MENA Drip Irrigation System Market Is Estimated To Witness High Growth
Drip irrigation system, also known as trickle irrigation system, is one of the most efficient irrigation methods for proper water distribution and fertigation. It involves dripping water directly to the root of the plants through a network of valves, pipes, tubing and emitters. This prevents water evaporation and run-off, using only about 30-50% less water compared to surface irrigation methods.
The global MENA drip irrigation system market is estimated to be valued at US$ 508.63 Mn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Due to the growing water scarcity in the MENA region owing to factors like expanding population and increasing industrial and agricultural activities, there is a high market potential for water conservation solutions like drip irrigation systems. Around 60% of available freshwater in the region is used for agricultural purposes. Adoption of drip irrigation system compared to traditional surface irrigation methods can help save over 50% of water usage. This presents a lucrative market opportunity for drip irrigation system providers to tap into the large-scale farmers and agricultural producers in the region looking for sustainable water management solutions. Promoting the benefits of drip irrigation in terms of water conservation and higher crop yield can drive its increased adoption rate over the coming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in the MENA drip irrigation system market due to high capital requirements for setting up an irrigation system manufacturing facility. However, the growing demand and untapped market provides potential opportunities.
Bargaining power of buyers: The bargaining power of buyers is high in the market. Buyers have a variety of system options from different manufacturers to choose from at competitive prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers of raw materials such as pipes, tubes, drippers have established presence but demand for their products are dependent on irrigation system sales.
Threat of new substitutes: The threat of substitutes is moderate as there are limited substitutes available for drip irrigation systems. However, traditional irrigation methods continue to be used especially for horticulture crops.
Competitive rivalry: The competitive rivalry is high among existing players to gain market share and expand their geographic footprint in the region.
SWOT Analysis
Strength: Growing population and government support for water conservation are driving the demand for water-efficient drip irrigation systems. Suppliers offer customized solutions for varied crop and field conditions.
Weakness: High initial installation cost of drip irrigation systems limits adoption, especially among smallholder farmers. Lack of technical know-how remains a challenge.
Opportunity: Potential for drip irrigation in new applications such as landscapes, greenhouses provides growth opportunities. Adoption in water-scarce countries can be increased through financing schemes.
Threats: Fluctuations in raw material prices and supply can impact project costs. Changing climatic conditions pose risks of reducing water availability for agriculture.
Key Takeaways
The MENA Drip Irrigation System Market Growth is expected to witness high over the forecast period supported by adoption in new geographies and applications. The market size for 2023 is estimated at US$ 508.63 million. The global MENA drip irrigation system market is estimated to be valued at US$ 508.63 Mn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030.
Major countries/regions contributing to growth include Saudi Arabia, UAE, Egypt, Turkey, and Iran. Saudi Arabia dominates the MENA drip irrigation system market with a share of over 25% in 2023. The government is undertaking initiatives to diversify the economy away from oil and boost agricultural productivity through efficient water usage. Supply of micro-irrigation systems is expected to increase from 2023 to 2030 to fulfill rising demand from crops such as fruits & vegetables, field crops and for landscapes.
Key players operating in the MENA drip irrigation system market are Hunter Industries, Netafim, Rain Bird Corporation, The Toro Company, EPC Industries and Jain Irrigation Systems. Netafim is a global leader in drip irrigation technology with a strong presence in the Middle East market.
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