Agriculture Sensor Market Size, Share & Trends Analysis Report By Type, By Application (Dairy Management, Soil Management, Climate Management, Water Management, Smart Green House), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global agriculture sensor market size was valued at USD 1.34 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 13.6% from 2021 to 2028. Agriculture sensors are called active sensors because they emit their light source onto the plant canopy and at the same time measure the percentage of light that is reflected from the canopy toward the sensor. Precision farming, also known as smart farming, allows farmers to maximize their yields with minimal resources. These sensors help understand plants at the microscale to conserve resources and reduce environmental pollution. Many sensor technologies are implemented in precision agriculture and provide data to help farmers monitor and optimize crop yield.

Agriculture sensors are enjoying increasing popularity among farmers due to the increasing need for optimal production with the resources provided. Additionally, changing weather patterns due to increased global warming have required advanced sensors to increase productivity and crop yields. By offering advanced sensors, farmers can monitor farms, weather forecasts, and achieve optimal field requirements. Agriculture sensors allow farmers to increase yields with minimal human effort and waste.

Agriculture sensors are used in various platforms such as disease control and detection, yield monitoring and mapping, irrigation and water management, and soil monitoring. The yield monitoring technologies provide valuable data on yield ability, which varies within the field. Many farm equipment has incorporated these technologies into their harvesters and combined them to develop yield productivity. Agriculture sensor technology eliminates manual human effort by automating critical processes, including real-time farm monitoring and information sharing. Agriculture sensors are primarily used to address nutrient deficiencies by monitoring and managing soil health.

Some certain limitations and challenges will hamper the overall growth of the market. Factors such as the shortage of skilled labor and the lack of standards and protocols limit the market growth. Moreover, farmers can use different sensors based on software and hardware to collect farm-related data. Therefore, complex integrated agriculture sensor systems inhibit the growth of the market. Furthermore, the affordability of the technology and the lack of awareness of the benefits of agriculture sensors among farmers, especially in developing countries, and the highly volatile prices of crops are potential barriers hampering the overall market growth. However, advances in technologies such as big data, smart devices such as GPS/ GNSS, the growing collaboration between agrochemical companies and agriculture sensor providers, and the untapped potential in emerging markets offer favorable growth opportunities.

The increasing adoption of precision agriculture technology is expected to drive the growth of the global agriculture sensor market during the forecast period. Farmers in developing regions are rapidly commercializing and adopting sensor farming. Increasing public and private sector funding for precision agriculture approaches is expected to increase the demand for agriculture sensors in developing countries. Precision agriculture technologies are not very widespread in emerging regions due to the lack of knowledge of the benefits of these technologies and their high acquisition costs.

The market is expected to witness a slight 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. However, farm management software tools and remote sensing devices could lead to higher adoption in the post-COVID-19 period. 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. For example, SensoTerra launched new wireless systems in May 2020 to improve agriculture connectivity and field data analysis in the cloud. These sensor systems improve connectivity and can also be used for large canopies with minimal manual assistance. Farmers can access the data in real-time through a web-based interface or an application installed on their smartphones. The effects of the COVID19 pandemic are expected to be for a shorter duration, and the market would offer lucrative growth in the medium to long term.

Type Insights

The location sensor segment accounted for the largest revenue share of more than 13.0%, contributing revenue of USD 183.59 million in 2020. Location sensors use GPS satellite signals for determining topographic attributes, including latitude, longitude, and altitude of the required field area. The location data provided by these sensors is used to position precision technologies where they are most required. These sensors are essential to implement precision farming technologies in farming.

Soil moisture sensors are anticipated to register the highest growth by 2028. Increasing the adoption of soil moisture sensors by the agriculture sector to improve the farm’s productivity and reduce water consumption is expected to drive market growth over the forecast period. Moreover, this product also helps avoid irrigation issues through constant monitoring, which spurs the market's growth. The introduction of new technologies that aid residential owners in monitoring soil moisture conditions of potted plants, vegetable gardens, and lawns are also expected to drive the market. On the flip side, the lack of awareness among farmers regarding the benefits offered by the sensors, lack of availability of skilled labor, and preference for traditional farming practices, especially in emerging economies, is hampering the overall growth of the market.

