Smart Agriculture Solution Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[230+ Pages Report] According to Facts and Factors, the global smart agriculture solution market size was valued at USD 16.98 billion in 2022 and is predicted to surpass USD 36.99 billion by the end of 2030. The smart agriculture solution industry is expected to grow by a CAGR of 10.22%.

Market Overview

Smart agriculture refers to the integration of modern technology into traditional farming practices. Smart agriculture solutions help enhance product efficiency in agriculture. Integration of IOT in agriculture promotes sustainability in farming practices. It is a big leap from traditional farming practices.

Key Insights

• As per the analysis shared by our research analyst, the global smart agriculture solution market size is estimated to grow annually at a CAGR of around 10.22% over the forecast period (2023-2030).
• In terms of revenue, the global smart agriculture solution market size was valued at around USD 16.98 billion in 2022 and is projected to reach USD 36.99 billion by 2030.
• Growing adoption of precision farming is driving the growth of the global smart agriculture solution market.
• Based on the application, the hardware segment is growing at a high rate and is projected to dominate the global market.
• Based on the offering, the livestock monitoring segment is projected to swipe the largest market share.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Growing adoption of advanced farming techniques is driving the growth of the global market.

The increasing number of global populations is a major factor propelling the growth of the global market. Farmers are struggling hard to find effective farming solutions in order to increase food production with less wastage and ensure efficient utilization of resources. Also, farmers are finding ways to integrate modern technology into traditional farming practices to come up with smart agricultural solutions and maximize their crop yield.

However, the rising trend of precision farming is also expected to positively influence the growth of the market. The involvement of drones, IoT, cloud management, software, and many other sophisticated tools is helping farmers come across challenges like supply chain issues, climate change, and others.

For instance, CropMetrics took over CropX in January 2020. The major aim of this initiative was to expand into the US market. CropX is a leading soil and agricultural analytics company.

Restraints

• High initial investments are likely to hamper the growth of the global market.

The high upfront cost of implementing smart agricultural solutions like software sensors, precision farming equipment, and others is limiting the growth of the global smart agriculture solution market. The high cost deterred the price-sensitive consumers, particularly the small and medium-size farmers.

Opportunities

• Data-driven decision-making practices are likely to foster huge opportunities in the global market.

The growing emphasis on decision support and data analytics is encouraging the growth of the smart agriculture solution industry. Farmers are now aware of smart agriculture practices, which are expected to pave a new path in the industry. Farmers are now looking forward to making an informed decision based on data analytics to better manage the resource and increase efficiency.

For instance, ASI Logistics partnered with SICK Inc. for the implementation of autonomous yard truck operations in January 2023. The company improved its groundbreaking Vehicle Automation Kit (VAK).

Challenges

• Lack of awareness is a big challenge in the global market.

Farmers lack awareness regarding the functionalities and benefits of smart agriculture technologies. This complexity of integrating different solutions is a big barrier for farmers who have no knowledge or technical expertise. Therefore, such a landscape is expected to slow down the growth trajectory of the smart agriculture solution industry.

Segmentation Analysis

The global smart agriculture solution market can be segmented into application, offering, and region.

On the basis of offering, the market can be segmented into hardware, software, and services. The hardware segment accounts for the largest share of the global smart agriculture solution market. These elements play an important role in the implementation of advanced agriculture technologies. Sensors and actuators are much in demand in the market because of their applications. Sensors help farmers measure the nutrient level, temperature, and soil moisture. Weather stations also assist in monitoring atmospheric factors like precipitation, humidity, etc.

Furthermore, crop sensors also assist farmers in crop health and growth parameters. Therefore, such a landscape is likely to boost the growth of the segment in the forthcoming years. The emergence of automation technologies and control systems is further widening the scope of the segment. Precision planting equipment includes GPS-guided planters that help farmers accurately place their seeds for the best yield.

On the other hand, the automated irrigation system has significantly revolutionized the market by delivering precise water to the sites. Autonomous vehicles and machinery integrated with advanced automation technologies are also expected to positively impact the growth trajectory of the segment. The emergence of telemetry and communication devices is also expected to foster developments in the segment.

The IoT devices offer connectivity and communication between different agriculture devices and systems. Edge computing devices, servers, routers, and gateways are some of the major farm management hardware components that help in the easy transfer of data, which can also be processed and stored for future reference.

On the basis of application, the market can be segmented into smart greenhouse applications, livestock monitoring applications, precise farming applications, and others. The livestock monitoring segment is likely to swipe a larger market area during the anticipated period. It helps farmers detect diseases, optimize feeding practices, and monitor reproductive health, which contributes to enhanced productivity.

The livestock monitoring technologies are cost-effective and reduce the need for manual labor in managing animals. The emergence of automated systems has further increased the demand in the market. This system helps in continuous monitoring, thereby helping people to act accordingly in case of any issues.

Also, the easy availability of real-time data helps people make the right decisions regarding optimizing breed practices, adjusting feed times, and several others. The ongoing advancements in sensor technology, data analytics, and connectivity also improve the adoption rate of livestock monitoring solutions in the market.

These technologies are becoming more popular among farmers because of their affordability and application sophistication. Livestock monitoring solutions help farmers track the overall well-being of animals. Therefore, such a landscape is likely to foster growth opportunities in the segment during the anticipated period.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America accounts for the largest share of the global smart agriculture solution market. The farm management software is likely to revolutionize the market. Deploying this software can help people manage their farm activities precisely and also work according to the results of predictive analytics. The cloud-based platform helps farmers with useful insights on resource utilization, crop performance, and overall profitability.

Also, the use of advanced tools like drones and unmanned aerial vehicles for precision application is further expected to positively influence the growth trajectory of the regional market in the forthcoming years.Asia Pacific is also expected to grow steadily in the smart agriculture solution industry in the upcoming years.

The high adoption rate of farm management software is expected to contribute heavily to the growth of the regional market. This software aims to offer farmers advanced tools for crop management decision-making and other resource optimization practices. Asian countries are promoting technology-driven agricultural practices to encourage better crop yields and smart agricultural practices.

For instance, AGCO Corporation collaborated with EZ-Drops in April 2021. The acquired company is an innovative agricultural equipment manufacturer that will help AGCO’s dealers in the North American region with a unique nutrient supply system

Competitive Analysis

The key players in the global smart agriculture solution market include:

• Topcon Positioning Systems
• Trimble Inc.
• Raven Industries
• GEA Group Aktiengesellschaft
• Gamaya
• Granular Inc.
• Grownetics Inc.
• Farmers Edge Inc
• DeLaval Inc
• DroneDeploy
• DICKEY-john
• Deere & Company
• CropZilla
• CLAAS KGaA mbH
• CropMetrics LLC
• BouMatic Robotic B.V.
• Argus Control Systems Ltd
• Autonomous Solutions Inc.
• AgEagle Aerial Systems Inc.
• AgJunction Inc.
• AGCO Corporation
• Ag Leader Technology

For instance, Ag Leader Technology complemented its SteerCommand portfolio with SteadySteer and SteerCommand Z2 and improved Incommand displays in November 2020.

The global smart agriculture solution market is segmented as follows:

By Offering Segment Analysis

• Hardware
• Software
• Services

By Application Segment Analysis

• Smart Greenhouse Applications
• Livestock Monitoring Applications
• Precise Farming Applications
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America