Latin America Agriculture Irrigation Equipment Market by Type (Drip, Sprinkler, Pivot, Furrow Irrigation), Component (Tubing, Emitter, Sprinklers, Filters), Application (Open-field {Cereals & Grains, Fruit and Vegetables}, Closed-field) - Forecast to 2030

The Latin America Agriculture Irrigation Equipment Market is projected to reach $349.7 million by 2030, at a CAGR of 5.7% during the forecast period of 2024 to 2030. The growth of this market is driven by the rising agricultural water scarcity in the region, the increasing government initiatives for sustainable water use, and the growing need for mechanization of agricultural operations. However, the high initial costs of advanced agriculture irrigation equipment and high maintenance costs hinder the growth of this market to some extent.

Moreover, technological advancements in irrigation equipment and the rising automation of irrigation systems are expected to provide market growth opportunities for the stakeholders operating in this market. However, the low awareness of advanced agriculture irrigation technologies is a major challenge for the players in this market. Additionally, the increasing adoption of precision farming techniques is a prominent trend in the Latin America agriculture irrigation equipment market.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market players between 2020 and 2024. The key players profiled in the Latin America agriculture irrigation equipment market research report are Netafim Ltd. (Israel), Nelson Irrigation Corporation (U.S.), Jain Irrigation Systems Limited (India), T-L Irrigation Company (U.S.), Valmont Industries, Inc. (U.S.), Lindsay Corporation (U.S.), Rivulis Irrigation Ltd. (Israel), The Toro Company (U.S.), Rain Bird Corporation (U.S.), and Galcon Bakarim Agricultural Cooperative Society Ltd. (Israel).

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Rising Agricultural Water Scarcity to Spur the Growth of the Latin America Agriculture Irrigation Equipment Market

Nowadays, agricultural water scarcity is a pressing issue in many countries in Latin America, and it poses significant challenges to food security. According to UNESCO, agricultural water extraction in Latin America and the Caribbean represents 74% of total water withdrawal, positioning agriculture as the economic activity with the highest consumption of this resource. Moreover, in the region, between 50% and 70% of the water extracted for agriculture gets wasted due to evaporation, leaks, and other reasons. Furthermore, it is further anticipated that the water scarcity problem for the agriculture sector in the region will also increase with the growing population, urbanization, and industrialization. In light of these factors, several governments in Latin America are taking initiatives for the sustainable use of water in agriculture. These factors are expected to drive the demand for agricultural irrigation equipment in the region.

Drought hit the southern cone of the continent, which heavily affected the production and quality of crops in Argentina, Chile, and Paraguay. Over the last four decades up to 2022, the economic loss caused by droughts was around USD 24 billion in Latin America. Furthermore, in the Parana-La Plata basin, drought affects agriculture, which reduces crop production, including soybeans and corn. In Latin America, drought conditions led to a decline of -2.6% in the 2020–2021 cereal harvest compared with the previous season (source: United Nations Framework Convention on Climate Change, UNFCCC). The low availability of water day by day for agricultural operations has created a need for sustainable water use systems, which further increased the demand for irrigation systems such as drip, sprinkler, and pivot systems in the region. Thus, rising demand for different irrigation systems is expected to drive the growth of the agricultural irrigation equipment market in Latin America.

Key Findings in the Latin America Agriculture Irrigation Equipment Market Study:

In 2024, the Drip Irrigation Segment is Expected to Dominate the Latin America Agriculture Irrigation Equipment Market

Based on type, the Latin America agriculture irrigation equipment market is segmented into drip irrigation, sprinkler irrigation, pivot irrigation, furrow irrigation systems, and terraced irrigation. In 2024, the drip irrigation segment is expected to account for the largest share of the Latin America agriculture irrigation equipment market. The large market share of this segment is attributed to factors such as increasing demand for drip irrigation systems, primarily in field crops, rising government support and subsidies for drip irrigation to mitigate the impact of water scarcity, and rising demand for precision irrigation technologies in the region. Furthermore, the drip irrigation segment is further slated to register the highest CAGR during the forecast period of 2024–2030 owing to technological advancements in micro-irrigation systems, rising awareness about advanced irrigation technologies, and the need for efficient water management in the agriculture sector due to rising water scarcity.

In 2024, the Tubing Segment is Expected to Dominate the Latin America Agriculture Irrigation Equipment Market

Based on component, the Latin America agriculture irrigation equipment market is segmented into tubing, sprinkler heads, emitter/drippers, irrigation valves, filters, irrigation controllers, and other components. In 2024, the tubing segment is expected to account for the largest share of the Latin America agriculture irrigation equipment market. The large market share of this segment is attributed to the increasing adoption of drip and sprinkler irrigation techniques, where tubing plays a crucial role as an essential component for delivering water directly to plant roots and a high number of players offering innovative products. Additionally, the ease of installation and low maintenance requirements of tubing segments have made them a popular choice among farmers in Latin America.

Moreover, the tubing segment is projected to register the highest CAGR during the forecast period of 2024–2030, owing to the rising innovations in tubing technology and the absence of viable substitutes for tubing in irrigation systems.

In 2024, the Open-field Agriculture Segment is Expected to Dominate the Agriculture Irrigation Equipment Market In Latin America

Based on application, the Latin America agriculture irrigation equipment market is segmented into open-field agriculture and closed-field agriculture. In 2024, the open-field agriculture segment is expected to account for the larger share of the Latin America agriculture irrigation equipment market. The large market share of this segment is attributed to the extensive land area dedicated to open-field agriculture, the growing area under soybean cultivation, the rising demand for row crops, and the increasing government initiatives aimed at reducing water wastage through conventional irrigation methods to address water scarcity challenges in the region.

The open-field agriculture segment is further sub-segmented into cereals & grains, oilseeds & pulses, fruits & vegetables, and other crops. In 2024, the cereals & grains segment is expected to account for the largest share of the Latin America agricultural irrigation equipment market for open-field agriculture. The large market share of this segment is attributed to the high area under cereals and grains, increasing demand for food grains due to a growing global population, the extensive cultivation of staple crops such as wheat, maize, rice, and barley, which serve as the primary food source for a significant portion of the world's population, and the rising challenge of water scarcity, driving the increased adoption of irrigation systems for these crops.

Brazil Expected to Dominate the Latin America Agriculture Irrigation Equipment Market

Based on country, the Latin America agriculture irrigation equipment market is segmented into Brazil, Mexico, Argentina, and the Rest of Latin America. In 2024, Brazil is expected to account for the largest share of the Latin America agriculture irrigation equipment market. Brazil’s significant market share is attributed to growing demand for micro irrigation systems, rising government initiatives for water conservation, extensive agricultural land area with high coffee production, growing water scarcity concerns, and the rising adoption of automated irrigation systems.

Scope of the Report:

Latin America Agriculture Irrigation Equipment Market Assessment, by Type

• Drip Irrigation
• Sprinkler Irrigation
• Pivot Irrigation
• Furrow Irrigation Systems
• Terraced Irrigation

Latin America Agriculture Irrigation Equipment Market Assessment, by Component

• Tubing
• Sprinklers Head
• Emitter/Drippers
• Irrigation Valves
• Filters
• Irrigation Controllers
• Other Components

Latin America Agriculture Irrigation Equipment Market Assessment, by Application

• Open-field Agriculture
  • Cereals & Grains
  • Oilseeds & Pulses
  • Fruits & Vegetables
  • Other Crops
• Closed-field Agriculture

Latin America Agriculture Irrigation Equipment Market Assessment, by Country

• Brazil
• Mexico
• Argentina
• Rest of Latin America

Key Questions Answered in the Report: