Home Technology Connected Agriculture Market Size, Share and Forecast to 2031

Connected Agriculture Market

Connected Agriculture Market Size, Share & Trends Analysis Report By Component (Solutions, Platforms, Services), By Application (Pre-Production Planning and Management, In-Production Planning and Management, Post-Production Planning and Management) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRTE586DR
Study Period 2019-2031 CAGR 10.4%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 15.94 Billion
Forecast Year 2031 Forecast Year Market Size USD 38.84 Billion
Largest Market North America Fastest Growing Market Asia Pacific

Market Overview

The global connected agriculture market size was valued at USD 15.94 billion in 2022 and is projected to reach USD 38.84 billion by 2031, with a CAGR of 10.4 % during the forecast period 2023–2031.

Connected farming can be described as adopting innovative technology for enhancing, managing, and controlling agricultural activities, leading to a rise in agricultural product production and quality. Digital technology advancements have made it feasible to capture and utilize vast quantities of data at low expense, which will help make farming operations more insight-driven and perhaps more productive and efficient. Connected agriculture aims to provide real-time data on soil conditions, humidity levels, and weather conditions and enable farmers, agribusinesses, fertilizer companies, and food and beverage companies to communicate with potential buyers, traders, and sellers, to optimize harvest planning. By integrating many connected agricultural solutions, farmers and companies can manage time and resources more efficiently on the farm.

Connected agriculture services help in increasing the yield rate of crop production. Several companies are providing connected agriculture services to enhance productivity in agriculture. For instance, Accenture provides the Precision Agriculture Service to help farmers increase productivity and profitability by integrating digital technologies such as the Internet of Things with big data analytics and visualization capabilities.

Market Dynamics

What are the Driving Factors for The Global Connected Agriculture Market?

Due to population growth around the world, the need for food is expanding at a rapid rate. By 2050, the global population is projected to have increased exponentially to roughly 9.6 billion. Approximately 85 million people are added to the global population each year. According to the Food and Agriculture Organization (FAO), the food production rate must double between 2014 and 2050 to keep up with population growth. The global demand for food is increasing at a rate of 2% per year; by 2050, it will be necessary to produce 70% more food than is currently produced. In addition to this challenge, farmers rely primarily on weather conditions for food production. Any unforeseen weather change harms crop productivity, causing farmers to incur losses. In many developing nations worldwide, food production and livestock rearing are hindered by environmental issues such as global warming, deforestation, etc.

Connected agricultural solutions enable farmers to use their limited resources, such as water, seeds, land area, and fertilizers, more efficiently to fulfill the rising demand for food. Connected agriculture technologies assist farmers in automating farm equipment, increasing farm produce, decreasing labor, enhancing productivity, and boosting operational efficiency. Connected agricultural technologies facilitate the optimization of farm activities to address the disparity between food production and consumption.

What are the Challenges for The Global Connected Agriculture Market?

Currently, large capital investments are required to adopt linked agriculture techniques and solutions on farms. Globally, most farmers are marginal farmers or small landholders who find it difficult to invest in such costly equipment. Connected agriculture necessitates substantial initial expenditures, efficient agricultural equipment, and skilled and knowledgeable farmers, which discourages their adoption of this technology for data collection. Due to the high expense of technology, access to the latest innovations is primarily limited to large, industrialized farms. Farmers and producers must make substantial expenditures on drones, Geographic Information Systems (GIS), and Global Positioning Systems (GPS), among others, to collect input data, variable rate technology, and satellite devices. GPS-enabled systems are expensive for navigation and mapping applications and need substantial initial investments. This constraint significantly affects the markets of growing nations such as India, China, and Brazil. Most emerging nations purchase agricultural equipment from wealthy nations, contributing to the high product price. However, several nations have begun investing in the R&D of sophisticated agricultural solutions in response to the rising need for agricultural solutions that boost farm production. In the coming years, technological advances are anticipated to reduce the cost of connected agriculture solutions, reducing this aspect's impact on the connected agriculture market.

What are the Future Opportunities for The Global Connected Agriculture Market?

