Global Fertigation and Chemigation Market 2021
The global fertigation and chemigation market is expected to reach $18,969 million by 2027, growing at a CAGR of 8.45% from 2021. The market’s growth is driven by factors such as high nutrient uptake and increased yield.
The excessive use of fertilizers in agriculture has led to soil fertility and productivity issues in some regions. Improper fertilizer management results in the loss of nutritional value in the soil, causing leaching and financial losses for farmers. Additionally, water scarcity is a concern, with agriculture accounting for over 70% of global water usage. Innovative irrigation techniques, such as fertigation and chemigation, are needed to address these challenges. Consequently, the demand for fertigation and chemigation solutions is expected to grow due to their low fertilizer and water requirements.
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USD 11.6 billion in 2020
Crop, End Use, Technique, Input, Region
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Fertigation involves applying fertilizer with irrigation water, allowing for flexible and frequent application of small amounts of fertilizer. Chemigation, on the other hand, is a controlled process that uses chemicals such as fungicides and pesticides.
The fertigation technique enhances crop yield while reducing fertilizer usage. By applying fertilizer in the moist soil area where roots grow, fertigation improves fertilizer efficiency, minimizes leaching, and promotes tree growth, higher yields, and better fruit quality. It also reduces fertilizer costs and prevents leakage caused by excessive water supply or heavy rainfall. Additionally, it helps mitigate soil erosion and uses minimal water compared to traditional irrigation practices.
The COVID-19 pandemic had a significant impact on the fertigation industry, disrupting the supply of raw materials and leading to factory closures. This resulted in increased product prices and hindered growers’ profitability. However, the industry and economies have started to recover.
The demand drivers for the fertigation and chemigation market include high nutrient utilization efficiency, labor savings, minimal water requirements, and reduced fertilizer wastage. However, the market faces limitations such as high initial infrastructure costs and a lack of awareness in emerging and underdeveloped countries.
The market is segmented based on various factors, including crop, end use, technique, input, and region.
Segmentation by Crop
Segmentation by End Use
Segmentation by Technique
Segmentation by Input
Segmentation 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
The global fertigation and chemigation market is expected to be driven primarily by the vegetable sector. Fertigation and chemigation solutions have seen high penetration in vegetable cultivation compared to other crops such as food grains. The increasing global production of vegetables further fuels the demand for these solutions. In 2021, vegetables dominated the market and are projected to maintain their lead in the coming years. This is because vegetables require lower amounts of fertilizers and need effective pesticide use for quality produce. Additionally, the monetary returns from vegetable crops are higher, enabling growers to afford fertigation and chemigation systems.
Horticulture accounted for the largest share of the market in 2021 and is expected to remain the leading segment. Fertigation and chemigation play a significant role in horticulture, particularly for vegetables and fruits, as they reduce fertilizer and labor costs. Horticulture offers higher monetary returns compared to food grain crops, making it feasible for growers to invest in fertigation and chemigation systems. The adoption of these solutions in horticulture surpasses that in food grain crops due to the extensive use of micro-irrigation techniques. Furthermore, fertigation and chemigation help reduce fertilizer and pesticide usage, resulting in better yield quality.
Drip irrigation dominates the fertigation and chemigation market and is projected to maintain its position as the leading technique. Drip irrigation facilitates efficient application of fertilizers near the roots, enhancing nutrient uptake. This technique accounted for the largest market share in 2021, and its adoption is expected to grow rapidly during the forecast period. Drip irrigation ensures uniform distribution of fertilizers and benefits from its widespread use in agriculture.
Fertilizers constitute the dominant input in the fertigation and chemigation market. Their usage in agriculture surpasses that of pesticides and herbicides. Fertilizers are applied at various stages of crop growth to increase yields, making them a crucial component in this market.
The high growth rate of the global fertigation and chemigation market can be attributed to the widespread adoption of micro-irrigation techniques in regions like North America, Asia-Pacific, and Europe. Governments and regulatory bodies are placing significant emphasis on water conservation, further driving the market’s growth. China stands out as the highest revenue-generating region, reaching approximately $4 billion in 2021, and is expected to remain the largest market by 2027. This can be attributed to China’s large agricultural landmass and extensive micro-irrigation penetration. The Chinese government provides subsidies for farmers to install micro-irrigation systems, leading to its widespread adoption. China’s dominance in the market is also influenced by seasonal rains, the availability of local suppliers, competitive labor costs, and government subsidies for fertigation and chemigation systems. Consequently, a large number of farmers in China are opting for these solutions.
Major players in the global fertigation and chemigation market have undertaken significant developments, including business expansion, partnerships, collaborations, and joint ventures. Among these, mergers and acquisitions have emerged as the preferred strategy for companies aiming to strengthen their position in the market. An example of this is the agreement reached in November 2021, where Platinum Equity sold its sprinkler business, Orbit Irrigation Products, to Husqvarna Group for a contract valued at $480 million.
The selection of profiled companies was based on input from primary experts and analyses of their domestic and international presence, product portfolio, and market penetration.
Key companies profiled in this report include Autogrow, CALSENSE, Finolex Plasson, Galcon, Greentech India, Hunter Industries, Jain Irrigation Systems Ltd., Lindsay Corporation, Netafim, Orbit Irrigation Products LLC, Rain Bird Corporation, Rivulis, Agri-Inject, The Toro Company, Valmont Industries.
Recent Industry Developments
In April 2022, Aliaxis, the global leader in fluid management solutions, made an announcement regarding the signing of an investment agreement with CropX, a renowned Ag-Tech solution provider. The purpose of this partnership is to collaborate on data-driven precision irrigation.
In January 2022, Agri-Inject formed a strategic partnership with Sentinel Fertigation, aiming to integrate N-Time with ReflexCONNECT variable rate injection pumping systems.
Hunter Industries introduced a wireless flow monitor in June 2021, specifically designed for their Hydrawise smart irrigation system. This innovative product is expected to reduce material and labor costs.
In September 2018, Jain Irrigation disclosed its acquisition of ETwater, a smart irrigation company based in the United States. This strategic move was aimed at expanding Jain Irrigation’s presence in the U.S. market and promoting water conservation in landscape irrigation.
Key Questions Answered
What is the projected global revenue for the fertigation and chemigation market during the forecast period 2022-2027?
What is the anticipated compound annual growth rate (CAGR) for the fertigation and chemigation market from 2022 to 2027?
Based on recent developments, product offerings, and regional presence, what is the competitive strength of key players in the global fertigation and chemigation market?
What types of players are involved in the fertigation and chemigation market ecosystem, and what is their significance in the global market?
What new strategies are existing market players adopting to expand their market position in the fertigation and chemigation industry?
What are the key trends, market drivers, and opportunities related to the fertigation and chemigation market?
What are the main factors inhibiting the growth of the global fertigation and chemigation market?
How do vital fertigation and chemigation companies compare in terms of market coverage and market potential?
What revenue is expected for each segment during the forecast period, along with the corresponding growth percentage?