The global smart agriculture market size was valued at $16,746.7 million in 2019, and is estimated to reach $29,234.6 million by 2027 with a CAGR of 9.7% from 2021 to 2027. Smart agriculture is a concept focused on providing the agricultural industry with the infrastructure to leverage advanced technology. Moreover, connected technologies such as WiFi, Zigbee, additional wireless sensor, and low power wide area network technology are some of the different technologies that help farmers efficiently execute different agriculture operations such as harvesting, purchasing, planting, and inventory control. Furthermore, increase in adoption of IoT and artificial intelligence by farmers help monitor the crop field and automate the irrigation process. In addition, adoption of advance technologies has uplifted organic farming, which includes greenhouse and vertical farming and enhances the productivity. Moreover, use of IoT and artificial intelligence in greenhouse eliminates the need for constant monitoring of the crops and provides cost-effective and optimal solutions for farmers with minimal manual intervention, which boosts the growth of the smart agriculture market.
Smart agriculture is experiencing rapid transformation from both service and product perspective. Business model transformation, technological disruptions, and organizational changes are all creating a thrilling but challenging opportunity. Moreover, improvement in both software and hardware technology is providing new way of agriculture, especially with the introduction of smart sensors, robotic automation, modern biologicals, digital data, and many big incumbents, which have identified the need to adopt smart agriculture. Thus, increasing revolution of technology in the field of smart agriculture drives the growth of the global smart agriculture market in terms of value sales.
Governments across the globe are joining hands with various different agro-processing organizations, food & beverages manufacturers, and financial institutions for the growth of sustainable agriculture initiatives. These initiatives aim at increasing efficiency of the farmers, their productivity, and provide more food security. In addition, the partnership between public-private firms in the developing nations such as China, India, and Brazil have created more revenue opportunity for the farmers, which boosts the growth of the smart agriculture market. Furthermore, various agriculture industries are collaborating with different European governments for implementing advance technology such as IoT and machine learning to enable farmers to efficiently plan and execute various agricultural operations. Thus, providing a lucrative opportunity for the market growth. However, one of the major factors that restrict the growth of smart agriculture is the heavy investment required for deployment of different component in the agriculture. In addition, smart agriculture uses different methods to deliver passive medium and nutrient solution in the plant root, which is more expensive than other agriculture methods. Moreover, farmers are not fully aware of the operational and technological benefits of complete smart agriculture farming method, which acts as one of the key restraining factors for the market. In addition, high capital investment required for adopting smart solutions in smart agriculture is a serious challenge for farmers of developing nation such as Brazil and India, which is expected to hamper the smart agriculture market growth.
The smart agriculture market is segmented on the basis of type, component, and region. By type, the market is categorized into precision farming, livestock, aquaculture, and greenhouse. By component, it is bifurcated into solution, service, and connectivity technology. By region, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Russia, Italy, Spain, and rest of Europe), Asia-Pacific (China, Japan, India, Australia & New Zealand, Korea, ASEAN, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Turkey, Saudi Arabia, and rest of LAMEA).
Precision Farming segment dominates the global market and is expected to retain its dominance throughout the forecast period.
By type, the precision farming segment led in terms of smart agriculture market share in 2019, and is expected to retain its dominance during the forecast period. Moreover, improvement in software and hardware technologies such as sensors, robotic automation, and others in the agriculture sector is boosting the precision farming demand.
Service segment is expected to grow at a highest CAGR of 11.1% during the forecast period.
By component, the solution segment led in terms of share in 2019, and is expected to retain its dominance during the smart agriculture market forecast period. Smart agriculture solution helps in enhancing the yield production by doing monitoring of water quality, air quality, nutrient & mineral quality, and others.
Asia-Pacific dominates the market and is expected to grow with a CAGR of 8.3% during the forecast period
The key players operating in the smart agriculture industry include Trimble Inc., Deere & Company, Topcon Positioning Systems, DeLaval Inc., AgEagle Aerial Systems Inc., Afimilk Ltd, Raven Industries, Inc., Ag Junction LLC., AGCO Corporation, and GEA Group.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the smart agriculture market analysis from 2019 to 2027 to identify the prevailing smart agriculture market opportunities.
- The key countries in all the major regions are mapped on the basis of market share.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis of the smart agriculture market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market industry.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global smart agriculture market trends, key players, market segments, application areas, and market growth strategies.
Smart Agriculture Market Report Highlights
Key Market Players
LUMIGROW, INC., DELAVAL INC., DEERE & COMPANY, TRIMBLE INC., TOPCON POSITIONING SYSTEMS, INC., AGEAGLE AERIAL SYSTEMS INC., AGJUNCTION INC., AFIMILK LTD., AGCO CORPORATION, RAVEN INDUSTRIES, INC.
Innovation is the key for the growth of the global smart agriculture market in terms of value sales. Smart agriculture is undergoing rapid transformation from both a service and product perspective. Business model transformation, technological disruptions, and organizational changes are all creating an exciting but challenging opportunity in the smart agriculture market. Moreover, to face the population growth in the coming years, an extra effort is needed from government, farmers, and smart agriculture product manufacturers to succeed not only in feeding people but also in increasing crop productivity in the most efficient and respectful way. To face this challenge, farmers need internet-based technology such as smartphone and connected technologies such as WiFi, Zigbee, additional wireless sensor, and low power wide area network technology.
Moreover, governments across the globe are joining hands with various different agro-processing organizations, food & beverages manufacturers, and financial institutions for the growth of sustainable agriculture initiatives. These initiatives aim at increasing efficiency of the farmers, their productivity, and provide more food security. In addition, the partnership between public-private firms in the developing nations such as China, India, and Brazil have created more revenue opportunity for the farmers, which boosts the growth of the smart agriculture market.