Global Smart Agriculture Farming Market Overview
Smart Agriculture Farming Market Size was estimated at 15.64 (USD Billion) in 2022.
The Smart Agriculture Farming Market Industry is expected to grow from 17.18(USD Billion) in 2023 to 40.0 (USD Billion) by 2032. The Smart Agriculture Farming Market CAGR (growth rate) is expected to be around 9.85% during the forecast period (2024 - 2032).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Smart Agriculture Farming Market Trends Highlighted
Due to population growth, the need for agricultural products is increasing, in relation with population and therefore, the demand for growing concern regarding food security is inducing the uptake of smart agriculture farming practices. These technologies improve resource use efficiency, raise productivity and improve the quality of crops.
Key market drivers include government policies and programs, development in sensor technology and requirement of environmentally friendly approaches to agriculture. The trend towards use of mobile devices and cloud-based platforms for data analysis is facilitating the growth of real-time monitoring and precision farming.
Developments in the smart agriculture farming market include the application of drones to monitor the crops growth, use predictive analytics to dynamic crops diseases and pests control, and decisions made by AI. Adoption of precision irrigation systems, variable-rate technology for application of fertilizers and deployment of self-drive agricultural equipment are also growing in acceptance. As the market for data driven agriculture increases, there are prospects in creation of new technologies, partnerships with emerging markets, and interlinking farmers and technology industries to solve specific problems in agriculture.
Smart Agriculture Farming Market Drivers
Increasing Adoption of Precision Farming Technologies
One of the technological trends that can favor Smart Agriculture is precision farming, defined as the use of sensors, drones, and other technologies to collect data on the state of the crop, the soil, and the climate of a given territory and make data-driven decisions about watering, fertilization, and pest and weed control. The use of such technologies allows farmers to increase yields and avoid excess use of water, fertilizers, and pesticides. The growing adoption of precision farming technologies is one of the major drivers of growth in the Smart Agriculture Farming Market Industry.
In 2023, the market for precision farming technologies was evaluated at USD 4.5 billion, and by 2030, it is expected to reach 12.2 billion, which is equivalent to a CAGR of 12.5%. One of the benefits for agricultural producers is that through the use of precision farming technologies, they can increase crop yields. Another advantage of using precision farming is that it allows farmers to reduce their environmental impact by reducing their use of water, fertilizers, and pesticides.
Finally, through using the examined technologies, farmers can improve their profitability by increasing crop yields and reducing the costs of production.
Rising Demand for Food
The global population is growing rapidly, and this is putting a strain on the world's food supply. In order to meet the demands of a growing population, farmers need to find ways to produce more food using the same or fewer resources. Smart agriculture farming technologies can help farmers to do this by increasing crop yields and reducing waste. There are a number of factors that are contributing to the rising demand for food, including: Population growth: The global population is expected to reach 9.7 billion by 2050.
This will put a significant strain on the world's food supply. Increasing urbanization: As more people move to cities, they are demanding more food. Changing dietary habits: People are eating more meat and processed foods, which require more resources to produce.
Government Initiatives
Governments around the world are increasingly recognizing the importance of smart agriculture farming technologies. They are providing financial incentives and other support to farmers who adopt these technologies. This is helping to drive the growth of the Smart Agriculture Farming Market Industry. There are a number of reasons why governments are supporting smart agriculture farming technologies, including: Food security: Smart agriculture farming technologies can help to ensure food security by increasing crop yields and reducing waste.
Environmental sustainability: Smart agriculture farming technologies can help to reduce the environmental impact of agriculture. Economic growth: Smart agriculture farming technologies can help to boost economic growth by creating new jobs and increasing productivity.
Smart Agriculture Farming Market Segment Insights
Smart Agriculture Farming Market Smart Farming System Insights
The Smart Agriculture Farming Market features several subcategories among which the smart farming systems are direct contributors to agricultural yield and sustainability. The smart farming systems subcategory is organized based on solutions and technologies used, and the major ones are crop monitoring solutions, precision farming solutions, livestock management solutions, greenhouses and controlled environment agriculture, and smart irrigation systems.
Utilizes sensors, drones, and satellites that monitor crop conditions and detect stress factors. Smart systems analytics provide real-time data on the condition of the crop, allowing farmers to make informed decisions about irrigation, application of pesticides and herbicides, or the timing of harvesting for the best yield.
