CAGR: 18.5%Current Market Size: USD 14.65 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2022-2029Base Year: 2021
The Global Smart Farming market is expected to grow from USD 14.65 billion in 2021 to USD 56.96 billion by 2029, at a CAGR of 18.5% during the Projection period 2022-2029. The growth of this market is mainly driven owing to the increasing demand for cost-effective and requirement of advanced technologies in the farming techniques.
A smart farming system enables farmers to grow crops with greater efficiency by making use of advanced technology such as internet of things, artificial intelligence etc. Additionally, farmers are increasingly implementing IoT and AI for irrigation automation and crop field management. With minimal manual intervention, the smart agriculture market can be boosted with cost-effective and optimal solutions. The COVID-19 pandemic had both a positive and negative effect on the growth of the global smart agriculture market, the market players in smart agriculture observed both growth and decline in their sales. Aside from that, governments of various developing and developed regions provide tax benefits to companies operating in the smart agriculture market. In addition, governments are heavily investing in the global smart agriculture market to encourage growth. With a focus on all operating business segments and identification of the smart agriculture segment for each company, companies holding majority market shares. As urbanization continues to increase along with increased usage of advanced technologies in agriculture, farmland is expected to decrease worldwide, presenting great opportunities for smart farming market players. Continuous research and development in the smart farming sector for improved and innovative technical procedures required in the farming sector will boosts the growth of smart farming market.
Sample Request: - Global Smart Farming Market
Market Dynamics:
Drivers:
In addition to ensuring high yields, profitability, and environmental protection, IoT solutions help farmers bridge the supply-demand gap. In agriculture, Internet of Things technology is being rapidly adopted to help farmers monitor the growth of their products. Using Internet of Things applications in conventional agricultural practices reduces the time needed to oversee the production of crops. Agricultural IoT makes us of robots, remote sensors, mapping fields, drones and computer imaging combined with continuous machine learning and analytics for monitoring crops, surveying and mapping fields and providing data to farmers for rational farm management plans.
Restraints:
Equipment’s used in smart farming systems are expensive and have high maintenance cost. Traditional farming practices are frequently preferred by farmers in developing countries, such as India, China, and Brazil, since new technology farming requires a much larger investment of money and time. Smart farming includes installation of sensors, GPS etc. which requires qualified person to install and operate them that ultimately needs for finances.
Opportunities:
Advanced technologies are playing an important role in the farming sector. It is helping the farmers to deal with farming related issues and to also helping the farmers to enhance the production of crops. A smart farming system also offers information about pesticides, herbicides, liquid fertilizers, and irrigation, which can reduce waste and limits the use of chemicals. Smart farming systems also provides climatic information to the farmers. Automating procedures and increasing productivity while lowering farming costs are two important characteristics of smart agricultural technologies.
Challenges:
The market growth is hampered by lack of technical skills because smart farming systems require deep knowledge and understanding of technology in order to work smoothly in the technical areas without any error. As per a survey report, it has been observed many farmers are avoiding to opt for technical support in their farming practices due to lack of understanding and knowledge of technology. For Smart Agriculture to be widely adopted, farmers must be trained on how to use apps and technologies since they are not familiar with the latest technologies and have a low level of digital literacy.
Segmentation Analysis:
The global smart farming market has been segmented based on Vessel, application, and regions.
By Type
The type segment includes livestock monitoring, precision farming, smart greenhouse, fish farming and others. The very large gas carrier segment led the largest share of the smart farming market with a market share of around 25.83% in 2021. In addition to increasing agricultural productivity, precision agriculture techniques can also reduce production waste and improve food security by improving yield from the same resources. The rising population triggers the rising demand for food and enhanced food supply chain which will boosts the growth of smart farming market.
By Solution
The solution segment includes services, hardware systems and software. The hardware systems segment led the smart farming market with a market share of around 39.28% in 2021. Among the hardware system is a sensor and navigation system, an automation and control system, and indoor farming equipment, which can be used for automating and controlling farm machinery, sensing analytical data, and controls and maintains the desired climate in indoor farms. The rising usage of hardware systems in various smart farm applications propels the growth of the smart farming market.
