The global smart irrigation market was expected to be valued at USD 1304.68 million in 2023 and is anticipated to reach USD 1540.83 million in 2024 from USD 5831.13 million by 2029, growing at a CAGR of 18.1% from 2024 to 2032.
In recent years, several technological innovations have been realised that possess the ability to transform the agriculture industry altogether. Likewise, the smart irrigation market is witnessing rapid growth in the last few years. According to the World Bank, agricultural advancement is among the most powerful instruments to finish severe poverty, increase joint prosperity, and feed an estimated 10 billion individuals by 2050. Simultaneously, considering the ongoing external challenges including the impact of climate change, multiple armed conflicts (in Europe and the Middle East), geopolitical tensions, escalating food inflation and diminishing natural resources, the demand for smart irrigation systems is escalating in today’s world.
Today, companies are using smart and mobile systems such as drones and robots to address the irrigation problem that can also perform the role of monitoring fields, moisture and temperature. The market is also moving forward with the developments in sensor technology specifically for effective irrigation purposes. Moreover, the experts and R&D departments of prominent establishments have already started the use of the Internet of Things (IoT) and cloud-based solutions to develop low-cost and sustainable smart irrigation systems. For instance, in October 2023, it was reported that the researchers from the Global Engineering and Research (GEAR) Lab created an affordable and solar-based irrigation system to improve the approachability of precision agriculture.
The growth of the smart irrigation market is driven by the rising focus on climate-smart agriculture (CSA) and climate-smart irrigation (CSI) technologies. This is gaining traction because of food and nutrition insecurity and climate change. The CSI includes various key components by bringing together traditional irrigation technology and meteorological stations and their sensors. The irrigation consists of complicated interlinked devices and structures to provide an ideal water-salt balance in the upper layer of soil for high crop production. So, the need for more sustainable food production is increasing the demand for smart irrigation systems. For instance, in January 2024, the Food and Agriculture Organization of the United Nations (FAO), the Government of India, the Ministry of Agriculture and Farmers’ Welfare (MoA&FW) and the National Institute for Transforming India (NITI Aayog) in New Delhi (India) together introduced the “Investment Forum for Advancing Climate Resilient agrifood Systems in India”.
The rising concerns about water shortage is another factor propelling the market growth. Agriculture accounts for around 70 per cent of the overall withdrawal of water, making agriculture the biggest user worldwide. To maintain food security a strong agricultural system is required which is dependent on the persistent supply of freshwater. Moreover, the increased water usage in an average-sized plant for poultry dressing which processes more than 250000 birds routinely. As per a 2023 study, these poultry processing plants can consume water from 3.8 to 7.8 million liters daily. Besides this, about 2.4 billion people reside in several water-scarce nations. Therefore, this necessity is fueling the growth of the market.
Challenges in implementing IoT are impeding the expansion of the smart irrigation market. IoT solutions are costly which makes it difficult for farmers to acquire these. Nowadays, it is primarily the big organizations that actually take advantage of utilizing IoT-based systems in agriculture, like solutions that need capital expenditure. So, its difficulty in implementation and expensive nature is one of the major obstacles.
The lack of awareness about the potential benefits and abilities of smart watering or spraying controllers among customers, agricultural professionals and landscapers continues to have a major impact on the market. Educating and training stakeholders regarding the long-term cost advantages, water preservation benefits and ecological advantages of these systems or equipment is vital to overcoming this hurdle.
Additionally, the low level of efficient acceptance and application in small farming communities of Climate-smart irrigation innovative technologies (CSIT) also decreases the growth rate of the market. Apply CSIT is tough because of inadequate communication channels, an absence of financial accessibility, volatile land tenure systems and insufficient training.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2032 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2032 |
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CAGR |
18.1% |
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Segments Covered |
By Irrigation Controller, Hardware and network, Component, Application, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Hunter Industries, Rain Bird Corporation, Netafim, HydroPoint Data Systems, Inc., Rachio Inc., The Toro Company, Calsense, Galcon, Blossom, Green Electronics LLC (RainMachine), and Others. |
Weather-based irrigation controllers (WBICs) have emerged as popular smart controllers, driving the segment’s market share. They are also widely utilized for residential irrigation scheduling. The growth of this segment can be mainly attributed to easy installation. Other key factors are the facility of smartphone control, ease of programming, using local live weather information, stopping function during rain or other bad weather events, flexibility in irrigation schedules and time seasonally, saving water and lowering water billing costs. Apart from the ease of application and advantages at the residential consumer level, these intelligent irrigation controllers can give water usefulness with checks to cushion or change peak watering needs. This cushioning and changing of peak demands can reduce power expenses, lower carbon emissions, and defer expensive infrastructure upgrades. Hence these factors are expanding the segment’s market size.