Using GPS, variable rate technology, and data analytics to adjust the application of inputs to the requirements of each square foot of the field. Such application of fertilizers or other chemicals helps reduce the pollution of the environment and improve the efficiency of inputs, which combines to make farming more profitable. Livestock management solutions. Use technology to improve the welfare, productivity, and traceability of animals. It combines technologies such as RFID tags, sensors, and analytics that give real-time data about the animals' health, feed intake, as well as reproduction cycle.
Based on such information, farmers can make data-driven decisions about how to improve the production potency of livestock and decrease losses. Greenhouse and controlled environment agriculture. Systems of greenhouses, as well as indoor systems of farming, utilize technology to provide the best possible conditions for the growth of each variety or subset of plants regardless of the external climate. The environmental conditions are tightly controlled, including temperature, lighting, humidity, and delivery of nutrients, which provides significant increases in yield, reduction of water spent, and extension of the farming season.
Using sensors and data analytics to optimize the application of water and the resulting yield of crops marks a critical development. Sensors monitor the condition of the land, adjusting irrigation based on the moisture of the soil and weather conditions. In return, crops receive optimal amounts of water, applied at a reasonable time, which decreases the waste of water and increases the yield of the crops in question.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Smart Agriculture Farming Market Technology Insights
The Smart Agriculture Farming Market is segmented into various technologies, including Sensors (Field and Environmental), Data Analytics and Artificial Intelligence, Internet of Things (IoT) Platforms, Cloud and Edge Computing, and Geographical Information Systems (GIS). Sensors (Field and Environmental) play a crucial role in collecting real-time data on crop health, soil conditions, and environmental parameters. Data Analytics and Artificial Intelligence leverage this data to provide actionable insights, enabling farmers to optimize crop management practices.
IoT Platforms connect various devices and sensors, facilitating data sharing and remote monitoring. Cloud and Edge Computing offer scalable and cost-efficient data storage and processing capabilities. Geographical Information Systems (GIS) provide spatial analysis and visualization tools, helping farmers understand the impact of geographical factors on crop production. The Smart Agriculture Farming Market revenue for the Technology segment is projected to grow significantly, driven by factors such as increasing demand for precision farming techniques, government initiatives promoting sustainable agriculture, and advancements in sensor technologies.
Smart Agriculture Farming Market Application Insights
The Smart Agriculture Farming Market is segmented by application into Crop Production, Livestock Production, Aquaculture and Fisheries, Forestry, and Urban Farming. Among these segments, Crop Production held the largest market share in 2023 and is expected to continue its dominance during the forecast period. The increasing adoption of precision farming techniques, such as variable rate technology and remote sensing, is driving the growth of this segment. The Livestock Production segment is also expected to witness significant growth, owing to the rising demand for livestock products and the need to improve productivity.
In 2023, the Smart Agriculture Farming Market revenue for the Crop Production segment was valued at USD 6.8 billion and is projected to reach USD 15.2 billion by 2032, growing at a CAGR of 9.8%. The Livestock Production segment is expected to grow from USD 4.2 billion in 2023 to USD 9.6 billion by 2032, at a CAGR of 9.9%. Aquaculture and Fisheries, Forestry, and Urban Farming segments are also expected to exhibit notable growth over the forecast period. The growth of the Smart Agriculture Farming Market is attributed to factors such as the increasing need to improve agricultural productivity, reduce costs, and conserve resources.
The adoption of smart farming technologies enables farmers to optimize crop yields, reduce water consumption, and improve livestock health. Moreover, government initiatives and subsidies are furthering the market growth. Overall, the Smart Agriculture Farming Market is poised for significant growth in the coming years, driven by the increasing adoption of smart farming technologies and the rising demand for sustainable agricultural practices.
Smart Agriculture Farming Market Crop Type Insights
The crop type segment of the Smart Agriculture Farming Market is anticipated to witness significant growth in the coming years. The segment is further divided into grains, fruits and vegetables, oilseeds and pulses, forages and cotton.
The market for smart agriculture farming in grains is projected to reach USD 10.5 billion by 2024, exhibiting a CAGR of 10.2% during the forecast period. This growth is attributed to the increasing adoption of precision farming techniques, such as variable rate application (VRA) and yield monitoring, which allow farmers to optimize crop production and reduce costs. The fruits and vegetables segment is another major contributor to the market, driven by the growing demand for high-quality and nutritious produce.
Smart agriculture technologies, such as automated irrigation systems and sensors, help farmers monitor and control crop growth conditions, resulting in improved yields and reduced water consumption. Oilseeds and pulses, forages, and cotton are other important crop types in the smart agriculture farming market. The adoption of smart farming technologies in these sectors is expected to drive growth in the coming years as farmers seek to improve productivity and profitability. For instance, the use of drones for crop monitoring and spraying can significantly reduce labor costs and improve crop management practices.
