The IoT (Internet of Things) has revolutionized various industries, and one such sector that has benefited greatly is agriculture. With the help of IoT, farmers can now monitor and control their crops and livestock with ease, leading to increased productivity and efficiency. As the IoT in Agriculture market continues to grow, companies are adopting various market share positioning strategies to gain a competitive edge.
One popular strategy is differentiation. Companies in the IoT in Agriculture market are constantly striving to differentiate themselves from their competitors by offering unique and innovative solutions. For example, some companies provide sensor-based systems that can monitor soil moisture levels, temperature, and nutrient content in real-time. By offering such advanced features, these companies position themselves as leaders in the industry, attracting customers who value cutting-edge technology.
Another effective strategy is cost leadership. In a highly competitive market like IoT in Agriculture, price plays a crucial role in attracting customers. Companies that can offer affordable IoT solutions without compromising on quality can gain a significant market share. These companies focus on streamlining their production processes and optimizing their supply chains to reduce costs. By doing so, they can offer their products at competitive prices, making them an attractive choice for price-conscious farmers.
Furthermore, companies in the IoT in Agriculture market also employ a focused strategy. Instead of targeting the entire market, they focus on specific segments or niches. By targeting a specific customer group, these companies can tailor their products and services to meet their unique needs. For instance, some companies specialize in providing IoT solutions for large-scale commercial farms, while others cater to small-scale organic farmers. This focused approach allows companies to position themselves as experts in their chosen segments, gaining loyal customers and a significant market share.
Moreover, partnerships and collaborations are becoming increasingly common in the IoT in Agriculture market. Companies are joining forces with technology providers, agricultural equipment manufacturers, and data analytics firms to offer comprehensive solutions. By forming strategic alliances, companies can leverage each other's strengths and create a more holistic offering for farmers. This collaborative approach not only enhances their market share but also drives innovation and accelerates the adoption of IoT in agriculture.
Report Attribute/Metric | Details |
---|---|
Market Size Value In 2022 | USD 12.5 Billion |
Market Size Value In 2023 | USD 15.178 Billion |
Growth Rate | 21.43%(2023-2032) |
IoT in Agriculture Market is projected to grow from USD 18.43 Billion in 2024 to USD 71.75 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.52% during the forecast period (2024 - 2032). Additionally, the market size for IoT in Agriculture was valued at USD 15.17 billion in 2023.
The global IoT in the agriculture market is driven by the rising demand for efficient farming practices and the growing government support for agricultural technologies. These factors contribute to the market drivers and drive the adoption of IoT solutions in the agriculture sector.
Figure 1: IoT in Agriculture Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The growing adoption of Variable Rate Technology (VRT) drives market growth in precision farming. By leveraging advanced technologies like remote sensing, GPS, and data management software, precision farming enables farmers to optimize resources, reduce costs, and maximize productivity. It provides valuable insights into soil conditions, crop health, and irrigation needs, leading to better decision-making and improved agricultural outcomes. Precision farming also helps mitigate the impact of environmental factors on crops, resulting in higher returns for agribusiness while promoting sustainable agriculture practices. This factor drives market CAGR.
Additionally, unmanned aerial vehicles (UAVs) or drones are increasingly used in agriculture to capture high-resolution aerial images, offering cost-saving benefits. Equipped with advanced sensors and imaging capabilities, agricultural drones provide farmers with new methods to improve crop yield and resource efficiency. Compared to traditional methods like satellite imagery and planes, drones offer faster data collection and analysis, saving time and effort. By 2030, the agricultural sector will contribute 80% of the commercial drone market, fostering job creation and tax revenue. Drones are crucial in precision farming, enabling real-time data collection, especially for extensive agricultural operations. As a result, adopting unmanned aerial vehicles (UAVs) or drones is expected to drive agriculture market revenue growth.
Based on components, IoT in Agriculture market segmentation includes Software Systems, Sensing and Monitoring Systems, Fish Farming Systems, Smart Greenhouse Systems, Livestock Monitoring Systems, and Automation and Control Systems Services. The sensing and monitoring systems segment dominated the market because Sensing and monitoring systems integrate with automation and control systems to enable automated farming processes.
