Smart agriculture is combining the Internet of Things technology with traditional agriculture, using sensors and software to control agricultural production through mobile platforms or computer platforms, and making conventional agriculture smarter. In addition to precise perception, control, and decision management, in a broad sense, smart agriculture includes agricultural e-commerce, food traceability, anti-counterfeiting, agricultural leisure tourism, and agricultural information services. The smart agriculture is the full application of modern information technology achievements, integrated application of computer and network technology, Internet of Things technology, audio and video technology, 3S technology, wireless communication technology, and expert wisdom.
The global smart agriculture market size was valued at USD 12.62 billion in 2019 and expected to generate USD 26.6 billion by 2027, with a CAGR of over 8.95%, during the forecast period, 2020-2027. The growth of the market is based on a rise in the adoption of IoT and AI in the field farming, livestock monitoring, and agriculture farms. Additionally, the increasing demand for RFID, biometrics, and GPS help cultivators to automatically obtain information regarding livestock in real-time are expected to propel the growth of the smart agriculture market in the upcoming periods. Furthermore, the growing population and the increasing demand for food have encouraged the use of smart and modern technologies for agriculture; these factors are anticipated to fuel the global smart agriculture industry across the globe in the coming years. The Internet of Things, GPS, and favorable government initiatives are likely to increase market growth in the coming few years.
Moreover, the mounting pressure on the food supply system on account of the surging use of modern technologies in agriculture farms, the rapidly growing population, the rising income levels, and demand for protein-rich aqua food will spur the global smart agriculture market share in the analysis periods. Also, the growing demand for smart agriculture to automate farming processes such as weeding, soil maintenance, fruit picking, planting, harvesting, plowing, and irrigation, among others, will accelerate the growth of the market. Also, the expanding focus on disease detection and livestock monitoring to enhance the efficiency of farming are projected to trigger the global smart agriculture industry in future periods.
The remote monitoring and control system of the Internet of Things is installed in the shed, which can real-time monitor the environmental parameters such as temperature, humidity, and carbon dioxide concentration. The real-time data analysis with functions such as automatic temperature increase and decrease, automatic humidity addition, and automatic rolling shutters, farmers can also use the mobile phone APP (application program) for the manual remote operation to make the shed environment more suitable for crop growth.
The paddy field can monitor data such as light intensity, soil pH, and fertility, and transmit it to the terminal in real-time via 5G, and automatically generate the physical examination report of the paddy field.
According to the United Nations, the world’s population is expected to increase by 2 billion persons in the next 30 years and 9.7 billion in 2050 and could peak at nearly 11 billion around 2100. Smart agriculture can help developing countries to eradicate poverty, realize the advantages of backwardness, and later take the lead in economic development, and realize the catch-up strategy. In the process of food safety, build a traceability system for agricultural products, record and store various relevant information in the production and processing of agricultural products.
Based on the offering, the global smart agriculture market classified into (Hardware (GPS, Drones, Sensors, RFID, LED Grow Lights), Software (Cloud Based, On-premises, and AI-as-a-Service) and Service. The hardware will witness remarkable growth in the forecast period. It is primarily attributed to the growing demand for automation and control systems, such as GPS/GNSS receivers, irrigation controllers, and guidance and steering systems to farming practices. Hardware includes GPS, Drones, Sensors, RFID, LED Grow Lights, etc.
The software will grow with a lucrative CAGR in the estimated period due to the surge in demand for run sensors, smartphones, cameras, and UAVs on a software-based app.
Based on the agriculture type, the global smart agriculture market segregated into precision farming, livestock monitoring, precision aquaculture, smart greenhouse, precision forestry, and others. The precision farming segment captured the largest share in 2019 and projected to dominate the global smart agriculture market by 2027. It is due to the growing focus on increasing focus on farm efficiency and productivity. Additionally, precision farming technologies such as guidance technology, remote sensing, smart sensors, drones, and variable rate technology, help to manage the soil and crop effectively.
The livestock monitoring will grow at a significant rate in the forecast period because it provides real-time monitoring of the health, production, and welfare of livestock to ensure optimal yields.
Based on the application, the global smart agriculture market segmented into precision farming applications, livestock monitoring applications, and smart greenhouse applications. The precision farming application estimated to lead the market by 2027. The precision farming application includes irrigation management, yield monitoring, crop scouting, field mapping, weather tracking & forecasting, inventory management, and farm labor management. The growth of the segment is due to the yield monitoring plays a vital role in understanding the changeability and help farmers in maximizing their yields and provides farmers the information about weather conditions, soil properties, and fertilizers, which may affect the overall grain production.
The livestock monitoring application will grow at a substantial rate during the forecast period because it helps farmers track and manage an animal’s status and well-being.
Based on geography, the global smart agriculture market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America accounted for the largest share in the global smart agriculture market in 2019. It is due to the early adopters of precision farming technologies, speedily increasing population, easy availability of arable farms, and strong support from the government in this region.
The Asia Pacific occupied a prominent share of the smart agriculture market and projected to remain dominant by 2027. It is due to increasing government support and growing awareness among cultivators about the applications of smart agriculture.
Companies such as Deere & Company, Trimble, Inc., Topcon Positioning Systems, DeLaval, Heliospectra, Antelliq, Afimilk Ltd., AKVA group, InnovaSea Systems, LumiGrow, AG Leader Technology, Raven Industries, AgJunction, The Climate Corporation, Nedap NV, BouMatic, Fancom BV, Aquabyte, Steinsvik, VEMCO, Nexus Corporation, and Certhon are the key players in the global smart agriculture market.
By Agriculture Type