Overall, the crop type segment of the Smart Agriculture Farming Market is poised for robust growth in the years to come, driven by the increasing adoption of smart farming technologies. These technologies offer numerous benefits to farmers, including improved crop yields, reduced costs, and enhanced sustainability, making them essential for the future of agriculture.
Smart Agriculture Farming Market Distribution Channel Insights
The Smart Agriculture Farming Market is segmented by distribution channel into Original Equipment Manufacturers (OEMs), Distributors, Resellers, Online Retailers, and Integrators. Original Equipment Manufacturers (OEMs) held the largest market share in 2023 and are expected to continue to dominate the market throughout the forecast period. This is due to the increasing adoption of smart agriculture solutions by farmers, which has led to a surge in demand for smart agriculture equipment and software. Distributors, resellers, and online retailers are also expected to experience significant growth in the coming years as they play a vital role in connecting OEMs with farmers.
Integrators are expected to witness the fastest growth during the forecast period as they provide turnkey solutions that combine hardware, software, and services, which are becoming increasingly popular among farmers.
Smart Agriculture Farming Market Regional Insights
The Smart Agriculture Farming Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America held the largest market share in 2023, owing to the early adoption of smart farming technologies and the presence of well-established agricultural infrastructure. Europe is expected to follow North America in terms of market share, driven by government initiatives and the increasing adoption of precision farming techniques. APAC is expected to witness significant growth in the coming years due to the increasing demand for food production and the growing adoption of smart farming technologies in countries like China and India.
South America and MEA are expected to have a relatively smaller market share, but they are expected to grow at a steady pace, driven by the increasing adoption of smart farming technologies in these regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Smart Agriculture Farming Market Key Players And Competitive Insights
Major players in the Smart Agriculture Farming Market are constantly engaging in research and development to introduce innovative solutions that cater to the evolving needs of farmers. Strategic partnerships and collaborations are prevalent in the industry, as companies seek to combine their expertise and resources to offer comprehensive smart farming solutions. Leading Smart Agriculture Farming Market players are focusing on expanding their product portfolios to address a wider range of agricultural applications. They are also investing in developing user-friendly platforms and interfaces to enhance the accessibility and usability of their solutions. The Smart Agriculture Farming Market industry is characterized by mergers and acquisitions, as companies strive to strengthen their market position and gain access to new technologies.
One of the leading companies in the Smart Agriculture Farming Market is Deere & Company. The company offers a comprehensive suite of smart farming solutions, including precision agriculture equipment, data management platforms, and advisory services. Deere & Company has a strong global presence and a well-established distribution network. The company is committed to innovation and invests heavily in research and development. Deere & Company's smart farming solutions are designed to help farmers optimize their operations, improve yields, and reduce costs.
A prominent competitor in the Smart Agriculture Farming Market is Trimble Inc. The company provides a range of smart farming solutions, including GPS guidance systems, yield monitors, and data analytics software. Trimble Inc. has a strong presence in the agriculture industry and has established strategic partnerships with leading agricultural equipment manufacturers. The company is focused on developing innovative solutions that address the challenges faced by farmers. Trimble Inc.'s smart farming solutions are designed to help farmers improve accuracy, efficiency, and productivity.
Key Companies in the Smart Agriculture Farming Market Include
- Syngenta
- Deere Company
- AGCO Corporation
- Netafim Ltd.
- Raven Industries, Inc.
- Precision Planting, LLC (John Deere)
- Trimble Inc.
- Corteva Agriscience (formerly DowDuPont)
- The Toro Company
- Arable Labs Inc.
- Topcon Positioning Systems, Inc.
- Yara International ASA
- Basf SE
- The Climate Corporation (Bayer)
Smart Agriculture Farming Market Industry Developments
The Smart Agriculture Farming Market is anticipated to expand significantly between 2024 and 2032. In 2023, the market was valued at approximately USD 17.18 billion, and it is projected to reach USD 40.0 billion by 2032, exhibiting a CAGR of 9.85%. This growth is attributed to the rising need for increased agricultural productivity, coupled with the growing adoption of precision farming techniques. Government initiatives and investments in smart agriculture are also driving market expansion. Notable recent developments include collaborations between technology providers and agricultural companies to develop innovative solutions. For instance, John Deere and Microsoft partnered to enhance data analytics and decision-making for farmers. Furthermore, the integration of IoT sensors and drones is transforming farming practices, enabling real-time monitoring and data-driven decision-making.
