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Asia Pacific Smart Agriculture Market

Asia Pacific Smart Agriculture Market Size is Expected to Reach USD 6968 Million With a CAGR of 13.05% by 2030

Published On : 02 Nov, 2022
Updated On : 07 Nov, 2022
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Market Snapshot

Base Year:
2021
Study Period:
2020-2030
CAGR:
13.05 %

Smart Agriculture is a farming method that employs information technology to manage, analyse, and identify variability on a farm in order to boost agricultural yields while minimizing human labour. By accessing real-time data about weather, yields, and soil quality, smart agriculture allows farmers to determine the exact amount of nourishment crops require to boost output. Farmers can employ advanced automation techniques to reduce labour and material costs with smart agriculture systems. Sensors and monitoring techniques are used in smart farming systems to help farmers make better decisions about water management, soil management, inventory control, and harvesting schedules. Smart agricultural applications include irrigation control, water resource management, crop planting, and production monitoring. Users of smart agriculture will be able to map and record agricultural output and humidity data in real-time, allowing them to assess the crop's performance immediately.

The Asia Pacific smart agriculture market size is expected to reach a valuation of USD 6968 million by 2030, growing at a CAGR of 13.05% during the forecast period (2022–2030). Agriculture is a critical sector for the region's development in Asia Pacific. Almost 70% of the rural population relies on agriculture as their primary source of income. Rice is the most common crop grown in Asia Pacific, and it is also the staple food crop for the majority of Asians. Nearly 90% of the world's rice is grown in this region. Tea, rubber, palm oil, cotton, jute, coconuts, and sugarcane are just a few of the plants found in Asia. Agriculture is the world's largest consumer of freshwater resources, and demand for smart agriculture systems has risen as a result of the growing need for water conservation.

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Market Dynamics

Market Driving Factors

  • The Internet of Things (IoT) is gaining popularity in agriculture: Farmers have benefitted from the expanding usage of Internet of Things (IoT) technology in agriculture by receiving real-time help through IoT applications. Traditional agriculture practices that use IoT applications save time and money by reducing the amount of time and money spent on farming resources like land, energy, and water, allowing farmers to focus on providing high-quality food to their customers. Precision farming techniques, which improve the health of soil and crops, allow organic food to be provided to a variety of end-users, using IoT-based devices in the agricultural sector minimizes the use of pesticides and fertilizers, allowing organic food to be distributed to a variety of end-users. 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 diverse 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. Farmers may stay informed about how to use information and communication technologies to maximize earnings and ensure resource conservation under varied climatic conditions as internet coverage grows in the agricultural sector. As a result, during the forecast period, the increased usage of the Internet of Things (IoT) in the agriculture sector is expected to fuel Asian Pacific market growth.
  • Rising need for water conservation: Competition for water resources is predicted to increase as a result of population expansion, urbanization, and climate change, with a particular impact on agriculture. By 2050, the world's population is predicted to reach over 10 billion people, and this population, whether urban or rural, will require food and fibre to meet its fundamental needs. Farmers, who consume the most water in the world, understand the importance of water conservation, especially in the face of a growing population and climate change, which has resulted in lengthy droughts and harsh temperatures. Agriculture now consumes three times the amount of water it did 50 years ago, and it will require an additional 19% by 2050. As we know, by using smart agriculture costs and resources used can be minimized and hence water a lot of water waste can be minimized by providing the appropriate amount of water to crops using smart agriculture which will drive the market in Asia Pacific towards growth in coming years.

Market Restraining Factors

  • Need for Continuous Internet: Smart farming has a significant disadvantage in that it necessitates an endless or constant internet connection to be successful. This means that this agricultural practice is entirely unworkable in rural communities, particularly in developing countries where mass crop production is common. Smart farming will be impossible in locations where internet connections are painfully slow. A large proportion of the population in countries like India are living in rural areas where internet connectivity is not available or not that smooth which may restrict the market of Smart Agriculture from expanding.

Key Market Opportunities

  • Agritech Start-ups are helping in the Adoption of Smart Agricultural Practices: The use of artificial intelligence (AI) and the Internet of Things (IoT) in agriculture has increased dramatically as a result of the global epidemic. Agritech start-ups 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. According to 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, face great expectations. Precision-based seeding systems have been created by agricultural start-ups. For more impressive results and less waste, AI-based tools can help forecast weather trends and determine the optimal moment to plant the seed. The outbreak has provided a new opportunities e for Agritech firms to grow and aid farmers with their problems.

