Global Internet of Things in precision agriculture market is estimated to witness high growth, owing to increasing adoption of IoT Technologies and growing need for agriculture efficiency
Global Internet of Things in precision agriculture market is estimated to be valued at US$ 6.15 Bn in 2024, exhibiting a CAGR of 14.8% over the forecast period of 2024-2031. Precision agriculture allows farmers to monitor crops and optimize farming practices using sensors and IoT technology for data collection and analysis. Farmers are increasingly adopting IoT solutions to gain real-time insights and maximize yield.
Market Dynamics:
Increasing adoption of IoT technologies by farmers and growing need for agricultural efficiency can drive the market growth. IoT powered smart sensors and devices enable precision agriculture by automating several agricultural practices like irrigation, soil and plant monitoring. This helps farmers to optimize the use of resources like water, fertilizers and monitor crop health remotely. IoT also improves productivity and sustainability by assisting data-driven decision making. Furthermore, government initiatives in support of digital agriculture and rising investment in IoT and big data analytics can boost adoption of IoT solutions in the agriculture sector.
Growing need for real-time decision making and monitoring in precision farming can drive the market growth
Precision agriculture involves making real-time farm management decisions based on data analysis to optimize crop yield and reduce costs. The use of IoT devices in agriculture enables continuous monitoring of field conditions, weather, and soil moisture levels. This real-time data helps farmers make informed decisions regarding irrigation, fertilizer/pesticide applications, machinery operations and others. IoT sensors provide valuable insights into specific issues in different farm plots, allowing farmers to address problems locally. This need for data-driven decision making to maximize productivity can boost adoption of IoT solutions in precision agriculture.
Government support for smart farming technologies can drive the market growth
Many governments around the world provide subsidies and incentives to promote innovative precision farming techniques. For example, the European Union offered US$ 3.7 billion in subsidies for smart farming initiatives from 2014-2020. The U.S. Department of Agriculture invests heavily in precision agriculture research and development programs. Such funding support encourages farmers, especially smallholders, to modernize operations with IoT and digital technologies. It also drives technology vendors to launch affordable precision farming solutions tailored for different market needs.
High initial investment requirements can pose challenges
Precision farming solutions require investing in hardware devices like sensors, automation & control systems, networking infrastructure, data storage & analytical tools, and others. Installing such complex IoT systems involves substantial upfront capital spending, which can be difficult for small-scale farmers and farms in developing nations. Expertise is needed to deploy, integrate, maintain and maximize returns from these technologies. The high costs associated with setting up IoT infrastructures in the fields ca pose challenges, especially for resource-constrained farmers. This financial barrier slows the wider adoption of precision agriculture practices.
Lack of awareness hampers the market growth
Many agricultural practitioners in developing and underdeveloped regions have limited understanding of how IoT and data analytics can boost farm productivity and profitability. Traditional methods continue to dominate due to unawareness about promising benefits and return on investments from smart agriculture. Even in developed markets, overall understanding of these advanced solutions remains relatively low. The lack of awareness poses challenges for market penetration, particularly for technology vendors and enablers seeking to promote innovative precision farming models. Targeted marketing campaigns are required to overcome this barrier through demonstration of real impacts.
Demand for farm labor optimization creates new prospects
IoT applications can help optimize the use of farm equipment, field operations and labor resources. Advanced predictive analytics aids in planning activities more efficiently based on expected yields and quality. Automation assisted by IoT reduces dependence on manual labor teams, which are becoming increasingly scarce and expensive. This presents opportunities for solution providers to develop advanced labor management systems driven by real-time insights. As farms aims to maximize output while minimizing workforce costs, there will be huge demand for technologies enabling autonomous operations and optimized labor deployment.
Interest in sustainability boosts scope for IoT adoption
Rising environmental consciousness is nudging farmers towards greener precision agriculture approaches. IoT platforms can support sustainability goals through features like automated greenhouse gas emission monitoring, optimized water/fertilizer distribution to conserve resources, predictive maintenance of farm equipment, remote asset tracking, and more. For example, drones and smart sensors facilitate collecting vegetation indices to aid sustainable land management practices. Growing industry-wide focus on reducing agriculture's carbon footprint and ensuring ecological balance can offer opportunities for innovative IoT vendors addressing these sustainability priorities.
Key Developments:
- In January 2024, Deere & Company, a worldwide pioneer in agricultural equipment and technology, announced a strategic partnership with SpaceX to deliver advanced satellite communications (SATCOM) services to farmers. Leveraging SpaceX's renowned Starlink network, this solution aims to empower farmers grappling with rural connectivity issues, enabling them to maximize the benefits of precision agriculture technologies and enhance productivity, profitability, and sustainability in their operations.
- In April 2023, Bosch, a leading global provider of technology and services, announced its partnership with AGCO Corporation, a prominent manufacturer of agricultural machinery, to integrate and bring to market Smart Spraying technology for FendtRogator sprayers. This partnership focuses on advancing these sprayers with new features designed to enhance precision in herbicide application. The initiative aims to support farmers by optimizing crop management practices and reducing chemical usage, thereby benefiting agricultural operations.
- In March 2023, Bayer AG, a prominent leader in life sciences and agricultural solutions, and Microsoft Corporation, a multinational technology company, collaborated to create a cloud-based suite of data tools and data science solutions tailored for the food and agriculture sectors. This collaboration focuses on enhancing digital capabilities across the food, feed, fuel, and fiber value chain, driven by a mutual dedication to sustainability.
- On February 15, 2022, Kacific Broadband Satellite Ltd., a Singapore-based company offering cost-effective and high-speed satellite internet services throughout the Asia Pacific region, partnered with Farmer Charlie, a U.K.-based provider of agricultural data and consultancy. This partnership seeks to bring satellite-enabled agricultural information and expertise to farmers in remote and underserved areas of Southeast Asia and the Pacific.
- On February 3, 2022, Semtech Corporation, a leading U.S.-based manufacturer of high-performance analog and mixed-signal semiconductors, disclosed that ICT International, an IoT solutions provider specializing in environmental applications, has incorporated Semtech's Long-Range (LoRa) devices and the LoRaWAN standard into its water quality monitoring system
Key Players:
Ag Leader Technology, AgJunction, Inc., AKVA Group ASA, AeroFarms, AmHydro, AGRIVI, Cisco Systems, Inc., Climate LLC, Connecterra B.V., Deere & Company, Eruvaka Technologies, Heliospectra AB, Hitachi, Ltd., and IBM
