Global Smart Agriculture Market: Snapshot
The demand for smart technologies such as Big Data, cloud-based services, GPS, and the IoT is gaining pace in the agriculture industry. Driven by the rising need for high precision crop analysis, automated farming techniques, and collection of data from the field, the world is likely to witness the agriculture industry get smarter with the implementation of aforementioned technologies in the coming years. Data thus derived from implementing smart technologies can help farmers yield high quality and larger quantity of crops. Spurred by these factors, the global smart agriculture market is projected to report a CAGR of 13.5% between 2017 and 2025. At this pace, the market’s valuation will rise from US$6.55 bn in 2015 to US$23.44 bn by the end of 2025.
Besides rising population, which triggers demand for food, the global smart agriculture market is expected to gain from favorable government initiatives. However, the journey is likely to be more difficult in underdeveloped economy where the agriculture sector is reeling under lack of knowledge among farmers. The high cost of smart devices is making the matter worse. Nevertheless, in the coming years the market is likely to gain from the rising penetration of high-speed internet even in remote areas.
North America Emerges as Leading Market for Smart Agriculture
The smart agriculture market is segmented on the basis of solutions, application and geography. Regionally, the global smart agriculture market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Of these, the dominance was with the smart agriculture market in North America, which held over 44.14% of the overall market in 2016. Extensive researches funded by governments across the region to minimize human involvement and boost crop yield has fuelled the demand for smart agriculture technologies in North America.
Europe emerged as the second-leading and is expected to continue exhibiting lucrative market opportunities. In the U.K. especially the market is forecast to witness accelerated pace of gains as the government make huge investments in the research and development of robust technologies. Besides this, rate of growth in Italy is predicted to remain high through the forecast period.
During the same time, the Asia Pacific smart agriculture market is forecast to rise at an influential rate. Countries such as Japan, China, and Australia will strong agriculture sector are expected to emerge at the fore of the regional market. China held the leading share in the Asia Pacific smart agriculture market. However, in the forthcoming years Japan is expected to showcase more attractive opportunities for the market.
Network Management and Precision Agriculture Emerge Dominant Based on Solution and Application, Respectively
The global market for smarty agriculture is segmented on the basis of solutions, application and geography. Based on solution, the market for 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 other. Of these, the network management segment held the dominant share of 21.20% in the overall market in 2016. However, over the course of the forecast period, the demand for smart water management solutions is expected to rise at a higher pace. A major section of the agriculture sector still depends on vagaries of monsoon for farming. Smart water management and irrigation solutions have therefore become popular among farmers to boost their crop yield and ensure minimum water wastage.
On the basis of application, the smart agriculture market has been segmented as precision agriculture, livestock monitoring, fish farming, smart greenhouse and others. Of these, the precision agriculture segment held the leading share of 49.09% in the overall market in 2016. The practice helps farmers grow high quality crop with less human effort, which are key factors fuelling the demand for precision agriculture around the world.
The major players in the smart agriculture market are Deere & Co., Trimble Navigation Ltd., Raven Industries Ltd., AgJunction Inc., AGCO Corporation, SST Development Group Inc., Ag Leader Technology, Hexagon AB, Iteris Inc., TeeJet Technologies.
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