Smart Agriculture Market

According to Stratistics MRC, the Global Smart Agriculture Market is accounted for $20.3 billion in 2022 and is expected to reach $47.9 billion by 2028 growing at a CAGR of 15.4% during the forecast period. Smart agriculture is a farming strategy that employs information technology to manage, analyse, and identify variability on a farm in order to maximise crop yield while minimising human work. Smart agriculture enables farmers to identify the exact amount of nourishment crops require to boost production by accessing real-time data about weather, yields, and soil quality. Farmers can employ advanced automation techniques to reduce labour and material costs with smart agriculture systems. Sensors and monitoring equipment are used in smart farming systems to help farmers make better decisions about water management, soil management, inventory control, and harvesting schedules.

According to a report published by the Food and Agriculture Organization, an Italy-based United Nations agency that provides information and support for sustainable agriculture, in 2021, acute food insecurity at crisis or worse levels was faced by almost 193 million people in 53 countries or territories (IPC/CH Phases 3-5), an increase of over 40 million people.



Market Dynamics:

Driver:

Surging adoption of Internet of Things (IoT) in agriculture

The expanding usage of Internet of Things (IoT) technology in agriculture assists farmers in product development monitoring by providing real-time help via IoT applications. IoT applications in traditional agriculture operations lower the amount of time and money spent on farming resources such as land, energy, and water, allowing farmers to focus on delivering high-quality food to their customers. Using IoT technology in agriculture enhances farm output while cutting carbon emissions through sophisticated sustainable solutions that conserve energy and water resources. As a result, the increased usage of the Internet of Things (IoT) in agriculture is expected to fuel global market growth during the forecast period.

Restraint:

Fragmented agriculture industry

Agriculture is a fragmented industry with a high number of tiny companies. It is not dominated by a single or a few major players. Implementing a standardised machine-to-machine (M2M) solution is difficult due to industrial fragmentation. Because of land fragmentation, input and resource distribution are inefficient, resulting in high costs. Because administering, supervising, and getting data from distributed farms is difficult, applying smart farming practises across scattered areas takes time, money, and resources. As a result, farmers will find it difficult to reap the benefits of scale for M2M systems.

Opportunity:

Agritech startups increased the adoption of smart agricultural practices

With the global pandemic, the use of artificial intelligence (AI) and the Internet of Things (IoT) in agriculture has increased significantly. Agritech startups are bringing fresh perspectives to the table. They are merging remote sensing, data analytics, Internet of Things (IoT), and artificial intelligence (AI) technology to provide farmers with quick solutions to their problems. During the COVID-19 restrictions, these developments aided in the development of technologies that allow producers to select their markets and sell their commodities at greater prices. There are almost 450 Agritech firms in India, according to the Federation of Indian Chambers of Commerce and Industry (FICCI), and the sector is developing at a rate of 25% per year.

Threat:

Livestock farming increasing environmental concerns and global warming

Cattle production accounts for 14-15% of the man-made greenhouse-gas emissions that are endangering the world. Livestock manure can interrupt the nitrogen cycle or contaminate streams. Livestock farming has a significant environmental impact and has a negative impact on the climate. It also contributes to land and water damage, biodiversity loss, acid rain, coral reef deterioration, and deforestation. The livestock industry already consumes approximately 10% of worldwide agricultural land and 8% of total accessible freshwater. It also contributes 15% of global CO2 emissions and is significantly responsible for deforestation and biodiversity loss.

Covid-19 Impact

The COVID-19 pandemic has a moderate impact on the growth of the global smart agriculture sector. Sales of food grains and dairy products increased and decreased for market participants in the smart agriculture sector. The disruptions of the supply chain and trade restrictions have hampered the growth of the global smart agriculture market. On the other hand, strict government laws surrounding food safety and security had a favourable impact on the growth of the worldwide smart agriculture industry.

The smart greenhouse segment is expected to be the largest during the forecast period

The smart greenhouse segment is estimated to have a lucrative growth, due to the expanding requirement for well-developed irrigation facilities and growing environmental concerns. Water and fertiliser management, HVAC control, yield monitoring, and other applications are examples of smart greenhouse applications. The primary applications of smart greenhouses are to give proper heating and ventilation to crops in the face of increased environmental concerns, which also drives the growth of the smart agriculture segment market.

The software segment is expected to have the highest CAGR during the forecast period

The software segment is anticipated to witness the fastest CAGR growth during the forecast period. The segment's expansion is being driven by increasing technical advancements and the adoption of novel technologies. The software deployed in smart agriculture devices and equipment is cloud and web based. These programmes assist farmers and livestock owners with data collecting, tracking, and monitoring. As a result, the software segment in the smart agriculture industry is rapidly expanding.

Region with highest share:

North America is projected to hold the largest market share during the forecast period. Increasing government initiatives and regulations to improve the region's agriculture business are predicted to fuel regional demand in North America over the forecast period. The North America Climate Smart Agriculture Alliance (NACSAA) is a platform for teaching and equipping cultivators for long-term agricultural productivity. It was formed by a coalition of agricultural groups. Given the growing concern for water conservation, governments in North America are aggressively giving incentives to expand the uses of smart irrigation. For example, the state of California has offered a rebate on smart controllers.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period. Although smart farming is still in its early stages in this region, expanding government backing and growing cultivator awareness are likely to drive regional demand during the projection period. In Japan, for example, the Ministry of Agriculture has provided funding for the development of precision agriculture. Farmers' associations and community-based organisations in each country play an important role in promoting sustainable agriculture.



Key players in the market

Some of the key players profiled in the Smart Agriculture Market include AGCO Corporation, Deere & Company, CropMetrics LLC, Gamaya, DeLaval Inc, BouMatic Robotic B.V., DICKEY-john, Farmers Edge Inc, AgJunction, Inc., Ag Leader Technology, Granular, Inc., DroneDeploy, Autonomous Solutions, Inc., CropZilla, AgEagle Aerial Systems Inc., CLAAS KGaA mbH, Grownetics, Inc. and Argus Control Systems Ltd

Key Developments:

In April 2021, AGCO Corporation, in a strategic partnership with EZ-Drops, an innovative agricultural equipment manufacturer, to provide AGCO’s dealers in North America with access to a new nutrient supply system. The nutrient application system is available at AGCO’s RoGator dealers with customized configurations. This system will help farmers to reduce excess spraying of nitrogen, resulting in decreased farm profitability.

In November 2020, AG Leader Technology improved its InCommand displays and expanded its SteerCommand product portfolio to include built in house SteerCommand Z2 and SteadySteer. End users can use a single use interface to steer and operate any farming equipment with these items.

Agriculture Types Covered:
• Precision Farming
• Smart Greenhouse
• Precision Forestry
• Livestock Monitoring
• Fish Farming
• Precision Aquaculture
• Other Agriculture Types

Farm Sizes Covered:
• Large
• Small
• Medium

Offerings Covered:
• Hardware
• Software
• Services
• Sensing Devices

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances