The Global Smart Agriculture Market Anticipated to Generate a Revenue of $54,949.90 Million, Growing at a CAGR of 10.90% from 2021 to 2028Download Sample Reports Overview
The global smart agriculture market share is estimated to be valued at $54,949.90 million by 2028, surging from $26,642.60 million in 2020, at a noteworthy CAGR of 10.90%.
Covid-19 Impact on Smart Agriculture Market
The global market for smart agriculture is estimated to experience a medium growth amid the COVID-19 pandemic. This growth is the result of increased demand for remote sensing technologies and other type of farm management software tools, which may lead to higher adoption of smart agriculture technologies during the COVID-19 period. Therefore, demand for smart agriculture is projected to witness a rise.
Furthermore, certain key vendors operating in smart agriculture are focusing on the wireless technologies for staying in the competition. For instance, SensoTerra, Europe based IT company, in May 2020, announced that they launched new wireless systems for farm connectivity and data analysis of field with cloud. This sensor system helps in improving the connectivity with the help of real time application via smartphones. All such factors are predicted to positively impact the global smart agriculture market forecast amid the pandemic.
Due to the COVID-19 pandemic, there is a shortage of labors to work in agricultural field. Therefore, most of the farmers are using digital agriculture devices than ever before. These factors are anticipated to create lucrative investment opportunities in the market during the forecast period.
Global Smart Agriculture Market Trends Analysis
The enormous growth of the global smart agriculture market is mainly attributed to increasing application of remote sensing, VRT, GIS, guidance technology, and GPS in smart agriculture for increasing the productivity. Now-a-days, farm operating expenses are very high; therefore, farmers are adopting technologies that will decrease their dependency on farmers and labors. Technologies such as agricultural drones with cameras are mostly used for applications such as weeding, spraying, harvesting, and pruning of farmlands. These types of advancements are creating awareness among people to adopt smart agriculture technologies and thus fueling the market growth.
Lack of knowledgeable workers in smart agriculture market and their usage may create a crack between the execution and understanding of the concepts in smart agriculture. Such key issues may create a negative impact on the smart agriculture system across the globe during the forecast period.
The increasing adoption of smartphones with software and hardware devices applications may create huge opportunities for the market in the future. Also, quick availability of smart farming applications (apps) for monitoring weather and climate conditions in low cost are some of the factors that are expected to raise the demand for climate smart agriculture market. Furthermore, the companies involved in the global smart agriculture are following effective strategies to use IoT in agriculture and launch of innovative products to grow in the market. For instance, Topcon Agriculture, California based electrical & electronic manufacturing company, in November 2019, announced that they have launched a new cloud-based platform tool, this will help farmers to integrate connectivity and data analytics during farming. Such technological advancements may further lead to lucrative market opportunities in the market in the upcoming years.
Global Smart agriculture Market, Segmentation
The global smart agriculture market trend is segmented based on agriculture, component, and region.
The agriculture segment is further classified into precision agriculture, livestock, aquaculture, and greenhouse. Among these, the precision agriculture type sub-segment is anticipated to have the fastest as well as dominant growth and surpass $19,743.00 million by 2028, with an increase from $9,283.20 million in 2020.
The market growth of precision agriculture can be attributed to its popularity among the farmers due to increasing need for optimum crop production with limited availability of resources. Moreover, rising pressure on farmers for food supply system owing to rapidly growing population is driving the use of modern technologies in agricultural products, which may fuel the growth of precision agriculture market. All such factors may create a positive impact on the sub-segment throughout the forecast period.
The component segment is further divided into solution, service, and connectivity technology. The solution sub-segment is anticipated to have a dominating sub-segment in the global market and register a revenue of $30,244.50 million during the analysis timeframe.
This growth is projected to increase demand for solutions in smart agriculture technologies such as livestock monitoring technology. Moreover, increasing demand for dairy and milk products in developing countries, and growing livestock and agricultural sectors are expected to witness increased demand of solutions in smart agriculture technologies. These aspects may aid in the generation of a lucrative revenue for the market throughout the forecast period.
The smart agriculture market for the North American region is projected to witness dominant growth. This market generated a revenue of $10,923.50 million in 2020 and is further projected to reach up to $22,804.20 million by 2028.
The demand for smart agriculture is growing in the North America region specifically because of factors such as increasing prevalence of precision farming across the region. Moreover, countries such as Canada and the US adopted technologies such as precision farming technology, therefore it is the major reason for the high share of this region in the smart agriculture market. Furthermore, farmers across the region are increasingly using smart agri-equipment such sensors, display devices, farm management software, steering, and guidance systems. All such factors are anticipated to boost the market in the North America region.
Key Players in the Global Smart agriculture Market
Some of the leading global smart agriculture market insight players are AgJunction, AGCO, AgEagle Aerial Systems, Inc., DEERE & COMPANY, Raven Industries, Inc., Trimble Inc., Afimilk, LumiGrow, Inc., Topcon Positioning Systems, Inc., and DeLaval.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Smart Agriculture Market Insight
- Bargaining Power of Suppliers: The suppliers involved in the market are higher in number. Thus, manufacturers and companies offer several innovative smart agriculture tools. Hence, there will be low threat from the supplier side.
Thus, the bargaining power of the suppliers is low.
- Bargaining Power of Buyers: Buyers have high bargaining power, primarily because of the huge number of smart agriculture tools and services that are offered at low prices. The buyers can hence choose the technologies and solutions that best fits their preferences.
Hence, the bargaining power of buyers is high.
- Threat of New Entrants: Startups entering this market are providing innovative smart agriculture to the customers. However, companies that are in the smart agriculture are much more globalized.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: Companies in smart agriculture are offering best solutions and services to the customers.
Therefore, the threat of substitutes is low.
- Competitive Rivalry in the Market: The ventures operating in the global smart agriculture are opting for various businesses deployment strategies to hold their position in the market. Several companies are launching their value-added services in the international market and strengthening the footprint worldwide.
Therefore, competitive rivalry in the market is high.