Segment Overview

The market share of Asia Pacific Smart Agriculture Market is divided into three categories: agricultural type, offering, and geography.

Precision farming, smart greenhouses, animal monitoring, and other types of agriculture are all part of the smart agriculture business. Precision farming is predicted to become the region’s most popular farming method. It is expected to grow at a CAGR of 9.75% between now and 2030, reaching USD 15,661 million. Precision farming is becoming more popular due to a rising focus on on-farm efficiency and production. Precision farming has the potential to transform agriculture by increasing the efficiency and dependability of existing farming practices.

Based on product offerings, the smart agriculture sector has been divided into three categories: hardware, software, and services. The hardware offering sector is likely to lead the Asian Pacific market by 2030, with a forecasted value of USD 22,211 million and a 9.45% CAGR over the forecast period.

As the dairy industry's raw material processing and product manufacturing become more digitalized, the market for milking robots is expected to rise. As a result of automation technologies, milk quality and animal welfare have both improved. The dairy and food processing industries are expected to benefit from the growing trend of lowering labour costs and increasing productivity. Animal welfare, better herd management, cow health, and increasing milk frequency are driving demand for milking robots.

Regional Overview

Asia Pacific Smart Agriculture Market Countrywise Analysis

Regional Growth Insights Request Sample Pages

By 2030, the Asia Pacific smart agriculture market is estimated to be worth USD 6968 million, with a CAGR of 13.05% over the forecast period (2022–2030). Agriculture is a crucial area for the Asia Pacific region's development. Agriculture is the principal source of income for about 70% of the rural population. Rice is the most widely farmed crop in Asia Pacific, as well as the majority of Asians' main diet. This region produces over 90% of the world's rice. Asian plants include tea, rubber, palm oil, cotton, jute, coconuts, and sugarcane, to name a few.

China, Japan, India, Australia, and South Korea are the top producers in this field. China dominates the smart agricultural sector, and it is already a market leader in artificial intelligence and the IoT (Internet of Things). China is Asia's largest agricultural country, with abundant agricultural resources, a long history of agriculture, a tradition of intensive cultivation, and a large rural population. Other countries, such as India and Japan, are gradually expanding their desire for smart agriculture as more rural regions become involved with technology and are using it effectively.

Even the governments of Asian countries like South Korea, Australia and India are working on a few efforts to lower the costs of smart agriculture gadgets and machinery. Various learning programmes have been created to help farmers get more familiar with technology and learn how to use it in the field. As farmers and government entities get the guts to invest in smart agriculture and enhance the productivity of the agriculture sector, the market for smart agriculture is expected to explode. The rate at which China contributes to agricultural science and technology progress is a good measure of the country's agricultural modernization agenda. From 48.0% in 2005 to 59.2% in 2019, the country has seen a significant increase (Ministry of Science and Technology, China). The use of IoT devices to track the health of cattle is becoming increasingly popular in Australian agriculture. As livestock emissions are one of the most significant contributors to global warming, substantial research and trials are being conducted to determine greenhouse gas emissions.

Typhoons, isolated downpours, droughts, and other extreme weather phenomena have tended to occur with higher regularity in recent years in Japan, according to the Remote Sensing Technology Centre of Japan, necessitating a robust action plan on food price volatility and agricultural outputs. This action plan involves a variety of strategies, including the use of satellite-based remote sensing to boost crop productivity and weather forecasts. Although Internet of Things (IoT)-based agriculture is still in its infancy in India, the market for sensors is expected to grow due to the proliferation of start-ups and India's food security concerns over the forecast period.

Major Players

Some of the major players in the Asian Pacific Region (having significant market shares) are listed below:

  • Raven Industries
  • Deere & Company
  • AgJunction Inc.
  • Trimble Inc.
  • Topcon Positioning Systems
  • GEA Group Aktiengesellschaft (GeaCowScout)
  • Heliospectra AB
  • Crop metrics

Recent Developments

  • Crop metrics has signed a collaboration agreement with Bayer's digital agriculture subsidiary, The Climate Corporation, to provide improved data communication for farm water management.
  • Nokia and the Vodafone India Foundation have announced a new smart agriculture-as-a-service solution that uses multiple sensors to help Indian farmers increase their production.

Asia Pacific Smart Agriculture Market Segmentation

By Agricultural Type

  • Precision farming
  • Smart greenhouses
  • Animal monitoring
  • Other types of agriculture

By Product Offering

  • Hardware
  • Software
  • Services

 By Region

  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
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