Smart agriculture market is anticipated to grow at a CAGR of 11.5% during the forecast period (2023-2030). The growing demand for food has driven the demand for smart agriculture methods to improve yield; which in turn driving the global smart agriculture market. For instance, according to the Food and Agricultural Organization (FAO) of the United Nations (UN), the global population will significantly rise from 6.8 billion in 2009 to 9.5 billion in 2050. Approximately all of such growth is anticipated to occur in developing countries. This would result in the demand for significant food production. 

For instance, according to the UN, annual cereal production (for food and animal feed) will have to grow from 2.1 billion tons in 2009 to 3 billion tons by 2050. However, the lack of skilled personnel with technical knowledge to operate the software and poor internet connectivity are the factors that may hamper the growth of the market during the forecast period. Besides, technological advancements will aid to overcome the restrain and provide ample opportunities for market growth.

Segmental Outlook 

The global smart agriculture market is segmented on the offering and type. Based on offering, the market is sub-segmented into hardware, software, and services. Hardware is projected to hold considerable share during the forecast period. The market players are launching agricultural robots to increase efficiency and productivity. For instance, in February 2022, Verdant Robotics launched its multi-action autonomous farm robot for specialty crops which enables “superhuman farming”. The farm robot meets farmers' demand for more sustainable and profitable growing practices. The company expanded its robot-as-a-service (RaaS) model to ensure access for more specialty crop farmers. Based on the type, the market is sub-segmented into precision farming, livestock monitoring, smart greenhouse, and other type. Further, based on the type, the market is augmented into precision farming, livestock monitoring, smart greenhouse, and other type.

Precision Farming to Hold a Considerable Share of the Global Smart Agriculture Market

A significant rise in the demand for food and rising adoption of IoT across the globe is contributing to the growth of this market segment. The agriculture industry and automation suppliers are finding several new opportunities through the use of IoT and digital solutions to improve yields, profits, and farming practices. In addition, the utility of IoT has a wide scope in the field of precision farming as the work of precision farming is to create data through sensors that track vehicles, monitor livestock, and monitor storage areas. Therefore, increasing the focus of farmers on improving productivity, crop yield, and farm efficiency and growing use of web-based software for farming are the major factors to drive segmental market growth.

Regional Outlook

The global smart agriculture market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, North America is expected to hold a considerable share in the global smart agriculture market due to the presence of well-developed technological infrastructure. Cohesive government policies are further contributing to the regional market growth. For instance, the California government has offered a rebate on smart controllers. In addition, the increased spending by the government for the development and advancements of farms is driving the regional growth of the market. For instance, the New Jersey Economic Development Authority invested $9 million to AeroFarms for building the largest vertical farm in New Jersey, to harvest more food.

Global Smart Agriculture Market Growth, by Region 2023-2030

The Asia-Pacific Region is Expected to Grow at a Significant CAGR in the Global Smart Agriculture Market

Among all regions, the Asia-Pacific region is anticipated to grow at a considerable CAGR over the forecast period. India is an agricultural economy. Incorporation of smart agriculture in its farming sector is anticipated to offer huge opportunity to the regional market growth. The growing initiatives by the government for digitalization in the region are further contributing to the market growth. For instance, in September 2021, Union Minister Narendra Singh Tomar initiated the ‘Digital Agriculture Mission 2021–2025’. The initiative focuses on leveraging a wide range of technologies from AI, and blockchain along with drone technology to improve the overall performance of the agriculture sector. Thus, to improve the technological infrastructure, the government is taking initiatives to improve the overall industry’s performance which is contributing to the market growth.  

Market Players Outlook

The major companies serving the smart agriculture market include AGCO Corp., Topcon Positioning Systems, Inc., Ag Leader Technology, CropX, and AgJunction, Inc. among others. The market players are considerably contributing to the market growth through the adoption of various strategies including mergers & acquisition funding for R&D, and new software development, to stay competitive in the market. For instance, in March 2022, Agribazaar launched a remote sensing crop model to aid in precision farming naturally. Currently, the services are being offered to over three lakh farmers registered with Agribazaar. Further, the Government of India has chosen Agribazaar as one of the partners alongside Microsoft India for its India Agri-stack program, which will widely use this technology.

The Report Covers

• Market value data analysis of 2022 and forecast to 2030.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global smart agriculture market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.