Smart Agriculture Farming Market Segmentation Insights
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Smart Agriculture Farming Market Smart Farming System Outlook
- Crop Monitoring Solutions
- Precision Farming Solutions
- Livestock Management Solutions
- Greenhouses and Controlled Environment Agriculture
- Smart Irrigation Systems
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Smart Agriculture Farming Market Technology Outlook
- Sensors (Field and Environmental)
- Data Analytics and Artificial Intelligence
- Internet of Things (IoT) Platforms
- Cloud and Edge Computing
- Geographical Information Systems (GIS)
-
Smart Agriculture Farming Market Application Outlook
- Crop Production
- Livestock Production
- Aquaculture and Fisheries
- Forestry
- Urban Farming
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Smart Agriculture Farming Market Crop Type Outlook
- Grains
- Fruits and Vegetables
- Oilseeds and Pulses
- Forages
- Cotton
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Smart Agriculture Farming Market Distribution Channel Outlook
- Original Equipment Manufacturers (OEMs)
- Distributors
- Resellers
- Online Retailers
- Integrators
-
Smart Agriculture Farming Market Regional Outlook
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North America
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Europe
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South America
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Asia-Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
15.64(USD Billion) |
| Market Size 2023 |
17.18(USD Billion) |
| Market Size 2032 |
40.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
9.85% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2022 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Syngenta, Deere Company, AGCO Corporation, Netafim Ltd., Raven Industries, Inc., Precision Planting, LLC (John Deere), Trimble Inc., Corteva Agriscience (formerly DowDuPont), The Toro Company, Arable Labs Inc., Topcon Positioning Systems, Inc., Yara International ASA, Basf SE, The Climate Corporation (Bayer) |
| Segments Covered |
Smart Farming System, Technology, Application, Crop Type, Distribution Channel, Regional |
| Key Market Opportunities |
Growing demand for precision farming Increasing government support for smart agriculture initiatives Advancements in IoT and data analytics technologies Rising consumer awareness of food safety and traceability Expansion of smart agriculture solutions into developing markets |
| Key Market Dynamics |
Increasing adoption of precision farming Rising demand for sustainable farming practices Growing government initiatives Advancements in IoT and AI technologies Technological collaborations and partnerships |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Smart Agriculture Farming Market is currently valued at around USD 17.18 billion in 2023 and is projected to reach approximately USD 40.0 billion by 2032, exhibiting a CAGR of approximately 9.85% during the forecast period.
North American region is anticipated to dominate the Smart Agriculture Farming Market throughout the forecast period owing to the increasing adoption of smart farming technologies, government initiatives, and a large agricultural sector in countries such as China and India.
Major growth drivers of the Smart Agriculture Farming Market include rising concerns over food security, increasing demand for sustainable farming practices, government support for precision agriculture, and technological advancements in sensors, data analytics, and automation.
Smart Agriculture Farming solutions are primarily employed for various applications, including crop monitoring, livestock management, irrigation optimization, and environmental control. These solutions help farmers enhance crop yield, reduce operational costs, and improve overall farm efficiency.
Major players operating in the Smart Agriculture Farming Market include Deere Company, Trimble Inc., AGCO Corporation, Raven Industries Inc., and Topcon Corporation. These companies offer a wide range of smart farming technologies, including GPS guidance systems, variable-rate application equipment, and data analytics platforms.
The Smart Agriculture Farming Market faces certain challenges, such as the high cost of implementation, lack of skilled labor, and concerns over data privacy and security. Additionally, the fragmented nature of the agricultural sector and limited access to technology in rural areas can hinder market growth.
Emerging trends shaping the Smart Agriculture Farming Market include the integration of artificial intelligence (AI), the Internet of Things (IoT), and blockchain technology. These technologies enhance data analysis capabilities, automation, and traceability throughout the agricultural value chain.
The Smart Agriculture Farming Market is anticipated to witness continued growth in the coming years, driven by increasing demand for food, technological advancements, and government support for sustainable agriculture. The market is expected to expand into new regions and application areas, with a focus on precision farming, data-driven decision-making, and environmental sustainability.
Factors contributing to the growth of the Smart Agriculture Farming Market include rising population and increasing demand for food, growing adoption of precision farming techniques, government initiatives and subsidies, technological advancements, and increasing awareness about the benefits of smart farming solutions.
Smart Agriculture Farming solutions offer numerous benefits, including increased crop yield and productivity, reduced operational costs, improved resource management, enhanced decision-making, reduced environmental impact, and improved traceability throughout the agricultural supply chain.
