Europe Smart Agriculture Market

Market Overview

Smart Agriculture is a farming technique that uses information technology to manage, analyse, and identify variability on a farm to increase agricultural yields while reducing human labour. Smart agriculture lets farmers estimate the exact quantity of nourishment crops require to boost output by accessing real-time data about weather, yields, and soil quality. With smart agriculture systems, farmers can use advanced automation techniques to cut labour and material expenses. Smart farming systems employ sensors and monitoring technology to assist farmers in making better decisions about water management, soil management, inventory control, and harvesting schedules. Irrigation control, water resource management, crop planting, and production monitoring are examples of smart agricultural applications. Smart agriculture will allow users to map and record agricultural output and humidity data in real-time, allowing them to quickly assess how the crop performed.

The Europe smart agriculture market is estimated to reach USD 9916 million by 2030, increasing at a CAGR of 12.02 % over the forecast period (2022–2030). After North America, Europe is predicted to be the second-largest smart agriculture market. Regional demand for the market is expected to be driven by expanding support from regional authorities in Germany, France, Italy, and the United Kingdom, as well as increased awareness among business-oriented farmers during the projection period.

Market Dynamics

Market Driving Factors

• Reduced Energy Consumption and Cost Effectiveness: As a result of the more precise and resource-efficient approach of the software, the introduction of innovative farm management approaches has resulted in lower energy usage and overall cost-effective operations. As a result of the growing preference for smart farming solutions that are more convenient than traditional ways, the smart farming industry is expected to rise. The farmers are getting same productivity with reduced input cost and energy and this is expected to drive the industry.

• Adoption of Advanced Technologies in Agricultural Products is on the Rise: Smart agriculture, when used to its full potential, can help farmers resist the negative effects of climate change on crops by collecting geospatial data on planting, soil, livestock, and other inter- and intra-field data. Smart agriculture also provides information on how much pesticides, herbicides, liquid fertiliser, and irrigation are required, reducing waste. 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 remarkable produce at 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. As a result, during the projected period, the European smart agriculture market will most likely be driven by business-oriented farmers' increasing adoption of new technology in agricultural products.

Market Restraining Factors

• Lack of Technical Awareness and High Initial Investments: According to the research, a lack of understanding is preventing many farmers from investing in new agricultural technologies. The second most common explanation for respondents' limitations was a lack of financial resources, followed by uncertainty about the future and supply chain issues. Farmers must be trained on how to use Apps and technologies in order for Smart Agriculture to be more widely adopted as many of them are not acquainted with newer technologies and there exists digital illiteracy among many of them. Also, the initial investments are restricting many of them to adopt Smart Agriculture processes in

Key Market Opportunities

• Agritech Start-ups Have Helped to Increase 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. 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 chance for Agritech firms in Europe to grow and aid farmers with their problems.

Regional Analysis

In Europe smart agriculture market is expected to reach USD 9916 million by 2030, growing at a CAGR of 12.02% from 2022 to 2030. Europe is expected to be the second-largest smart agricultural market after North America. Increasing assistance from regional authorities in Germany, France, Italy, and the United Kingdom, as well as improved awareness among business-oriented farmers, are likely to drive regional demand for the market during the projection period.

Germany, the United Kingdom, France, Italy, Spain, the Netherlands, Poland, and the Czech Republic are the primary countries in the region with a large portion of the smart farming market. Germany brought in the most money out of all the countries. The tremendous expansion in the German market was partly attributable to the country's agricultural producers' rapid adoption of new technologies. The country's considerable R&D operations, as well as the urgent need to boost productivity due to the declining number of farms, farm consolidation, and increasing animal herd sizes, all contributed to the market's rise.

 Countries such as the Netherlands, Czech Republic, Poland, and Spain, on the other hand, are expected to have the quickest market growth during the forecast period. As the growing urban population, the growing market penetration of internet in farm management, and favorable government investments, these countries have a lot of room for market development.

Increased urbanization in countries like Poland and the Czech Republic, as well as improved quality of life due to high-income levels and increased demand for fresh crop produce and animal feed, are driving up crop protection demand. Other factors include the scarcity of natural resources such as fresh water and arable land, as well as declining crop productivity patterns. As a result, prominent agricultural corporations have been encouraged to implement new farming practises into the agricultural sector in order to increase farm output.

Segmental Analysis

The Europe smart agriculture market share has been broken down into three categories: agricultural type, offering, and geography.

The smart agriculture industry includes precision farming, smart greenhouses, animal monitoring, and other sorts of agriculture. Precision farming is expected to become the most common farming practice on the planet. Between now and 2030, it is predicted to increase at a CAGR of 9.75%, reaching USD 15,661 million. The rise of precision farming can be ascribed to a growing focus on on-farm efficiency and production. Precision farming technology has the potential to revolutionise agriculture by improving the efficiency and reliability of traditional farming methods.

The smart agricultural sector has been classified into three groups based on product offerings: hardware, software, and services. With an anticipated value of USD 22,211 million by 2030, the hardware offering sector is expected to lead the European market, growing at a 9.45% CAGR over the forecast period.

The market for milking robots is predicted to grow as the dairy industry's raw material production and product manufacture becomes more digitalized. Milk quality and animal welfare have both improved as a result of automation technologies. The dairy and food processing industries are projected to profit from the growing drive to cut labour costs and improve productivity. Demand for milking robots is being driven by animal welfare, better herd management, cow health, and increased milk frequency.

Recent Developments

• Precision farming is a conceivable agricultural approach that eco-schemes could promote in the post-2022 Common Agricultural Policy, according to the European Commission.
• In 2021- DE Laval launched the RC550 and RC700 robot collectors, designed to improve cow comfort and, in particular, hoof condition without using water, helping to conserve water.