LAMEA Smart Agriculture Market

Market Overview

The LAMEA smart agriculture market size is expected to reach a valuation of USD 3667 million by 2030, growing at a CAGR of 10.80% during the forecast period (2022–2030).

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 minimising 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 technology 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.

For Middle East and Africa, smart agriculture market size is expected to reach a valuation of USD 1275 million by 2030, growing at a CAGR of 9.20 % during the forecast period (2022–2030). The Middle East and Africa region contains some of the most well-developed mobile marketplaces in the world, making it ideal for smart agriculture. Smart agriculture is growing in the agricultural industry as the usage of cell phones among farmers becomes more popular. With smart agriculture, Latin America is likely to see a surge in the agriculture sector. The market value of drones for agricultural application is predicted to increase with substantial profits by the forecasted time, as smart agriculture expands its expansion and reaches out to a bigger number of farmers.

Market Dynamics

Market Driving Factors

• Cost Effectiveness and Energy Savings: The implementation of novel farm management systems has resulted in lower energy consumption and overall cost-effective operations as a result of the software's more precise and resource-efficient approach. The smart farming business is predicted to increase as a result of the growing preference for smart farming solutions that are more convenient than traditional methods. Farmers are achieving the same level of output while spending less on inputs and energy, which is projected to propel the industry forward.

• Increased demand for water conservation: As a result of population growth, urbanisation, and climate change, competition for water resources is expected to intensify, with a particular impact on agriculture. The global population is expected to exceed 10 billion people by 2050, and this population, whether urban or rural, will require food and fibre to meet its basic needs. Farmers, who use the most water in the world, recognise the necessity of water conservation, especially in light of a growing population and climate change, which has resulted in prolonged droughts and extreme heat. Agriculture currently uses three times as much water as it did 50 years ago, and by 2050, it will need an extra 19%. As we all know, smart agriculture can save costs and resources consumed, and as a result, a lot of water waste may be reduced by giving suitable amounts of water to crops, which will push the industry in LAMEA to increase in the next years.

Market Restraining Factors

• Scattered Agriculture Industry: Agriculture is a fragmented industry with a lot of small businesses. It isn't dominated by a single or small number of major players. Due to the industrial fragmentation in the LAMEA region, implementing a common machine-to-machine (M2M) solution is problematic. Land fragmentation causes inefficient input and resource distribution, resulting in high costs. Because administering, overseeing, and gathering data from distant farms is difficult, using smart agricultural practises in dispersed locations involves time, money, and resources. As a result, farmers will have a difficult time reaping the benefits of scale for M2M systems.

Key Market Opportunities

• Agriculture's Emerging Big Data and Analytics: Massive amounts of farm data are created every day, none of which is usable unless it is analysed. Using big data and analytics approaches, this data is converted into useful information. Crop disease statistics, weather forecasts, agricultural prices, irrigation, land utilisation, crop area, crop yield, and crop projections are all used to predict the upcoming farming season. Weather events, farm equipment, water cycles, crop quality, and quantity are all captured by analytical instruments that are pertinent to farm operations. This aids in the discovery of patterns and relationships that could otherwise go unnoticed. Agricultural analytics software is being developed by a number of companies to help farmers make the most of their field data. For example, analytical data assists farmers in understanding fertiliser requirements, soil acidity and alkalinity, soil nutrient levels, and other factors, allowing them to make the best decisions for their crops, and this factor could provide lucrative opportunities in LAMEA for the Smart Agriculture Market in the coming years.

Regional Analysis

The LAMEA smart agriculture market is estimated to reach USD 3667 million by 2030, increasing at a CAGR of 10.80% over the forecast period (2022–2030). Smart agriculture market size in the Middle East and Africa is estimated to reach USD 1275 million by 2030, increasing at a CAGR of 9.20% over the forecast period (2022–2030). The Middle East and Africa region is home to some of the world's most advanced mobile marketplaces, making it suitable for smart agriculture. As the use of cell phones among farmers becomes more common, smart agriculture is becoming increasingly popular in the agricultural industry. Latin America's agriculture sector is projected to boom as a result of smart agriculture. By the forecasted time, the market value of drones for agricultural applications is expected to develop significantly, with huge profits, as smart agriculture expands and reaches out to a larger number of farmers.

There are almost 874 million hectares of agricultural land in Africa, and 83% of that land has major soil fertility or other constraints, necessitating costly upgrades and amendments in order to attain high and sustained productivity. As a result, smart agriculture is progressively gaining popularity among farmers as a means of enhancing output productivity. Africa is primarily a producer of cereals such as corn, wheat, and rice. Corn is the most widely planted crop.

The governments of the United Arab Emirates, where 80% of food is imported, are significantly investing in Agritech, with Abu Dhabi announcing a USD 100 million investment in four Agritech businesses, the first in a wider USD 272 million Agritech support package. Because both regions have significant agricultural constraints, the deployment of a smart agriculture system can help to gradually alleviate these constraints. Drones, sensors, trackers, and other technology that can assist farmers in better cultivation are all being adopted, which is speeding up the production process. As a result, in order to thrive in this region, the smart agriculture system need a little encouragement and a few investments.

Argentina has a lengthy history as one of the world's most important agricultural producers. The country boasts a big network of both industrial and small-scale farmers, and it is one of the world's top soy suppliers, as well as a large exporter of wheat, corn, fruits, and other products. As a result, Argentina is an ideal trial ground for organisations like the ACA to use revolutionary new technology to change its agricultural sector. Now, the country is developing a software solution that promises to make agriculture more environmentally friendly while also benefiting farmers.

Connectivity is currently one of the most pressing issues confronting Brazilian farmers. According to estimates, only 23% of the country's agricultural industry has access to the internet. The ConectarAGRO organisation has made it their mission to connect the country's farms to the internet, and their new partnership with Telit will help them achieve that goal by utilising IoT devices.

Segmental Analysis

Agriculture type, offering, and geography are the three categories that make up the market share of smart agriculture in LAMEA.

Smart agriculture includes precision farming, smart greenhouses, animal monitoring, and other sorts of agriculture. Precision farming is expected to become the most common farming method in the region. Between now and 2030, it is predicted to increase at a CAGR of 9.75%, reaching USD 15,661 million. Precision farming is gaining popularity as a result of a growing emphasis on on-farm efficiency and production. Precision farming has the potential to revolutionise agriculture by improving the efficiency and dependability of current farming practises.

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

The market for milking robots is predicted to grow as the dairy industry's raw material processing and product manufacture become more digitalized. Milk quality and animal welfare have both improved as a result of automation technologies. The expanding trend of cutting labour costs and improving efficiency is predicted to help the dairy and food processing industries. Demand for milking robots is being driven by animal welfare, better herd management, cow health, and increased milk frequency.

Recent Developments

• The ConectarAGRO organisation has made it their mission to connect the Brazil’s farms to the internet, and their new partnership with Telit will help them achieve that goal by utilising IoT devices.