Smart Agriculture Market Size to Surpass USD 21.12 billion to Expand at a CAGR of 10% in the 2023-2029 timeframe |Lead by Increasing Adoption of Drone Technology

The market growth is attributed to supportive government initiatives, innovations and advancements in agricultural technology, expanding corporate farming, and the rising popularity of automation in agriculture.

PUNE, India, April 4, 2023 /PRNewswire/ -- Exactitude Consultancy, the market research and consulting wing of Ameliorate Digital Consultancy Private Limited has completed and published the final copy of the detailed research report on the Smart Agriculture Market.

The global smart agriculture market is expected to grow at 10% CAGR from 2023 to 2029. It is expected to reach above USD 21.12 billion by 2029 from USD 19.31 billion in 2022.

Smart agriculture holds promising potentials to help farmers earn more revenue. Potential farmers are showing great interest to pay extra money for the adoption of advanced technologies, provided they can improve efficiency and productivity. Advancements in software and hardware technologies are creating a significant change in the agricultural landscape. The proliferation of digital data, smart sensors, robotic automation, and various innovative techniques is helping farmers to adopt smart agriculture technique.

The growing acceptance for advanced technologies such as cloud and artificial intelligence (AI) in agriculture is facilitating real-time assistance to farmers. Such trends are expected to propel the smart agriculture market during the forecast period. However, lack of connected devices used in the agriculture sector creates disruptions in communication between the developer and the farmer. The fragmented agriculture sector negatively impacts the growth of the smart agriculture market. Hence, tech giants should increase focus groups and provide training to farmers in order to help them adopt smart agriculture systems in large numbers.

Access to the All-Inclusive PDF Sample of Smart Agriculture Market

Recent Developments:

• In December 2022, Orchardly, an India-based AI Agritech startup, and Fyllo—another AI and IoT-enabled agri-science platform—inked a partnership agreement to work on temperate fruits in the Indian market. Both the companies' projects provide precision agriculture IoT hardware such as precision agriculture devices, automatic weather stations, and premium agronomy services to benefit farmers of India.
• In August 2022, CLAAS and Trimble designed a next-generation precision farming system for the CLAAS tractors and forage harvesters. The new architecture of Trimble would propel customized precision agriculture system development by combining its own guidance capabilities with machine interface CLAAS into one common in-cab user experience.
• In October 2022, Trimble Inc. launched new agriculture displays, such as Trimble GFX-1060 and GFX-1260, for precision agriculture applications. These displays provide next-generation performance and connectivity for in-field operations.
• In August 2022, CropX inc. launched a continuous nitrogen leaching monitoring capability for its farm management system. This new development would track the nitrogen movement and salts in the soil.

Integration of Smartphones

• The growing adoption of various software and hardware apps in the farming industry is facilitated by the increased use of smartphones in the agricultural sector. This element contributes to the increase in smartphone demand in the agricultural industry.
• Increasing telecom operator penetration in the agricultural sector contributes to a rise in smartphone usage, which in turn helps to create extensive connections between users to offer value-added services to prospective clients. This promotes further revenue development in the market for smart agriculture.
• Using smartphones in the agricultural sector makes it possible to give users access to real-time information about crops and equipment, regardless of the farmer's actual presence.
• As a result, adoption of smartphones in the agriculture sector is likely to boost the demand for smart agriculture during the forecast period

Rising population pressure on the food supply system is driving market growth.

According to the Food and Agriculture Organization of the United Nations, the global population is expected to reach 9 billion by 2050. Thus, food demand is expected to grow at a 2% annual rate, increasing global demand for land, energy, water, and other resources. By 2050, 70% more food is expected to be produced.

Precision farming could be a long-term solution to the world's increased food demand, particularly in developing countries like India and China. It will also enable farmers to improve their efficiency and increase their output. Farmers may have to multiply their yield by a factor of ten to meet rising food demand. Precision farming tools could help optimize farm operations and increase food production while maintaining quality standards.

Rapid Internet of Things (IoT) adoption in agriculture will be a driving factor in the market's growth.

