Smart Agriculture Solution Market Is Estimated to Witness High Growth Owing to Rising Adoption of IoT and Increasing Need for Agricultural Monitoring & Prediction
The Smart agriculture solution market is estimated to be valued at US$ 16.87 Bn in 2024 and exhibit a CAGR of 11% over the forecast period 2024-2031. Advancement in precision agriculture technologies is expected to propel the market growth.
Market Dynamics:
The global smart agriculture solution market growth is driven by the increasing adoption of IoT (Internet of Things) and wireless technologies in agriculture. IoT helps farmers to monitor fields in real-time and take necessary actions. It offers solutions like smart irrigation, soil monitoring, pest prediction which help optimize farm operations and boost productivity. Additionally, growing need for agricultural monitoring and prediction is also fueling the market growth. Smart agriculture solutions help analyze large amount of data to predict weather, crop yield, pest infestation and take preventive measures. This has significantly helped farmers to increase farm output. However, initial investment and digital literacy required for adoption of these solutions pose a challenge for smallholder farmers. Ongoing infrastructure development projects in rural areas are helping address this concern and is expected to create new opportunities for market players over the coming years.
Market Drivers
Increasing Adoption of Precision Agriculture and IoT in Agriculture
With rapid advancements in technologies such as IoT, AI and ML, their integration with farming equipment is enabling precision agriculture. Precision agriculture helps farmers monitor their fields remotely, apply water and nutrients precisely as per requirement of crops and optimize production. The use of smart devices, automated irrigation systems, drones and GPS tracking is growing among farmers globally. This is a major driver for the growth of the global smart agriculture solution market.
Rising Need to Improve Agricultural Productivity and Crop Yield
The global population is rising rapidly but the agricultural land area is shrinking. This imbalance between demand and supply of food creates a need to boost agricultural productivity and crop yields from limited farmland. Smart agriculture technologies such as high-precision weed control, centralized climate control in greenhouses, automated soil and plant monitoring help maximize yields. They analyze field conditions precisely and help farmers optimize resource use. The need to improve yields and maximize production is fueling market growth.
Market Restraints
High Initial Costs of Smart Agriculture Solutions
The smart agriculture solutions require sophisticated equipment and hardware components which come at a high initial cost. Smart sensors, automated machinery, aerial imagery equipment, farm management software are some examples which are expensive for smallholder farmers especially in developing nations. The lack of financing options and affordability challenges adversely impact the sales of these solutions in price-sensitive markets globally.
Lack of Standardized Regulations for Drones in Agriculture
While drones provide valuable crop assessment and monitoring capabilities, lack of common regulatory standards for their commercial use in different countries poses a challenge. Each jurisdiction has its own rules regarding registration, licensing, flight height limits, no-fly zones, etc. which makes cross-border drone operations difficult. This regulatory ambiguity and compliance issues restrain the integration of drones in smart agriculture to some extent.
Market Opportunities
Scope for Technology Integration
There are further opportunities to converge disparate technologies and develop fully integrated smart farming solutions. For instance, combining computer vision, AI and robotics can enable autonomous weed control. Integration of big data analytics with IoT can enhance agricultural decision making. Integrating renewable energy solutions can make farms self-sustaining. Such multi-technology platforms present significant growth potential.
Growing Demand from Emerging Markets
While developed regions are early adopters, emerging countries in Asia Pacific and Latin America with large agrarian populations also present lucrative opportunities. Factors like increasing crop cultivation area, need to boost yields, supportive government initiatives and growing acceptance of new technologies among smallholder farmers are expanding the customer base in developing markets.
In conclusion, while factors like high costs and absence of standardized regulations restrain the global smart agriculture solution market to some extent, the rising need for sustainable and precision agriculture drives overall adoption. Further technology integration and demand from emerging markets also open up opportunities for future growth. Stakeholders need innovative business and financing models to tap into developing regions and address affordability barriers globally.
Link: https://www.coherentmarketinsights.com/market-insight/smart-agriculture-solution-market-3931
Key Developments:
- In May 2023, AgEagle Aerial Systems Inc. and Wingtra AG entered into a 2-year supply agreement. The aim of this partnership is to guarantee the availability of RedEdge-P sensor kits for seamless integration with WingtraOne VTOL drones. This collaboration presents a valuable opportunity for those seeking to harness the power of unparalleled, high-precision, and plant-level insights in commercial agriculture, environmental research, forestry, and water management applications.
- In February 2023, Topcon Agriculture unveiled Transplanting Control, an exceptional guidance control solution specifically designed for specialty farmers. This turnkey system was engineered to boost efficiency, minimize labor demands, and drive increased production. Moreover, it delivers GNSS-driven guidance, autosteering, and control functionalities, proving advantageous for growers of perennial trees, vegetables, and fruits.
- In June 2021, CNH Industrial revealed its intention to acquire Raven Industries, a strategic decision that will bolster the company's smart agriculture capabilities and scale. This acquisition will empower CNH Industrial to provide the agricultural industry with a wider array of solutions and technologies, further solidifying its market position.
- In March 2021, DeLaval introduced the RC550 and RC700 robot collectors, specifically designed for solid floors. These products are engineered to improve cow comfort and hoof health. The unique rotary manure intake system of these robots allows them to manage manure without the need for additional water.
- In January 2021, John Deere launched a new feature called Work Planner, aimed at helping farmers streamline their work setup experience. This feature empowers operators to work more efficiently in the field and equips farmers with a holistic tool to manage their agricultural operations.
Key Players:
Afimilk Ltd., AGCO Corporation, Allflex Livestock Intelligence, AKVA Group, CropMetrics LLC, Deere & Company, DeLaval, Dirt Road Data Inc., Heliospectra AB, Innovasea Systems Inc., Iteris Inc., Pinduoduo, Trimble Deere & Company, Trimble Inc., and XAG Agriculture
