North America Smart Agriculture Market Size, Share & Trends Analysis Report By Agriculture Type (Precision farming, Livestock monitoring, Smart greenhouse, Others), By Offering (Hardware, Software, Services), By Application (Precision farming application, Livestock monitoring application, Smart greenhouse application) and By Country(US, Canada) Forecasts, 2022-2030

Market Overview

The North America smart agriculture market size is expected to reach a valuation of USD 15794 million by 2030, growing at a CAGR of 10.37 % during the forecast period (2022–2030).

Smart Agriculture is a farming strategy that employs information technology to manage, analyse, and identify variability on a farm in order to boost crop yields while minimising human work. By accessing real-time data about weather, yields, and soil quality, smart agriculture helps farmers to determine the exact amount of nourishment crops require to improve productivity. Farmers can employ advanced automation techniques to reduce labour and material costs with smart agriculture systems. Sensors and monitoring equipment 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 productivity monitoring. Users will be able to map and record agricultural output and humidity information in real-time using smart agriculture, allowing them to immediately analyse how the crop fared.

One of the most well-known inventions in modern farming is smart agriculture. Several factors are now driving the smart agriculture market in North America. The most important smart agricultural market is projected to be in North America. Over the projection period, increased government operations and regulations aimed at improving the region's agriculture business will stimulate regional demand in North America. Farmers in the region are increasingly relying on smartphones and other intelligent mediums to stay informed about the newest developments in the agriculture sector due to the region's urbanisation.

Market Dynamics

Market driving factors

• Smartphones are becoming increasingly important and popular to farmers in the region:

  Agriculture apps will become more prevalent in the not-too-distant future. Paper records are wasteful and monotonous, as well as archaic and annoying. Digital mobile apps are the way of the future. Farmers in the United States and rest of North America are using smartphones to increase efficiency and earnings. Farmers are realising that using mobile devices saves them time and money. Farmers are utilising their cell phones to perform everyday activities like checking commodity prices, identifying weeds and pests, and monitoring watering equipment activity. In distant places, smartphones bring portability and convenience. When farmers use these phones in conjunction with specific staff management and data collection technologies, the phones boost effectiveness, productivity, and profitability and this can potentially drive the market towards growth.

• Easy tracking of the plant’s growth, weather changes and water requirement

  Farmers may now readily and easily determine the plant's development, weather fluctuations, and water requirements by deploying sensors across the farms, thanks to the emergence of smart agriculture. The sensors can also be used to record soil conditions, rainfall, and a variety of other factors. The smart agriculture can make decision-making easy for the farm management which is a major reason for its growing popularity and this can potentially drive the market towards growth in near future.

Market restraining factors

• Scattered agriculture industry

  Agriculture is a fragmented industry with a high number of tiny companies. It is not dominated by a single or a few significant players. Implementing a standard machine-to-machine (M2M) solution is difficult due to industrial fragmentation in North American region. Inefficient input and resource distribution are caused by land fragmentation, resulting in excessive costs. Using smart farming practises in dispersed areas takes time, money, and resources since administering, overseeing, and getting data from distant farms is difficult. Farmers will also find it difficult to reap the benefits of scale for M2M systems as a result of this.

Key market opportunities

• Emerging big data and analytics in agriculture

  Every day, massive volumes of farm data are generated, none of which is useful unless it is evaluated. This data is transformed into meaningful information using big data and analytics techniques. Statistics on crop disease, weather forecasts, agricultural pricing, irrigation, land usage, crop area, crop production, and crop projections are all utilised to determine the next farming season. Analytical instruments capture data on weather events, farm equipment, water cycles, crop quality, and quantity that is relevant to farm operations. This assists in the detection of patterns and connections that could otherwise go undiscovered. Many companies are developing agricultural analytics software to assist farmers in making the most of their field data. Analytical data, for example, aids farmers in understanding fertiliser requirements, soil acidity and alkalinity, soil nutrient levels, and other factors, helping them to make the best decisions for their crops and this factor can provide lucrative opportunities for the Smart Agriculture North American Market in coming years.

Regional Analysis

The North America smart agriculture market is estimated to reach USD 15794 million by 2030, increasing at a CAGR of 10.37% over the forecast period (2022–2030). Smart agriculture is one of the most well-known inventions in modern agriculture. The smart agriculture business in North America is now being driven by a number of reasons. North America is expected to be the most important smart agricultural market. Increased government activities and regulations focused at enhancing the region's agriculture business will stimulate regional demand in North America over the forecast period.

Agrarian organisations have founded the North America Climate Smart Agriculture Alliance (NACSAA), a platform for training and equipping growers for long-term agricultural productivity. In response to increased concerns about water conservation, governments in North America are aggressively providing incentives to expand the use of smart irrigation. Smart controllers, for example, have been reimbursed by the state of California, USA.

The agriculture and agri-food sector in Canada play a critical role in producing the food that nourishes Canadians and is exported to other countries. In 2019, the agriculture and agri-food system (which includes food retail and food service) employed over two million people, accounting for one out of every eight jobs. It also accounts for $143 billion (7.2%) of Canada's GDP, $66 billion in exports, and about $15 billion in trade surpluses. The Government of Canada will engage with farmers, ranchers, and agri-food enterprises to help them transition to a low-carbon economy, including through encouraging the use of cleaner practises and technologies, as well as carbon-sink practises. CENGN assists emerging Canadian enterprises in overcoming commercialization barriers and connecting their information and communications technology (ICT) breakthroughs with the country's thriving and powerful agricultural sector. CENGN supports the increase of farming revenue, efficiency, and environmental friendliness by leveraging transformational technology from Canada's small and medium enterprises.

Mexico has identified 127 smart agricultural businesses as of 2020. (Considering different stages, from enterprises in the demo or beta stage to businesses in the expansion stage). The Mexican Space Agency (AEM), a decentralised arm of SCT, and the Universidad Autónoma del Estado de México (UAEMEX) have agreed to work together on a pilot study that will use satellite technology to boost agricultural productivity through precision agriculture.

Segmental Analysis

The North America smart agriculture market share has been divided into three categories: agricultural type, offering, and geography.

Precision farming, smart greenhouses, animal monitoring, and other agriculture types have been divided into the smart agriculture market. Precision farming is predicted to be the most popular method of farming in the world. It is expected to grow at a CAGR of 9.75% between now and 2030, reaching USD 15,661 million. Precision farming's growth can be attributed to the rising emphasis on on-farm efficiency and production. Precision farming equipment has the potential to revolutionise agriculture, making traditional farming processes more efficient and dependable.

Based on product offerings

the smart agriculture industry has been divided into three categories: hardware, software, and services. The hardware offering sector is likely to dominate the North American market, with a forecasted value of USD 22,211 million by 2030, representing a 9.45% CAGR over the forecast period.

Due to the rising digitization of raw material production and product manufacturing in the dairy industry, the milking robots’ market is expected to increase. Automation technology has improved both milk quality and animal welfare. The dairy and food processing industries are expected to benefit from the increased desire to reduce labour costs and increase efficiency. Animal welfare, better herd management, cow health, and increasing milk frequency are driving demand for milking robots.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• In 2022, Advanced. Farm, a start-up based in the United States, is developing solutions for autonomous harvesting and field navigation using robots’ technology. They use stereo cameras on robots to recognise and choose fresh food depending on size and maturity. They also design food-safe grippers to separate the fruit from the plants.
• Crop Metrics, a leader in precision irrigation analytics and software, has partnered with The Climate Corporation to improve farm water management data communication.