US Micro Irrigation Market, Micro Irrigation Industry - PowerPoint PPT Presentation

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US Micro Irrigation Market, Micro Irrigation Industry

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US Micro Irrigation Market Outlook to 2020 - Growing Water Scarcity and High Efficiency of Drip Irrigation to Stimulate Growth" provides a comprehensive analysis of the sprinkler and drip micro irrigation systems industry in the US. The report covers various aspects such as market size of micro irrigation industry on basis of revenues and land irrigated, segmentation on the basis of sprinkler and drip irrigation systems, crop type, regions and the equipments of both drip and sprinkler irrigation systems and value of exports and imports for micro irrigation equipments. – PowerPoint PPT presentation

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Title: US Micro Irrigation Market, Micro Irrigation Industry


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US Micro Irrigation Market Report 2020 Ken
Research
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  • How is the US Micro Irrigation Market Positioned?
  • Threats related to availability of water in the
    US as a result of drought conditions in several
    states have raised concerns about agricultural
    water use and efficiencies of traditional
    irrigation techniques across the country. The
    need for improved irrigation technologies has
    catalyzed the adoption of micro irrigation
    systems including sprinkler and drip irrigation
    techniques. Moreover, energy usage with micro
    irrigation systems has been found to be lesser by
    200-450 KWh/hectare depending upon the crop along
    with 20-25 reduction in fertilizer and
    pesticides costs. The US is one of largest market
    for micro irrigation systems across the world.
    Sprinkler irrigation systems have been proven to
    be about 70-75 more efficient than gravity
    irrigation techniques in delivery and
    conservation of water. Drip irrigation systems on
    the other hand have been proven to over 95 more
    efficient than traditional flood or gravity
    irrigation techniques.

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  • labor input for construction of furrows,
    operation and maintenance as compared to
    sprinkler or drip irrigation techniques. The
    implementation of micro irrigation system has
    increased irrigation efficiency and reduced the
    cost of production. Farmers have achieved 40-60
    incline in crop yields with the installation of
    micro irrigation systems in the same hectares of
    land. The micro irrigation industry registered
    revenues of USD million in 2010 and witnessed
    healthy growth in the next three years to USD
    million in 2013. US net farm income declined
    drastically by 56 during 2014-2015, majorly
    owing to reduced market prices of crops including
    corn and soybeans. As a result, farmer sentiments
    towards investing in micro irrigation equipments
    declined and the market witnessed a slowdown in
    growth during 2014-2015. The industry recorded
    revenues of USD million in 2015.
  • How the US Micro Irrigation Market has Performed?
  • The overall micro irrigation market in the US
    generated revenues of USD million in 2015 and
    represented a CAGR of during the period,
    2010-2015. Sprinkler irrigation systems accounted
    for generating of the market revenues as
    compared to by drip irrigation systems in
    2015. Utilization of micro irrigation systems in
    field crops generated of the overall revenues
    in 2015. Employment of the systems in orchard
    plantations resulted in generating of the
    market revenues. Plantation and others crops
    including turf grasses, ornamental plants and
    many more accounted for generating and of
    the revenues in 2015 respectively.

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  • California had by far the largest area of land
    irrigated by drip irrigation systems in the
    country. The state accounted for generating of
    the micro irrigation market revenues in 2015.
    Nebraska had the largest irrigated area in the
    country and a vast majority of which employed
    sprinkler irrigation systems. It accounted for
    generating of the market revenues in 2015.
    Sales of micro irrigation systems in Texas, Idaho
    and Kansas comprised for , and of the
    market revenues in 2015 respectively. All other
    states together accounted for generating
    remaining of the revenues in 2015. Center
    pivot sprinkler systems generated bulk of the
    revenues and accounted for generating of the
    market revenues in 2015. Lateral movable
    irrigation systems generated about of the
    revenues in 2015. Traditional sprinkler systems
    and all other sprinkler systems including hand
    move, hose reel and many more comprised and
    market share in terms of revenues. Of the total
    land area irrigated by drip irrigation systems
    currently, only of the land had installed
    subsurface drip irrigation systems as compared to
    for surface drip irrigation systems. Lower
    adoption of subsurface drip systems were
    primarily due to their higher installation costs.
  • Utilization of Micro Irrigation Systems in the US
  • Sprinkler irrigation technology has been widely
    adopted to cultivate field crops in large
    plantation as they have greatly reduced water
    usage per acre of land and lowered labor and
    fertigation costs. It is best suited for most
    field crops that are grown closely together such
    as cereals, pulses and grains. Field crops
    accounted for the largest market share in terms
    of application of micro irrigation systems in
    various crop types in the US.

