The anticipated size of the global smart agriculture solution market in 2022 was USD 13.75 billion and is estimated to be USD 14.48 billion in 2023. Rise in demand for global smart agriculture solutions for the cultivators to realize the probable perks of growing plants inside the greenhouse, has led for the development of commercial greenhouses. Future Market Insights has mentioned in its reports that the smart agriculture solution market will expand at a CAGR of 6.9% between 2023 and 2033, totaling around USD 28.31 billion by 2033.
Cultivators of the smart agriculture solution have shifted their purchasing pattern from the traditional lighting systems to LED lights as the LEDs can be readily combined into a controlled environment agriculture (CEA) setup. Considering that LED lights are costly, yet, they are considered to be an optimal option for indoor farming, in consideration of their durable benefits in terms of energy efficiency.
Important technologies that are driving the market demand are biometrics, GPS, etc so that the cultivators can undoubtedly obtain information regarding livestock within the absolute time. Infrastructural health sensors are in consideration for examining material conditions and vibrations in buildings, factories, bridges, etc that is twinned with an intelligent network, where infrastructural health sensors provide information for the maintenance of team within the actual-time. Agricultural robots are put into use nowadays as they help in automating farming processes, like maintenance of soil, weeding, fruit picking, harvesting, planting, and irrigation, etc
Farmers are progressively adopting smarter and more efferent agricultural technologies for delivering high-quality products to build a smarter agriculture market with sufficing quantities to sustain profits. New processes like mobile technicalities offers contemporary services and applications that are mainly used across the valuation of agriculture.
Applications like Machine-to-Machine (M2M) are introduced that are solely suited for the agricultural sector, empowering the farmers for monitoring facilities, that help in appraising the environmental impact on production, that is specifically managing livestock and crops, and keeping a record on tractors and other agricultural products.
| Attributes | Details |
|---|---|
| Projected Forecast Value (2022) | USD 13.75 billion |
| Projected Forecast Value (2023) | USD 14.48 billion |
| Projected Forecast Value (2033) | USD 28.31 billion |
| Growth rate | 6.9% CAGR |
| Forecast period | 2023 to 2033 |
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Global smart agriculture solutions market grew at a CAGR of 4.8% between 2018 and 2022. Growth forecasts remain optimistic, with the market predicted to exhibit a CAGR of 6.9% between 2023 and 2033.
Implementation of advanced technologies such as artificial intelligence (AI), machine learning (ML), and internet of things (IoT) in modern agriculture products will propel scope for expansion. In response to this, sales of smart agriculture solutions are expected to surpass USD 13.2 billion in 2021.
Advent of agriculture 5.0 technologies in countries such as India, China, Australia, and Japan and introduction of digital agriculture platforms to aid precision farming will create lucrative growth opportunities for smart agriculture solution providers.
As per FMI, the global market registered year-on-year growth of 6.8% between 2020 and 2021. Medium-sized specific agriculture solution suppliers are creating and presenting answers for precision farming with the help of imaging drones and technologies. Higher integration of smart technology in agriculture will create a conducive environment for the growth of the market.
Introduction of Artificial Intelligence (AI) Integration in Smart Agriculture Solution
Adoption of modern technologies such as drones, GPS, sensor technology, and others would ensure lucrative revenues for agriculture businesses. AI integration in smart farming techniques provided beneficial inputs to farmers regarding the quantity of irrigation water required and improvement in overall crop quality.
Development in sensor-based and map-based variable rate technologies resulted in higher adoption of smart farming solutions as farmers aimed at reducing dependence on chemicals to improve crop yield.
With adoption of AI in agriculture, sales of smart agriculture solutions are expected to increase. This, in turn, will create growth opportunities for smart agriculture solution providers.
Adoption of Precision Farming and its Impact on Smart Agriculture Systems Sales
With increasing demand for organic food products and growing urbanization, need for precision farming has surged. In order to reduce the wastage of natural resources and improve the crop quality, farmers are adopting precision farming applications across the globe.
