Riding on the ICT revolution in the farming sector, Global Agriculture IoT (Internet of Things) market size is projected to reach USD 48.7 billion by 2025, growing at a compound annual growth rate (CAGR) of 14.7 percent from 2018 to 2025. A study conducted by Valuates Reports has projected. The market size was valued at USD 16.3 billion in 2017.
In the agriculture industry, IoT incorporates advanced technological tools, systems, equipment, and solutions to enhance operational efficiency, maximise yield and minimise energy wastage through real-time field data collection, data storage, data analysis, and platform development.
One of the major factors that are expected to increase the Agriculture IoT Market size is the efforts of various governments of the countries across the globe to increase the quality and quantity of agriculture production. Shortages in skilled labour in advanced countries are pushing automation in the agriculture sector.
Key drivers of Agriculture IoT Market
Factors such as an increase in the global population and a rise in food demand have fuelled the adoption of new technologies to maximise agricultural production. This is expected to be one of the major factors that are driving growth in the Agriculture IoT Market.
Climate change plays an important role in affecting global agricultural growth. Severe weather conditions are thus helping implement IoT-based technologies to improve agricultural production.
According to recent estimates from the United Nations, by 2050, the global population is projected to hit 9.8 billion, with an estimated population growth of about 83 million. The growing population is in turn increasing the food demand there by prompting farmers to either increase the amount of agricultural land to grow crops or increase productivity on existing agricultural land by introducing new methods such as precision farming. This factor is expected to fuel the growth of the Agriculture IoT Market.
Several government agencies have implemented awareness campaigns, policy changes, and private-sector links to promote smart farming in their respective regions. This, in turn, is expected to increase the Agriculture IoT Market size.
Many farming societies are unaware of the internet of things due to which IoT is less commonly adopted in agriculture. Farmers are not given sufficient awareness about the use of IoT in agriculture, and this factor is limiting the growth of the Agriculture IoT Market size.
Agriculture IoT Market Analysis
The agriculture IoT market for services is expected to grow at a higher CAGR during the forecast period. Service providers include businesses offering farm management services, computer processing, and farm data analytics to tech companies or farmers directly. Analytics tools help provide appropriate calls and warnings on farming operations to enhance the farmers' decision-making ability.
Precision farming to account for the largest share of the agriculture IoT market during the forecast period. This rise in the market can be attributed to the rising emphasis on improving farm production and productivity. Precision agriculture has the ability to change the agricultural paradigm by making conventional farming practices more productive and predictable.
In 2017, Asia-Pacific (APAC) held the largest Agriculture IoT Market share. This dominance is due to population growth, coupled with increased food demand in the region. Furthermore, the government's initiative to use remote sensing technology to gather ground data and satellite imagery to detect agricultural conditions in different regions is expected to further improve the demand growth.
During the forecast period, Europe is projected to hold the second-largest Agriculture IoT Market share. European farmers are already using smart agricultural technologies such as yield tracking, GNSS (Global Navigation Satellite System) technology in guidance and steering, variable rate application, and crop scouting.