The growing use of Internet of Things (IoT) technology in agriculture assists farmers in product development monitoring by providing real-time assistance via IoT applications. In traditional agriculture practices, IoT applications reduce the amount of time and money spent on farming resources such as land, electricity, and water, allowing farmers to focus on delivering high-quality food to their customers. IoT-enabled agricultural devices reduce the use of pesticides and fertilizers by implementing precision farming techniques that improve the health of soil and crops, allowing organic food to be delivered to a wide range of end-users.

The growing use of unmanned aerial vehicles or drones in agricultural farms.

According to the Association for Unmanned Vehicle Systems International (AUVSI), a trade group that represents manufacturers and users of drones and other robotic equipment, agricultural applications will account for 80% of the commercial market for drones by 2030. Once the Federal Aviation Administration (FAA) establishes commercial use guidelines, the drone industry is expected to generate more than 100,000 jobs and nearly half a billion dollars in tax revenue in the United States by 2025, with the agriculture sector generating the most.

Report coverage & details:

The smart agriculture market key players include

• Trimble Inc.
• Deere & Company
• Topcon Positioning Systems
• DeLaval Inc.,
• AgEagle Aerial Systems Inc.
• Afimilk Ltd
• Raven Industries, Inc.
• Ag Junction LLC.
• AGCO Corporation
• GEA Group

Key Market Segments: Smart Agriculture Market

• Smart Agriculture Market by Type, 2022-2029, (USD Billion)
• Precision Farming
• Livestock
• Aquaculture
• Greenhouse

Smart Agriculture Market by Component, 2022-2029, (USD Billion)

• Solution
• Hardware
• Hvac System
• Led Grow Lights
• Valves & Pumps
• Sensors & Control Systems
• Software
• Network Management
• Smart Water Management
• Irrigation Management
• Service
• Consulting
• System Integration and Deployment
• Support And Maintenance
• Connectivity Technology
• Cellular IOT
• Lora
• Nb-IOT
• Global Navigation Satellite System (GNSS)
• Wi-Fi
• Sigfox
• Wireline
• Wireless Personal Area Network (WPAN)

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Market Dynamics

Market Drivers

• Surging Adoption of Advanced Technologies in Agricultural Products

Smart agriculture can assist producers by gathering geospatial data on planting, soil, livestock, and other inter- and intra-field data when it is utilised to its fullest potential. Farmers will be able to combat the negative impacts of climate change on crops thanks to this. Smart agriculture also gives information on the amounts of pesticides, herbicides, liquid fertilizer, and irrigation that are necessary in order to minimise resource loss.

Modern technologies, such as data management software, GPS, yield mapping software, variable rate technology (VRT), and mapping software, help increase profit growth and soil fertility, lower farming costs, and support sustainable agriculture in the production of agricultural products. Growing company productivity through automated procedures and more exceptional production with lower farming expenses are two significant benefits of smart agriculture tools.

Smart agriculture techniques are predicted to make agribusiness more lucrative than ever. As a result, farmers who are focused on making a profit have started using a variety of smart agricultural tools to increase crop yields and revenue. Therefore, the rapid adoption of cutting-edge technologies in agricultural products by business-minded farmers is expected to fuel the development of the global smart agriculture market over the course of the forecast period.

• Surging Adoption of Internet of Things (IoT) in Agriculture

IoT applications help farmers in real-time monitoring of product growth as a result of the expanding use of IoT technology in agriculture. IoT applications in conventional agriculture practises decrease the amount of time and money spent on farming resources like land, energy, and water, enabling farmers to concentrate on providing their customers with high-quality food.

IoT-based devices in the agricultural sector reduce the usage of pesticides and fertilizers by adopting precision farming techniques, which enhances the health of soil and crops, allowing organic food to be delivered to diverse end-users.

IoT technology is widely used in agriculture, which helps farmers react to significant changes in weather, humidity, and air quality. Through a variety of management tools & solutions, visualization, and data analytics, it automates traditional farming processes. Implementing IoT technology in agriculture boosts farm production while reducing carbon emissions thanks to cutting-edge sustainable technologies that conserve energy and water resources.

A growing number of farmers now have access to the internet, which helps them remain informed about how to use information and communication technologies to maximise profits and ensure resource conservation under a variety of climatic conditions. For instance, in March 2021, John Deere and Solorrow collaborated to give new site-specific software that uses variable application maps to carry out fertilising and other field activities. John Deere is a major player in the smart agriculture sector.