By Application
The type segment includes crop scouting, Projectioning, irrigation management, field mapping and others. The irrigation management segment led the largest share of the smart farming market with a market share of around 25.83% in 2021. By identifying irrigation inputs needed for yield, Irrigation Management provides solutions and systems for efficiently managing water in farms. There are currently 3200 million farmers living in areas with significant water shortages, of whom 1200 million live in areas with very high-water constraints. Therefore, irrigation management will continue to grow during the Projection period as a result of this growing demand.
Global Smart Farming Market- Sales Analysis.
The sale of synthetic biology products expanded at a CAGR of 34.9% from 2015 to 2021.
The advancement in technology and the development compared to traditional farming methods is one of the major growth drivers in the Smart Farming Market. The use of advanced technology such as implementation of Iot, AI etc. like technologies to help the farmers by providing them all the useful information required for efficient farming techniques. A number of IoT solutions are aimed at closing the gap between supply and demand by enhancing yields, profitability, and environmental protection.
Precision agriculture methods can improve agricultural productivity, which leads to higher crop yields, and a higher yield from the same resources will help address food security issues and reduce production waste.
A growing number of farmers are adopting IoT and AI to monitor and automate their crop fields and irrigation systems. Providing cost-effective and optimal solutions to farmers with minimal manual intervention, it boosts the smart farm industry. Smart farming is expected to see great opportunities as a result of urbanization and the increase in advanced farming technologies across the globe.
Thus, owing to the aforementioned factors, the global Smart Farming Market is expected to grow at a CAGR of 18.5% during the Projection period from 2022 to 2029.
By Regional Analysis:
The regions analyzed for the gloves market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North America region dominated the smart farming market and held the 36.2% share of the market revenue in 2021.
Global Smart Farming Market- Country Analysis:
Germany's smart farming market size was valued at USD 5.15 billion in 2021 and is expected to reach USD 7.78 billion by 2029, at a CAGR of 5.3% from 2022 to 2029. Due to declining farm numbers, farm consolidations, and increasing animal herd sizes, the country's R&D facilities, as well as the urgent need to boost productivity, contributed to the market's growth.
China smart farming market size was valued at USD 1.16 billion in 2021 and is expected to reach USD 1.72 billion by 2029, at a CAGR of 5.1% from 2022 to 2029. With the increasing demand for modern agricultural machinery and the continuous R&D and application of new technologies, China's smart agriculture market is expected to grow rapidly and sustainably.
India's smart farming market size was valued at USD 0.98 billion in 2021 and is expected to reach USD 1.57 billion by 2029, at a CAGR of 6.1% from 2022 to 2029. It was estimated that there were more than 450 tech startups in India based on argi in 2019, according to a report published by the National Association of Software and Services Companies (NASSCOM).
Key Industry Players Analysis:
To increase their market position in the global smart farming business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
18.5% |
Market Size |
14.65 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Type, By Solution, By Application and By Region |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Osram Licht AG, Afimilk Ltd., Nedap N.V., Kubota Corporation, Deere & Company, DJI Innovations, Allflex USA Inc., General Hydroponics, AGCO Corporation, AG Leader Technology, CNH Industrial, AKVA Group ASA, Eruvaka Technologies, Naio Technologies, Teejet Technologies, Raven Industries, and GEA Group. |
By Type |
|
By Solution |
|
By Application |
|
Regional scope |
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Scope of the Report
Global Smart Farming Market by Type:
Global Smart Farming Market by Solution:
Global Smart Farming Market by Application:
Global Smart Farming Market by Region:
Global Smart Farming market is expected to reach USD 56.96 billion by 2029, at a CAGR of 18.5% from 2022 to 2029.
Lack of technical skills and high equipment costs are hindering the growth of the gloves market.
