MENA Drip Irrigation System Market Estimated to Witness High Growth Due to Rising Demand for Water Conservation and Increasing Agriculture Activities
The MENA drip irrigation system market is estimated to be valued at US$ 301.7 Mn in 2024 and exhibit a CAGR of 18.2% over the forecast period 2024-2031. Increasing adoption of water-saving irrigation practices and systems in agriculture to tackle water scarcity issues is driving the demand for drip irrigation systems in the region. Furthermore, the region is witnessing increasing investment in development of agricultural sector which is further fueling the market growth.
Market Dynamics:
Rising demand for water conservation and increasing agriculture activities are two major drivers of MENA drip irrigation system market. Water scarcity is a major issue faced by many countries in the region due to high temperatures and low rainfall. Drip irrigation helps conserve water and utilize it efficiently as it allows slow discharge of water through a network of valves, pipes, tubing, and emitters. This has increased adoption of drip irrigation among farmers. At the same time, countries in MENA are focusing on boosting their agricultural output to enhance food security. They are investing heavily in advancement of irrigation facilities and adoption of modern irrigation practices. This is positively impacting the growth of drip irrigation system market in the region.
Growing Population and Increasing Food Demand Drive Adoption of Drip Irrigation Systems
The population in the Middle East and North Africa region is growing at a steady rate which is putting pressure on the available agricultural land and water resources. With rising population, the demand for food grains and other crops is increasing rapidly. Drip irrigation systems help farmers boost crop yields and farm more crops from the same plot of land through precise and localized water delivery. This allows farmers to meet the rising food demand with available resources. The growing mismatch between population and available agricultural resources is a major factor that is driving increased adoption of drip irrigation systems in the region.
Shortage of Water Resources Propels Shift to More Efficient Irrigation Methods
The MENA region is water scarce with limited freshwater resources. Traditional irrigation methods like flood and sprinkle irrigation are highly inefficient and wasteful of scarce water resources. Drip irrigation delivers water directly to the plant’s root zone through a network of valves, pipes, tubing and emitters. This minimizes water wastage through evaporation and deep percolation. Drip irrigation systems can save up to 70% of water compared to traditional methods. The acute water shortage in the region is a key factor pushing farmers and governments to shift from wasteful irrigation methods to more efficient technologies like drip irrigation. This helps optimize the use of limited water resources for agriculture.
High Capital Investment Requirement Hinders Widespread Adoption
A major restraint for the drip irrigation system market in the MENA region is the high initial capital cost involved in setting up the infrastructure. Drip irrigation requires extensive piping network with multiple dripping points. This hardware along with other components like filters, control valves, pumps etc. results in a sizable investment outlay. The cost per hectare ranges from US$1000 to US$2000 depending on crop type and system design. Such high capital expenditure acts as a barrier, especially for small-scale farmers with limited access to financing. This hampers faster adoption of drip irrigation in the region.
Lack of Technical Know-how Poses Operational Challenges
Another major challenge is the lack of technical know-how and expertise required to operate and maintain drip irrigation systems. Drip systems have to be precisely designed based on soil type, slope, crop water needs etc. Their installation and operation involve skills like water flow calibration, filter cleaning, checking for leaks etc. However, majority of farmers in the MENA region have limited technical exposure and depend on costly consultants. This results in inefficient use of systems leading to lower crop yields. It also discourages wider adoption due to perceived complexity and high maintenance costs. Overcoming this skill and knowledge gap is needed to unlock the full potential of drip irrigation.
Government Subsidies Create Market Opportunities
Most governments in the MENA region have realized the importance of drip irrigation in optimizing agricultural productivity and water usage. Many countries offer attractive subsidy schemes to encourage farmers shift to drip irrigation. Subsidies cover 30-50% of the total project cost and increase affordability. This is a huge opportunity for manufacturers and suppliers as it boosts demand. With subsidized systems, farmers also see higher returns on investment through water savings and yield gains creating a win-win. More such subsidies by governments will drive bigger market size for drip irrigation systems in the coming years.
Export Potential to Other Water Stressed Regions
With experience and advanced expertise developed over the last few decades, the MENA region has emerged as a leader in drip irrigation technologies. Many local manufacturers have the capabilities to export their high-quality and customized solutions. There is huge export potential to other water stressed agricultural regions around the world facing similar problems of growing population and water scarcity. Nations in sub-Saharan Africa, Central Asia, South Asia and Latin America facing the most severe water issues present lucrative export opportunities. Increased trade and technology transfers can open new revenue streams and help manufacturers scale up business outside the domestic MENA markets as well.
Link - https://www.coherentmarketinsights.com/market-insight/mena-drip-irrigation-systems-market-4110
Key Developments:
- In February 2024, Irritec, an Italian pioneer in irrigation solutions and technologies, joined forces with a regional distributor to amplify its market penetration in the Middle East. This strategic alliance is designed to bolster Irritec's foothold in the region, enabling the company to cater more effectively to local agricultural markets with its cutting-edge irrigation offerings. By tapping into the distributor's regional knowledge and established network, Irritec aims to broaden its customer reach and enhance accessibility to its state-of-the-art irrigation systems, further reinforcing its standing in the global irrigation landscape.
- In September 2023, Elgo, a prominent manufacturer of irrigation systems and technologies, introduced an innovative series of pressure compensating drippers specifically designed for uneven terrains. This new product line aims to enhance water efficiency and ensure consistent irrigation across challenging landscapes, addressing the needs of farmers and agricultural enterprises. By launching these advanced drippers, Elgo seeks to strengthen its offerings in the irrigation market and promote sustainable farming practices in various environments.
- In April 2023, The Toro Company, a prominent global provider of innovative outdoor solutions, acquired a technology firm focused on precision irrigation systems. This strategic move is designed to bolster Toro's ability to deliver cutting-edge irrigation technologies, further solidifying its presence in the agricultural market. By incorporating the acquired company's specialized knowledge, Toro aims to enhance water management efficiency and promote sustainable farming methods, underscoring its dedication to innovation and environmental stewardship in irrigation offerings.
- In October 2022, Rain Bird Corporation, a leading global manufacturer of irrigation products and services, collaborated with local governments in North Africa to promote sustainable irrigation practices. This partnership aims to enhance water conservation efforts and boost agricultural productivity in the region through the implementation of advanced irrigation technologies. By working closely with local authorities, Rain Bird intends to support sustainable farming initiatives and tackle the challenges posed by water scarcity in North Africa, reinforcing its commitment to the intelligent use of water.
Key Player:
Netafim Ltd., Jain Irrigation Systems Ltd., Rain Bird Corporation, The Toro Company, Hunter Industries, Elgo Irrigation Ltd., Irritec S.p.A., EPC Industries Ltd., Antelco Pty Ltd., Bowsmith, Inc., RIVULIS Irrigation, Agri-Inject, Inc., NaanDan Jain Irrigation, A.M.A. Horticulture Inc., and S.M. Agri Solutions
