Smart Agriculture Market Size, Share and Growth Analysis

Updated on : October 22, 2024

Smart Agriculture Market Size & Growth

Global smart agriculture market size is projected to reach USD 25.4 billion by 2028 from an estimated USD 16.2 billion in 2023, growing at a CAGR of 9.4% from 2023 to 2028.

The smart agriculture market is rapidly expanding as demand grows for sustainable, efficient farming solutions to meet global food security challenges. Technologies such as IoT sensors, drones, and AI-powered analytics are revolutionizing traditional agriculture, enabling precision farming practices that improve crop yields, reduce resource consumption, and enhance soil health. Key trends in this market include the integration of big data and machine learning to monitor crop health in real-time, manage irrigation precisely, and predict weather patterns to optimize planting schedules. Additionally, advancements in agricultural technology, including autonomous tractors, robotic harvesters, and smart irrigation systems, are empowering farmers to automate labor-intensive tasks, reduce costs, and minimize environmental impact. Smart farming, or "agritech," is also gaining traction, as smart sensors and connected devices provide farmers with actionable insights to make data-driven decisions, resulting in increased productivity. As awareness of sustainable practices and food security intensifies, the adoption of smart farming technologies continues to grow, positioning the agricultural technology market for significant advancements in the years ahead.

The market growth of the smart agriculture market can be attributed to the increasing global population creating pressure on food supply system and surging use of modern technologies in agriculture.

Smart Agriculture Market Forecast to 2028

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Smart Agriculture Market Ecosystem

Smart Agriculture Market Dynamics

Driver: Rising adoption of IoT, ROVs, and AI in aquaculture farming

The global aquaculture industry has witnessed tremendous advancements in aquaculture tools, techniques, and technologies in recent years. The growing inclination of the worldwide population toward consuming a protein-rich diet is consequently increasing the adoption of cutting-edge technologies, such as the Internet of Things (IoT), machine learning, Remotely Operated Vehicles (ROVs), artificial intelligence (AI), automatic feeders, and acoustic telemetry tracking systems, by aquaculture farm owners. The use of these technologies in aquaculture farming helps increase aquaculture production; enhance production efficiency; minimize wastage of resources; and improve accuracy, precision, and repeatability in farming operations while providing high profitability to farm owners.

Restraint: Fragmented agriculture industry

Agriculture is a decentralized industry, with the presence of many large, medium, and small-sized farms that operate independently. This fragmentation makes implementing a standardized machine-to-machine (M2M) solution difficult, as each farm operates differently and may have different requirements. Land fragmentation leads to an improper allocation of input and resources, which further leads to high costs. Implementing smart agricultural technologies in fragmented lands wastes time, money, and resources as managing, supervising, and collecting data from scattered lands is difficult. This also makes it difficult for farmers to attain economies of scale for M2M solutions.

Opportunity: Rising adoption of livestock monitoring solutions in emerging countries

Currently, the adoption of livestock monitoring technology in emerging countries like Brazil and Mexico is slow, primarily due to the high installation cost and low awareness among farmers. However, the growing demand for milk and dairy products, rise in per capita income of farmers, and increasing herd size and livestock farming in these countries, are expected to fuel the demand for livestock monitoring technologies, such as milking robots and feeding robots, in the coming years. The below figure portrays the number of milking robots installed worldwide and expected to be installed in the future.

Challenge: Livestock farming increasing environmental concerns and global warming

Livestock farming contributes 14–15% of the man-made greenhouse-gas emissions that are warming the planet. Animal manure can disrupt the nitrogen cycle or contaminate waterways. Livestock farming has a vast environmental footprint and a negative impact on climate. It also contributes to land and water degradation, biodiversity loss, acid rain, coral reef degeneration, and deforestation. The livestock sector already uses around 10% of global agricultural land and 8% of the total available freshwater. It is also largely responsible for deforestation and biodiversity loss and contributes 15% of global CO2 emissions.

Smart Agriculture Market Segmentation

Services segment is expected to grow at highest CAGR during forecast period

The services segment is expected to grow at the highest CAGR during the forecast period. The growing deployment and installation of precision feeding systems, field and livestock monitoring systems, and robotic systems in farms have led to a surge in demand for specialized services for smart agriculture. In addition, the growing need to train farm laborers to use advanced hardware solutions, increase the shelf-life of smart agriculture hardware, and deploy these solutions in small, medium-sized, and large farms are driving the growth of maintenance and support as well as connectivity and assisted professional services.