Mobile phones have enabled the agriculture industry to expand its reach to diverse regions of the country and the world. Mobile technology plays a crucial role in the worldwide adoption of connected agriculture systems. According to a survey conducted by Farm Journal Media in February 2015, more than sixty percent of farmers globally are currently utilizing smartphones and tablets. Since 2009, the number of farmers using cell phones has increased rapidly, and this trend is projected to continue in the future years. The smartphone has become a new agricultural tool for farmers worldwide due to its incorporation of much agriculture-related software (apps) that are user-friendly. Thanks to mobile technology, farmers and agriculture stakeholders now have timely access to pertinent information regarding crops, production, technology, production standards, and agriculture finance. Smartphones that provide exact climate data and weather variations allow farmers to plan which crops to plant, when to harvest, etc. Experts propose using smartphones for aerial imaging and record keeping, which may be accomplished with a smartphone. Depending on acres, growers can load field information into their mobile phones and then grid it.

Farmers and small and medium-sized agribusinesses in rural places have rapid access to the market because of mobile phones. Smartphones enable small-scale farmers to connect with previously inaccessible customers or agents, giving them a competitive edge in the marketplace. Farmers can obtain information regarding commodity availability and market price through mobile devices. The agriculture-specific mobile applications provide farmers with agricultural information, enabling them to make more informed decisions.

Regional Analysis

The connected agriculture market has been segmented based on geography into North America, Europe, Asia Pacific, and LAMEA.

North America accounted for the most significant regional revenue contribution to the globally connected agriculture market in 2021. The market for connected agriculture systems in North America is anticipated to continue to be driven by the region's modern agricultural infrastructure. It is anticipated that advancements in digital technologies within the agriculture industry will boost the efficacy of farming operations in the region's nations. Increasing adoption of cutting-edge technologies such as The Internet of Things (IoT), Artificial Intelligence (AI), big data, predictive analytics, and data analytics is driving the linked agricultural market in North America. Increasing investment in the development of more advanced connected agriculture solutions by significant players in the region, such as IBM, Microsoft, AT&T, Deere & Company, Cisco Systems, Inc., Oracle Corporation, Iteris, Inc., and Trimble Navigation, has led to an increase in demand for connected agriculture solutions. Increasing government measures about implementing sustainable farming methods to reduce environmental degradation caused by water loss, chemical run-off, and CO2 emissions are significant elements in the region's increasing use of connected agriculture solutions.

During the projected period, the connected agriculture market in Asia-Pacific is anticipated to record a quick increase in revenue. During the forecast period, the market for connected agriculture in the region is anticipated to expand due to the increasing demand to boost agricultural output to feed the region's expanding population. Countries like the Philippines, Japan, China, and India, are implementing connected agriculture solutions to enhance agricultural practices, crop productivity, and quality. Increasing public-private partnerships to promote the adoption of sustainable agriculture projects to enhance food security, agricultural process efficiency, and productivity also contributes to the region's market's revenue growth. In addition, rising initiatives by governments to make digital solutions more accessible to agricultural stakeholders and farmers will continue to boost the adoption of digital agriculture services in the region's countries in the future.

Agriculture is one of the European Union's primary pillars. Europe's agricultural production is technologically advanced. The digital revolution disrupts Europe's agricultural business, enabling farmers to be more accurate, efficient, productive, and sustainable while remaining competitive. The demand for food in Africa has increased. The region's food business is anticipated to reach $1 trillion by 2031. Using Africa's current technology, the objective appears distant. In such a setting, connected agriculture provides the optimal answer for meeting food demand. African farmers will need improved yields and market access to modern equipment and techniques.

Most economies of the Middle East are entirely dependent on oil exports, making them prone to price fluctuations. Rural poverty persists in the region, with 70% of the Middle East's poor population living in rural areas. To tackle these challenges, several countries are focusing on digitalizing the agriculture sector to improve the country's economic growth. Latin America is one of the greatest exporters of foods and commodities, including coffee from Brazil and Colombia, beef from Argentina, and bananas from Ecuador. The region accounts for more than 16% of global food and commodities export. Besides, the region is one of the few parts of the world with significant land resources in countries such as Brazil and Argentina. This indicates the region's growth prospects in the connected agriculture market from 2023 to 2031.

 

Report Scope

Report Metric Details
Segmentations
By Component
  1. Solutions
  2. Platforms
  3. Services
By Application
  1. Pre-Production Planning and Management
  2. In-Production Planning and Management
  3. Post-Production Planning and Management
Company Profiles IBM Corporation, Microsoft Corporation, AT&T, Deere & Company, Oracle Corporation, Iteris Trimble Ag SAP SE Accenture Cisco Systems Inc. Decisive Farming Gamaya
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The market for connected agriculture is segmented based on components and applications.

