Fertigation and Chemigation Market - A Global and Regional Analysis: Focus on Application, Product, and Country-Wise Analysis - Analysis and Forecast, 2022-2027
Global Fertigation and Chemigation Market Industry Overview
The global fertigation and chemigation market size was estimated to be at $11,599.0 million in 2021, which is expected to grow with a CAGR of 8.45% and reach $18,968.6 million by 2027. The growth in the global fertigation and chemigation market is expected to be driven by factors such as high nutrient uptake and increased yield.
Market Lifecycle Stage
Fertigation, which involves applying fertilizer with irrigation water, allows the application of small amounts of fertilizer at a time, creating flexibility in the frequency of fertigation. On the other hand, chemigation is a more controlled and regulated process compared to fertigation due to the nature of chemicals such as fungicides, pesticides, insecticides, etc., used in it.
Fertigation technique increases the crop yield with reduced fertilizer usage. Fertigation includes putting fertilizer in the moist soil area (where roots grow) and applying fertilizer frequently in small doses, resulting in increased fertilizer efficiency and reduced leaching, resulting in better tree growth, higher yield, and excellent fruit quality with less fertilizer use.
Fertigation helps to reduce the fertilizer cost with reduced fertilizer use. It also helps tackle soil erosion by using minimal water compared to traditional irrigation practices. It prevents fertilizer leakage due to excessive water supply or heavy rainfall.
Impact of COVID-19
The fertigation industry was severely affected by the COVID-19 pandemic. Raw material supply was hampered due to the COVID-19 pandemic in 2020. Many major economies were shut down during the pandemic, and many factories were closed, including those producing PVC pipes, filters, and drip lines. Closing factories led to an increase in product prices as a result of a decrease in supply in the market. A rise in irrigation and fertigation equipment prices negatively impacted growers' profitability, which halted the upgrade of irrigation infrastructure. Despite this severe pandemic shock, economies, and the fertigation and chemigation industry have begun to recover.
Segmentation 1: by Crop
The global fertigation and chemigation market (by crop) is anticipated to be driven by vegetables as fertigation and chemigation solution penetration for vegetables is very high compared to the food grains and other crops. Furthermore, growing vegetable production across the globe is projected to drive the fertigation and chemigation solutions demand for vegetables over the forecast period.
Segmentation 2: by End Use
Horticulture was estimated to be the largest end-use segment in 2021 with a market share of around 60% and is projected to remain the largest end-use over the forecast period in the global fertigation and chemigation market. This can be attributed to the high use of fertigation and chemigation for vegetables and fruits as it reduces fertilizer and labor costs. Moreover, monetary returns in horticulture are higher compared to the food grains as horticulture growers can afford to install the fertigation and chemigation system.
Segmentation 3: by Technique
The drip dominates the global fertigation and chemigation market (by technique) and is projected to remain the largest segment over the forecast period. It is easy to apply fertilizers through a drip irrigation system as it releases fertilizers near the roots owing to which nutrient uptake by roots increases.
Segmentation 4: by Input
The global fertigation and chemigation market (by input) is dominated by fertilizers. Fertilizer usage in agriculture is exceptionally high compared to pesticides and herbicides. Fertilizers are given to the crop at various growth stages to increase yield.
Segmentation 5: by Region
North America - U.S., Canada, and Mexico
Europe - Turkey, Ukraine, France, Spain, Italy, Russia, and Rest-of-Europe
Asia-Pacific - India, Japan, Australia, South Korea, and Rest-of-Asia-Pacific
Middle East and Africa - Israel, Rest-of-Middle East and Africa
South America - Brazil, Rest-of-South America
China generated the highest revenue, around $4 billion, in 2021 and is expected to remain the largest region by 2027. This can be attributed to large agricultural land mass and high micro-irrigation penetration. The Chinese government provides subsidies to farmers for a micro-irrigation system, due to which its penetration in the country is very high compared to the other regions.
Recent Developments in Global Fertigation and Chemigation Market
In April 2022, the world's leading provider of fluid management solutions, Aliaxis, announced that it had signed an investment agreement with CropX, an Ag-Tech solution leader, to collaborate on data-driven precision irrigation through this partnership.
In January 2022, Agri-Inject entered a strategic partnership with Sentinel Fertigation with the aim of connecting N-Time with ReflexCONNECT variable rate injection pumping systems.
In June 2021, Hunter Industries launched a wireless flow monitor. This flow monitor is designed for Hydrawise smart irrigation system. This product will reduce material and labor costs.
In September 2018, Jain Irrigation announced the acquisition of the U.S.-based smart irrigation company ETwater. This acquisition was to increase the company's presence in the U.S. and help the company to reduce water waste in landscape irrigation.
Demand – Drivers and Limitations
Following are the demand drivers for the fertigation and chemigation market:
High Nutrient Utilization Efficiency through Fertigation Compared to Other Methods
No Labor Requirement
Minimum Requirement of Water
Minimal Fertilizer Wastage and Consequent Protection from Increasing Fertilizer Prices for Farmers
The market is expected to face some limitations too due to the following challenges:
High Initial Infrastructure Cost
Lack of Awareness Regarding Fertigation in Emerging and Underdeveloped Countries
How This Report Can Add Value to End Users
Product/Innovation Strategy: The product segment helps the reader understand different types of fertigation and chemigation products available for deployment in the agricultural and non-agricultural industries. Moreover, the study provides the reader with a detailed understanding of which product need to use for particular applications. It also provides a study on which inputs (fertilizers, herbicides, fungicides, insecticides) are primarily provided through fertigation and chemigation. This report provides forecast demand for each product and detailed information regarding major manufacturers.
Growth/Marketing Strategy: The global fertigation and chemigation market has seen major development by key players operating in the market, such as business expansion, partnership, collaboration, and joint venture. The favored strategy for the companies has been partnerships, collaborations, mergers, acquisitions, and joint ventures to strengthen their positions in the fertigation and chemigation market. For instance, in March 2021, Netafim acquired Gakon, a turnkey greenhouse projects provider. The acquisition is synergetic, combining Netafim's global presence and expertise in precision agriculture and Gakon's advanced greenhouse technology.
Competitive Strategy: Key players in the global fertigation and chemigation market analyzed and profiled in the study involve micro-irrigation and fertigation product manufacturers that provide tools and technologies. Moreover, a detailed competitive benchmarking of the players operating in the global fertigation and chemigation market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
Key Market Players and Competition Synopsis
Profiled companies have been selected based on inputs gathered from primary experts and analyses of the company's domestic and international presence, product portfolio, and market penetration.
The top segment players leading the fertigation and chemigation market include micro-irrigation solution providers, which capture a significant chunk of share in the market.
Some of the prominent names established in this market are:
Jain Irrigation Systems Ltd.
Orbit Irrigation Products LLC
Rain Bird Corporation
The Toro Company
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