According to a new report published by Allied Market Research, titled,"Internet of Things (IoT) in Agriculture by System and Application: Global Opportunity Analysis and Industry Forecast, 2018 - 2025,"the global IoT in agriculture market is expected to generate $48,714 million by 2025, growing at a CAGR of 14.70% from 2018 to 2025. In 2017, the precision farming segment led the IoT in agriculture market, followed by the livestock monitoring segment. Growth in this segment is supplemented by rise in global population, development of internet technology, where localized data processing is done on the farm itself, which helps lower the cost and increase the adoption of IoT technology in precision farming.
Upsurge in IoT in agriculture market size due to rise in global population coupled with increase in adoption of developed technology to optimize quantity and quality of farm production is expected to boost the adoption of IoT in agriculture market during the forecast period. In addition, EU-funded IoT Large-Scale Pilots Programme (LSP) has formed an association of 73 partners that also includes CEMA. The program is intended to increase IoT application in the European agriculture and food sector with an investment of $31.6 million, which is expected to boost the growth of IoT in agriculture market. Moreover, factors such as development of IoT-based technology to monitor livestock health helps farmers prevent illness by taking preventive measures, are expected to boost the growth of the IoT in agriculture market during the forecast period. However, high cost of adoption of IoT based technology is a challenge for farmers across Brazil, China, India, and other developing countries. This is expected to limit the IoT in agriculture market share. However, government initiatives in development of agriculture industry has led to partnership between public and private enterprises along with agro-processing organization, financial institution, and food manufacturers to promote the sustainable agriculture initiatives, which is expected to fuel the growth of the IoT in agriculture market share during the forecast period. In addition, increase in adoption of connected technologies by farmers, such as low power wide area (LPWA), Wi-Fi, Zigbee, and other wireless technology help farmers to efficiently plan various agricultural operations such as harvesting, monitoring, and inventory planning, which are further expected to boost the growth of the IoT in agriculture industry during the forecast period.
The global IoT in agriculture market is classified based on application into precision farming, livestock monitoring, smart greenhouse, and fish farm monitoring. The precision farming segment dominated the IoT in agriculture market with the largest share in 2017 and is expected to exhibit significant growth during the forecast period. Precision farming through application of communication and information technology including IoT is expected to revolutionize the global IoT agriculture market. IoT in farming is achieved by implanting sensors that provide real time data, the data from the sensor can be share with the growers either through cloud or local server, which depends on reliability of internet connectivity and communication network. Thus, energy loss can be reduced by providing energy-efficient solutions such as harvester and tractors, to monitor farm equipment. These are the factors that fuel the growth in precision farming application of IoT in agriculture market during the forecast period.
In addition, rise in the global food demand and decrease in cultivable land generates the demand for IoT in agriculture market. Furthermore, initiatives by various developing and developed countries such as the U.S. by proposing the Precision Agriculture Connectivity Act of 2018 that fueled the investment and rapid development of network in the rural region, which is expected to further drive the growth of the IoT in agriculture market.
Key Findings of theInternet of Things (IoT) in Agriculture market:
- Based on application, the precision farming segment was the highest contributor to the global IoT in agriculture market in 2017 and is projected to grow at a CAGR of 15.6%.
- Based on system, the software segment is expected to grow at the highest CAGR of 19.9% from 2018 to 2025.
- Based on region, Asia-Pacific is projected to grow at a CAGR of 16.4% from 2018 to 2025, owing to rise in population coupled with increase in food demand.
- The U.S held the largest market share of 67.8% in 2017 and is expected to grow at a CAGR of 15.30% from 2018 to 2025.
- China is expected to be the fastest growing segment at a CAGR of 18.5% from 2018 to 2025 owing to increase in livestock application.
In terms of value, Asia-Pacific and LAMEA collectively contributed 35.7% share of the global IoT in agriculture market in 2017. The key players of the IoT in agriculture industry profiled in this report include Cisco Systems, Inc., International Business Management Corporation (IBM), Telit, Hitachi, Ltd, Decisive Farming, Trimble Inc., OnFarm Systems Inc., Farmers Edge Inc., SlantRange, Inc., and The Climate Corporation.