South America Irrigation Machinery Market

South America Irrigation Machinery Market Analysis

The South America Irrigation Machinery Market size is estimated at USD 0.86 billion in 2025, and is expected to reach USD 1.32 billion by 2030, at a CAGR of 8.90% during the forecast period (2025-2030).

The agricultural irrigation machinery market in South America has been growing steadily, driven by the region's increasing agricultural mechanization. The expansion of agricultural land has played a significant role in this growth. Additionally, the rising population over the years has created a need for higher crop productivity, which has fueled the demand for efficient irrigation machinery.

Countries such as Argentina, Brazil, and Chile frequently face droughts and water shortages, with many areas in South America experiencing severe water stress. According to the World Bank's 2023 report, South America has endured 74 droughts over the past two decades, resulting in damages exceeding USD 13 billion. These droughts have adversely affected agricultural and livestock production, as well as the livelihoods of farmers, particularly those in vulnerable conditions. For instance, more than half of the 1.9 million small-scale farmers in the Dry Corridor—an ecological region along Central America's Pacific coast—live under conditions of drought and food insecurity. This situation has accelerated the adoption of precision irrigation technologies, supported by government initiatives focused on water conservation.

The market is further expanding due to the adoption of advanced irrigation machinery designed to deliver clean water for crops. Government support has been a key driver of this growth. In 2024, the Argentine government introduced a new credit mechanism to assist farmers in purchasing agricultural inputs and machinery including the irrigation machinery. Known as "Pagaré Valor Producto" (Product Value Promissory Note), this tool, introduced by the Ministry of Economy, enables farmers to access term credit and make purchases using promissory notes tied to the value of soybeans or other commodities. These notes are linked to the Rosario Stock Exchange (BCR). Such initiatives are encouraging farmers to adopt modern irrigation equipment, such as autonomous sprinklers and drip systems, to improve crop yields. Consequently, factors like the need for increased crop production, water stress caused by droughts, and government support are driving the growth of the agricultural irrigation machinery market in South America during the forecast period.

South America Irrigation Machinery Market Trends

Expanding Cultivation of Cereals & Grains Fuels Market Growth

The expansion of cereal cultivation in South America is significantly driving the adoption of irrigation machinery, thereby fueling market growth. Brazil, a key agricultural hub in the region, has experienced a substantial increase in cultivated land. Similarly, countries like Chile are expanding their cereal cultivation areas. In Columbia, the harvested area under cereals rose from 1.0 million hectares in 2022 to 1.1 million hectares in 2023. This growth has led to higher water demands, particularly in drought-affected regions. To address water scarcity, the Chilean government has introduced supportive policies. The National Irrigation Commission (Comisión Nacional de Riego, CNR) is actively working to modernize irrigation systems and improve water storage to mitigate frequent droughts. With 95% of Chile's 300,000 farms classified as small-scale, the CNR provides subsidies under Law 18.450 and direct assistance through the Small-Scale Agriculture Program. These measures aim to enhance irrigation access for small farmers, further driving the growth of the irrigation machinery market in South America during the forecast period.

Furthermore, various initiatives supporting grain production in the region contribute to the expansion of cultivated areas, thereby increasing the use of irrigation machinery. In February 2025, the state of Pará proposed legislation to repeal a state tax on grain production, which was initially scheduled to take effect in March 2025. The tax would have imposed charges of 4.32 reais per 60-kilogram sack of soybeans and 2.09 reais per 60-kilogram sack of corn. This decision to revoke the tax followed concerns raised by farmers, with the Soybean Producers Association of Pará (Aprosoja Pará) describing it as a major victory for the sector's competitiveness and growth. Consequently, the agricultural irrigation machinery market benefits from the rising cereal cultivation areas, supported by government-backed production initiatives during the forecast period.

Brazil Dominated the Market

Brazil's agricultural sector, a cornerstone of its economy, is witnessing a growing reliance on advanced irrigation machinery to meet the increasing demand for food and agricultural products. According to IBGE - Municipal Agricultural Production, the agricultural area expanded from 85.8 million hectares in 2022 to 90 million hectares in 2023. However, despite this growth, production value declined from USD 143 million to USD 133 million during the same period, primarily due to water scarcity. This challenge has prompted farmers to adopt irrigation machinery, driving market growth. The extended government support also aids market growth. In 2024, the Ministery of Agriculture and Livestock introduced the 2023/2024 Crop Plan, allocating BRL 364.22 billion (USD 72.9 billion) to support agricultural production in the country. The plan includes reduced interest rates for purchasing agricultural machinery and equipment through the Moderfrota program, which focuses on modernizing tractors, implements, and harvesters. This initiative encourages the adoption of advanced irrigation systems, contributing to improved agricultural productivity.

Technological advancements, such as precision agriculture, GPS, and solar-powered irrigation systems, are transforming irrigation practices in Brazil. These innovations improve water efficiency, optimize resource use, and enhance farm productivity. In 2023, Valmont Industries partnered with JCN Group Farms to promote sustainable farming practices, addressing food demand while conserving resources. To counter high energy costs and drought risks, photovoltaic (PV) arrays are being installed to power irrigation systems across over 8,000 acres (3,237 hectares) of farmland. Consequently, the combination of increasing productivity needs, government initiatives, and technological progress is driving market growth.

South America Irrigation Machinery Industry Overview

The market share analysis indicates that the South American agricultural irrigation machinery market is consolidated, with few companies accounting for about the majority of the market share. The key players in the market are Nelson Irrigation Corporation, Orbia Advance Corporation, Rain Bird Corporation, Rivulis Irrigation, and The Toro Company, among others. They are involved in many strategic activities such as product launches, expansions, partnerships, and acquisitions to strengthen the market share.

South America Irrigation Machinery Market Leaders

South America Irrigation Machinery Market News

• September 2024: Orbia Advance Corporation S.A.B. de C.V.’s Precision Agriculture division, Netafim, introduced GrowSphere, an advanced operating system for automating precision irrigation and fertigation. This system, which has been implemented globally with a strong presence in South America. The product enhances operational efficiency and ensures reliable implementation, enabling growers at various stages of automation to increase the value per hectare in their irrigation and fertigation practices.
• July 2024: Bauer do Brasil has entered into a strategic partnership with Grupo Criolani to strengthen its footprint in the South American market by investing USD10 million in coming five years. As a part of this, PGrupo Criolani company will supply irrigation equipment, such as reels and pivots, to Argentina.