Global Smart Agriculture Market Size & Growth Trends Analysis Report

The growing global population and increased global food requirements have increased the need for smart agricultural techniques such as precision farming that optimizes resources like water, fertilizers, and pesticides. The improvements in IoT (Internet of Things) and AI-based systems enable real-time monitoring of crops, soil, and weather, providing farmers with actionable information to increase productivity. CropX, Arable, and Semios have created IoT and sensor-based solutions that allow for real-time monitoring of crop, soil, and weather conditions. Similarly, companies such as DJI Agriculture, Trimble Inc., and Blue River Technology, improve precision agriculture by utilizing aerial photography and automation in drones and robotics. Furthermore, artificial intelligence (AI) and machine learning solutions, such as Microsoft Azure FarmBeats, Prospera Technologies, and Taranis, offer predictive analytics for crop optimization and pest management.

The government programs and incentives for adopting modern agricultural technologies, particularly in developing economies, contribute to the market expansion of smart agriculture, with the increased awareness of sustainable farming techniques and the reduction of carbon footprints through smart technologies, the global smart agriculture market is set to surge in the upcoming years. Similarly, the introduction of drone technology and autonomous farming equipment provides tremendous value by lowering worker dependency and boosting operational efficiency. The adoption of renewable energy sources like solar-powered irrigation systems is also gaining momentum, aligning with global sustainability goals.

Regulatory authorities such as the Food and Agriculture Organisation (FAO), the European Union's Common Agricultural Policy (CAP), and the United States Department of Agriculture (USDA) play important roles in developing guidelines and giving financial support to encourage smart agriculture. They prioritize policies that promote precision farming, data-driven solutions, and environmental sustainability.

Despite these market drivers, the market confronts significant constraints. The high initial technology costs and a lack of technical competence among farmers, particularly in rural regions, impede the widespread adoption of smart agriculture heavily. Furthermore, data privacy concerns, poor infrastructure in developing countries, and fragmented supply chains present challenges to market expansion as well.

However, several startups are making significant progress in the smart agriculture space. For example, CropX specializes in soil sensing and analytics, assisting farmers in making data-driven decisions. AeroFarms focuses on vertical farming, which is revolutionizing urban agriculture. FarmLogs offers crop and farm management software solutions, whereas AgroStar uses its mobile platform to give agri-inputs and advice services to Indian farmers. These firms represent innovation and are critical to changing the future of agriculture.

The smart agriculture market has the potential to transform food systems by addressing constraints and capitalizing on opportunities, ensuring long-term sustainability and efficiency. The rise of agritech startups focussing on innovation, combined with increased venture capital investment, creates a fertile environment for the market growth of smart agriculture. Moreover, integrating blockchain in agriculture for transparent supply chains and traceability of produce is an emerging trend.

Impact of COVID-19

The COVID-19 pandemic had a significant impact on the smart agriculture industry, changing its course in a variety of ways. Initially, the disruptions in global supply chains resulted in severe delays in the delivery of agricultural technologies, machinery, and IoT devices, impeding ongoing projects and adoption rates. The restrictions on mobility and labor shortages in rural regions compounded the problems, particularly for traditional farming operations.

However, the pandemic demonstrated the value of technology in reducing such disruptions, acting as a spur for the rapid adoption of smart agriculture technologies. With social alienation and lockdowns reducing physical farm visits, there has been an increase in the usage of remote monitoring systems, drones, and self-driving machinery to maintain agricultural operations. Real-time data collection and predictive analytics have also become crucial tools for maintaining crop health and yield in a restricted setting.

The shift in consumer behavior towards food safety and traceability has increased the demand for blockchain and IoT-based supply chain solutions in agriculture. Furthermore, governments in several nations implemented stimulus packages and subsidies to encourage agricultural digitization, ensuring food security during the crisis. However, smaller farmers and locations with inadequate internet infrastructure had difficulty implementing these technologies due to high costs and lack of access. This expanded the digital gap in agriculture, leaving certain stakeholders behind in the shift to more efficient practices.

In the long term, the pandemic highlighted the resilience and efficiency of smart agriculture solutions, putting the market on track for continued growth. It emphasized the importance of innovation and investment in technologies that can adapt to future disturbances, ensuring food supply stays stable and reliable.

Market Segmentation

The smart agriculture market is segmented based on application, and offering. By application, the market is segmented into precision farming, livestock monitoring, smart greenhouses, aquaculture, and others. Precision farming is the leading application segment in the industry, with companies such as John Deere, Raven Industries, and AG Leader Technology focussing on resource optimization. Firms such as DeLaval, Afimilk, and BouMatic excel at livestock monitoring by offering solutions for tracking animal health and behavior. Heliospectra, Certhon, and Netafim are among the companies that promote smart greenhouse technologies, such as IoT-enabled controlled environments. AKVA Group, Aquabyte, and XpertSea are also leaders in aquaculture technologies for managing water quality and fish health.

