by The Smart Agriculture Solution Market is estimated to be valued at US$ 29014.62 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Smart agriculture solutions involve the implementation of autonomous equipment, sensors, telemetry, and remote sensing tools to optimize performance of agriculture activities. These solutions help in achieving higher crop yield, efficient usage of resources such as water, fertilizers and pesticides, and reducing production costs. Smart greenhouse solutions are integrated with systems such as HVAC, irrigation & fertilizing, lighting etc to automatically control and monitor the climate and conditions for optimized plant growth. Precision farming equipment such as harvesters, UAVs and sensors help farmers leverage big data analytics and remote monitoring for maximizing output.
Market Dynamics:
The market is mainly driven by growing need for higher crop monitoring and yield optimization. With increasing global population and limited agricultural land, optimized utilization of resources is crucial for meeting the food demand. Smart agriculture solutions facilitate 24×7 crop monitoring using IoT sensors and reduce dependency on manual labor. This boosts productivity and minimizes production losses. Another major driver is the need for sustainable farming practices. Smart solutions empower precision application of water, fertilizers and pesticides and reduce overuse of chemicals. This supports environmental sustainability. Technologies such as automated harvesters and drones further aid in reducing labor cost and minimizing crop damage during harvesting. However, high initial investment requirements for transition to smart farms acts as a major restraint for market growth.
Segment Analysis
The smart agriculture solution market can be segmented into hardware, software, and services. The hardware segment is expected to dominate the market during the forecast period. This is attributed to the increased adoption of hardware components such as automation and control devices, sensing and monitoring devices, GPS/GNSS, etc. by the farmers. These hardware components are essential in collecting field data as well as controlling farm equipment and irrigation systems, thereby resulting in the higher market share of this segment.
PEST Analysis
Political: The government initiatives promoting the adoption of modern agricultural techniques are boosting the adoption of smart agriculture solutions across various countries. For instance, the Indian government has launched several programs to promote precision farming and drip irrigation.
Economic: The declining cost of agricultural inputs and growing farm incomes are encouraging farmers to invest in smart agriculture solutions to maximize yields. However, the high initial costs of precision farming equipment could hamper the market growth.
Social: Growing global population and reducing availability of cultivable land are increasing the need for sustainable agricultural practices. Smart agriculture helps optimize the use of resources and enhance productivity.
Technological: Advancements in IoT, robotics, cloud computing, and AI are facilitating the development of more innovative smart agriculture solutions. This is enabling automated monitoring of field conditions and precise application of inputs.
Key Takeaways
The Global Smart Agriculture Solution Market Size is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing need to optimize agricultural production and minimize wastage. The market size for 2023 is estimated to be US$ 29014.62 Mn.
Regional analysis: North America dominated the global market in 2023 and is expected to maintain its lead during the forecast period as well. This is owing to large-scale adoption of advanced techniques and government focus on modernizing agriculture in the US and Canada. Asia Pacific is expected to be the fastest growing region, driven by government support and growing consumer demand in major countries like China and India.
Key players: Key players operating in the smart agriculture solution market include Dirt Road Data, Inc., AgJunction LLC, Iteris, Inc., Site-Specific Technology Development Group, Inc., CropMetrics LLC, Trimble Navigation Ltd., Agribotix LLC, AgEagle Aerial Systems Inc., Granular, Inc., AgriSight, Inc., and SemiosBio Technologies Inc. These players are focusing on new product launches and partnerships to expand their product portfolio and geographical presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