Precision aquaculture segment is projected to witness growth at highest CAGR during forecast period

The precision aquaculture segment is projected to witness growth at the highest CAGR during the forecast period. The growth can be attributed to the rising investments in technological research and product innovation, the surging adoption of advanced technologies such as IoT, ROVs, and AI for the real-time monitoring of aquaculture farms, the rising demand for protein-rich aqua food, and increasing support by worldwide governments for infrastructure development in aquaculture.

Smart Agriculture Industry Regional Analysis

Asia Pacific is expected to register highest growth in smart agriculture market share during forecast period

The smart agriculture industry in Asia Pacific is expected to grow at the highest CAGR during the forecast period. The increasing adoption of variable rate technology and smart irrigation controllers, along with AI-based farm analytics services, are some of the major factors propelling the growth of the market in this region. The rising demand for automation of livestock farms and aquaculture farms in this region is further expected to boost the growth of the smart agriculture market in Asia Pacific. In addition, the increasing livestock population and the growing demand for meat products in Asian countries, including China, Australia, India, and Japan, contribute to regional market growth. For instance, the cattle population in China and India increased by 3% and 0.4%, respectively, to reach 98 and 307 million heads in 2022, compared to 95 and 306 million heads in 2021.

Smart Agriculture Market Statistics by Region

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Top Smart Agriculture Companies - Key Market Players

The smart agriculture companies players have implemented various types of organic as well as inorganic growth strategies, such as new product launches, contracts, agreements, alliances, collaborations, joint ventures, partnerships, expansions, investments, and acquisitions to strengthen their offerings in the market.

Some of the key players in the smart agriculture companies are 

• Deere & Company (US), 
• Trimble Deere & Company (US), 
• Trimble Inc. (US), 
• AGCO Corporation (US), 
• Topcon Positioning Systems (US), 
• DeLaval (Sweden), 
• AKVA Group (Norway), 
• Allflex Livestock Intelligence (US),
• Innovasea Systems Inc. (US), 
• Afimilk Ltd. (Israel),
• Heliospectra AB (Sweden).

The study includes an in-depth competitive analysis of these key players in the smart agriculture market with their company profiles, recent developments, and key market strategies.

Smart Agriculture Market Report Scope

Smart Agriculture Market Highlights

This research report categorizes the smart agriculture market based on offering, agriculture type, farm size, application, and region.

Recent Developments in Smart Agriculture Industry

• In October 2022, Trimble Inc. launched new displays, GFX-1060 and GFX-1260, for precision agriculture applications. Farmers can carry out in-field tasks swiftly and effectively with these next-generation displays, allowing them to map and monitor field data in real time precisely..
• In September 2022, Deere & Company launched three new self-propelled forage harvesters to its existing lineup. They are designed to address the requirements of dairy and livestock producers, contractors, and harvesters to overcome challenges such as shorter harvesting windows, a smaller pool of skilled workers, and increased operating costs.
• In April 2021, Topcon Positioning Systems launched the manual guidance and autosteering receivers—the AGM 1 and AGS 2, and new Topnet Live cellular, satellite, and bridging correction services—Realpoint, Starpoint, and Skybridge. The new AGM 1 and AGS 2 are used for machine operations and all associated tasks where tracking location data is relevant to crop optimization, including soil preparation, seeding, crop care, and harvesting. They deliver reliable connection stability worldwide through a constantly improving network and a variety of cost-effective subscription models.
• In February 2021, AKVA Group signed a five-year agreement with Trollvika Drift AS to install 45 SmartEye Precision HD cameras with AKVAconnect 4 camera system controls at the Enkeltstein, Ystevika, Trollvika, and Svartskjær in Troms, Northern Norway locations.
• In December 2020, Afimilk Ltd. and Livestock Improvement Corporation (LIC), a herd improvement and agri-tech cooperative, signed a distributive partnership. According to the partnership, LIC will market Afimilk's AfiCollar in New Zealand.

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