Thus, the growing adoption of the Internet of Things (IoT) in the agricultural sector is likely to drive the global market growth during the forecast period.

Market Restraints

• Fragmented Agriculture Industry

There are numerous small players spread throughout the agriculture industry. It is not controlled by one or a small number of powerful players. It is difficult to adopt a consistent machine-to-machine (M2M) solution because of the industry's fragmentation. Inefficient input and resource dispersal brought on by land fragmentation results in high costs. Deploying smart farming methods in dispersed lands requires time, money, and resources because it is difficult to manage, monitor, and collect data from dispersed farms. As a result, it will be difficult for farmers to profit from scale in M2M systems.

Future Key Opportunities

• Agritech Startups Increased the Adoption of Smart Agricultural Practices

With the worldwide pandemic, artificial intelligence (AI) and the Internet of Things (IoT) have become increasingly common in agriculture. New concepts are being brought to the table by agritech companies. To quickly address producers' problems, they are fusing remote sensing, data analytics, IoT, and AI technologies. These inventions helped build systems that allow growers to select their market and offer their products at higher prices during the COVID-19 restrictions.

According to the Federation of Indian Chambers of Commerce and Industry (FICCI), there are almost 450 agritech companies in India, and the industry is growing at a 25% annual rate. Particularly in countries like India, farmers must meet high standards. Precision-based seeding techniques have been created by agricultural start-ups. For more remarkable results and less waste, AI-based programmes can help predict weather patterns and choose the ideal time to plant the seed. The outbreak has created a new chance for agritech companies to grow and help farmers with their problems.

Emerging Key Trends

• Big Data and Analytics

Massive amounts of farm data are created every day, none of which is helpful unless examined. This information is transformed into valuable information using big data and analytics techniques. The upcoming farming season is determined using data on crop diseases, weather predictions, agricultural prices, irrigation, land use, crop area, crop output, and crop projections. Analytical tools use data on weather events, agricultural machinery, water cycles, crop quality, and harvest quantity to gather information relevant to farming activities.

This aids in the discovery of patterns and linkages that could otherwise go undetected. To assist farmers in maximising the value of their field data, many companies are developing tools for farm analytics. Analytical data, for instance, enables farmers to comprehend the need for fertilizer, soil acidity and alkalinity, soil nutrient levels, and other characteristics in order to make the best choices for their harvests.

For instance, the Dutch company AgriData Innovations makes it simpler to gather, examine, and visualise farm data, especially data related to greenhouses. Software for data transfer and control of embedded devices is produced by ADI. To help producers make better choices, they specialise in compartmentalising data from an image to a particular crop leaf. Additionally, the business evaluates crop health, leaf size, and other elements using neural networks and picture processing. They assist greenhouses in enhancing their general production and operations through data analytics and visualisation insights.

Regional Analysis          

The North America region witnessed a major 37% share. In order to grow crops more effectively, the agricultural sector in North America has embraced digital technologies that go beyond conventional farm equipment and services. Over the forecast period, the smart agriculture market is anticipated to rise primarily as a result of government initiatives to improve agriculture methods in the region.

Country Analysis

Germany

Germany's smart agriculture market size was valued at USD 5.15 billion in 2022 and is expected to reach USD 7.78 billion by 2029, at a CAGR of 5.3% from 2023 to 2029. The country's R&D facilities as well as the pressing need to increase productivity were factors that led to the market's expansion. These factors included diminishing farm numbers, farm consolidations, and growing animal herd sizes.

China

China smart agriculture market size was valued at USD 1.16 billion in 2022 and is expected to reach USD 1.72 billion by 2029, at a CAGR of 5.1% from 2023 to 2029. The market for smart agriculture in China is anticipated to expand quickly and sustainably as a result of rising demand for contemporary agricultural machinery and ongoing R&D and deployment of new technologies.

India

India's smart agriculture market size was valued at USD 0.98 billion in 2022 and is expected to reach USD 1.57 billion by 2029, at a CAGR of 6.1% from 2023 to 2029. A National Association of Software and Services Companies report from 2019 claimed that there were more than 450 tech companies in India based on argi (NASSCOM).

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