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  • Drip irrigation systems have witnessed limited
    adoption in large fields and field crops due to
    its higher installation cost and inability to
    efficiently water field crops which are grown in
    very less spacing between individual plants.
    However, the system has been adopted by the
    farmers to irrigate small fields especially in
    farms growing oilseeds such as sunflower, oil
    palm and others. Sprinkler and drip irrigation
    systems have found tremendous traction for high
    value cash crops such as fruits and vegetables
    due to high return on investment per hectare of
    irrigation of such crops. Drip irrigation systems
    were preferred over sprinkler in orchard crops as
    high pressure sprinklers when used on perennial
    tree crops can saturate the trees and lead to
    fruit decay. Sprinkler based irrigation
    considered as a type of medium-high pressure
    irrigation usually operates with pressures
    between 5-60 psi and has water application rates
    of to gallons per hour. They typically create
    a larger wetted area than drip irrigation making
    it more suited for irrigating ground covers,
    large flowerbed and sandy soil. They are far
    easier to see and monitor, eliminating the most
    commonly voiced complaint about drip irrigation
    by the farmers. Sprinkler systems are more suited
    to irrigate large farmlands and have been largely
    adopted for cultivating field and orchard crops.
    Lower installation cost per acre of land of
    lateral movable and central pivot sprinklers
    coupled with lower maintenance have catalyzed the
    growth of sprinklers in the last five years.

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  • Drip irrigation is a type of low pressure
    irrigation and is more efficient method of
    irrigation crops as it eliminates over usage of
    water by delivering the right amount of water at
    the roots of individual plants. Drip systems have
    a higher installation cost per acre of land and
    higher maintenance cost as well. They have very
    high efficiency of greater than 95 over
    traditional flood or gravity irrigation
    techniques as compared to 70-75 for sprinkler
    systems. This aided the adoption of drip
    irrigation system in small farmlands especially
    for cultivating orchard crops.
  • Which Types of Products Performed in the US Micro
    Irrigation market
  • Center pivot sprinkler systems are widely used
    across the United States and held a share of
    around in 2015. A typical center pivot in the
    US is approximately feet long and is designed
    to circle within a quarter-section of land, which
    comprises acres, wherein it irrigates
    approximately to acres. A center pivot or
    lateral move system can also be custom designed
    and can irrigate from 25 to 600 acres. Center
    Pivot sprinklers were installed in over farms
    in the US. Linear move sprinklers are similar to
    center pivot sprinklers but require more labor as
    compared to center pivot sprinklers and are also
    more expensive. In lateral move sprinklers the
    moving towers and pipes are interconnected to the
    towers. The main difference is that all the
    towers move at the same speed and in the same
    direction and irrigate rectangular lands as
    opposed to circular by center pivot.

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  • Traditional sprinkler irrigation comprising of
    fixed solid set and permanent sprinklers are
    convenient irrigation method with fairly high
    water efficiency. However, these type of
    sprinklers account for a small share in the US
    accounting for in 2015 due to due to the
    ongoing trend of automated mobile mechanized
    irrigation systems in the country. Surface drip
    irrigation system delivers water right at the
    roots of the plants through a network of pipes
    above the ground surface. Since water is
    delivered from above the surface, it is subjected
    to evaporation losses. The process is suitable
    for all kinds of orchard and plantations crops,
    irrespective of growing pattern of their roots.
    Moreover, the cost of installation of a surface
    drip irrigation system is cheaper than subsurface
    systems. However, surface drip irrigation systems
    are quite prone to damage from insects and
    rodent. Subsurface drip irrigation delivers water
    and nutrients at low flow rates through a network
    of pipes below the ground surface. As water is
    delivered right at the roots of the plant below
    the soil surface, water is subjected to minimum
    evaporation losses. The system requires extensive
    designing and complex network of tubing and other
    components and is more expensive than surface
    drip irrigation system. The process has been
    proven to have higher efficiency than that of
    surface drip with reduced energy usage. However,
    it is not suitable for cultivating crops with
    aggressive root systems such as asparagus, sweet
    potato and celery. Since most of the pipe
    framework of the system is buried 12-24 inches
    below the surface, the system is less prone to
    damage from rodents and insects as compared to
    surface drip systems.

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  • What Are the Major Issues and Challenges of this
    Industry?
  • Installation of micro irrigation systems requires
    high initial capital cost as compared to
    traditional irrigation methods. High-efficiency
    systems like sprinklers and drip irrigation
    equipments are far more costly than gravity based
    furrow irrigation techniques. Due to high capital
    expenditure, growers of low-value crops restrain
    from investing in rather expensive irrigation
    systems. Another cost consideration for
    agricultural producers when selecting an
    irrigation system is the cost of developing a
    water supply. High-efficiency pressure systems
    are commonly installed in areas where there is a
    heavy reliance on groundwater. Alternatively,
    areas with adequate surface water supplies are
    less likely to adopt efficient irrigation systems
    because low water development costs make gravity
    irrigation economically feasible. In micro
    irrigation systems, clogging of emitters or
    sprinklers have been found to be a major
    challenge. Due to salinity and other impurities
    found in ground water in many regions, the
    conventional dripper and sprinklers gets choked
    due to deposition of salt and impurities over a
    period of time. Clogging increases the cost of
    maintenance as it requires the farmers to replace
    the clogged emitter. Maintenance of micro
    irrigation systems, especially surface and
    subsurface drip irrigation systems is more
    intensive that that of conventional irrigation
    systems. Individual components of the systems
    such as sprinklers, emitters, drippers and other
    equipments are prone to wear and tear due to
    their regular usage. As a result, replacement
    cost is also high, especially in case of drip
    irrigation systems in which drippers/emitters or
    driplines usually have a lower life span.

9
  • How is the Competition Structured in the US Micro
    Irrigation Market?
  • The micro irrigation system in the US is an
    emerging market and is at its growing stages at
    the moment. High efficiency and yielding capacity
    of these systems have allowed micro irrigation
    equipments to gain a lot of traction in the
    country. The industry is quite concentrated with
    a bunch of players comprising for a major bulk of
    the overall market. Lindsay and Valmont together
    accounted for over of the total market in
    terms of revenue, as of 2015. Lindsay emerged as
    the market leader by registering market share of
    in 2015 whereas Valmont accounted for of
    the market share during the same time. Both these
    companies specialize in developing and marketing
    center pivot and lateral moveable sprinkler
    irrigation systems for irrigation medium-large
    areas of farmlands. Netafim, The Toro Company and
    Jain Irrigation registered a market share of ,
    and in 2015. Several other companies
    including T-L Irrigation, Rain Bird Corporation,
    Reinke, EPC Industries, Nelson Irrigation and
    many more together comprised for the remaining
    market share of in 2015.

