The soil monitoring market is estimated to be worth USD 370 million in 2020 and projected to reach USD 680 million by 2025, at a CAGR of 12.9%. Concerted efforts of governments and companies to promote sustainable agriculture practices, pressing need to preserve soil quality, stringent government regulations pertaining to ecological stability, and growing need for improving farm productivity to feed rising population are some of the driving factors for the soil monitoring market.
Soil Monitoring Market Dynamics
Opportunity: Huge
government spending on agriculture R&D
Soil monitoring can help farmers to economize the
use of resources to avoid u expenditure on water bills, fertilizers,
pesticides, and other inputs. However, the cost of reliable soil monitoring
sensors is high, or else the growers need to compromise the reliability with
the price. Farmers need to invest a huge amount of capital to buy soil
monitoring systems. Large commercial farmers can afford the high cost of soil
monitoring sensors and devices to avail benefits such as optimum crop quality
and maximum yields. On the other hand, small land holders find it difficult to
use these sensors and devices owing to the high upfront costs involved. In such
cases, the incentives and subsidies from governments or from any donor community
can help marginal farmers to adopt such advanced technologies for soil
monitoring purposes. Public sector investment in agricultural R&D has made
the agricultural industry in the US one of the largest contributors to
state-of-the-art technologies in agricultural technology in the world. In the
US, the Senate Appropriations Committee’s fiscal year 2020 agriculture
appropriations bill would provide USD 23.1 billion in discretionary funding
with USD 3.172 billion specifically for agriculture research.
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Challenge: Lack of
awareness and technical skills pertaining to soil monitoring
Low level of awareness among people regarding
soil monitoring is a major challenge to the growth of the soil monitoring
market. The end users from various fields, such as agriculture, residential,
landscaping, and sports turf, are not completely aware of all the benefits of
soil monitoring. At present, only a limited number of farms are equipped
with soil monitoring sensors; this is mainly due to the dominance of other
alternative approaches, such as manual inspection and visual judgment, although
the results from these techniques are rarely accurate. Additionally, the
availability of limited options for supporting the use of soil monitoring
sensors, equipment, devices, and solutions is another factor challenging the
growth of this market as these sensors are costly and unaffordable by small
holders.
COVID-19 Impact on the Global Soil Monitoring Market
The
impact of COVID-19 on the soil monitoring market is expected to last for short
to medium period owing to the disruption in the supply chain resulting in the
shortage of devices and equipment for the soil monitoring market. However the
advancements in the sensing and imagery and remote monitoring has resulted in
the better farm operation management and is likely to be less affected by the
COVID-19 pandemic. The sensing and imagery and remote monitoring is likely to
witness a significant demand in the post COVID-19 world.
Several
players in the equipment side are expecting a sluggish growth for the first
three quarter for FY 20-21 and could see some growth in the final quarter.
Major OEMs in agriculture like John Deere, AGCO and CNH has reduced their sales
guidance for the first half of FY 20-21 by 10%-20% owing to disruptions in the
supply chain. However, demand for connected agriculture and telematics have shown
promising growth even during pandemic period.
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