The water/flow meter segment is expected to account for a notable share of the smart irrigation market. Rising water bills and higher scrutiny or focus of government agencies on water wastage are primarily pushing upwards the market growth rate of the segment. Moreover, the agriculture industry heavily depends on water and its over-usage deteriorates the quality of groundwater and surface sources and hurts freshwater supplies domestically. This is driving the adoption of water/flow meters and boosting the segment’s market size.
The agriculture segment holds the maximum portion of the smart irrigation market share. This dominance can be credited to the rising demand for precision farming practices. It is directly linked to the steady increase in the world’s population, which consequently sharply escalates food production. Moreover, agriculture is one of the significant water-consuming industries, prompting public agencies or organizations to launch projects or form policies to improve crop yield by advancing irrigation systems for cultivators. As a result, it encourages the segment’s market growth. Additionally, various incentives and subsidies by governments are influencing the acceptance of water-sustainable practices. Likewise, several agri-tech companies with the help of such benefits are engaged on the ground level to educate, train and deploy these types of solutions to optimise agricultural bottlenecks. In the coming years, the segment’s market share is expected to increase as the integration of AI intensifies.
North America commands the smart irrigation market and is predicted to capture more share in the coming years. It is experiencing considerable growth propelled by developments in agricultural technology and the rising adoption of intelligent irrigation solutions over several applications. Apart from these, heightening emphasis on saving water and sustainable farming practices are also contributing to the market expansion in the region. Moreover, there is huge potential for the growth of smart irrigation in the United States. Presently, not more than 20 per cent of the country’s cultivated fields are equipped for watering. With weather variability forecasts displaying elevated temperatures, higher drought situations, and changing rain patterns, watering more harvests in the United States will be important to sustaining future productions. In addition, with the growing concern for saving water, government agencies in the region are giving subsidies or incentives to enhance the use of smart irrigation. For example, the California government has granted deductions on intelligent controllers. Further, private companies in North America are also making alliances to provide modern products in the area.
Europe is believed to witness significant growth during the forecast period for the smart irrigation market. The region’s market share is estimated to increase in the coming years owing to the increase in demand for smart irrigation systems for several corn- and wheat-producing countries in the region. The necessity is because of the unfavourable weather (like downward yield prediction for Ukraine corn production for MY 2024-25), reduced cultivation area along with hot and dry climate (e.g. Northern growing areas in Paraguay for corn), decreased harvested area and adverse climatic conditions. However, the region’s progress is derailed by the large administrative processes, ecological restraints, declining incomes, competition from foreign players and elevated production expenditure. This led to the farmer’s revolt which reached its highest point in January and February 2024 and has impacted majority EU member nations.
Asia Pacific is the second-biggest smart irrigation market. This is because of the rapidly expanding application of IoT-based watering activities in India and China and the APAC region is going forward at the fastest rate. Furthermore, the market growth has been considerably boosted by the increase in investments done by APAC countries coupled with the rising use of mobile phones and other gadgets for connecting remotely or checking ground status. In addition, the smart irrigation market In China captured the maximum share, and on the other hand, the Indian market was the quickest-expanding in the Asia-Pacific region. In future, the region’s market size is expected to elevate substantially.
Hunter Industries, Rain Bird Corporation, Netafim, HydroPoint Data Systems, Inc., Rachio Inc., The Toro Company, Calsense, Galcon, Blossom, and Green Electronics LLC (RainMachine). Some of the major market players dominate the global smart irrigation market.
By irrigation Controller
By Hardware and Network Component
By Application
By Region
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