector and ensure that the advantages of expansion reach the bottom of the socioeconomic pyramid, farming must be projected as an investment opportunity for the urban population. The development of irrigation systems based on a wireless network is a solution for both water conservation and irrigation practice enhancement.

This irrigation system enables farmers to reduce drainage from over-watering saturated soils, prevent irrigating at the wrong time of day, and ultimately boost crop output by assuring adequate water delivery when needed. Smart irrigation's goal is to reduce its environmental impact through effective water use while also running a profitable business. This enables them to reinvest in new and cutting-edge technology that assures long-term sustainability and responsible irrigation practices. Smart irrigation employs wireless sensors. The technology also aims to reduce costs and energy consumption throughout the process.

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How Does the Growing Water Scarcity and Need for Water Conservation Propel the Demand for Smart Irrigation?

Water shortage is becoming a serious global concern, prompting the use of smart irrigation systems to maximize water utilization. According to the United Nations World Water Development Report 2023, more than 2 billion people live in countries with significant water stress, while over 4 billion people face acute water scarcity for at least one month each year. This strong need for water conservation is driving the agricultural sector, which accounts for around 70% of worldwide freshwater withdrawals, to implement smart irrigation systems.

The use of IoT in agriculture, particularly irrigation systems, is a major driver of the smart irrigation market. According to the Food and Agriculture Organization (FAO), the global market for IoT in agriculture is predicted to increase from USD 13.7 billion in 2020 to USD22.6 Billion by 2025, at a CAGR of 10.6%. This expansion is largely due to the increased use of precision agriculture technology, such as smart irrigation systems.

Furthermore, many governments throughout the world are establishing regulations and programs to promote the use of water-efficient irrigation technologies. For example, the U.S. Department of Agriculture's Environmental Quality Incentives Program (EQIP) gave $1.8 billion in financial aid to farmers and ranchers in 2020, with a large chunk of that going toward boosting irrigation efficiency. Similarly, the European Union's Common Agricultural Policy (CAP) for 2023-2027 sets aside €387 billion, with a heavy emphasis on sustainable water management and precision agriculture technologies.

Will the Implementation of a Smart Irrigation Market in Fragmented Lands Hamper the Market?

The adoption of smart irrigation systems in fragmented areas provides various problems that impede market expansion. For starters, the additional expense and complexity of implementing these systems in several smaller plots scattered across different geographical areas are prohibitively expensive. With the addition of more sensors, controllers, and extra infrastructure such as extended wiring, the overall cost increases dramatically as compared to systems deployed in larger, consolidated plots.

Managing smart irrigation on dispersed lands presents new logistical challenges. Monitoring and managing irrigation in dispersed plots becomes more labor-hard and time-consuming. Farmers find themselves continuously moving between plots and navigating several interfaces or applications to change watering schedules, increasing the management effort and perhaps discouraging adoption.

The scattered character of the land reduces the return on investment for farmers. While smart irrigation systems provide benefits such as water savings and increased crop yields, these advantages are diminished on smaller plots. As a result, farmers with fragmented acreage are hesitant to use the technology because the prospective rewards are less enticing. This lower perceived return on investment exacerbates the market dynamics for smart irrigation systems in fragmented agricultural landscapes.

Category-Wise Acumens

Will Increasing Sensors Component Drive the Smart Irrigation Market?

The sensor segment is estimated to dominate the smart irrigation market during the forecast period due to its critical role in influencing the industrial landscape. Furthermore, the growing use of sensor-based irrigation systems is driven by their demonstrated effectiveness in conserving water and increasing crop yields. This expanding adoption trend emphasizes the segment's relevance as a key growth driver.

Sensor-based technologies transform irrigation techniques by delivering precise, real-time data on crucial parameters like soil moisture, temperature, rainfall, and humidity. This information enables farmers to make more informed irrigation decisions, reducing water waste and perhaps boosting crop health and yields. Sensor-based irrigation systems help farmers improve operational efficiency and resource use by exploiting data insights.

The growing concerns about water scarcity and agricultural sustainability, sensor-based irrigation systems shine as a light of hope. These systems are consistent with the industry's shift towards conservation and sustainable practices. Sensors help to achieve the main goal of efficiency and sustainability in agricultural operations by allowing for targeted irrigation based on precise data. This connection with larger industry trends strengthens the sensor segment's position as a key driver of growth in the smart irrigation market.

Will the Agriculture Industry Drive Significant Demand for the Smart Irrigation Market?

The agriculture segment is estimated to dominate the market during the forecast period. Currently, this segment commands a sizable market share, demonstrating its established position as a key demand generator. Furthermore, various factors contribute to the agricultural segment's ongoing expansion, including rising worldwide demand for high-quality food, emphasizing the importance of efficient water use in agricultural production.

Government actions to promote water conservation contribute to a favorable environment for the widespread implementation of smart irrigation systems in agriculture. Furthermore, lower prices for sensors and controllers play an important role in increasing access to these technologies, allowing more farmers to use smart irrigation solutions. These converging elements not only maintain agriculture's dominance in the smart irrigation sector but also open the path for future growth and innovation.

Furthermore, the increasing use of smart irrigation technologies in forestry highlights the agriculture sector's enormous growth potential. This expansion into forestry applications represents a greater range of prospects for smart irrigation technology in traditional agricultural activities. As the agricultural sector evolves and adapts to the challenges of contemporary farming, its critical role in moving the smart irrigation market ahead remains undeniable.

Country/Region-wise Acumens

How will Smart Irrigation System Accelerate the Growth in the Asia Pacific Market?

The Asia Pacific region is estimated to dominate the market during the forecast period. The Asia-Pacific region is experiencing a substantial movement toward agricultural modernization, which is encouraging the use of smart irrigation technologies. According to the Food and Agriculture Organization (FAO), the Asia-Pacific region accounts for over 60% of global irrigated agriculture. According to an Asian Development Bank (ADB) report, the regional use of digital technology in agriculture is predicted to expand at a CAGR of 12.2% between 2020 and 2025. This fast upgrading is driving up demand for smart irrigation solutions that improve water efficiency and crop production.

Furthermore, many governments in the Asia Pacific are pursuing laws and initiatives to encourage the use of water-efficient irrigation technologies. For example, India's Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) attempts to increase land under irrigation while also improving water use efficiency. The program has a budget of ₹50,000 crores (roughly USD 6.7 Billion) for 2015-2020. Similarly, China's 13th Five-Year Plan (2016-2020) aims to raise water use efficiency in agriculture by 23% over 2015 levels, boosting investments in smart irrigation technologies.

Will the Adoption of the Smart Irrigation Market Emerge in the North American region?

North America is estimated to exhibit substantial growth within the smart irrigation market during the forecast period. North America, particularly the western United States, is experiencing significant water constraints and drought, prompting the deployment of smart irrigation systems. According to the U.S. Drought Monitor, as of 2021, roughly 40% of the continental United States was experiencing moderate to extreme drought. According to the United States Environmental Protection Agency (EPA), outdoor water use accounts for 30% of home water use on average but can reach 60% in arid regions. This water scarcity is driving both the agricultural and residential sectors to use smart irrigation systems for more efficient water use.

Furthermore, government initiatives and incentives are boosting the smart irrigation market in North America. For example, in 2020, the United States Department of Agriculture's Environmental Quality Incentives Program (EQIP) offered USD 1.8 Billion in financial aid to farmers and ranchers, with a large percentage of that going toward boosting irrigation efficiency. Additionally, many governments provide rebates and incentives for installing smart irrigation systems. For example, California's Save Our Water program provides reimbursements of up to $1,000 for installing weather-based irrigation controls in homes.

Competitive Landscape

The smart irrigation market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations are focusing on innovating their product line to serve the vast population in diverse regions.

Some of the prominent players operating in the smart irrigation market include:

The Toro Company

Netafim

Hunter Industries

Rain Bird Corporation

HydroPoint

Rachio

Banyan Water

Rain Machine

ET Water

Galcon

Weathermatic

Skydop

Blossom

Delta-T

Latest Developments

In February 2022, Netafim USA, a division of Netafim Ltd, launched the AlphaDiscTM, a revolutionary filter developed to protect irrigation systems from organic contaminants.

In August 2021, The United Planters' Association of Southern India (UPASI), Jain Irrigation Systems, and NaanDanJain Irrigation, in collaboration with the Israeli Consulate General in South India, started the Smart loT Irrigation Project in a tea plantation in Ooty, Tamil Nadu. Smart IoT Irrigation, a new method of irrigation developed in Israel, allows farmers to boost crop output while using less water.

In May 2021, The Toro Company (US) purchased Left Hand Robotics, Inc. The acquisition furthers The Toro Company's aim of leading in next-generation technologies such as alternative power, smart linked, and autonomous devices.

In September 2020, Manna Irrigation (Israel) partnered with CHAMSA, a major irrigation systems producer and distributor to create a joint product that will bring pivot irrigation one step closer to autonomy.