Smart Agriculture Market Growth Analysis | 2023-2029

Market Insights

The smart agriculture market was estimated at USD 14.56 billion in 2022 and is likely to grow at a CAGR of 10.5% during 2023-2029 to reach USD 29.34 billion in 2029.

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Market Dynamics

Introduction 

Smart agriculture, also known as precision agriculture, is an advanced farming technique that utilizes modern technologies to increase crop yields, optimize farm management, and reduce waste. It involves the use of sensors, drones, GPS, and other Internet of Things (IoT) devices to monitor soil conditions, weather patterns, and crop growth, allowing farmers to make data-driven decisions and improve overall efficiency. Smart agriculture incorporates various approaches such as precision farming, livestock monitoring, automated farming, precision aquaculture, precision forestry, and smart greenhouses.

Market Drivers

The smart agriculture market is emerging fast because of the increasing need for environmentally smart solutions to food security through farming. Through the use of loT sensors, drones, and Al to analyze data gathered, the traditional type of farming is experiencing a massive transformation in terms of production, consumption of inputs, and quality of soil. Others are crop health monitoring using sensors, a technique for efficient watering crops, and determination of weather conditions. Machine-formed agriculture like artificial tractors and robotic harvesters may cut down on the expenses of employing people and decrease the adverse effects on the environment. Smart farming, or "agritech,” gives farmers a range of information to make better, informed decisions, thus improving yields. The source identifies the rapid market growth factors in the global population growth, food supply system pressure, and the growing application of new technologies in farming.

Driver: Rising adoption of IoT, ROVs, and Al in aquaculture farming

The global aquaculture industry has seen significant advancements in tools, techniques, and technologies, driven by the growing demand for protein-rich diets. This has led aquaculture farm owners to adopt advanced technologies like IoT, machine learning, ROVS, AI, automatic feeders, and acoustic telemetry tracking systems. These technologies increase production, improve efficiency, minimize resource wastage, and improve accuracy, precision, and repeatability, resulting in high profitability for farm owners.

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Key Players

The following are the key players in the smart agriculture market (arranged alphabetically)

• Akva
• Antelliq (Subsidiary of Merck & Co., Inc.)
• Afimilk
• Abaco Group
• Delaval
• Heliospectra
• Innovasea Systems
• John Deere
• Lumigrow
• Trimble
• Topcon Positioning Systems

Note: The above list does not necessarily include all the top players in the market.

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Segment Analysis

By Offering Type

"The software segment is expected to experience the highest growth rate."

Based on offerings, the software segment is expected to experience the highest growth rate during the forecast period, followed by the hardware segment, which includes automation & control systems, HVAC systems, LED grow lights, RFID tags, and sensing devices. Automation & control systems are further segmented into application control devices, milking robots, guidance systems, and drones.

The dairy & food industry is expected to see a surge in demand for milking robots due to the increasing automation of raw material production and product manufacturing. Automation technology has improved milk quality and animal welfare, and the need to reduce labor costs and improve productivity is expected to boost profitability.

By Agriculture Type

"Precision farming holds the largest market share in the smart agriculture market." 

Precision farming holds the largest market share in the smart agriculture market during the forecast period. The primary factor driving the growth of the precision farming market is the strong focus of farmers on improving farm efficiency and increasing crop productivity in response to the growing global population. This growing emphasis on farm efficiency and productivity accounts for a significant portion of the market's overall share.

The adoption of precision farming tools has the potential to revolutionize traditional agricultural practices, making them more efficient and predictable. The precision farming market is currently in a growth phase and is expected to continue expanding due to the increasing adoption of technologies such as global positioning systems (GPS), guidance technology, and remote sensing technology by farmers and growers. The high focus of farmers on improving farm efficiency and increasing crop productivity in response to the growing global population is the primary driver of the market's growth.

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By Farm Size Type

"Small-sized farms to adopt farm automation and other modern technologies at the highest rate."

Small-sized farms to adopt farm automation and other modern technologies at the highest rate in the upcoming years. Small farms, which are defined as farms with less than 100 acres, often lack access to essential precision farming technologies, including yield monitoring, guidance, and variable rate technologies. However, government initiatives and the rise of startups that understand the importance of adopting advanced farming technologies to increase crop yields are driving demand for precision farming technologies.

For instance, in July 2021, ELAI AgriTech, a Bengaluru-based startup, began providing free precision agriculture advice to farmers, including information on weather updates to determine when to irrigate fields, measures to combat diseases and pest attacks, and nutrition measurement. Such initiatives offer opportunities for small farm owners to adopt precision farming technologies.

Regional Insights

"Asia Pacific to meet the increasing demand for food by the fast-increasing population."

Smart agriculture is to grow at a higher rate in the Asia Pacific to meet the increasing demand for food by the fast-increasing population. The Asia Pacific region is a burgeoning market for smart agriculture, with the market in its early stages of adoption. The market in this region is expected to grow at a double-digit rate during the forecast period. India, China, and Japan have already embraced this technology and hold a major share of the smart agriculture market. However, there are significant opportunities yet to be tapped in other Asian countries.

The adoption of smart agriculture technologies in the Asia Pacific is driven by several factors, including the growing demand for food, increasing pressure on farmers to improve yields with limited available resources, and rising requirements to protect crops from unexpected climatic changes.

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Recent Developments

• On 8th March 2024, the World Bank has approved an additional $40 million in grants for the Accelerating Impacts of CGIAR Climate Research for Africa (AICCRA) project, enhancing climate-smart agriculture (CSA). This funding will support the validation and dissemination of CSA technologies, improving farmers' resilience to climate change and food security. In this significant move towards smart agriculture, the World Bank's $40 million funding for AICCRA will empower farmers in six African countries namely – Ethiopia, Ghana, Kenya, Mali, Senegal, and Zambia, with innovative climate-smart technologies. This initiative aims to bolster food security and resilience against climate change impacts across diverse agro-ecological zones.
• On 18th November 2024, the Agriculture Innovation Mission for Climate (AIM for Climate), the largest global coalition at the intersection of food security and climate change, spearheaded by the United Arab Emirates and the United States, announced nearly double the investments, partners, and Innovation Sprints in transformative climate-smart agriculture and food systems innovation. Investments have surged from $17 billion to an unprecedented $29.2 billion, over a 2020 baseline. These initiatives focus on one or more of AIM for Climate’s focal areas: Smallholder Farmers in Low- and Middle-Income Countries; Emerging Technologies; Agroecological Research; and Methane Reduction.

Research Methodology

• This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s smart agriculture market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The smart agriculture market is segmented into the following categories:

 By Offering Type 

• Hardware
• Software
• Services

By Agriculture Type 

• Precision Farming
• Livestock Monitoring
• Precision Aquaculture
• Precision Forestry
• Smart Greenhouse
• Others

By Farm Size 

• Small Farms
• Medium Farms
• Large Farms 

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com