The South-America soil moisture sensor market is projected to grow at a high CAGR during the forecast period.
The soil moisture sensor is used to measure the volumetric water content of the soil. These sensors can be stationary or portables such as handheld probes. Stationary sensors are placed at predetermined locations and depths in the field, whereas portable soil moisture probes can measure soil moisture at several locations.
Market Drivers
The free-market economy of South America from the 1990s has boasted sectors like agriculture, mining, forestry, industry, and the like. These economic sectors have been adopting modern mechanizations to improve their productivity. Agriculture in this region has been dichotomized between small-scale subsistence farming and large-scale mono-crop operations producing for profit. The growth of agriculture accounting for an average of 4.7% of GDP in 2015-17 (Source: FAO), is a key driver behind the soil moisture sensor market. Moreover, the construction sector has been gaining strength with market attractiveness increasing and the demand for machinery and equipment growing upward, which has assisted the growth of the soil moisture sensor market.
By country, Brazil dominates the market because of the growth of agriculture and rapid urbanization development. By type, water potential sensors are widely used owing to the large construction projects. By application, the agricultural sector has been adopting modern mechanizations in the region which is pushing the market ahead.
Growth Factors
The Latin American region’s land represents 15% of the earth's surface, receives 30% of precipitation, and generates 33% of the world's water, making the region a great world reserve of arable land and forests (Source: FAO). The region has been associated with the production and export of a diverse range of agricultural commodities, like coffee from Brazil and Colombia, bananas from Ecuador, cashew, avocado, pineapple, papaya, and guava among others. These agricultural products are exported which is a major stream for forex reserves. To increase productivity, irrigation has been focused on. The irrigation facilities are closely dependent on soil moisture sensors which are prompting the growth of the market.
The water crises in the South American countries especially in the urban center have led to severe protest and tension. The chronic water shortages and control over access to fresh water in Columbia, Ecuador, Brazil, Chile, and Peru highlight grieve issues. Moreover, climatic changes like droughts, minimal rainfall, owing to pollution, and deforestation have intensified the cause. The South American region still holds access to several water resources with immense potential. The soil moisture sensor will help assist uncover these resources which will help address the water war. Thus, the market for the sensor has a wide range of opportunities in the region to proliferate.
Restraints
The soil moisture sensors market in South America is beginning to grow owing to uses in the agriculture and water resource sector. But, the small-scale farmers are unaware of these technological changes and the cost of installing and using these mechanisms is generally high. These factors may limit the growth of the market in the region.
The Economic Commission for Latin America and the Caribbean (ECLAC) raised its average growth estimate for the region in 2021 to 5.2%, to rebound from the deep contraction of 6.8% registered in 2020 (Source; FAO). The agricultural sector suffered some primary shocks although without critical consequences. The main factors affecting primary production are lack of liquidity, availability of labor and availability and price of agricultural inputs.
Competitive Insights
The market leaders for the South America Soil Moisture Sensor Market are The Toro Company, Irrometer Company Inc., Acclima, Inc., Transcat Inc., Sentek Technologies, Stevens Water Monitoring Systems, Inc., Meter Group Inc., and Campbell Scientific, Inc. The key players in the market implement growth strategies such as product launches, mergers, and acquisitions, etc. to gain a competitive advantage over their competitors. For Instance,
Segmentation: