Already an $825 million market, smart irrigation technology is expected to grow by more than 16% per year over the next five years, according to a September report by market research firm MarketsandMarkets (MNM). The report estimates the smart irrigation technology market could be worth $1.75 billion by 2023.
The findings back up an earlier report by Transparency Market Research (TMR), which estimated the smart irrigation market will grow by over 13% per year between 2017 and 2026 to $2.32 billion.
MNM attributed the smart irrigation industry’s projected growth to several factors. The agricultural industry is increasingly adopting technology solutions to manage crop irrigation, according to the report. Furthermore, the cost of the technology is expected to decrease over the next few years as the cost of major hardware components goes down.
Although the agriculture industry will drive a large portion of that growth, the report pointed to the importance of landscaping in increasing the value of the smart irrigation market.
“The growing importance of efficient watering practices and irrigation solutions for nonagricultural applications, such as residential, turf and landscape, and golf courses, is a major factor driving the growth of this market,” the company noted in a release.
MNM expects smart controllers to hold the largest share of the market across multiple industries, “owing to the increasing adoption of these devices for automatic irrigation scheduling in applications such as agriculture, residential and commercial property, lawns and gardens, and landscaping.”
The report supports the conclusions drawn in the TMR study published in January.
That report found that although the agriculture industry will represent the largest category of end users in the smart irrigation market, nonagricultural users like communities and architects will drive the fastest growth.
TMR also predicts controllers will hold the largest market share in smart irrigation, noting that the “effectiveness of smart irrigation solutions continues to remain largely dependent on the efficacy of controller systems.”
“In addition to the smart irrigation controller systems, soil moisture sensors and water management platforms are also expected to represent leading component-type segments,” according to the TMR report. “Collectively, these two segments are likely to account for more than one-third share [of] global smart irrigation market value throughout the forecast period.”