Market Challenges And Opportunities

Global Irrigation Machinery Market Drivers:

Lucrative subsidies and policies from government of countries to drive the market growth

Government organizations of several countries around the world are increasingly promoting irrigation systems in as they encourage farmers to use advanced irrigation technologies and by offering several subsidies or benefits to farmers. For instance, in 2017, many water user associations (WUAs) in Spain received 40% subsidy from the Alimentació i Aigua and Conselleria d’Agricultura, Pesca, for installing drip irrigation systems. Similarly, in the U.S. government is offering water conservation subsidies for drip irrigation. Due to such favorable government subsidies and policies, the demand for drip irrigation systems is increasing, which in turn is driving growth of the global irrigation machinery market during the forecast period.

Increasing technological innovations in irrigation machinery to fuel the market pace

Farmers in several developed countries are making use of advanced irrigation technologies for reducing water wastage. Due to this several major market players are offering drip irrigation systems with advanced features, such as drip irrigation systems that can be implanted in pipes for simplifying the process of installation, while it also creates sustainable production in agriculture. The Agilo Research Pvt. Ltd. in India is planning to introduce a wireless drip irrigation systems. Such innovations by market players are likely to augment growth of the global irrigation machinery market during the forecast period.

Global Irrigation Machinery Market Opportunities:

Increasing support from government is expected to bring multiple growth opportunities in the global irrigation machinery market during the forecast period. Several government organizations around the world are promoting irrigation machinery to provide help to farmers in order for them to adopt developed irrigation technologies through providing different subsidies or benefits to farmers. Owing to such lucrative government policies having low-interest loans and subsidies for use of advanced and new irrigation systems, market vendors are likely to witness several opportunities.

Rising concerns regarding water scarcity to generate business opportunities in the global irrigation machinery market during the forecast period. The water scarcity concerns are increasing rapidly all over the world. Water scarcity is a major factor driving growth of irrigation machinery market across several countries. Performing irrigation through machines has become one of the newest advancement in the agricultural industry. Thus, irrigation equipment are increasingly being preferred by several farmers to increase the yield per hectare, productivity, and to cut down water consumption. This in turn is likely to create potential opportunities in the global irrigation machinery market during the forecast period.

Global Irrigation Machinery Market Restraints:

High initial cost associated with use of irrigation machinery to restrain growth of the market

Sprinkler and drip irrigation systems are known to be technically complex procedures. The cost of installation for these irrigation systems is high, which further impacts adoption of such systems in emerging countries. In such countries, small-scale farmers are highly reluctant for adopting irrigation systems, owing to the high cost of investment required initially. Thus, adoption of rate for drip irrigation systems is impacted by lack of capital for purchasing and installing the equipment. This factor in turn is expected to hinder growth of the global irrigation machinery market during the forecast period. However, major market players are focusing on development of cost effective equipment with higher efficiency, which is likely to drive the market growth in the near future.

High cost associated of maintenance to hinder the market pace

The use of irrigation machinery involves high initial capital investment and along with it the cost of maintenance for these machineries is also high. These machines require constant inspection and maintenance for irrigation systems. This factor in turn acts as a major constrain in the irrigation machinery market. Moreover, the additional cost of drip-tape disposal, leak repairs and high-quality water also add into the cost of maintenance. Thus, this factor in turn impacts adoption of these systems, which in turn is likely to hinder growth of the global irrigation machinery market during the forecast period.