Smart Agriculture/Farming Market Report

Smart Agriculture/Farming Market Analysis By Type (Precision Farming, Livestock Monitoring, Smart Greenhouse, Others), By Offering, By Application, And Segment Forecasts, 2014 - 2025

Published: October 2017  |  100 Pages  |  Format: PDF  |  Report ID: GVR-2-68038-009-5

Industry Insights

The global smart agriculture/farming market size was valued at USD 5.79 billion in 2016. Increasing automation of commercial greenhouses and growing implementation of the Controlled Environment Agriculture (CEA) concept in greenhouses, in a bid to obtain a higher yield and maintain optimum growing conditions, are the key factors driving demand over the projected period.

Cultivators are realizing the potential benefits of growing plants inside a greenhouse, which has further enhanced the development of commercial greenhouses. Cultivators have shifted from the conventional lighting systems to LED grow lights as the latter can easily be integrated into a CEA setup. Although LED grow lights are high in cost, they are an ideal option for indoor farming owing to their long-term benefits in terms of energy efficiency.

Russia smart agriculture market by type, 2014 - 2025 (USD Million)

Russia smart agriculture market

Key technologies driving the market demand include:

Livestock biometrics: RFID, biometrics, and GPS help cultivators to automatically obtain information regarding livestock in real-time.

Infrastructural health sensors: These sensors are used for monitoring material conditions and vibrations in buildings, factories, bridges, farms, and other infrastructure. Coupled with an intelligent network, infrastructural health sensors help in providing information to the maintenance team in real-time.

Agricultural robots: Agricultural robots are used to automate farming processes such as soil maintenance, weeding, fruit picking, harvesting, planting, plowing, and irrigation, among others.

In an attempt to sustain profits, farmers are increasingly adopting smarter and efficient agriculture technologies to deliver high-quality produces to the market in sufficient quantities. The mobile technology aids in offering innovative services and applications that are used across the agricultural value chain.

Machine-to-Machine (M2M) applications are particularly suited for the agricultural sector, enabling farmers to monitor equipment, assess the environmental impact on production, precisely manage livestock and crops, and keep track of tractors and other agricultural equipment. M2M is an integral part of IoT, which describes the coordination of multiple devices, appliances, and machines connected to the internet through multiple networks.

Type Insights

Based on agriculture types, the smart farming market has been segmented into precision farming, smart greenhouse, livestock monitoring, and others. The others segment includes fish farming and horticulture.

Precision livestock monitoring supports the real-time monitoring of health, productions, and welfare of livestock to ensure optimal yields. Factors such as increasing size of dairy farms and rising technological advancements, such as precision livestock monitoring, have urged market players to focus on new product launches and substantial cost savings associated with livestock monitoring management.

The smart farming market estimates and forecasts of the smart greenhouse segment includes vertical farming. Smart greenhouse enables farmers to cultivate crops with minimal human intervention. Climatic conditions such as soil moisture, temperature, and humidity are continuously monitored and any variation observed in them triggers an automated action.

Smart farming is an integrated approach to manage farming activities, such as preserving resources and optimizing yields, with the implementation of IoT and information communication technologies. Smart farming entails real-time data on the conditions of soil, air, and crops. It aims at ensuring profitability and sustainability of the farm yield while protecting the environment.

Offering Insights

Based on offerings, the smart farming market has been classified into hardware, software, and services. The software segment is likely to portray the highest growth rate over the forecast period. It was valued at USD 1,034.1 million in 2016 and is expected to grow at a CAGR of 16.7% over the forecast period.

The hardware segment has further been bifurcated into automation & control system, HVAC system, LED grow light, RFID tags & readers, and sensing devices. Automation & control systems are further segmented into application control devices, milking robots, guidance systems, driverless tractors, mobile devices, remote sensing, variable rate technology, drones, and wireless modules.

The growing automation of raw material production and product manufacturing in the dairy and food industry is likely to drive the milking robots segment in future. Automation technology has improved the milk quality and animal welfare. The rising need to reduce labor costs and improve productivity is expected to positively impact the profitability of dairy & food processing industries. Factors such as increased milk frequency, efficient management of herd, cow health, and welfare benefits are driving the demand for milking robots.

The drones sub-segment under the automation & control system is expected to witness the highest growth rate over the forecast period. Several types of drones include hybrid and fixed wing. Fixed wing drones comprise a rigid wing having a predetermined airfoil, which aids in its flight by generating lift caused by the drone’s forward airspeed. Forward thrust acquired by a propeller, an electric motor, or an internal combustion engine produces this airspeed.

Rotary blade drones comprise single rotor and multi-rotor type drones that revolve around a fixed mast, which enables them to fly in any direction as well as hover at one place. Hybrid drones can stay in flight for years at a stretch as they operate on multiple sources of energy. Solar panels mounted on the wings of the hybrid drones provide fuel during the flight.

Application Insights

The application of agriculture type includes irrigation management, yield monitoring, crop scouting, field mapping, weather tracking & forecasting, inventory management, and farm labor management. The weather monitoring & forecasting segment is anticipated to witness the highest growth rate over the projected period.

