Market analysis and insights

The size of the Global Smart Agriculture Market was estimated to reach USD 25.6 billion in 2028, from USD 16.5 billion in 2023 and it is projected to expand at a CAGR of 9.5% from 2023 to 2028. 

The principal factors driving demand over the forecast period are increased commercial greenhouse automation and the spread of the controlled environment agriculture (CEA) concept in greenhouses, both of which are efforts to boost yield and maintain perfect growing conditions. Commercial greenhouses have been created as a result of cultivators realizing the potential advantages of growing plants indoors. Due to how simple it is to integrate LED grow lights into a CEA setup, cultivators have switched from using conventional lighting systems. Despite their high cost, grow lights made of LED are the greatest solution for indoor farming due to their long-term energy savings. 

Global Smart Agriculture Market Scope :

Market Definition

The term smart agriculture, also known as precision agriculture & digital agriculture, describes the use of contemporary technology and data-driven methodologies in various agricultural processes to optimize them and raise the general effectiveness, long-term viability, and efficiency of farming operations. It requires combining cutting-edge technologies such as the Internet of Things (IoT), sensors, drones, artificial intelligence (AI), data analytics, and automation with traditional agricultural practices. 

To help farmers make educated decisions regarding planting, irrigation, fertilization, and pest control, precision farming entails the use of technology to collect data about soil characteristics, weather patterns, and crop health. Utilizing resources efficiently and raising yields are the goals of precision farming. To gather current information from fields, livestock, and equipment, smart agriculture significantly relies on sensors and IoT devices. These gadgets are capable of keeping track of variables like soil moisture, temperature, humidity, and livestock health. Farmers may manage their businesses more effectively with the use of various platforms and software programs. These include financial analysis, inventory management, yield tracking, and agricultural planning. Drones and satellite photos give farmers accurate information on crop health, growth trends, and potential problems. This information assists farmers in identifying and correcting problems as they arise. Smart agriculture includes livestock husbandry, in which sensors and wearable devices monitor the health, behaviour, and location of animals. This improves animal welfare while also optimizing breeding and feeding practices. Technology can be utilized to improve agricultural product distribution and transportation, decreasing waste and ensuring fresher supplies. Online tools connect farmers with consumers or purchasers, making it easier to sell produce and products. Smart agriculture technologies, which provide insights based on data for environmentally friendly and resilient practices, can assist farmers in adapting to changing climate circumstances. Large volumes of data collected from sensors are processed by advanced analytics and AI Advanced analytics and AI algorithms process the large volumes of data collected from various sources, enabling predictive modelling, disease detection, yield forecasting, and other valuable insights.

Key Market Segments

Insights on Key Products

Precision farming solutions, such as GPS-guided machinery, sensors, and data analytics, have frequently been seen as a basic and influential part of the smart agriculture sector due to their far- reaching impact on agricultural practices. These involve the use of technology to optimize agricultural yield and boost efficiency. GPS, sensors, drones, and data analytics are being used to monitor and manage crops, resulting in better resource utilization and yield optimization. Remote Sensing and Monitoring: Drones and satellites are used to track and analyze crop health, growth, and resource levels. This data helps farmers make informed decisions about irrigation, the fertilization process, and insect management.

Livestock Monitoring and Management: Smart collars, tags, and monitors assist farmers in monitoring the health and behaviour of livestock. This information aids in disease identification, breeding optimization, and general herd management. Automated Irrigation Systems: These systems use detectors to track soil moisture content and weather conditions, allowing for automated and efficient irrigation. This saves water and promotes ideal soil conditions for crops.

Smart Greenhouse Solutions: Sensors and automation are used in advanced greenhouse systems to control temperature, humidity, light, and CO2 levels. This creates an ideal environment for plant growth and increases the growing season. Agricultural Robots: These machines are designed to do a variety of jobs such as cultivating, harvesting weeding, and spraying. They reduce the need for manual effort while enhancing efficiency and precision.

Crop Management Software: Software systems that help farmers manage, analyze, and make decisions about their crops. To give meaningful insights, these platforms incorporate data from numerous sources, such as sensors and satellites.Vertical Farming: Vertical agriculture grows crops in controlled surroundings, frequently indoors or in metropolitan areas. Key components include LED lighting, hydroponic systems, and automation technology. 

Data analytics and AI-powered platforms: They analyze data from the past and the present to forecast trends, illnesses, and crop yields. This data assists farmers in planning and making educated decisions. Blockchain in Farming: Blockchain innovation can be used to construct transparent and safe supply chains for agricultural products, recording their origin and travel from field to consumer. 

Insights of Key Applications

Precision farming is often regarded as one of the most dominant applications in the smart agriculture business. Its application of technology to optimize agricultural output through precise and data-driven practices has a broad impact on the efficiency of agriculture and sustainability. Precision farming techniques assist farmers in making more informed decisions, reducing input waste, increasing yields, and contributing to the overall conservation of resources. It is the application of technology to improve several aspects of crop production. Precision planting, fertilization, irrigation, and pest management are all possible with data from sensors, drones, and satellite imaging.

