Smart agriculture involves the incorporation of artificial intelligence and internet of things technologies in agriculture equipment and machinery to optimize the usage of resources. Smart agriculture solutions help in maximizing crop yields and monitoring soil and weather conditions. Devices such as sensors, RFID tags, drones, and robots collect field data that helps farmers gain insights on crop growth. For instance, sensors integrated with irrigation systems can track soil moisture levels to control water supply based on the moisture requirement of crops. Computer vision algorithms and thermal cameras deployed on drones analyze crop health, detect pests and diseases, and guide precision spraying of fertilizers and pesticides only where needed. The global smart agriculture solution market is estimated to be valued at US$ 29,014.62 million in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the major drivers for the growth of the smart agriculture solution market is the rising demand for resource optimization in agriculture. With the growing global population putting pressure on limited agricultural resources, smart farming aims to boost crop yields while minimizing the use of water, fertilizers, and agricultural chemicals. Smart irrigation controllers help save over 30% of water used for farming. Precision agriculture techniques assisted by IoT devices and data analysis ensure chemicals are applied only where required, reducing input costs and wastage. For instance, farm management software integrated with soil and yield mapping allow optimized utilization of seeds, fertilizers and pesticides depending upon soil conditions, avoiding over- and under-application. Moreover, monitoring crop growth remotely with drones and sensors eliminates the need for frequent farm visits, lowering labor costs for farmers. These advantages are pushing growers across major economies to adopt smart agriculture technologies.
Segment Analysis
The smart agriculture solution market can be segmented into hardware, software, and services. The hardware segment dominated with a share of over 40% in 2019. Hardware components include sensors, GPS/GNSS, livestock monitor systems, drones, and control devices. This segment is dominating as hardware components form the core of smart agriculture solutions and are integral for collecting and transmitting data.
PEST Analysis
Political: Government support through initiatives and funding is promoting adoption of smart agriculture technologies. However, varying regulations in different countries can impact business operations.
Economic: Rising food demand due to growing population and shrinking arable land are driving use of smart farming solutions to boost productivity and yields. However, high initial investment requirements can restrict market growth.
Social: Younger generations of farmers are more willing to embrace new technologies. However, lack of awareness in some regions and challenges in interacting with technologies can hamper adoption.
Technological: Advancements in IoT, wireless connectivity, cloud computing and analytics are enhancing smart agriculture capabilities. Technologies like AI and robotics also offer opportunities, while issues around data privacy and security need addressing.
Key Takeaways
The Global Smart Agriculture Solution Market Size is expected to witness high growth.
Regional Analysis: The market in North America accounted for over 30% share in 2019 due to significant technology investments and support programs by government agencies in the region.
Key players operating in the smart agriculture solution market are Halliburton, Ashland Global Specialty Chemicals Inc., Ecolab Inc., Baker Hughes Inc., Innospec Inc., JSC Gazprom Neftekhim Salavat, BASF SE, Evonik Industries AG, Clariant AG, GasHydrate LLC, and Schlumberger Limited.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
