Global Smart Agriculture Market: Snapshot
The rising population and the growing demand for food have encouraged the use of smart and modern technologies for agriculture. The adoption of cloud-based services, Internet of Things, GPS, and many others is expected to completely change the market scenario in a positive way. The favorable government initiatives are projected to support the market growth in the coming few years. As per the research study published by Transparency Market Research, in 2016, the global smart agriculture market was worth US$6.55 bn and is likely to reach US$23.44 bn by the end of 2025. The market is likely to register a 13.50% CAGR between 2017 and 2025.
Rising Government Support for Use of Modern Techniques to Encourage Growth
A significant rise in the level of adoption of Artificial Intelligence and Internet of Things by growers and farmers and the rising focus on disease detection and livestock monitoring in order to enhance the efficiency of farming are the key factors projected to enhance market growth in the coming few years. The rise in the demand for agriculture products, thanks to the rise in the population and the increasing government support for the adoption of modern agriculture techniques are further expected to support the growth in the near future.
On the flip side, the rising cost of smart agriculture equipment and the lack of farmers with technical knowledge are expected to restrict the growth of the global market in the next few years. Moreover, the issues related to the data aggregation and data management and the lack of standardization in the smart agriculture market are the major challenges that are being faced by the key players and are likely to curb the market growth in the near future. Nevertheless, the emergence of big data in agriculture farm and the integration of smartphone with software and hardware applications are likely to offer potential growth opportunities for the players in the near future.
Asia Pacific to Offer Growth Opportunities for Market Players
Previously, North America led the global smart agriculture market and is projected to maintain the leading position in the coming few years. The increasing investments by governments for research activities in order to minimize the human involvement and enhance the crop yield are projected to drive the smart agriculture market across North America in the near future. Europe is expected to hold the second position, thanks to the high contribution from the U.K. Furthermore, Asia Pacific is likely to observe a healthy growth and generate potential growth opportunities for the market players in the near future, owing to the increasing contribution from India and China.
The global market for smart agriculture is competitive and vastly fragmented with a huge number of players operational across the globe. The rise in the number of new entrants is expected to strengthen the competitive environment of the market in the coming few years. In addition to this, the growing focus on technological advancements and the expansion of the product portfolio are likely to support market growth in the next few years. Some of the key players operating in the smart agriculture market across the globe are TeeJet Technologies, Raven Industries Ltd., AgJunction Inc., SST Development Group Inc., Trimble Navigation Ltd., Deere & Co., Hexagon AB, Ag Leader Technology, and Iteris Inc.
Global Smart Agriculture Market: Overview
The rapid escalation of food demand due to the growing population worldwide is boosting the demand for smart agriculture. The smart agriculture engages advanced technologies such as Big Data, GPS, IoT and connected devices. Smart agriculture helps in automated farming, collection of data from the field and then analyses it so that the farmer can make accurate decision in order to grow high quality crop. The field data are collected with the help of sensors, cameras, micro controllers, and actuators. Then the collected data are transferred via internet to the operator or the farmer for decision making.
Global Smart Agriculture Market: Drivers and Restraints
The major drivers of the global smart agriculture market are the increase in demand for usage of latest technologies in agriculture, rising global food demand, surging need for livestock monitoring, and increase in greenhouse farming. Due to rapid acceleration in the global population, the demand for food is also increasing and on the other hand agriculture labor is decreasing. Due to this, the individual farmers and the corporate farming houses are adopting the smart agriculture tools and equipment in order to minimize the. This will help the farmers and corporate houses to grow high quality crops in large quantity to meet the required food demand. The sensors and cameras used in smart agriculture provides information to the operator for water level, fertilizers as well as light required for growing the best quality food.
The smart agriculture market has factors limiting the market growth such as high cost of the smart devices and less awareness about the latest technologies among the farmers. The high cost involved in manufacturing of smart devices, is in turn increasing the price of the final product which is limiting the farmers in procuring the smart devices.
Global Smart Agriculture Market: Key Segments
The market for smart agriculture is segmented on the basis of solutions, applications and geography.
On the basis of solutions, the market of smart agriculture is further segmented as network management, agriculture asset management, supervisory control and data acquisition, logistic and supply chain management, smart water management and others. Network management has been heavily deployed as it involves the operations related to remote monitoring systems and it also helps in analyzing the data generated from the field. Smart water management aims to reduce human labor, minimize weather risks, and increase the off-season production by saving water and energy by the use of smart water products and chemical. The others segment includes mobility solution, connectivity solutions and quality assurance solutions.
Based on application, smart agriculture market is segmented as precision agriculture, livestock monitoring, fish farming, smart greenhouse and other. The concept of precision agriculture is based on crop and soil observing, image capturing through UAVs or drones and responding it to the operator. With the help of precision agriculture the farmers can maintain their fields and make necessary decisions in order to yield high quality and large quantity crops with the help of accurate data collected from the field. The others segment includes indoor farming, horticulture and dairy management among others. In the application segment, livestock monitoring is the fastest growing segment, growing at an influential rate.
Global Smart Agriculture Market: Regional Outlook
Geographically, the smart agriculture market is categorized as North America, Europe, Asia Pacific, Middle East and Africa and Latin America. Asia Pacific is the fastest growing region in the global smart agriculture market during the forecast period from 2017 to 2025. North America held the largest market share in 2016 in the market for smart agriculture.
Companies Mentioned in Report
The smart agriculture market report also provides the description of different key participants across the globe. The key players in the smart agriculture market are Deere & Co., Raven Industries, Inc., Trimble Navigation Ltd., AGCO Corporation, AgJuction Inc., AG Leader Technology, Iteris Inc., SST Development Group, Inc., Hexagon AB, TeeJet Technologies.
The segments covered in the Smart Agriculture market are as follows:
Global Smart Agriculture Market, 2017-2025: By Solution
- Network Management
- Agriculture Asset Management
- Supervisory Control and Data Acquisition
- Logistics and Supply Chain Management
- Smart Water Management
Global Smart Agriculture Market, 2017-2025: By Application
- Precision Agriculture
- Livestock Monitoring
- Fish Farming
- Smart Greenhouse
Global Smart Agriculture Market, 2017-2025: By Geography
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa
- Saudi Arabia
- South Africa
- Rest of Middle East and Africa
- Latin America
- Rest of Latin America