US Agricultural Irrigation Machinery Market - Growth, Trends, & Forecast (2018 - 2023)
The agricultural irrigation machinery market in the United States was valued at over USD 1.75 billion in 2017 and is estimated to reach USD 3.65 billion in 2023 growing at a CAGR of 15.83% during the forecast period. Irrigation mechanization involves the methods through which the crucial and scare resource of water can be optimally distributed. The most prominent of the mechanisms are the drip and sprinkler irrigation systems. Drip Irrigation involves the release of water at the ground level in a drip wise manner, whereas sprinkler systems deliver water in a more voluminous fashion.
FARM CONSOLIDATION TO DRIVE EQUIPMENT SALES
During the 1990s, farms with less than 600 crop acres operated majority of the cropland. However, things have changed dramatically over the past decade with farms of at least 1,110 acres dominating the crop production in the United States. Further, many farms in the country operate at over 5,000 to 10,000 acres. Experts believe that this shift of acreage to larger farms is a part of complex set of structural changes in the crop agriculture. Number of mid-size farms has declined, while farm numbers at the extremes are growing. Though both cropland and production have shifted to larger farms, the average farm size has not seen major changes. Larger crop farms continued to realize better financial performance. The average rates of return on equity increased with farm size in the commodity categories of wheat, fruits, corn, soybeans and vegetables. As these large farms are capital intensive, farmers are likely to opt for efficient agricultural irrigation machinery to achieve required returns.
Drip Irrigation to Dominate the Market Growth
In 2016, North America occupied the third largest share among all the regions in the world with about 18% share. Drip irrigation occupied the major share in irrigation market with 31.05% of share in the country and was valued to more than USD 0.62 billion in 2016, 44.5% of the land in the country is utilized for agriculture out of which 16.8% is arable land, 0.3% is permanent crop and 27.4% is permanent pasture.
Rise in the country’s population has led to an increased demand for agricultural products. In such a case the cultivation of agricultural crops on arable land with limited resources has become the need of the hour. With the help of drip irrigation, this can be dealt with better efficiency than sprinkler irrigation.
Key Developments in the market