The IoT in Agriculture market segmentation, based on Application, includes Livestock Monitoring, Precision Crop Farming, Indoor Farming Aquaculture, Integrated Pest Management, and Water Supply Management. The precision crop farming segment dominated the market because it helps farmers reduce costs and improve sustainability by minimizing inputs such as water, fertilizers, and pesticides.
Figure 1: IoT in Agriculture Market, by Application, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The Asia-Pacific IoT in the Agriculture Market area will dominate this market due to the increased demand in this Region, mostly the increased awareness of new agricultural technologies and supportive government policies that are driving the adoption of farm digitalization. Moreover, China’s IoT in Agriculture market held the largest market share, and the Indian IoT in Agriculture market was the fastest-growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: IOT IN AGRICULTURE MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe IoT in Agriculture market accounts for the second-largest market share. The growing awareness of the benefits of agricultural technologies has led to increased demand in this Region for improved production practices. Further, the German IoT in Agriculture market held the largest market share, and the UK IoT in Agriculture market was the fastest-growing market in the European Region.
North America is expected to grow at the fastest CAGR from 2023 to 2032 because of the strong inclination for technologically advanced machinery and drone systems to boost farm output.
Leading market players are investing heavily in research and development to expand their product lines, which will help the IoT in the Agriculture market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. IoT in Agriculture must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the IoT in the Agriculture industry to benefit clients and increase the market sector. The IoT in Agriculture has recently offered some of the most significant medical advantages. Major players in the IoT in Agriculture market include Deere & Company (US), Dickey John (US), Grownetics (US), Scicrop (Brazil), Precisionhawk Inc. (US), Shivrai Technologies Pvt. Ltd (India), Cropln (US), Rapidsoft Technologies Pvt. Ltd (US), Trimble Inc. (US), Raven Industries (US), Topcon Corporation (Japan), Proagrica (US), AG Leader Technology (US), and IBM Corporation (US).
John Deere, an American corporation specializing in agricultural machinery and equipment, recently introduced an enhanced version of Exact Rate. This advanced on-planter system allows for faster and more efficient fertilization of crops, reducing the need for frequent tank refills during planting.
Raven Industries, a leading provider of precision agriculture solutions, has unveiled its inaugural driverless technology for harvesting operations. This innovative system enables farmers to remotely monitor driverless vehicles, manage field plans, adjust speeds, and track location activities.
Trimble Inc.
Eruvaka Technologies
Raven Industries
Descartes Labs
AKVA group
February 2022: Kacific Broadband Satellite Ltd., a Singapore-based provider of powerful, fast, and low-cost satellite internet to homes, states, and associations throughout Asia Pacific, discussed plans with Farmer Charlie. Farmer Charlie is a provincial information supplier based in the UK that offers farmers in isolated and constrained areas of Southeast Asia-Pacific satellite-controlled green information. Together, Kacific and Farmer Charlie will provide smallholder farmers and agribusinesses with knowledge on bound environments, pastoral guidance, and agribusinesses. Additionally, ranchers are expected to benefit from assistance in managing the risk associated with the dry season, floods, declining post-collect losses, and other extreme weather events.
February 2022: Semtech Corporation announced that ICT International, a provider of Internet of Things (IoT) solutions for environmental applications, has included the LoRaWAN standard and Semtech's LoRa® devices into its aquaculture water quality monitoring systems. The deployment of LoRaWAN offers long-range, low-power, wide-area network coverage, enabling these systems to send measured data to oyster farmers in almost real-time, including temperature, water level/tide, water salinity, and more.
Software System
Sensing and Monitoring Systems
Fish Farming Systems
Smart Greenhouse Systems
Livestock Monitoring Systems
Automation and Control Systems Services
Livestock Monitoring
Precision Crop Farming
Indoor Farming Aquaculture
Integrated Pest Management
Water Supply Management
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
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