Description

The global smart agriculture market was valued at USD 15,390.2 million in 2020 to USD 29,234.6 million by 2027, at a CAGR of 9.7% from 2021 to 2027. Agriculture is one of the most important activities in most countries across the globe. It has evolved from a manual to a technology-based occupation in every aspect. Moreover, smart agriculture services for farmers and land managers enable them better to manage the risks and impacts of climate change and undertake actions. Moreover, smart agriculture services help farmers decide the next steps to take with their farm operation and how technology provides data for better crop production at a low cost. Furthermore, services like consulting, support & maintenance, and others provide accuracy and precision, which are essential aspects of agriculture. Thus, increased benefits for farmers and land managers to mitigate the risks and provide better crop production technology further boost the market's growth.

There is an increase in the adoption of smartphones and other mobile devices among the farmers, as these provide the farmers with the latest development in agriculture. Also, farmers depend on broadband and other wireless technologies to catch the latest news in their field of interest and participate in practical knowledge-sharing initiatives in the agriculture industry. Due to the widespread internet, agriculture resources are available in a wide range of local languages, which help farmers create awareness of the agriculture industry skills and help in boosting the growth of the smart agriculture market.

Vertical farming is a revolutionary approach used to produce food vertically stacked layers such as a skyscraper, used warehouse, or shipping container. It facilitates a huge quantity of nutritious and quality fresh food without relying on favorable weather, high water usage, skilled labor, and soil fertility. Furthermore, there is an increase in the demand for vertical farming, owing to different factors such as optimum use of vertical space, balanced energy utilization, and growing urban population, which requires organic food. In addition, the surge in the adoption of technology-driven vertical farming in developing countries is expected to provide a lucrative opportunity for market growth. Moreover, an increase in population leads to a rise in the demand-supply gap for food. Thus, the need for alternative farming techniques such as vertical farming is expected to grow in the near future.

Global Smart Agriculture Market Dynamics

Drivers: Ease of crop monitoring and harvesting

The technologies evolved in smart agriculture are used in remote research stations and refugee camps in flooded or earthquake-affected areas. In such cases, various growth mechanisms used in agriculture help for the artificial growth of the crop in a controlled environment. Moreover, the use of the Internet of Things in components used in agriculture reduces human intervention and tracks the growth of the crop. This, in turn, reduces labor costs and material wastage. Furthermore, farmers adopt smart agriculture to maintain, monitor and control proper soil moisture for better plant growth, quality, and overall yield, which is the primary factor driving the market's growth.

Restraints: Lack of skilled workforce to operate smart agricultural technologies

In developing nations like India, Brazil, and China, despite the technological advancement, there is less attention toward smart agriculture. Moreover, the current condition of agriculture is not satisfactory to produce maximum crop because of lack of skilled workforce and awareness among farmers regarding smart agriculture technology. In addition, experienced farmers are not ready to do farming and are moving toward metro cities for a job. Furthermore, no clear and unambiguous direction is available regarding financial and technical support from the Centre to the Panchayat levels, which can provide complete guidance or knowledge of using smart agriculture tools. Hence, the lack of technical support and awareness among farmers is restricting the growth of the smart agriculture market.

Opportunities: Rise in adoption of vertical farming

Vertical farming is a revolutionary approach used to produce food vertically stacked layers such as a skyscraper, used warehouse, or shipping container. It facilitates a huge quantity of nutritious and quality fresh food without relying on favorable weather, high water usage, skilled labor, and high soil fertility. Furthermore, there is an increase in the demand for vertical farming, owing to different factors such as optimum use of vertical space, balanced energy utilization, and growth in urban population, which requires organic food. In addition, a surge in the adoption of technology-driven vertical farming in developing countries is expected to provide a lucrative opportunity for market growth. Moreover, an increase in population leads to a rise in the demand-supply gap for food. Thus, the need for alternative farming techniques such as vertical farming is expected to grow in the near future.

Scope of the Report

The study categorizes the smart agriculture market based on type, component, and region.

By Type Outlook (Sales, USD Million, 2017-2027)

• Precision Farming
• Livestock
• Aquaculture
• Greenhouse

By Component Outlook (Sales, USD Million, 2017-2027)

• Software
• Service Type
• Connectivity Technology Type

By Region Outlook (Sales, USD Million, 2017-2027)

• North America (US, Canada, Mexico)
• South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
• Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
• The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)

Precision farming, by type segment, is accounted for the largest market share

By type, the smart agriculture market is divided into precision farming, livestock, aquaculture, and greenhouse. The precision farming segment is anticipated to account for the highest revenue in 2027. Precision farming, also known as satellite farming, is a farming management concept based on observing, measuring, and responding to inter and intra-field variability in crops. Moreover, precision farming is an approach for farm management that uses information technology to ensure that crops and soil receive exactly what they need for optimum health and productivity.

Precision farming is experiencing a rapid transformation from both a service and product perspective. The business model transformation, technological disruptions, and organizational changes create a thrilling but challenging opportunity. Moreover, software and hardware technology improvements are opening a new chapter in 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 precision farming. Thus, the increase in the revolution of technology in precision farming drives the growth of the global smart agriculture market in terms of value sales.

North America accounts for the highest CAGR during the forecast period in the smart agriculture market

Based on region, the global smart agriculture market has been segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. North America has a growth rate of 12.1% and a revenue share of 22.94% globally during the forecast period.

The North America smart agriculture market is studied across the U.S., Canada, and Mexico. In terms of macro-economic factors, the U.S. is the largest economy globally in terms of GDP, with greater flexibility than Western Europe's business. Furthermore, a rise in demand for smart farming is anticipated to generate growth opportunities for the market players in several developed economies in North America. In addition, the market is set to grow in this region, owing to a large number of established players and a rise in government initiatives for smart agriculture across the region. The increase in population and improved lifestyle are the key factors that drive the growth of the smart agriculture market. An increase in purchasing power in this region majorly boosts the sale of smart agriculture products in this region. In addition, technological advancement in crop production and surge in production of hybrid crops are expected to provide lucrative opportunities for market growth. Furthermore, high expenditure on premium quality smart agriculture products is due to high per capita income and ongoing trend among farmers for using hi-tech technology in farming.

Key Market Players

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.

Recent Developments

• In January 2019, the Applied Technology segment of Raven acquired the assets of AgSync, Inc., an agriculture logistics software company. This acquisition enhanced the division's Slingshot platform by delivering a logistics solution for ag retailers, custom applicators, and enterprise farms.
• In July 2018, Deere & Company acquired PLA, a privately-held manufacturer of sprayers, planters, and specialty products for agriculture. PLA is based in Argentina, manufacturing facilities in Las Rosas, Argentina, and Canoas, Brazil.
• In October 2020, AgEagle Aerial Systems Inc. entered into a two-year exclusive contract manufacturing agreement with Valqari, LLC to produce Valqari's Drone Delivery Station.
• In February 2019, AgJunction Inc. entered into a framework development agreement with Mahindra & Mahindra Ltd. Under the agreement, the parties will jointly prepare statements of work for future development products that will outline specific deliverables and detailed commercial terms.

Key Issues Addressed

• What is the market size by various segmentation of the smart agriculture by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the smart agriculture market?
• What are the key opportunities and trends for manufacturers involved in the smart agriculture supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of smart agriculture in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.