Technologies such as artificial intelligence (AI), machine learning, and data analytics is integrated to detect the climate change and harvest period, in order to improve the production efficiency.
Adoption of precision farming, especially across India, China, Australia, and Japan is fueling the demand for smart agriculture solutions. With the use of sensor-based variable rate technology, farmers can optimize and manage the farm digitally and improve the crop production.
With rising adoption of drones and AI-based farming technologies, advent of precision farming is expected to boost the market. Also, farmers are adopting technologies such as smart greenhouse to reduce the carbon footprints.
Smart greenhouses use technologies such as actuators, sensors, and climate-monitoring systems to optimize growth conditions. Governments across the globe are also favoring the adoption of smart greenhouses as it offers several health benefits by reducing the infestation and preventing the disease outbreaks.
Adoption of these technologies will fuel the growth in smart agriculture solution market.
Growth in Government Initiatives and Regulations will Tend to Boost the Demand
North America is considered to be one of the most lucrative markets for smart agriculture solutions with a market share of 27.7% whereas the United States is estimated to account for 16.9% of the market share.
Growth in government initiatives and regulations has occurred due to the enhancement that is brought in the agriculture industry is estimated to boost the market demand for smart agriculture solutions in the United States during the forecast period. Increase in concern for water conservation has brought the governments of the United States to ardently provide subsidies that will subsequently lead to the enhancement of the applications needed for smart irrigation.
Introduction of Research and Development has Resulted to an Increase in Demand
Rising demand for Research and Development in Germany will act as a major growth driver. Reports say that, the Germany’s smart agriculture solutions market is anticipated to share a market value of 10.6%
Europe is estimated to be the dominant market for small agriculture solutions market with a market share of 21.8% in which Germany is projected to hold the largest share. Rising demand and productivity of the facilities led by Research and Development have led to an expansion in the market thus minimizing the farm numbers, growth in animal herd sizes, etc leading to increase in sales in Germany.
Increase in Demand for Smart Agriculture Tools will Increase the Revenue
Rising demand for smart agriculture tools required in smart agriculture leads to an increase in demand for smart agriculture solutions market in United Kingdom where according to the reports United Kingdom is said to hold a market share of 6.1% during the forecast period.
Precision Farming India is Leading to a Growth in Overall Sales of the Country
India is considered to hold one of the lucrative position as leading exporters in agricultural products worldwide with a hefty growth in the market sector of CAGR 6.5%
With over 58% of population’s livelihood dependent on agriculture, India ranks 5th in terms of agriculture production, consumption, and exporter, as per India Brand Equity Foundation.
As per Future Market Insights, India is identified as the key exporter and producer in smart agriculture solution market.
Robust expansion of agriculture sector and increasing demand for automation in precision farming are expected to create lucrative growth opportunities for smart agriculture solution providers in India.
India already is identified as global agriculture powerhouse. Thanks to globalization, adoption of precision farming and penetration of GPS and smartphones is expected to reshape the face of agriculture sector in India. Favourable government policies and advent of IT-tech start-up companies are expected to aid the growth in the market.
Farmers are increasing the adoption of aerial drones and sensor monitoring system to improve their crop productivity and reduce the crop damage and pest attack. These advancements are majorly witnessed in states such as Telengana, Maharashtra, and Madhya Pradesh.
Government in India is also adopting and providing climate information service and supply chain management services to alert the farmers regarding the harvesting and price forecasts in advance. Such advancements in agriculture sector is expected to boost the smart agriculture solution market in India.
Introduction of New Innovations in Smart Agriculture Solution Market is Driving the Sales
China is assumed to be the most attractive market in Asia Pacific during the forecast period. As per FMI, APEJ smart agriculture solution market is likely to register highest growth at over 7.3% CAGR during the forecasted period.
Being one of the most populated countries, crop production in China is extra-ordinary. Advent of smallholder farmers and local smart agriculture solution providers has spurred the expansion of agriculture sector in China.
According to the Government in China, adoption of smart and modern technology to increase the crop production and improve the yield quality is expected to burgeon. Technological methods such as smart drones with GPS and sensor based technology are being adopted to liberate man power and enhance production efficiency.
