The Total Addressable Market (TAM) for Irrigation Controller was valued at USD 1.32 billion in 2022 and is projected to reach a value of USD 4.60 billion by 2031, registering a CAGR of 14.8% during the forecast period 2023-2031.
An irrigation system's controller is a crucial tool for applying water in the correct quantity and at the right time to support agricultural production and achieve the high efficiency needed for water, energy, and chemical uses. Mechanical and electromechanical irrigation timers are referred to as irrigation controllers. These devices have sophisticated computer-based systems that enable precise control of water, energy, and chemicals while adapting to changes in the environment and the crop's developmental stages. The expanding use of modern farming techniques and the rising demand for water conversation fuels the market. In addition, factors like the industry's rapid expansion for lawn and garden equipment are predicted to boost demand for irrigation controllers.
The global demand for irrigation controllers is increasing due to the rising demand for innovative irrigation systems to decrease water consumption. Globally, around 43% of the groundwater provides for all agricultural irrigation. The depleting groundwater resources and the need to save water are burgeoning the demand for irrigation controllers as they allow the user to schedule watering and offer water savings and remote watering solutions.
Stringent government regulations and various programs scheduled by international organizations for conserving water have increased the adoption of irrigation control systems. The increased use of irrigation systems in different agricultural and non-agricultural lands accelerates the market growth. The introduction of intelligent irrigation controllers globally provides an impetus to market growth.
Agriculture and other household activities are highly dependent on water and are severely affected by water shortages. The growing population and changing lifestyle of people are projected to double the demand for water in the coming years. Globally, more than three-quarters of the water is expected to be used by farmers due to the growing demand for food and energy. In the U.S., an average of 9 billion gallons of water is used daily for outdoor water, particularly for landscape irrigation. About 50% of this water is wasted due to overwatering caused by traditional irrigation methods and technology.
Around one-third of U.S. individuals pay more for water than electricity due to rising water rates and increasing operational costs. Individuals and farmers worldwide are gradually shifting towards sustainable farming and demanding advanced technologies to reduce costs. As per the test results conducted by the Irrigation Association (IA), the irrigation controllers help optimize irrigation and reduce water usage by up to 35% compared to the traditional controllers. These systems tailor watering schedules and run times automatically per the landscape needs, further driving the market growth.
Smartphones and the Internet of Things (IoT) have gained popularity in recent years. These advanced technologies are being deployed and becoming integral to several devices in today's world. The key market players are channelizing efforts to enhance the functionality of the products by integrating smartphone control systems. Most smart irrigation controllers are used in the residential sector for convenience and improved watering of lawns. Manufacturers are focusing on upgrading technologies by offering irrigation controllers capable of connecting to smart home voice control systems.
The battery-operated controlling system is ideal for home gardens, lawns, roof gardens, and flowerbeds. Changing consumer lifestyles, increasing spending power, changing climatic conditions, and extreme water temperatures foster market growth. An intelligent irrigation controller helps monitor the moisture content and watering process through mobile apps, raising its adoption across several end-users and remote areas.
A number of important factors, particularly in low-income economies, could impede the growth of the market's revenue during the forecast period, including high setup costs and declining farm incomes. The global market for irrigation controllers is experiencing some revenue growth challenges due to a need for more consumer awareness regarding agricultural automation. Additionally, lower competitiveness, weak cash flow, low investor confidence in the sector, and pressure on margins are impeding farmers' ability to invest in cutting-edge irrigation equipment and their capacity to buy high-tech productivity-enhancing gadgets. These factors are also limiting market revenue growth.
The forecast period will see the irrigation controller market grow at a faster rate due to the communication technologies that are developing quickly and the growing shift from flood irrigation to mechanized irrigation. The government's increasing adoption of climate-smart agriculture strategies to assist small-scale farmers in water management advancement and preservation is also anticipated to fuel the market for irrigation controllers.
The market is segmented by product type, irrigation type, application, and region.
By product type, the market is sub-segmented as smart controllers, tap timers, and basic controllers.
Advantages of Soil-Moisture Based Sensors Controllers Drive Its Adoption across End-Users. Weather-based and soil moisture-based irrigation controllers are gaining popularity among various end-users. The farmers and residential professionals are inclined towards the technology as it waters the landscape depending on the soil's moisture levels. Unlike traditional irrigation controllers, soil-moisture-based controllers assist in saving a considerable amount of water and money. However, weather-based smart irrigation controllers are attracting various farmers as they can assess several weather parameters such as temperature, wind, and UV radiations, among others.
By application, the market is further fragmented into Agriculture, Non-agriculture, where the non-agriculture sector dominates.
Non-agriculture Sector to Dominate the Market during the Forecast Period. The agriculture segment dominates the irrigation controller market. The non-agriculture segment, on the other hand, is projected to witness the fastest growth rate during the forecast period. The segment is estimated to hold about 45–50% of the irrigation controller market shares. The introduction of smart irrigation controllers is reshaping the market, and they are widely used for non-agriculture purposes. Rising residential constructions with turfs, growing millennials, and rising awareness for DIY home lawns are positively influencing the demand for irrigation controllers.
The demand for irrigation controllers is expected to witness a high growth rate in golf course watering needs. Europe has a total of 8,940 golf courses due to increasing golf tourism and the presence of high-net-worth individuals in the region. The capability of irrigation controllers for accurate watering drives segment growth.
Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. Asia-pacific dominates the market.
Asia-Pacific is a frontrunner in the irrigation controller market, backed by solid agricultural activities in the region. The emerging countries in the region are primarily dependent on agriculture. The region enjoys more than half of the world's population, with over 4.3 billion people, particularly in China and India. The ever-growing population and demand for food and water have stressed the resources, further prompting a need for irrigation controller systems. The below-mentioned info-graph depicts the estimated market potential for the regions during the forecast period. Government initiatives and support from international organizations promote the adoption of intelligent technologies for agricultural practices. The Integrated Modern Agriculture Development (IMAD) project by the World Bank aims to create awareness of climate change and agricultural practices with innovative technologies in China. In addition, the government has decided to spend around USD 300 million on new Agri-infrastructure and farm technologies to ramp up agricultural production in China. This is expected to strengthen the regional market growth for irrigation controllers in the next five years.
North America is projected to have steady growth in the irrigation controller market. In recent years, the region has been facing water constraints and extreme weather conditions, further prompting the use of irrigation controllers. The depletion of freshwater and groundwater resources in the region has compelled farmers to install systems that reduce water consumption.
As per the statistics by OECD, the U.S. and Mexico have 49% and 42% of water shortage risks, respectively, thus, indicating careful water consumption. In the U.S., a high standard of living and strict government norms for water-saving bolsters market growth. The below-mentioned info-graph depicts the risk of water shortage in OECE countries.
The major players in the market are:
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