Capacitance sensors, probes, and time-domain transmissometer (TDT) sensors are different volumetric sensors available in the market. Capacitive sensors measure the moisture level in the soil through capacitive sensing rather than resistive sensing. The device is made of corrosion-resistant material, thereby avoiding corrosion. The Time Domain Transmissometry (TDT) sensors are also estimated to portray a significant CAGR in the forthcoming years. They are durable, consume less power, and efficiently limit the effect of noise to achieve higher accuracy and average measurement across the entire length of the probes. The benefits mentioned above offered have increased its adoption among end-users over the last few years. Gypsum blocks, tensiometers, and granular matrix sensors are soil water potential sensors. They are low cost, easy to use, provide accurate measurement, and require little maintenance. Tensiometers measure tension between soil particles and water molecules and held the largest share of the segment in 2020. Tensiometers can be easily integrated into an irrigation system, need relatively minimal maintenance, and are used when the water requirement for a specific crop is high.

Application Insights

The soil management application segment dominated the market with a revenue share of approximately 24% in 2020. Moreover, the segment is also anticipated to register the second-highest CAGR of 14.1% from 2021 to 2028. Soil management is of utmost importance for optimum plant growth and yield. Monitoring systems are being enhanced with soil moisture sensors, continuous plant growth sensors, and microclimate tracking. The data gathered through these sensors is transferred to mobile devices, enabling farmers to take immediate action. Moreover, the increasing use of sensors in agricultural lands has helped farmers reduce water consumption and increase overall food production. These benefits are expected to drive the segment in the coming years. Moreover, increasing the focus of governments across various nations towards water conservation to improve the quality of crops is driving the market.

Sensor prices have dropped significantly in the course of technological advancement in recent years. This closely follows other trends, such as falling prices for computers, cameras, and televisions, as reported by the Bureau of Labor Statistics. This has led to the increasing use of sensors and a vast amount of largely unused data in agriculture. Advances in sensor technology have a double effect. First, simple sensors have become quite affordable and ubiquitous, and second, some sensors have become significantly advanced and come at a high price. Several companies are compelling users to use many simple sensors to capture and address field-scale variability. Other companies encourage the use of one or a few advanced sensors, which are generally more expensive.

Regional Insights

North America dominated the market in 2020, accounting for approximately 46% of the total revenue share. The dominance can be credited mainly to the relatively greater adoption of sensors across the agriculture segments. The U.S. is house to a large number of soil moisture sensor manufacturers such asSensaphone, Sentera, Texas Instruments Incorporated, and Monnit Corporation. Stringent environmental regulations and rising adoption of precision farming and yield monitoring practices by large and small farm owners to upsurge the productivity of fields is expected to drive the market.

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. Furthermore, the availability of vast agricultural lands in countries such as China and India is expected to increase the use of soil moisture sensors. The increasing concern for soil health in the region is having a positive impact on market growth. Countries such as India, Japan, China, and Australia, are expected to generate substantial revenue due to favorable government policies and increasing disposable income of farmers.

Key Companies and Market Share Insights

Major market players are focusing on strengthening their product portfolio in a bid to sustain its leading market position. For instance, In January 2020, CropX inc. acquired CropMetrics, a solution provider of cloud-based precision-irrigation systems, to offer their customers access to farm management tools, in-soil data, and decision-support solutions. The acquisition will help CropX inc. to strengthen its partner network, grow its sales footprint, and expand its product offering across the U.S. Similarly, In May 2021, Libelium Comunicaciones Distribuidas S.L. introduced Vegapuls C21, a radar sensor that is compatible with smart water and smart agriculture solutions. The sensor uses an 80 GHz radar technology, which ensures that the measurement remains unaffected by vacuum or high pressures, temperature fluctuations, and invulnerable to pollution. Some of the prominent players operating in the global agriculture sensor market are:

• auroras Srl Cso Piera Cillario

• Caipos GmbH

• CropIn Technology Solutions Private Limited

• CropX inc.

• dol-sensors A/S

• Glana Sensors AB

• Libelium Comunicaciones Distribuidas S.L.

• Monnit Corporation

• pycno agriculture

• Sensaphone

• Sensoterra

• Sentera

• Texas Instruments Incorporated

Agriculture Sensor Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global agriculture sensor market report into type, application, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Location Sensors

  • Humidity Sensors

  • Electrochemical Sensors

  • Mechanical Sensors

  • Airflow Sensors

  • Pressure Sensors

  • Optical Sensors

  • Water Sensors

  • Soil Moisture Sensors

    • Capacitance Sensors

    • Probes

    • Time-domain Transmissometry (TDT) Sensors

    • Gypsum Blocks

    • Tensiometers

    • Granular Matrix Sensors

  • Livestock Sensors

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Dairy Management

  • Soil Management

  • Climate Management

  • Water Management

  • Smart Green House

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • Australia

    • India

  • South America

    • Brazil

  • Middle East and Africa (MEA)