The global agricultural sensor market is projected to register a CAGR of 13.5% during the forecast period (2021-2026). As an impact of COVID-19, the requirement of digitisation in every sector was felt. The market for precision agriculture including agriculture sensor also witnessed growth and felt the need during the COVID-19 pandemic. Many agritech companies came up with innovative models for easing the farming practices by focusing more on wireless platforms to enable real-time decision making with respect to yield monitoring, crop health monitoring, field mapping, irrigation scheduling, and harvesting management, etc for helping the farmers from adverse price fluctuations of their produces. Increasing demand for agricultural production, changing technology practices, and increasing intensification including precision agriculture, low-till management, and the use of advanced technology are few factors, which are driving the agricultural sensors market. North America remains to be the largest geographical segment of the market studied and accounted for a major market share. High investments, wide adoption of smart farming techniques are showing a huge potential growth for sensor farming during the forecast period. Acquity Agriculture, Pycno, Edyn, and Acclima Inc. are some of the prominent players who are operating in this market.
Key Market Trends
Decreased Average Number Of Labors In Indoor Farming
Indoor farming techniques demand new techniques to address the challenges of fluctuating climatic conditions and decreased skilled labor force. Light amounts, nutrition levels, and moisture levels can be controlled by the farmer when they are growing crops solely indoors. Sensors with small-scale control systems with robust functionality would allow businesses to better automate their systems and increased yields. As per an article, post-adoption of sensors resulted in a reduction in the labor force by 22.0% globally in the year 2017 compared to the previous year, that can be evident to say that agricultural sensors can address the labor challenge in indoor farms. Big industrial indoor farms are using sensors that can sense water contamination, pesticidal residues etc. The combination of indoor farming and agricultural sensors are likely to enhance the production capacities of crops. This is likely to drive the agricultural sensors market in the future.
North America Dominates the Market
In 2018, North America was the largest regional market for agricultural sensors. Strong government support to increase agricultural production, availability of infrastructure support, and acceptance of smart and precession farming methods increased the deployment of advanced farming solutions. In North America, the adoption of soil moisture sensors has rapidly increased. Soil moisture instruments used in the sports turf segment for more efficient monitoring and conversion of turfgrass. Studies indicate that the adoption of sensor helps farmers to minimize drought stress, reduces maintenance and labor cost of protected cultivation by 20%, at least. The U.S. is the early adopter of precision farming technologies, which is the primary factor responsible for the region’s most significant share in the global market. A considerable acceptance of modern agriculture methods by Canada is contributing to industry growth.
The global agricultural sensor market is fragmented, with various small and medium-sized companies and a few big players, resulting in stiff competition in the market. The development of regional markets and local players in different parts of the world is the major factor for the fragmented nature of the market. North America and Asia-pacific are the two regions showing maximum competitor activities.
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