Livestock Management: Wearable sensors, RFID tags, and GPS tracking devices are used to monitor livestock health, position, and behaviour. Farmers can spot health issues earlier and handle herds more efficiently as a result of this. Automated Irrigation and Water Management: Sensors in the area detect soil moisture levels and the environment, allowing automated irrigation systems to supply the appropriate amount of water at the appropriate time. This conserves water while ensuring optimal plant development. Crop Health and Disease Management: Drones and satellites, among other remote sensing technologies, are employed to monitor crop health and identify early signs of disease or stress. This enables focused interventions while also reducing the need for excessive chemical use.Traceability and Supply Chain Management: Blockchain technology is utilized to construct fair and secure supply networks that allow users to trace the origin and route of agricultural products. This contributes to food security and quality.

Climatic Monitoring and Adaptation: Smart agricultural technology delivers real-time weather data and forecasts to farmers, allowing them to make educated choices about planting, harvesting, and other tasks in response to changing climatic conditions. Agricultural Robotics and Automation: They are hired to do things like cultivating, reaping, and weeding. These robots boost efficiency, lower labour costs, and lessen the desire for human interaction. 

Data Analytics and Policy Support: Advanced data analytics tools analyze vast amounts of data from a variety of sources, assisting farmers in making data-driven decisions regarding planting, distribution of resources, and managing risks. Indoor Farming and Smart Greenhouses: Controlled environment agriculture, which includes vertical farming and greenhouse systems use equipment to optimize plant growth conditions, allowing for year-round output and resource-efficient cultivation. Farm Management Software: Software systems that help farmers plan, schedule, and manage their farm activities. These systems collect and analyze data from sensors and other inputs to deliver insights for increased efficiency.

Insights on Regional Analysis

North America led the worldwide smart agriculture market in 2022, accounting for 44.58% of the total. Between 2022 and 2030, it is expected to expand at a CAGR of 12.1%. North America, notably the United States and Canada, has been a prominent player in the smart agricultural business. The region's superior technological infrastructure, major expenditure in development and research, and large-scale farming operations have all aided in the adoption of innovative agricultural solutions. Precision farming and data insights have been widely embraced in this region. Increasing government efforts and regulations to strengthen the region's farming industry is expected to stimulate local demand in North America throughout the projected period. 

Europe: It has been at the centre of adopting smart agriculture practices, with countries such as the Netherlands, Germany, and France leading the way. The focus on ecological and efficient agriculture, as well as an array of subsidies and awards for adopting novel technologies, has propelled the smart agriculture sector to rise. Precision agriculture, automated systems, and greenhouse technologies have all become popular in Europe. 

Asia-Pacific: With its broad range of agricultural practices and varying levels of technology infrastructure, the Asia-Pacific area has demonstrated rising interest in smart farming. Agriculture technology is being invested in by countries such as Japan, South Korea, China, and India to increase production and address food security concerns. Precision farming, Internet of Things-based solutions, and online tools for small-scale farmers are gaining popularity.

Latin America: Latin American countries with substantial agricultural sectors, such as Brazil and Argentina, have been embracing smart agriculture practices to increase productivity and optimize resource use. Precision agriculture, satellite images, and technology for remote sensing have been used to monitor and manage enormous agricultural fields.

Africa: Smart agricultural solutions can alleviate food security concerns and improve small-scale farming practices in Africa. Farmers now have greater access to data and market prospects because of mobile technologies. Precision agriculture and data insights are being investigated to boost yields and reduce losses after harvest.

Key players

Key industry competitors are aggressively forming alliances and collaborations to expand their market position and consumer base. Ag Leader Technology, AGCO Corporation, AgJunction, Inc., AgEagle Aerial Systems Inc., Autonomous Solutions, Inc., Argus Control Systems Ltd, BouMatic Robotic B.V., CropMetrics LLC, CLAAS KGaA mbH, CropZilla, Deere & Company, DICKEY-john, DroneDeploy, DeLaval Inc, Farmers Edge Inc, Grownetics, Inc., Granular, Inc., Gamaya, GEA Group Aktiengesellschaft, Raven Industries, Trimble Inc., Topcon Positioning Systems. 

COVID-19 Impact and Recovery Analysis

The COVID-19 epidemic has highlighted the need for farmers to be linked and able to interact from remote regions. The COVID-19 epidemic has raised awareness about the advantages of digitization, which has resulted in digital transformation. The COVID-19 outbreak caused severe disruption in the worldwide supply system, resulting in food shortages and prices. To improve the food supply network and be ready for any future catastrophe, necessary actions were required. The popularity of digital farming is growing, with many people seeing it as an answer to food shortages. Global crop output is very high; nevertheless, the allocation of food and livestock has been significantly hampered due to the supply chain disruption resulting from the COVID-19 pandemic. Smart agriculture has seen significant growth since COVID-19, owing to its capacity to assist the farming sector in recovering from pandemic losses. Precision farming can help farmers increase their long-term viability and plan for the future. There are also problems with farmers: understanding and desire to use digital farming technologies. Governments, on the other hand, are encouraging farmers to adopt new technologies. 