The connected agricultural market is categorized by component into services, solutions, and platforms. In revenue, the platforms segment dominated the connected agricultural market in 2021. The platforms category covers device management, application enablement, and connection management. Increasing adoption of IoT platforms to boost efficacy and production in the agriculture industry is anticipated to drive the segment's revenue growth. Demand for device management platforms is anticipated to be driven by the rising need to monitor and remotely operate linked agriculture systems' intelligent agriculture equipment. Increasing investment by leading players in developing enhanced platforms for managing Internet of Things (IoT) devices in agriculture is anticipated to fuel the linked agriculture market. The rising need to monitor, enhance, and control farming activities and the growing need for access via connected devices are essential drivers driving the expansion of the platforms market sector. Platforms for device management give immediate notifications in the event of faults, remotely debug and resolve software problems, and display live sensor information. During the projected period, demand for connectivity management solutions is anticipated to be driven by the rising need for proper connectivity across farms to adopt linked agriculture technologies more effectively.

The connected agricultural market is categorized based on application into pre-production planning and management, in-production planning and management, and post-production planning and management. During the forecast period, it is anticipated that the segment revenue growth rate for pre-production planning and management will increase sharply. Regarding revenue share, the pre-production planning and management sector dominated the connected agricultural market in 2021. The pre-production planning and management segment consist of field mapping, crop planning, yield monitoring, weather tracking and forecasts, farm labor management, and equipment monitoring and maintenance. The increasing adoption of IoT-based technologies in agriculture to aid in weather surveillance and forecasting has been spurred by severe weather conditions in certain nations. Utilization of pre-production planning and management is driven by the desire to reduce pest and disease outbreaks and planting inefficiencies. Increasing the use of connected agriculture solutions to automate and improve the profitability of farm operations is driving market expansion. Utilization of crop planning and yield monitoring equipment and maintenance solutions is increasing due to the rising need to increase agricultural productivity to meet the rising food demand of a rapidly expanding global population, as well as to continuously monitor and remotely control intelligent agriculture devices and equipment.

Market Size By Component

Recent Developments

  • In January 2021, John Deere announced significant enhancements to its main digital product, the Operations Center, by adding a new Work Planner tool that enables farmers to optimize their work setup experience and aids operators in working faster in the field. It provides farmers with a full tool for farm management, including the capacity to set up, plan, monitor, and analyze data.
  • In March 2021, The RC550 and RC700 robot collectors for solid flooring were introduced by DeLaval to improve cow comfort and hoof care. Their unique rotational dung intake technology enables them to manage all types of manure without utilizing additional water.
  • In December 2018, IBM partnered with the agricultural company Hello Tractor. IBM hopes to develop an enhanced agricultural analytics and decision-making platform through this partnership.
  • In October 2018, Microsoft partnered with SlantRange, an industry-leading agricultural remote sensing and analytics system developer. This collaboration allowed SlantRange to deliver new aerial measurements and data solutions to the agriculture market.
  • In June 2018, The Weather Company, an IBM firm, partnered with AgroStar, one of the most prominent Indian agribusiness businesses. The alliance intends to modify traditional agricultural practices in rural areas and empower farmers to make effective decisions based on accurate information.

Top Key Players

Connected Agriculture Market Share of Key Players

IBM Corporation, Microsoft Corporation, AT&T, Deere & Company, Oracle Corporation, Iteris Trimble Ag SAP SE Accenture Cisco Systems Inc. Decisive Farming Gamaya

Frequently Asked Questions (FAQs)

What is the growth rate for the Connected Agriculture Market?
Connected Agriculture Market size will grow at approx. CAGR of 14.3% during the forecast period.
Some of the top industry players in Connected Agriculture Market are, IBM Corporation, Microsoft Corporation, AT&T, Deere & Company, Oracle Corporation, Iteris, Trimble, Ag, SAP SE, Accenture, Cisco Systems Inc., Decisive Farming, Gamaya, SatSure., etc.
Asia Pacific has held a dominant position in the Connected Agriculture Market, with the largest market share.
The Connected Agriculture Market has seen the most substantial growth rate in Europe.
The global Connected Agriculture Market report is segmented as follows: By Component, By Application


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