The global smart agriculture market size was valued at USD 16.74 billion in 2019 and is estimated to reach USD 29.23 billion by 2027, with a compound annual growth rate (CAGR) of 9.7 percent from 2021 to 2027, a market research report ‘Smart Agriculture Market’ conducted by Valuates Reports has said.
According to the report, some of the major trends influencing the smart agriculture market size are the rapidly rising population, increasing strain on the food supply system, the growing use of new technology in agricultural products, and farmers' growing focus on tracking livestock.
Smart agriculture offers real-time data on the conditions of soil, air, and crops. It aims at ensuring that the farm yield is productive and sustainable while preserving the environment.
The global competition between players will be increased by new players joining the global smart agriculture market. In order to retain their position in the industry, existing players are interested in the advancement of existing technology. Some of these players are trying to maintain the market through mergers and acquisitions.
Top companies in market
Trimble Inc., Deere & Company, Topcon Positioning Systems, DeLaval Inc., AgEagle Aerial Systems Inc., Afimilk Ltd, Raven Industries, Inc., Ag Junction LLC., AGCO Corporation, and GEA Group.
The growing adoption of automation and control systems, such as GPS/GNSS receivers, irrigation controllers, and guidance and steering systems, has created a new approach to farming practices. This, in turn, is expected to increase the growth of the smart agriculture market size during the forecast period.
It is anticipated that growing investment and R&D spending on agricultural technology around the world and increasing the popularity of land-based recirculating aquaculture systems would fuel the growth of the smart agriculture market size.
Due to the COVID-19 pandemic, the smart agriculture market is expected to see a marginal fall in 2020 as movement restrictions and lockdowns have led to supply chain disruptions.
As the access to animal feed has diminished and decreased slaughterhouses' capacity due to logistical constraints and labour shortages, the impact of COVID-19 on the livestock sector is even more evident. It is expected that the closure of enterprises and quarantine steps would have a negative effect on suppliers of goods for controlling livestock.
However, the usage of remote monitoring technology and farm management software tools could lead to higher adoption during the post-COVID-19 period.
Based on type, the precision farming segment held the largest market share in 2019 and in terms of market share for smart agriculture and is expected to retain its dominance during the forecast period. In the agriculture sector, improvements in software and hardware technologies such as sensors, robotic automation, and others are boosting the demand for precision farming.
North America is expected to hold the largest smart agriculture market share during the forecast period. North America's dominance is attributed to the growing government initiatives and regulations to improve the agricultural industry in the region.
Asia Pacific is expected to witness the highest growth during the forecast period. While smart farming is at the early stage in this region, increasing government support and growing knowledge among farmers propel the adoption during the forecast period.