Smart Agriculture Market

Market Overview:

The global smart agriculture market size reached US$ 17.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 35.7 Billion by 2032, exhibiting a growth rate (CAGR) of 8.2% during 2024-2032. The rapid population growth and food security, rising need for increased productivity, escalating resource scarcity, increasing erratic weather patterns, significant technological advancements and favorable government initiatives are some of the major factors propelling the market.

Smart agriculture, also known as precision agriculture, is an advanced approach that leverages technology to enhance the efficiency and productivity of agricultural practices. It integrates various digital tools, such as sensors, drones, GPS, and data analytics, to monitor and manage crops, livestock, and land with precision. By gathering real-time data on factors like soil moisture, weather conditions, and crop health, farmers can make informed decisions to optimize irrigation, fertilization, and pest control. This not only reduces resource wastage but also improves crop yields and quality.

With a continuously expanding global population, the demand for food is increasing. Smart agriculture enables farmers to produce more efficiently and sustainably, ensuring food security for the growing population. Additionally, agricultural productivity must rise to meet the rising demand for food. Smart agriculture tools like precision planting, data analytics, and automated machinery help optimize yields and minimize waste. Other than this, scarce resources such as water, arable land, and labor emphasize the importance of efficient resource management. Smart agriculture techniques enable precise irrigation, fertilization, and pest control, conserving resources and reducing waste. Besides this, erratic weather patterns and changing climatic conditions impact crop growth and yield. Smart agriculture technologies provide real-time data on weather conditions, helping farmers make informed decisions to adapt to changing environments. In line with this, precision agriculture techniques, enabled by smart technologies, offer benefits such as reduced input costs, increased efficiency, and optimized resource utilization, which attract farmers seeking higher returns on investment. Furthermore, consumers are increasingly demanding high-quality, sustainably produced food. Smart agriculture ensures better crop management and traceability, meeting consumer preferences.

Smart Agriculture Market Trends/Drivers:

Rapid Population Growth and Food Security

Smart agriculture plays a pivotal role in addressing this challenge by enabling farmers to enhance productivity while utilizing resources efficiently. With precision agriculture techniques like variable rate seeding and precision fertilization, farmers can optimize yields and minimize wastage. By adopting technology-driven solutions such as remote sensing and data analytics, farmers gain insights into crop health and environmental conditions, allowing them to make informed decisions to maximize output. This contributes to global food security by ensuring a steady supply of quality produce to meet the needs of a growing population.

Growing Need for Increased Productivity

Smart agriculture offers tools like automated machinery and autonomous vehicles, reducing labor requirements and enhancing operational efficiency. Moreover, sensors and drones provide real-time information on crop health, enabling early detection of diseases and pests. This proactive approach to crop management minimizes losses and boosts productivity. Precision planting, another smart agriculture technique, optimizes seed placement, ensuring uniform crop growth and consistent yields. By embracing these technologies, farmers can significantly enhance productivity to meet the escalating demand for food.

Escalating Resource Scarcity

Smart agriculture addresses this concern through precision irrigation systems that deliver water precisely where and when needed. Soil moisture sensors help farmers monitor moisture levels and avoid over-irrigation, conserving water and preventing soil degradation. Additionally, precision fertilization techniques ensure nutrients are applied efficiently, minimizing waste and reducing the environmental impact. By adopting these practices, farmers can optimize resource utilization, mitigate resource scarcity, and contribute to sustainable agricultural practices that support long-term food production while safeguarding the environment.

Smart Agriculture Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global smart agriculture market report, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on agriculture type, offering, and farm size.

Breakup by Agriculture Type:

• Precision Farming
• Livestock Monitoring
• Smart Greenhouse
• Others
   

Precision farming dominates the market

The report has provided a detailed breakup and analysis of the market based on the agriculture type. This includes precision farming, livestock monitoring, smart greenhouse, and others. According to the report, precision farming represented the largest segment.

This approach leverages cutting-edge technologies such as GPS, remote sensing, and data analytics to provide farmers with detailed insights into their fields' conditions. By precisely analyzing factors like soil health, moisture levels, and crop growth, precision farming enables farmers to make informed decisions in real-time. The allure of precision farming lies in its ability to optimize resource utilization. Farmers can precisely apply water, fertilizers, and pesticides based on the actual needs of specific areas within their fields, minimizing waste and reducing environmental impact. Additionally, precision planting and harvesting techniques ensure uniform crop growth, leading to consistent yields and higher-quality produce. These benefits align well with modern agricultural challenges, including the need for increased productivity, resource conservation, and sustainable practices.