Osram Licht AG, Afimilk Ltd., Nedap N.V., Kubota Corporation, Deere & Company, DJI Innovations, Allflex USA Inc., General Hydroponics, AGCO Corporation, AG Leader Technology, CNH Industrial, AKVA Group ASA, Eruvaka Technologies, Naio Technologies, Teejet Technologies, Raven Industries, GEA Group among others.
North America region dominated the smart farming market and held the 36.2% share of the market revenue in 2021.
Political Analysis- A significant amount of the global human population is impacted by agriculture, and political decisions can significantly impact this. Governmental measures like taxes on imports or farmer subsidies are frequently implemented to boost domestic output levels. According to Buchholz (2021), agricultural subsidies and support programmes are very low in Argentina and Vietnam but very high in nations like the Philippines, Indonesia, China, and India. It is important to remember that excessive subsidies hurt global market competition. Several governmental bodies are focusing on developing the new technique of smart farming.
Economic Analysis- One of the largest industries in the world is agriculture. Many developing economies rely significantly on their agricultural sector to meet local demand. Additionally, they frequently need to import goods since native production cannot keep up with demand. However, industrialised countries like the USA, Germany, and other EU countries also import many agricultural goods. It is important to note that China is the biggest importer of agricultural products worldwide. Demand from consumers, global food production, and global export demand are all economic factors impacting the agriculture sector. These elements, which are impacted by national policies, consumer demand, and global prices, control the price of agricultural products. The accessibility of basic commodities, such as fuel, fertilisers, and water, is another aspect that influences the sector.
Social Analysis- Over one billion people, are reportedly employed in the worldwide agriculture sector. Certain social variables undoubtedly have an impact on this industry. For cultural reasons, rice, for example, is particularly well-liked in nations like Bangladesh, China, India, Indonesia, and Vietnam. China has the highest per capita consumption of rice in the entire world. People in various nations have distinctive historical and cultural legacies relating to their involvement with the agriculture sector. The current generation has been taught how to farm by many generations before them. It should be noted, though, that the majority of millennials are less interested in agriculture and more interested in technology and the service sector. This has contributed to the widespread misconception that only impoverished people should work in agriculture. Therefore, both governmental and private initiatives must modify this negative attitude toward the agriculture sector.
Technological Analysis- Technology development impacts the breeding and selection of new seed varieties, the design of agricultural and agro-industrial equipment and buildings, and the application of scientific knowledge to manage soil and water resources, among other technological variables. Animal biometrics such as RFID, biometrics, and GPS, which assist growers in automatically obtaining information about livestock in real-time, are among the key technologies driving market demand. Additionally, the material conditions and vibrations in buildings, industries, bridges, farms, and other infrastructure are monitored by infrastructural health sensors. Infrastructure health sensors deliver information to the maintenance crew in real-time when combined with an intelligent network. Additionally, farming operations like soil upkeep, weeding, fruit picking, harvesting, planting, ploughing, and irrigation are among those automated by agricultural robots.
Environmental- In the agriculture sector, the weather is extremely important. For instance, an inundated field with several inches of water must be used to cultivate rice (Shahbandeh, 2022). Enough rain must fall for that to occur because it is expensive to source water in other ways. Many nations' agricultural industries suffer from environmental problems like floods and drought. For instance, every year in Bangladesh, floods cause damage to fields that could produce thousands of tonnes of rice. Similarly, the industry has suffered in some African nations due to extreme drought circumstances.
Legal Analysis- Domestic and international trade agreements, including those between nations and regions, government regulation, property rights, and product labelling, are among the legal aspects that impact the sector. It should be remembered that every nation has its laws and norms governing the agricultural sector. But the implementation varies from nation to nation. Additionally, as has recently happened in India and the USA, additional regulations may enrage farmers. For instance, To enter the American market, CropX, a top provider of soil and agricultural analytics, purchased CropMetrics. The goal of this acquisition was to expand CropMetrics' product offerings throughout the major U.S. by utilising their extensive dealer network, service model, user-friendly platform, and Variable Rate Irrigation System.
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