Further, presence of leading players such as Pinduoduo, XAG Agriculture company, and other are favoring the growth in the market. Favorable policies and investment by leading agricultural high-tech companies are accelerating the sales in smart agriculture solution market.
Adoptive Measures taken are Rising the Demand in Automation of Agricultural Sector
As per FMI, Australia is among the top 4 exporters of smart agriculture solutions across the globe. Growth in the country is driven by increasing adoption of automation in agriculture sector in Australia with a market share of 3.8%
Increasing crop production and technological advancements in the agriculture sector are improving the growth in the Australia smart agriculture solution market.
Advent of precision farming in the country and availability of natural resources are flourishing agriculture industry, accelerating sales of smart agriculture solutions. On the back such technological advancements, Australia is expected to emerge as one of the most lucrative smart agriculture solution market.
Increase in Technological Advancements is Raising the Overall Market Share
Japan is one of the developed countries that is considered to introduce smart agricultural solutions by introducing drones and robotics, and by adopting various way of cutting-edge digital technologies. Japan is considered to hold a market share of 5.3%.
Science, technology, and innovation are considered to play majorly by raising the crucial role in sustainable and rapid developments in agriculture all across the globe. Information and communication technology-based smart agricultural solutions have provided a roadmap for countries to uplift their digital agriculture
Presence Sensing Safety Sensors Segment Holds the Maximum Share in the Market
Presence Sensing Safety Sensors Segment is considered to hold a major share in the market with a market value of 52.3%
Demand of this segment is high as it helps in protecting the workers and production units from arousal of any accidents occurring in the smart agricultural solutions market.
Automated Machinery Guidance Control is Considerably Boost the Smart Agriculture Solutions Market
Automated Machinery Guidance Control is said to hold a market share of 28.1%.
Demand for automated machinery guidance control has boosted as this sector is mainly influenced by the need of expeditious production and the improvement of quality of crop content in smart agriculture.
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Some of the prominent players in the global market are:
Some of the important developments of the key players in the market are:
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 6.9% from 2023 to 2033 |
| Market value in 2023 | USD 14.48 billion |
| Market value in 2033 | USD 28.31 billion |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | USD billion for Value and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | By Country, By Component, By Application |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East and Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Rest of Latin America, Germany, United Kingdom, France, Spain, Italy, Rest of Europe, China, Japan, South Korea, Singapore, Thailand, Indonesia, Australia, New Zealand, Rest of Asia Pacific, GCC countries, South Africa, Israel, Rest of MEA |
| Key Companies Profiled | Dirt Road Data Inc.; Iteris Inc.; CropMetrics LLC; Agribotix LLC; AgriSight Inc.; SemiosBio Technologies Inc.; Granular Inc.; Trimble Navigation Ltd.; Site-Specific Technology Development Group Inc.; AgJunction LLC; John Deere; Trimble; TopCon Positioning Systems; DeLaval; AKVA; Antelliq; Afimilk; InnovaSea Systems; Heliospectra; LumiGrow |
| Customisation Scope | Available on Request |
The market is valued at USD 14.48 billion by the end of 2023.
Dirt Road Data Inc., Iteris Inc. and CropMetrics LLC are the leading players.
The presence sensing safety sensors segment is expected to lead the market.
From 2018 to 2022, the smart agriculture solution market registered a 4.8% CAGR.
China’s smart agriculture solution to surge at a CAGR of 7.3% CAGR until 2033.
| Market Value 2023 | USD 118.1 million |
|---|---|
| Market Value (2033) | USD 171.4 million |
| Market CAGR (2023 to 2033) | 4.2% |
| Expected Market Value (2023) | USD 6,831 million |
|---|---|
| Anticipated Forecast Value (2033) | USD 11,449.1 million |
| Projected Growth Rate (2023 to 2033) | CAGR 5.3% |
| Estimated Value (2023) | USD 357.4 Million |
|---|---|
| Projected Value (2033) | USD 1,227.5 Million |
| CAGR (2023 to 2033) | 13.1% |
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