Smart Agriculture Market
Smart Agriculture Market: Global Industry Trends, Share, Size, Growth, Opportunity, Market Segmentation (By Agriculture Type, By Offering, By Application) and Forecast 2023 - 2031
The size of the global smart agriculture market, estimated at USD 15.34 billion in 2022, is anticipated to rise at a CAGR of 12.6% from 2023 to 2031. The farming practice is known as "smart agriculture" makes use of information technology to monitor, analyze, and identify variability on a farm in order to boost crop yield while requiring less labor from farmers. By using real-time information about the weather, yields, and soil quality, smart agriculture enables farmers to pinpoint the precise amount of nutrition crops need to increase production. Farmers can use cutting-edge automation methods to reduce the cost of labor and materials by utilizing smart agriculture systems. Utilizing sensors and monitoring tools, smart farming techniques assist farmers in making better choices regarding water and soil management, inventory control, and harvesting schedules. Applications for smart agriculture include managing irrigation systems, water resources, growing crops, and monitoring production. Users will be able to map and record agricultural production and humidity information in real-time with the use of smart agriculture, which will enable them to swiftly judge how often the crop fared.
Market Growth
The method of carrying out agricultural tasks using cutting-edge technologies is referred to as smart agriculture. On the basis of kind, software, service, solution, and application, advanced technologies employed in agriculture are divided into subgroups. Smart agriculture is a cutting-edge method of conducting farming operations that minimizes human labor while maximizing the use of available resources. Systems for automation and sensors are used in precision farming. These are utilized for managing and monitoring the development of agricultural activities. The viability of smart agricultural devices depends on the state of the economy and the size of the agricultural area. Additionally, the growing use of light-emitting diode (LED) grow lights in the controlled environment agriculture (CEA) setup in greenhouses and the broad adoption of the CEA concept are driving market expansion. The market is expected to grow thanks to a number of other factors, such as the rising need for livestock technology for early disease detection and the significant investments being made in research and development (R&D) operations for introducing cutting-edge agricultural approaches.
Market Dynamics
Market Drivers: IoT adoption in agriculture is rapidly increasing
By providing real-time assistance through IoT apps, the expanding usage of Internet of Things (IoT) technology in agriculture helps farmers track the development of their products. IoT applications in conventional farming operations decrease the time and money spent on resources for farming, such as land, electricity, and water, allowing farmers to concentrate on providing their consumers with high-quality food.
By implementing precision farming practices, IoT-based agricultural equipment reduces the use of pesticides and fertilizers, improves the health of the soil and crops, and enables the delivery of organic food to a variety of end users. The adoption of automated commercial greenhouses and the expanding use of the Controlled Environment Agriculture (CEA) concept in greenhouses to increase yields and maintain ideal growing conditions are the key factors influencing the demand for smart equipment.
Market Restraints
There are numerous small players distributed throughout the agriculture industry. It is not dominated by one or a small number of powerful players. It is difficult to deploy a consistent machine-to-machine (M2M) solution because of the industry's fragmentation. Inefficient input and resource distribution brought on by land fragmentation results in high costs. Deploying smart farming techniques across dispersed lands requires time, money, and resources because it is difficult to manage, monitor, and collect data from dispersed farms.
Market Opportunities
According to signs coming from corporate leaders and legislators, agriculture 4.0 appears to be gaining steam. In order to propel a "technology revolution" in agricultural output and position the UK at the "forefront" of creative sustainable farming, the UK Secretary of State for Business has announced an investment of Euro 90 million. Greece has declared that cloud computing and the internet of things would be used to digitize agriculture. Agri-tech innovations have been predicted over the world, particularly in Australia, Japan, and other Asian nations.
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Report Attribute |
Details |
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Projected CAGR in % |
12.60% |
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Estimated Market Value (2022) |
15.34 Billion |
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Base Year |
2022 |
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Forecast Years |
2023 - 2031 |
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Segments Covered |
By Agriculture Type, By Offering, By application |
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Forecast Units |
Value (USD Billion), and Volume (Units) |
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Quantitative Units |
Revenue in USD million/billion and CAGR from 2023 to 2031 |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World |
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Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others |
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Report Coverage |
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis. |
Competitive Landscape
Among others, the key players in the market for smart agriculture include AGCO Corporation, Ag Leader Technology, AgEagle Aerial Systems Inc., AgJunction, Inc., BouMatic Robotic B.V., Argus Control Systems Ltd, Deere & Company, Crop Metrics, Drone Deploy, and Farmers Edge Inc.