By offering, the global smart agriculture market is segmented into hardware, software, and services. Hardware companies such as Bosch, Hexagon Agriculture, and Sentera supply advanced sensors, drones, and robotics. Climate FieldView (Bayer), FarmLogs, and Granular are software platforms that provide data analytics and decision-making tools for farm management. Meanwhile, IBM, Accenture, and PrecisionHawk lead the services market, offering consulting, training, and maintenance to help smart agricultural adoption.

Regional Analysis

North America dominates the smart agriculture industry, owing to the modern infrastructure, widespread adoption of precision farming technologies, and significant government and private investment in agricultural innovation. Countries such as the U.S. and Canada are at the forefront of integrating IoT, AI, and robotics into agriculture, with key players such as John Deere, Trimble Inc., and Raven Industries leading the way. The region also has established supply chains and a tech-savvy farming population, making it the most developed market for smart agriculture.

Europe is distinguished by a strong emphasis on sustainability and environmentally friendly agriculture practices. The European Union's Common Agricultural Policy (CAP) encourages the use of precision farming to reduce environmental impact. Countries such as Germany, the Netherlands, and France are at the forefront of innovation, with Hexagon Agriculture, Yara International, and Kubota leading the way. The emergence of smart greenhouses, particularly in the Netherlands, demonstrates the region's emphasis on controlled-environment agriculture to maximize resource efficiency.

Asia-Pacific is experiencing strong expansion in the smart agriculture market as modern farming technologies are increasingly used in countries such as China, India, and Japan. Governments in this region are making significant investments in modernizing agricultural practices to fulfill the food demands of their rising populations. Startups in India, such as AgroStar, are empowering farmers with mobile-based advising services, while large players in China, such as Deere & Company and Olam International, are supporting precision agriculture. Japan is the leader in robotic farming equipment and vertical farming solutions, exhibiting technological leadership in the region.

Smart agriculture is becoming increasingly popular in Latin America and the Middle East & Africa. Precision farming is being used to improve large-scale agricultural productivity in Latin America, particularly in Brazil and Argentina. Similarly, Africa is using technology such as mobile platforms and solar-powered irrigation systems to address infrastructure difficulties, with firms such as Netafim and Hello Tractor playing critical roles. Furthermore, the Middle East is investing in controlled-environment agriculture, such as vertical farming and hydroponics, to address its desert climate and water scarcity issues.

Competitive Analysis

The key players in the global smart agriculture market are Ag Leader Technology, AGCO Corporation, AgJunction Inc., AgEagle Aerial Systems Inc., Autonomous Solutions Inc., Argus Control Systems Ltd, BouMatic Robotic B.V., CropMetrics, CLAAS KGaA mbH, CropZilla, Deere & Company, DICKEY-john, DroneDeploy, DeLaval Inc., Farmers Edge Inc., Grownetics Inc., Granular Inc., Gamaya, GEA Group Aktiengesellschaft, and Raven Industries, among others.

In July 2023, the acquisition of Smart Apply Inc. was announced by Deere & Company. The company intended to use Smart Apply's precise spraying to help growers solve the issues of input costs, labor, regulatory requirements, and environmental aims. The same year, in May 2023, AgEagle Aerial Systems Inc. established a two-year supply agreement with Wingtra AG. This deal aims to ensure the supply of RedEdge-P sensor kits for use with WingtraOne VTOL drones. This is especially useful for those looking to profit from unmatched precision and plant-level information in commercial agriculture, environmental research, forestry, and water management applications.

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The global smart agriculture market is segmented as follows:

By Application (Revenue: USD Billion, 2019 – 2031)
●    Precision Farming
●    Livestock Monitoring
●    Smart Greenhouses
●    Aquaculture
●    Others

By Offering (Revenue: USD Billion, 2019 – 2031)
●    Hardware
●    Software
●    Services

By Region (Revenue: USD Billion, 2019 – 2031)

● North America
o U.S.
o Canada
o Mexico

● Europe
o U.K.
o France
o Germany
o Italy
o Spain
o Rest of Europe

● Asia Pacific
o China
o Japan
o India
o South Korea
o South East Asia
o Rest of Asia Pacific

● Latin America
o Brazil
o Argentina
o Rest of Latin America

● Middle East & Africa
o GCC Countries
o South Africa
o Rest of Middle East & Africa