Smart Agriculture Market to Expand at a Remarkable Impressive CAGR During Forecast Period

Introduction

Smart agriculture is a farming method that uses information technology to manage, analyze, and identify variability on a farm to increase crop production while reducing human effort. Smart agriculture allows farmers to determine the exact quantity of nourishment crops require to improve production by accessing real-time data about weather, yields, and soil quality.

With smart agriculture systems, farmers may use advanced automation techniques to cut labor and materials costs. Smart farming approaches use sensors and monitoring equipment to help farmers make better decisions regarding water management, soil management, inventory control, and harvesting schedules.

Irrigation control, management of water resources, crop planting, and production monitoring are all examples of smart agriculture applications. The use of smart agriculture in yield monitoring will allow users to map and record agricultural output and humidity information in real-time, allowing them to assess how often the crop fared quickly.

Market Dynamics

Surging Adoption of Advanced Technologies and Internet of Things (IoT) in Agricultural Products to Drive the Smart Agriculture Market

Modern agricultural technologies, including data management software, GPS, yield mapping software (YMS), variable rate technology (VRT), and mapping software, help enhance profit growth and soil fertility while lowering farming costs and promoting sustainable agriculture. Growing business productivity through automated procedures and more great yield with lower farming costs are two important characteristics of smart agricultural technologies.

Smart agriculture techniques are intended to make agribusiness more profitable than ever before. As a result, business-minded farmers have begun to employ a variety of smart agricultural instruments to boost crop yields and profits. Thus, over the projected period, the global smart agriculture market will most likely be driven by business-oriented farmers' increasing adoption of new technology in farm products.

Farmers benefit from the expanding usage of IoT technology in agriculture by receiving real-time help through IoT applications. Traditional agriculture practices with IoT applications save time and money by reducing the time and money spent on farming resources such as land, energy, and water, allowing farmers to focus on providing high-quality food to their customers.

Farmers can respond to substantial changes in air efficiency, humidity, and weather thanks to the agricultural sector's extensive use of IoT technology. It uses various management tools and technologies, visualization, and data analytics to automate traditional farming procedures. By preserving energy and water resources through sophisticated, sustainable solutions, IoT technology in agriculture boosts farm output while cutting carbon emissions.

As a result, increased adoption of the Internet of Things (IoT) in the agriculture sector is expected to fuel global market growth throughout the forecast period.

Agritech Startups to Create Growth Opportunities

Artificial intelligence (AI) and the Internet of Things (IoT) in agriculture have increased significantly with the global pandemic. Agritech startups are bringing fresh perspectives to the table. They're using a combination of remote sensing, data analytics, IoT, and AI to provide farmers with quick solutions to their problems. These inventions aided in the establishment of technologies that allow growers to choose their marketplace and sell their commodities at higher rates within the COVID-19 limitations.

As per the Federation of Indian Chambers of Commerce and Industry (FICCI), India has around 450 Agritech companies, and the sector is growing at a rate of 25% per year. Farmers, particularly in countries like India, are held to high standards. Agricultural startups have created precision-based seeding systems. AI-based tools can help forecast weather trends and determine the optimal moment to plant the seed for more impressive results and less waste. The outbreak has provided a new chance for Agritech firms to grow and aid farmers with their problems.

Impact of COVID-19

The smart agricultural market was predicted to decline in 2020 due to the spread of COVID-19. The outbreak had a negative impact on the supply chain because some of the prominent participants in the smart agricultural business are located in the United States and China, and the outbreak the hardest hit these countries in the first half of 2020.

Major smart agricultural enterprises such as AKVA Group, The Climate Corporation, DeLaval, Ponsse, and John Deere discontinued their regular commercial activity in the first half of 2020. At the end of the second quarter of 2020 (June), companies were hit the worst when broad portions of North America and Europe were entirely shut down.

In the second half of 2020, the smart agricultural industry began to acquire traction due to new orders and contracts. The market was expected to recover in 2021 due to rising demand for equipment and automation products in various applications such as horticulture, smart greenhouses, precision forestry, precision livestock, and precision farming. As a result, demand for automation and the adoption of new technology in agriculture is expected to propel the smart agriculture market ahead.

For the global smart agriculture market, the post-pandemic period will be critical. Due to a shortage of trained farmers willing to apply sophisticated technology and the high initial cost of adoption, the market's growth is anticipated to be impeded. Factors such as the increased usage of new technologies such as AI and IoT, on the other hand, will likely continue to drive market expansion over the projection period.

Regional Insights

North America, Europe, Asia-Pacific, South America, the Middle East, and Africa make up the market's five regions. North America and Europe are the two most important markets for smart agriculture. The most prominent smart agriculture market is expected to be North America. Over the projected period, increased government operations and regulations to boost the region's agriculture business will stimulate regional demand in North America.

Europe is expected to be the second-largest smart agriculture market, with an expected market value of USD 9,701 million by 2030. Regional demand is likely to be driven by expanding support from regional authorities in Germany, France, Italy, and the United Kingdom and increased awareness among business-oriented farmers during the projection period.

The Asia-Pacific region is likely to occur as one of the fastest-growing regional markets. The growing need for aquaculture and livestock farm automation in this area is expected to fuel the expansion of the Asia-Pacific smart agriculture market. The South American market is likely to be driven by the rising investments and government support to adopt smart agriculture practices during the forecast period.

Key Highlights

• The global smart agriculture market was valued at USD 14,400 million in 2021 and is anticipated to register a CAGR of 10.80% by 2030.
• By agriculture type, the precision farming agriculture type segment is expected to reach USD 15,661 million by 2030.
• By offering, the hardware offering segment is expected to reach USD 22,211 million by 2030.
• The global smart agriculture market is geographically divided into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. North America and Europe were the two significant regional markets in 2021.

Competitive Players

1. Ag Leader Technology
2. AGCO Corporation
3. AgJunction, Inc.
4. AgEagle Aerial Systems Inc.
5. Autonomous Solutions
6. Argus Control Systems Ltd
7. BouMatic Robotic B.V.
8. CropMetrics
9. CLAAS KGaA
10. CropZilla
11. John Deere
12. DroneDeploy
13. DeLaval Inc
14. Farmers Edge Inc
15. Grownetics, Inc.
16. Granular, Inc.
17. Gamaya
18. GEA Group Aktiengesellschaft
19. Raven Industries
20. SST Development Group, Inc
21. Trimble Inc.
22. The Climate Corporation
23. Topcon

Recent Developments

• March 2021- DeLaval launched the RC550 and RC700 robot collectors, designed to improve cow comfort and, in particular, hoof condition without using water, helping to conserve water.
• December 2020- Nokia and the Vodafone India Foundation have announced new smart agriculture as a service solution that uses multiple sensors to help Indian farmers increase their production.
• November 2020- John Deere, a major player in the market of smart agriculture, has launched AutoPath, a new precision agricultural application that assists capture precise data irrespective of machine type or width.
• December 2019- CropMetrics, a leader in precision irrigation analytics and software, has partnered with The Climate Corporation to improve farm water management data communication.
• November 2019- Trimble Inc., a primary contestant in the smart agricultural sector, has introduced the GFX-350. This Android-based display can be used to operate and supervise farm auto-steering applications and provide correct results.
• January 2019- Precision Planting LLC has released the 20/20 Connect app for mobile devices. By offering diagnostic screens from their mobile devices, this application will assist farmers in becoming more efficient while planting.

Segmentation

1. By Agriculture Type
   1. Precision farming
   2. Livestock monitoring
   3. Smart greenhouse
   4. Others
2. By Offering
   1. Hardware
      1. Automation & control systems
         1. Drones
         2. Application control devices
         3. Guidance system
            1. GPS
            2. GIS
         4. Remote sensing
            1. Handheld
            2. Satellite sensing
         5. Driverless tractors
         6. Mobile devices
         7. VRT
            1. Map-based
            2. Sensor-based
         8. Wireless modules
            1. Bluetooth technology
            2. Wi-Fi technology
            3. Zigbee technology
            4. RF technology
         9. Milking robots
      2. Sensing devices
         1. Soil sensor
            1. Nutrient sensor
            2. Moisture sensor
            3. Temperature sensor
         2. Water sensors
         3. Climate sensors
         4. Others
      3. HVAC system
      4. LED grow light
      5. RFID tags & readers
   2. Software
      1. Web-based
      2. Cloud-based
   3. Services
      1. System integration & consulting
      2. Maintenance & support
      3. Managed services
         1. Data services
         2. Analytics services
         3. Farm operation services
      4. Assisted professional services
         1. Supply chain management services
         2. Climate information services
3. By Application
   1. Precision farming application
      1. Yield monitoring
         1. On-farm
         2. Off-farm
      2. Field mapping
      3. Crop scouting
      4. Weather tracking & forecasting
      5. Irrigation management
      6. Inventory management
      7. Farm labor management
   2. Livestock monitoring application
      1. Milk harvesting
      2. Breeding management
      3. Feeding management
      4. Animal comfort management
      5. Others
   3. Smart greenhouse application
      1. Water & fertilizer management
      2. HVAC management
      3. Yield monitoring
      4. Others