The smart agriculture market size is expected to grow from US$ 15.45 billion in 2022 to US$ 32.37 billion by 2028; it is estimated to grow at a CAGR of 12% from 2022 to 2028.
The developments in sensor technology, IT, and robotics are expected to extend the possibilities in smart agriculture further. It is expected that we will be able to determine the needs of a crop at any specific location and moment in a way that will be increasingly accurate and from a distance. The automation of agricultural activities such as plowing and harvesting will also lead to further developments in smart farming. According to experts, the expansion of smart farming will result in increased production per crop and more efficient production systems. Developments in smart farming will create a positive result on overall smart agriculture market growth.
With continued technological developments, robots are also getting deployed in the agriculture industry. In the present scenario, a significant number of agricultural operations are performed autonomously. Collaborative robots are the most commonly used robots for insect grafting, fruit harvesting, and cultivation purposes, in which artificial intelligence gives predictive data to optimize plantations and farms. Currently, there are few agriculture robotics R&D projects going on to analyze and use autonomous, intelligent, and collaborative mobile robots.
- BACCHUS: Mobile robotic platform for active inspection and harvesting in the agricultural areas
- AGROBOFOOD: Digital transformation of the agri-food sector in Europe by adopting robotic technologies
- COROSECT: Use of the cognitive robotic system for digitized insect farms
The integration of robotics in the agriculture industry can enhance working conditions and productivity for workers and farmers. The use of intelligent systems, including robotics, is now becoming an appropriate solution to power precision agriculture.
Another factor driving robotics penetration in agriculture includes a number of end-use cases. Autonomous precision seeding, multi-talented robots for harvesting, micro-spraying robots, robotic automation process manages all nursery planting works, robots to remove weeds, LiDAR-powered robots for data collection, robot-assisted precision irrigation, and sorting and packing robots are some of the emerging end use cases of robots in agriculture sector. Use of robotics will pave the path of smart agriculture market growth in the future.
Strategic Insights
Regional Analysis of Smart Agriculture Market
From the regional perspective, North America ranks third in terms of smart agriculture market share in 2022. According to a report by the Association for Unmanned Vehicle Systems International (AUVSI), agricultural drones are anticipated to hold 80% of the commercial UAV market and have the prospective to create over 100,000 job opportunities in the US. This signifies the increasing adoption of drones used for agricultural applications in the US. With the increasing adoption of drone technology, North Dakota State University (NDSU) introduced an agricultural research project named “the first of its kind in the nation,” incorporating drone technology.
A key technological driver accelerating crop production in the American agriculture industry is drones. The use of drones has facilitated the farms to surge crop yields while reducing pesticide use. The growing use of smart agriculture in America depends on automating operations and implementing various precision farming methods. Along with the aforementioned aspect of drones, it also helps in decreasing costs while performing farming activities. The average US farmer using agricultural drones witnesses an ROI of US$ 12 per acre for corn, and US$ 2 to US$ 3 per acre for soybeans and wheat, as per the American Farm Bureau Federation. High ROI on using drones will have a positive impact on their demand, and thus, will assist in fueling the smart agriculture market.
The US is a highly competitive smart agriculture market; however, it got impacted adversely due to the COVID-19 pandemic. In 2020, the US agricultural exports decreased by 3.5% from 2019. According to the Food and Agricultural Policy Research Institute at the University of Missouri, the COVID-19 impact is projected to impact agriculture sector to some extent.
Lucrative Regions – Smart Agriculture Market Share
Market Insights – Smart Agriculture Market
Application-Based Insights
Based on application, the smart agriculture market size is segmented into precision farming, livestock monitoring, yield monitoring, soil heath monitoring, irrigation system, variable rate application, asset management and smart greenhouse. In 2021, the livestock monitoring segment held the second-largest share in smart agriculture market. Livestock monitoring system is used for monitoring bovinae, ovine, and poultry animals for avoiding slaughtering and monitor all animal products. The mentioned features are contributing towards the demand for livestock monitoring systems. The use of smart devices and IoT solutions is making significant transformations in livestock and farming, thereby leading the path for the adoption of different smart agriculture solutions. The Electronics and Telecommunications Research Institute (ETRI) developed “Smart Safe Livestock Barn Platform” technology in December 2022. This platform has the potential to manage pig disease and breeding situations systematically. The platform is projected to greatly enhance productivity and respond to diseases by determining a smart safety livestock barn based on ICT.
With livestock monitoring gaining popularity globally, the number of startups is also increasing. Anitrack (cattle monitoring), Ewetrack (sheep monitoring), Faromatics (poultry monitoring), Serket (pig monitoring), and Eruvaka Technologies (fish monitoring) are some of the startups operating from different parts of the world.
Growing number of startups is creating a positive impact on the smart agriculture market.
Strategic Insights
The smart agriculture market players are mainly focusing on developing advanced and efficient products.
- In May 2022, Murata Manufacturing Co., Ltd. rolled out a highly precise three-in-one soil sensor for data-driven sustainable agriculture purposes. By simultaneously monitoring the soil temperature, electrical conductivity, and water content, the sensor allows the growers to maximize both the quality and yield of crops while lowering the use of fertilizers and water.
- In September 2022, the USDA planned to invest US$ 8 million to intensify monitoring of carbon presence in soil on working agricultural lands and assess how climate-smart practices are impacting carbon sequestration. The investment will work on a soil carbon monitoring network to cater to climate change via climate-smart agriculture and forestry.
The smart agriculture market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), Middle East & Africa, and South America. In 2021, APAC led the market with a substantial revenue share, followed by Europe. Further, Asia Pacific is expected to register the highest CAGR in the smart agriculture market from 2022 to 2028.
AGCO Corporation; Ag Junction Inc.; AG Leader Technology; Deere & Company; Raven Industries, Inc.; Semiosbio Technologies Inc.; SST Development Group, Inc.; Teejet Technologies; Topcon Precision Agriculture; and Trimble Navigation Limited are among the key smart agriculture market players operating in the industry. The market report provides detailed market insights, which help the key players strategize growth in coming years.