The global agriculture sensor market size is estimated to reach US$ 3.79 billion by 2028, according to the new report by Grand View Research, Inc. China and India have the highest growth in agriculture sensors due to the presence of largely agricultural land.
The market is projected to register a CAGR of 13.6% from 2021 to 2028. The growth is driven by factors such as rising acceptance of the IoT and AI by growers and farmers, increasing focus on livestock disease detection and monitoring, growing demand for fresh produce, reducing arable land, population growth, government support for precision farming practices, and increasing implementation of aquaculture feed optimisation devices in developing countries.
Key Insights & Findings from the report:
- Asia Pacific region is estimated to register the highest CAGR during the forecast period owing to increasing awareness regarding the usage of soil moisture sensors among farmers
- The market witnessed a small dip in 2020 due to the Covid-19 pandemic, as movement restrictions and lockdowns have led to supply chain disruptions and a lack of equipment
- Agriculture sensor technology eliminates manual human effort by automating critical processes, including real-time farm monitoring and information sharing
- The location sensor segment accounted for the largest revenue share in 2020
- Sensor prices have dropped significantly in the course of technological advancement in recent years
The emergence of advanced technologies such as guidance systems, variable rate technology, IoT, AI, and remote sensing has transformed agribusiness into a data-rich and technology-intensive industry. Smart agricultural technologies help increase profitability, protect the environment, improve sustainability, and minimise the consumption of resources such as fertilizers, water, and energy. IoT is implemented in precision aquaculture, precision agriculture, livestock monitoring, and smart greenhouse applications.
Various factors driving the growth of the market include increasing use of advanced monitoring solutions in agriculture, adoption of smart farming practices, and growing need to increase agricultural productivity.
Agriculture sensors help obtain data to help farmers monitor and optimise crops and detect changes in environmental conditions. Manufacturers are focusing on developing sensor solutions that can be used on small farms. In addition, government support in major agricultural nations encourages the introduction of precision farming practices, which will help grow the agriculture sensor market.
The increasing use of sensors in farm vehicles, machines, and farm management systems also stimulates the growth of the market. Moreover, the growing collaborations between various agrochemical companies create new opportunities for the market. However, agriculture sensors require significant investments in the early stage, which is expected to inhibit the growth of the market.
Market drivers
The global market for agriculture sensors is classified into North America, Asia Pacific, Europe, and the Rest of the World. North America is expected to have a dominant share of the market. The increasing adoption of smart and advanced farming methods in the U.S. contributes to the growth of the North America market.
The Asia Pacific region is anticipated to register the fastest CAGR during the forecast period. The growing awareness about precision farming practices in the Asia Pacific region is driving the regional market growth. China and India have the highest growth in agriculture sensors due to the presence of largely agricultural land.
Covid-19 has disrupted the supply chain in the market, and companies are exploring new ways to interact with farmers and growers through technology. Companies have started to focus on wireless platforms to make real-time crop monitoring decisions, crop health monitoring, field mapping, irrigation planning, and crop management.
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