Smart Agriculture Market Size, Share & Trends Report

Smart Agriculture Market Size, Share & Trends Analysis Report By Agriculture Type (Precision Farming, Livestock Monitoring), By Offering, By Application, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jul, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-009-5
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 150

Report Overview

The global smart agriculture market size was valued at USD 13.15 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 10.6% from 2021 to 2028. Increasing automation of commercial greenhouses and growing implementation of the Controlled Environment Agriculture (CEA) concept in greenhouses, in a bid to obtain higher yield and maintain optimum growing conditions, are the key factors driving the demand. Cultivators are realizing the potential benefits of greenhouse farming, which has increased the development of commercial greenhouses. Cultivators have shifted focus from the conventional lighting systems to LED grow lights as the latter can be easily integrated into a CEA setup. Although LED grow lights are expensive, they are considered ideal for indoor farming owing to their long-term benefits in terms of energy efficiency.

Europe smart agriculture market size, by agriculture type, 2018 - 2028 (USD Billion)

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.

To sustain profits, farmers are increasingly adopting smarter and efficient agriculture technologies for delivering high-quality products to the smart agriculture 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 the Internet of Things (IoT), which describes the coordination of multiple devices, appliances, and machines connected to the internet through multiple networks.

COVID-19 Impact Analysis

The outbreak of COVID-19 has brought widespread disruption to the global supply chain, resulting in food shortage and inflation. Necessary measures are required to strengthen the food supply chain and prepare for any future crisis. The ongoing pandemic has highlighted the significance of being able to carry out agricultural operations remotely. The ability of smart agricultural practices to help farmers recoup losses in relatively shorter lead time is expected to drive future market growth.

Agriculture 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. In 2020, livestock monitoring segment accounted for a revenue share of 22.04% of the global smart farming market. 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 market estimates and forecasts of the smart greenhouse segment include 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 market has been classified into hardware, software, and services. The software segment is likely to portray the highest CAGR of 13.4% over the forecast period. The hardware segment has further been segmented into automation and control system, HVAC system, LED grow light, RFID tags and readers, and sensing devices. Automation and 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 and 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 and 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 applications include irrigation management, yield monitoring, crop scouting, field mapping, weather tracking and forecasting, inventory management, and farm labor management. The weather monitoring and forecasting segment is anticipated to witness the highest growth rate over the projected period. In 2020, the yield monitoring segment held a market share of 44.53%. This is attributable to the growing demand for monitoring crop growth and reducing overall wastage by providing timely required water and minerals.

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.

Global smart agriculture market share, by precision farming application, 2020 (%)

The application of smart greenhouse includes water and 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 the HVAC management segment.

Applications of livestock monitoring include milk harvesting, breeding management, feeding management, animal comfort management, and others. According to the 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.

Regional Insights

In terms of revenue, North America dominated the global market with a revenue share of 45.61% in 2020. It is expected to register a CAGR of 9.3% from 2021 to 2028. Growing government initiatives and regulations to enhance the agriculture industry in the region are expected to drive the 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 fastest CAGR 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.

Key Companies & Market Share Insights

Industry players are engaging in numerous inorganic growth strategies, such as frequent mergers and acquisitions, in their endeavor to expand their product portfolio. For instance, in November 2020, Ag Leader Technology upgraded its InCommand displays and added built-in-house SteerCommand Z2 and SteadySteer to its SteerCommand product portfolio. These products provide end-users with a single user interface that steers and controls all farming equipment. Moreover, in January 2020, CropMetrics was acquired by CropX, a leading soil and agricultural analytics company to expand into the U.S market. This acquisition was intended to leverage CropMetrics’s vast dealer network, service model, user-friendly platform, and Variable Rate Irrigation System to serve product offering in major regions of U.S.

Key market players are aggressively establishing partnerships and collaborations to strengthen their market presence and customer base. For instance, in April 2021, AGCO Corporation in a strategic partnership with EZ-Drops, an innovative agricultural equipment manufacturer, to provide AGCO’s dealers in North America with access to new nutrient supply system. The nutrient application system is available at AGCO’s RoGator dealers with customized configurations. This system will help farmers to reduce excess spraying of nitrogen resulting in decreased farm profitability. Some of the prominent players operating in the global smart agriculture market are:

  • Ag Leader Technology

  • AGCO Corporation

  • AgJunction, Inc.

  • AgEagle Aerial Systems Inc.

  • Autonomous Solutions, Inc.

  • Argus Control Systems Ltd

  • BouMatic Robotic B.V.

  • CropMetrics

  • CLAAS KGaA mbH

  • CropZilla

  • Deere & Company

  • DICKEY-john

  • DroneDeploy

  • DeLaval Inc.

  • Farmers Edge Inc.

  • Grownetics, Inc.

  • Granular, Inc.

  • Gamaya

  • GEA Group Aktiengesellschaft

  • Raven Industries

  • SST Development Group, Inc.

  • Trimble Inc.

  • The Climate Corporation

  • Topcon

Smart Agriculture Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 14.41 billion

Revenue forecast in 2028

USD 29.18 billion

Growth Rate

CAGR of 10.6% from 2021 to 2028

Base year for estimation

2020

Historic Data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Agriculture type, offerings, application, region.

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; France; Netherlands, Russia; China; India; Japan; Singapore; Australia; Brazil; Turkey

Key companies profiled

Ag Leader Technology; AGCO Corporation; AgJunction, Inc.; AgEagle Aerial Systems Inc.; Autonomous Solutions, Inc.; Argus Control Systems Ltd; BouMatic Robotic B.V.; CropMetrics; CLAAS KGaA mbH; CropZilla; Deere & Company; DICKEY-john; DroneDeploy; DeLaval Inc.; Farmers Edge Inc.; Grownetics, Inc.; Granular, Inc.; Gamaya; GEA Group Aktiengesellschaft; Raven Industries; SST Development Group, Inc.; Trimble Inc.; The Climate Corporation; Topcon

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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 industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global smart agriculture market report based on agriculture type, offering, application, and region:

  • Agriculture Type Outlook (Revenue, USD Million, 2017 - 2028)

    • Precision farming

    • Livestock monitoring

    • Smart greenhouse

    • Others

  • Offering Outlook (Revenue, USD Million, 2017 - 2028)

    • 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, 2017 - 2028)
    • 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, 2017 - 2028)
    • 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)

      • Turkey

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