Growing water scarcity and increasing environmental consciousness among consumers have urged the need for modifying agricultural management practices for the conservation of natural resources such as soil, air, and water. The irrigation management segment is expected to have considerable growth over the projected period. Precision irrigation offers a combination of solutions and systems to effectively utilize water by matching the irrigation inputs to yields in each area of a field.

The application of smart greenhouse includes water & fertilizer management, HVAC management, yield monitoring, and others. HVAC management segment is expected to portray a significant growth over the forecast period owing to its increased usage in smart greenhouse farming. The need for maintaining different temperatures and humidity for hydroponic grow room and aquaculture area drives demand for HVAC management segment.

Applications of livestock monitoring include milk harvesting, breeding management, feeding management, animal comfort management, and others. According to Food and Agriculture Organization (FAO), technological advancements in livestock and agricultural production system will play a significant role in addressing food shortage. Animal comfort management allows farmers to track and manage an animal’s status and well-being. The adoption of automated solutions is expected to overcome the limitations of the human labor, thereby providing the species-appropriate behavior.

Smart agriculture market, by smart greenhouse application, 2016 (%)

Smart agriculture market

Regional Insights

The North American regional segment dominated the market in terms of revenue in 2016. It is expected to register a CAGR of 12.2% over the forecast period. Growing government initiatives and regulations to enhance the agriculture industry in the region are expected to drive the North American regional demand over the forecast period. Various agricultural organizations have come together to form the North America Climate Smart Agriculture Alliance (NACSAA), a platform for educating and equipping the cultivators to sustainably increase agricultural productivity.

With the rising concern for water conservation, governments in North America are actively providing subsidy to enhance the applications of smart irrigation. For instance, the government of California has provided a rebate on smart controllers.

Asia Pacific is anticipated to witness the highest growth over the projected period. Although smart farming is in the adoption stage in this region, the growing government support and rising awareness among cultivators are expected to drive the regional demand over the forecast period. For instance, in Japan, the ministry of agriculture has been providing funds for developing precision agriculture. The farmers’ association and community-based organizations in each country play a major role in promoting a sustainable agriculture.

The market for Singapore is also expected to witness considerable growth as 90% of the total food consumption is fulfilled through imports. The growing adoption of organic agriculture among small farmers in South America is likely to enhance the regional market demand over the projected period.

Competitive Insights

Industry players are engaging in numerous inorganic growth strategies, such as frequent mergers and acquisitions, in their endeavor to expand their product portfolio. Major players in the industry include Argus Control Systems Ltd. (Canada), Agribotix LLC (U.S.), Autonomous Solutions, Inc. (U.S.), CNH Industrial (UK), CLAAS (Germany), and CropZilla Software, Inc. (U.S.), among others.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Million & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, South America, and MEA

Country scope

U.S., Canada, Mexico, UK, Germany, France, Russia, Japan, China, India, Australia, and Brazil

Report coverage

Revenue forecast, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments over the forecast period. For the purpose of this study, Grand View Research has segmented the global smart agriculture market based on agriculture type, offering, application, and region:

  • Agriculture Type Outlook (Revenue, USD Million; 2014 - 2025)

    • Precision farming

    • Livestock monitoring

    • Smart greenhouse

    • Others

  • Offering Outlook (Revenue, USD Million; 2014 - 2025)

    • Hardware

      • Automation & control systems

        • Drones

        • Application control devices

        • Guidance system

          • GPS

          • GIS

        • Remote sensing

          • Handheld

          • Satellite sensing

        • Driverless tractors

        • Mobile devices

        • VRT

          • Map-based

          • Sensor-based

        • Wireless modules

          • Bluetooth technology

          • Wi-Fi technology

          • Zigbee technology

          • RF technology

        • Milking robots

      • Sensing devices

        • Soil sensor

          • Nutrient sensor

          • Moisture sensor

          • Temperature sensor

        • Water sensors

        • Climate sensors

        • Others

      • HVAC system

      • LED grow light

      • RFID tags & readers

    • Software

      • Web-based

      • Cloud-based

    • Services

      • System integration & consulting

      • Maintenance & support

      • Managed services

        • Data services

        • Analytics services

        • Farm operation services

      • Assisted professional services

        • Supply chain management services

        • Climate information services

  • Application Outlook (Revenue, USD Million; 2014 - 2025)

    • Precision farming application

      • Yield monitoring

        • On-farm

        • Off-farm

      • Field mapping

      • Crop scouting

      • Weather tracking & forecasting

      • Irrigation management

      • Inventory management

      • Farm labor management

    • Livestock monitoring application

      • Milk harvesting

      • Breeding management

      • Feeding management

      • Animal comfort management

      • Others

    • Smart greenhouse application

      • Water & fertilizer management

      • HVAC management

      • Yield monitoring

      • Others

  • Regional Outlook (Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • UK

      • France

      • Russia

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

    • South America

      • Brazil

    • Middle East and Africa (MEA)

Key questions answered by the report
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