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.

COVID-19 pandemic can further accelerate the installation of IoT based devices for agricultural as well as non-agricultural application. The number of connected agricultural devices is expected to witness a promising growth in medium to long term. The soil monitoring market is expected to recover from last quarter of 2020 onwards, where demand for sensing and imagery could see a significant growth.

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