Breakup by Offering:

• Hardware
• Software
• Service
   

Hardware holds the largest share in the market

A detailed breakup and analysis of the market based on the offering has also been provided in the report. This includes hardware, software and service. According to the report, hardware accounted for the largest market share.

Hardware components such as sensors, drones, GPS devices, and automated machinery serve as the foundation for gathering critical data and executing precision-based tasks. These technologies provide tangible and essential tools that facilitate data collection, analysis, and application in agricultural operations. Farmers heavily rely on hardware to acquire accurate and real-time information about various parameters like soil moisture, temperature, crop health, and weather conditions. These insights empower them to make data-driven decisions, optimizing resource allocation and crop management strategies. Automated machinery and robotic systems streamline labor-intensive tasks, reducing operational costs and increasing efficiency.

Breakup by Farm Size:

• Small
• Medium
• Large
   

Medium size farm account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the farm size. This includes small, medium, and large. According to the report, medium represented the largest segment.

Medium-sized farms occupy a unique position, balancing scale and resources to harness the benefits of both efficiency and adaptability. Medium-sized farms often possess the resources and infrastructure necessary to adopt modern smart agriculture technologies without the complexities associated with larger operations. They can invest in precision farming equipment, such as sensors, drones, and data analytics systems, enabling them to optimize crop management and resource utilization effectively. Furthermore, medium-sized farms are well-positioned to implement technological advancements while maintaining a level of personal oversight that might be challenging for larger operations. This adaptability allows them to respond to changing conditions swiftly and make informed decisions based on real-time data.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance in the market

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America benefits from advanced infrastructure, robust technological innovation, and a strong focus on optimizing agricultural processes. In North America, a highly developed ecosystem of technology providers, research institutions, and startups facilitates the development and deployment of smart agriculture solutions. The region's farmers have access to cutting-edge technologies, including precision planting, automated machinery, and data analytics platforms, allowing them to maximize productivity and resource efficiency. Moreover, the need to address challenges posed by varying climatic conditions, labor shortages, and resource constraints drives the adoption of smart agriculture practices. Farmers in North America recognize the potential of technology to mitigate these challenges and enhance their competitiveness in a global market.

Competitive Landscape:

Major agricultural technology companies have committed substantial resources to develop and refine precision farming solutions. These efforts involve creating advanced sensors, drones, and data analytics platforms that empower farmers to make informed decisions based on real-time data. Collaborations with research institutions and universities have facilitated the development of cutting-edge technologies tailored to the needs of modern agriculture. Strategic partnerships between agricultural tech companies, equipment manufacturers, and software developers have led to integrated solutions that provide end-to-end support for farmers. These collaborations enable seamless data sharing and analysis across various platforms, promoting more comprehensive decision-making processes. Furthermore, key players have engaged in extensive awareness campaigns, workshops, and training programs to educate farmers about the benefits of smart agriculture. By demonstrating how technology can enhance productivity, optimize resource utilization, and increase profitability, these efforts have fostered greater acceptance and adoption of smart agricultural practices.

The market research report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• AG Leader Technology
• AGCO Corporation
• AgJunction Inc. (Kubota Corporation)
• CLAAS KGaA mbH
• CropMetrics LLC (CropX inc.)
• Deere & Company
• DICKEY-john
• Farmers Edge Inc.
• Gamaya
• Granular Inc. (Corteva Inc.)
• Raven Industries Inc. (CNH Industrial N.V.)
• Trimble Inc.

Recent Developments:

• Trimble Inc. recently introduced two groundbreaking displays: the GFX-100 and GFX-1260. These innovative displays have been specifically designed to cater to the demands of precision agriculture applications. With these advancements, Trimble continues to establish itself as a front-runner in the realm of agricultural technology.
• Deere & Company has recently expanded its impressive lineup by introducing three new self-propelled forage harvesters. This strategic move underscores Deere's ongoing commitment to innovation and excellence in the agricultural sector. The addition of these new self-propelled forage harvesters extends Deere's comprehensive range of cutting-edge solutions for farmers and agribusinesses.
• AGCO Corporation, a prominent figure in the agricultural equipment industry, has unveiled a strategic collaboration with Hexagon, marking a significant step toward the expansion of AGCO's factory-fit and aftermarket guidance solutions. This collaboration demonstrates AGCO's forward-looking approach to leveraging technology partnerships for the benefit of farmers and agribusinesses.

Smart Agriculture Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the smart agriculture market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global smart agriculture market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the smart agriculture industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.