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  • What Has Been the Major Growth Drivers for the US
    Micro Irrigation Market?
  • Agriculture has been a major user of ground and
    surface water in the US, such that it accounted
    for over of the countrys consumptive water
    use and over in many agriculturally rich
    western states. Between 2008 and 2013, irrigation
    was discontinued on over 470,000 acres of farm
    land due to surface and ground water shortages.
    Growing demand for agricultural water coupled
    with prolonged drought has led to the demand for
    improved and technologically superior micro
    irrigation systems in the US. Micro irrigation
    systems have been proven to be about 70-95 more
    efficient than gravity irrigation techniques in
    delivery and conservation of water. Water
    utilization of States implementing micro
    irrigation systems have been found to be
    considerably lower as compared to those utilizing
    gravity or flood irrigation techniques. Flood or
    gravity irrigation requires a lot of labor input
    for construction of furrows, operation and
    maintenance as compared to sprinkler or drip
    irrigation techniques. Labor is rather expensive
    with average labor rate per hour per farm being
    about USD 11-12 in the US. Micro irrigation
    requires technical expertise and considerably
    lesser labor intensive since irrigation,
    fertigation and chemigation are all done by using
    mechanized equipments and require much lesser
    maintenance. Due to non availability of cheap
    labor in the US, micro irrigation systems have
    gained traction in the recent times.The
    implementation of micro irrigation system has
    increased the irrigation efficiency by enabling
    greater precision for water application. This has
    reduced the cost of production and ensured that
    all areas of a field are more evenly watered.
    Farmers have achieved 40-60 incline

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  • in crop yields with the installation of micro
    irrigation systems in the same hectares of land.
    Micro irrigation has allowed the producers to
    grow higher value crops such as fruits to achieve
    higher profitability and cultivate crops round
    the year. As a result, it has not only reduced
    the cost of applying water but has also prevented
    problems related to overwatering, such as
    increased disease and pest activity, root damage,
    and reduced yields. Moreover, energy usage with
    micro irrigation systems has been found to be
    lesser by KWh/hectare depending upon the crop
    along with - reduction in fertilizer and
    pesticides costs. Declining total area under
    irrigation in the country has also forced
    agricultural growers and government agencies to
    encourage utilization of efficient micro
    irrigation techniques so as to achieve greater
    yield per hectare of land. This has aided in the
    growth of the micro irrigation industry and
    adoption of superior micro irrigation equipments
    in the country. The federal government assisted a
    large number of agriculture producers with better
    irrigation practices including micro irrigation
    by providing them financial assistance, and
    technical assistance.

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  • Which Segment is Expected to Perform Better in
    the US Micro Irrigation Market?
  • Sprinkler irrigation systems have had a dominant
    market share as compared to drip irrigation
    systems in the US and are expected to continue to
    account for a larger market share in the
    forecasted period between 2016 and 2020 as well.
    This is primarily due to the potential of
    sprinkler systems to effectively irrigate large
    farmlands in the country. Drip irrigation systems
    are far more expensive and are ideal for
    installation in small farms due to their higher
    capital cost and maintenance. However, they are
    more efficient irrigation systems utilizing much
    lesser water and fertilizers and also prevent
    weed growth. Owing to the superior efficiency of
    drip irrigation systems, they are expected to
    witness higher adoption as compared to sprinkler
    systems in the forecasted period. Market share of
    drip systems in the micro irrigation market is
    anticipated to incline from in 2015 to in
    2020.

13
  • How is the US Micro Irrigation Market valued in
    the future?
  • The micro irrigation industry in the US grew
    rapidly during 2010-2015 owing to superior
    efficiency of the systems in water usage and crop
    yields, easy implementation of fertigation and
    chemigation, lesser labor requirements and
    minimized fertilizer / nutrient loss. Several
    beneficial attributes of micro irrigation systems
    coupled with water scarcity and drought
    situations in many states are likely to catalyze
    the growth of the micro irrigation industry in
    the near future. The net farm income of the US is
    expected to decline for the third straight year
    by in 2016, with recovery expected in 2017.
    Hence, in the short term farmer sentiments on
    investing in micro irrigation system is
    anticipated to remain low and the industry is
    forecasted to grow at slower pace as compared to
    2010-2015. Nevertheless, net farm income is
    forecasted to witness positive growth post 2017
    and subsequently augment the growth of the micro
    irrigation industry in the long term. The micro
    irrigation market is expected to grow from USD
    million in 2016 to USD million in 2020 at a
    CAGR of between 2015 and 2020.

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  • Source https//www.kenresearch.com/agriculture-
    and-animal-care/farming/us-micro-irrigation-system
    s-market-report/42041-104.html
  •  Contact Ken ResearchAnkur
    Gupta, Head Marketing CommunicationsAnkur_at_kenre
    search.com91-9015378249

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