Regional Analysis
North America is predicted to be the largest smart agriculture industry, with a market size of USD 15.846 million and a CAGR of 1025 percent by 2031. Regional demand in North America will be fueled by escalating government initiatives and laws to advance the region's agriculture industry during the projection period. Agrarian organizations have founded the North America Climate Smart Agriculture Alliance (NACSAA), which serves as a platform for educating and supplying farmers with the tools they need to produce food sustainably. In response to the growing awareness of water conservation, North American governments are aggressively providing incentives to encourage the use of smart irrigation. For instance, the state of California has offered reimbursement for smart controllers.
Report Segmentation
By Agriculture Type
The market is divided into segments based on the kind of agriculture, including smart greenhouses, precision farming, livestock monitoring, precision aquaculture, and precision forestry. During the projection period, the precision farming segment is anticipated to hold the biggest market share. This significant percentage can be attributed to the increasing focus on agricultural performance and profitability. Precision farming tools have the potential to improve the agriculture sector by improving the efficiency and dependability of traditional farming practices.
By Offering
Hardware, software, and services make up the three segments of the market. During the projected period, the software sector is anticipated to hold the biggest market share. The use of modern software technology in agricultural products, such as GPS, output mapping software, navigation apps, and data analysis software, helps farmers forecast bad weather and enables them to make better and more educated crop decisions. Software for managing farms includes websites, mobile apps, and programs created expressly for the farming industry. It helps farmers with their daily activities, makes managing staff much simpler, improves record-keeping for agriculture, and helps with regulatory compliance.
By Application
The market is divided into irrigation management, yield monitoring, crop scouting, field mapping, weather tracking, and forecasting, inventory management, and farm labor management based on the applications used. The market segment expected to register the biggest share over the forecast period is weather monitoring and forecasting. This is a result of the growing demand for monitoring agricultural growth stages as well as for monitoring and evaluating mineral and water waste output.
Recent Development
- March 2021- De Laval introduced the RC550 and RC700 robot collectors, which are intended to enhance cow comfort and, specifically, hoof condition without using water, so assisting in water conservation.
- December 2020- In order to assist Indian farmers in increasing their output, Nokia and the Vodafone India Foundation have introduced new smart agriculture as a service solution.
- November 2020- A significant leader in the smart agriculture sector, John Deere, has introduced Auto Path, a brand-new precision agricultural application that helps capture exact data regardless of machine type or width.
- December 2019- To enhance farm water management data exchange, The Climate Corporation has teamed with Crop Metrics, a pioneer in precision irrigation analytics and software.
Segmentations
By Agriculture Type
- Precision farming
- Livestock monitoring
- Smart greenhouse
- Others
By Offering
Hardware
- Automation and Control System
- Drones
- Application Control Devices
- Guidance System
- Remote Sensing
- Driverless Tractors
- Mobile Devices
- VRT
- Wireless Modules
Sensing Devices
- Soil Sensor
- Water Sensor
- Climate Sensor
- Others
Milking Robots
HVAC Systems
Grow Light
RFID Tags and Readers
Wireless Modules
Software
- Web-Based
- Cloud-Based
Services
- System Integration and Consulting
- Maintenance and Support
- Managed Services
- Assisted Professional Service
By Application
- Precision farming application
- Livestock monitoring application
- Smart greenhouse application
By Regions
- North America
- Europe
- Asia-Pacific
- South America
- The Middle East and Africa
FAQ’s
1. What is the anticipated size of the worldwide market for smart agriculture
The size of the global smart agriculture market, estimated at USD 15.34 billion in 2022, is anticipated to rise at a CAGR of 12.6% from 2023 to 2031.
2. Who are the leading suppliers in the market for smart agriculture
The leading companies in the market for smart agriculture include AGCO Corporation, Ag Leader Technology, AgEagle Aerial Systems Inc., AgJunction, Inc., BouMatic Robotic B.V., Argus Control Systems Ltd, Deere & Company, Crop Metrics, Drone Deploy, Farmers Edge Inc., among others.
3. Which region holds the largest proportion of the market for smart agriculture
According to estimates, the smart agriculture market is dominated by the North American region.
4. What are the main elements fueling the expansion of the global precision farming market
Some of the major elements fueling the expansion of the global precision farming market include Increased government support and the growing demand for effective agricultural health monitoring are predicted to drive market expansion.
5. What effect has COVID-19 had on the market for smart agriculture globally
The abrupt COVID-19 pandemic breakout prompted the introduction of strict lockdown measures across a number of nations, which temporarily halted a number of agricultural activities. However, there is a growing trend toward smart agriculture systems in the post-Covid-19 future to provide minimal manual involvement with optimal crop yield and food security.
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