Latest Trends and Analysis

? Deere Company confirmed the acquisition of Smart Apply, Inc. in July 2023. The company intended to use Smart Apply precise spraying to help growers handle input prices, labour, the demands of regulators, and environmental goals.

? AGCO Corporation established a strategic agreement with Hexagon in April 2023 to expand AGCO& factory-fit and aftermarket guiding offerings. The novel guidance system was intended to be commercialized on Valtra and Massey Ferguson tractors as a Fuse Guide.

? AgEagle Aerial Systems Inc. announced in May 2023 that it has engaged in a two-year supply contract with Wingtra AG. The agreement's purpose is to guarantee the supply of RedEdge-P sensor kits for use with WingtraOne VTOL drones. This is especially useful for individuals looking to gain financially from unmatched precision and plant-level information in industrial agriculture, environmental studies, forestry, and water-related applications.

? Topcon Agriculture announced the release of Transplanting Management, an extraordinary guidance management solution for speciality farmers, in February 2023. This turnkey system was created to increase efficiency, reduce labour, and expand production. Furthermore, it provides GNSS-driven guiding, autosteering, and control, which is beneficial to farmers of perennial trees, vegetables, and fruits. 

? ASI Logistics, in conjunction with SICK, Inc., announced the successful introduction of autonomous yard truck operations in January 2023. ASI Logistics used its ground-breaking Vehicle Automation Kit (VAK) in conjunction with SICK& industry-leading LiDAR systems in this cooperation. 

? Raven launched its commercial expansion in March 2022 in South Dakota and Arizona to enhance the creation of AI-driven technologies for generating cutting-edge solutions. The concept also aimed to provide entry to a nearby test site for immediate testing.

? BouMatic announced the purchase of SAC Group in October 2021 to leverage automation and traditional milking systems. The deal underlined the company's unwavering commitment to providing best-in-class dairy farm services to customers worldwide.

? In May 2021, AGCO formed a strategic agreement with Raven Industries Inc., BASF Digital, and Robert Bosch GmbH for targeted spraying solutions. The goal of this agreement was to evaluate targeted spraying technologies for improving crop protection use of products while reducing agricultural input costs and addressing sustainability in the environment.

Significant Growth Factors

Internet of Things (IoT) and sensor technology advancements have enabled farmers to remotely monitor and control different parts of their operations. These technologies provide real-time data collecting, resulting in better irrigation, fertilization, pest management, and general farm managerial choices. 

Precision farming practices, which involve employing data-driven insights to optimize crop productivity and minimize resource waste, have gained popularity. Farmers can use data analytics to customize irrigation, fertilization, and other agricultural product practices to specific environments, leading to greater efficiency. Automation and robots have been applied to a variety of agricultural jobs such as planting, harvesting, and weeding. This eliminates the need for manual labour, alleviates labour shortages, and boosts production. Big data analytics and AI-driven solutions give farmers actionable insights to improve productivity, optimize resource utilization, and more precisely estimate crop yields. Smart agricultural technology assists farmers in adapting to changing climate conditions by giving real-time weather data, disease forecasts, and other critical information for timely treatments. With an increasing emphasis on sustainability and resource conservation, smart agricultural practices that minimize waste, limit chemical usage, and encourage eco-friendly farming are becoming more popular. Subsidies, incentives, and favourable policies have been used by several governments to encourage the use of smart agriculture technologies. The need for food grows in lockstep with the world population. Smart agriculture technologies, which increase productivity and efficiency, contribute to meeting this demand. Farmers are recognizing the importance of data-driven decision-making to optimize their operations and maximize earnings.

Restraining Factors

Smart agriculture technology deployment frequently necessitates considerable upfront expenditures in sensors, equipment, and data architecture. This might be a challenge for small and resource-constrained farms. Many places, particularly rural areas, may lack the internet connection and technological infrastructure required for the smooth operation of smart agriculture systems. The use of smart agriculture technologies may necessitate the acquisition of new technical abilities and expertise, which can be difficult, particularly for older or less tech-savvy farmers. Concerns regarding data privacy and potential information misuse arise from the gathering and distributing of private farm data, such as crop yield projections and field conditions. When integrating multiple tools on a single farm, different smart agricultural solutions may not necessarily be suitable for each other, posing interoperability problems. Traditional farming practices are firmly engrained in many rural areas, and adopting unfamiliar or novel technologies may be met with reluctance. Regulatory frameworks and rules in the smart agricultural sector may be out of step with the quick speed of technology improvements. Even with smart agriculture systems in place, weather, pests, and diseases can still have an impact on crop yields and production. Farmers in particular areas may struggle to get the funds needed to invest in smart agriculture technologies. In some locations, adequate training and teaching on how to employ and profit from smart agriculture equipment may be inadequate. However, the growing need to feed a fast-expanding global population, solve resource constraints, minimize environmental impact, and increase overall agricultural productivity is driving the smart agriculture business. It provides an opportunity for providers of technology, makers of equipment, developers of software, and the agricultural community to work together and brainstorm to tackle these issues and create a healthier and more profitable future for agriculture.