by The Smart Agriculture Solution Market is estimated to be valued at US$ 29014.62 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Smart agriculture solutions refer to integration of latest technologies in agriculture practices, equipment and machinery. It helps farmers to increase yield, save costs and optimize resources with the help of solutions such as precision farming, livestock monitoring and aquaculture. Precision farming solutions use IoT devices, GPS systems and drones to collect field data for effective monitoring and control of crops. This improves productivity and efficiency of agricultural operations.
Market key trends:
One of the major trend driving the growth of smart agriculture solution market is increasing demand for agriculture automation technologies. Traditional agricultural activities are labor intensive and time consuming. However, solutions such as precision farming automation equipment and drones help farmers in seeding, fertilizing, spraying and harvesting activities in an optimized way. They collect field data which is analyzed using artificial intelligence and cloud platforms to generate insights for improving crop yields. This reduces cost of operations and boosts productivity. Precision livestock farming solutions also help in monitoring health, grazing patterns and breeding cycles of livestock herd using IoT tags and sensors. This facilitates better management of livestock and ensures high quality produce.
Porter’s Analysis:
- Threat of new entrants: The threat of new entrants is moderate as it requires substantial investment in R&D for developing smart agricultural technologies. However, some agriculture-based startups are entering the market with innovative solutions.
- Bargaining power of buyers: The bargaining power of buyers is moderate. There exists a large number of solution providers offering smart agricultural solutions enabling buyers to compare and select the best options as per their requirement.
- Bargaining power of suppliers: The smart agriculture solution market has the presence of technology companies as well as agricultural equipment manufacturers as suppliers. The bargaining power of suppliers is moderate.
- Threat of new substitutes: There are no direct substitutes for smart agriculture solutions. However, traditional farming practices continue to remain a choice.
- Competitive rivalry: Being a rapidly growing market, the competition among existing players is intense. Players focus on expanding their product portfolios and geographical presence through partnerships and collaborations.
SWOT Analysis:
- Strength: The smart agriculture solution providers possess significant technological expertise to develop precision tools, connectivity solutions and data analytics platforms for enhancing farm productivity and reducing input costs.
- Weakness: Significant upfront investment requirements and lack of infrastructure and technical know-how among farmers in developing countries pose challenges for growth.
- Opportunity: Growing global food demand, shortages of labor and arable land, supportive government policies are driving the adoption of smart farming technologies.
- Threats: Cybersecurity threats and data privacy issues associated with collection and sharing of farming data, and weather uncertainties impacting yields can challenge business growth.
Key Takeaways:
The Global Smart Agriculture Solution Market Size is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing global food demand amid shrinking arable land. North America dominated the market in 2023, accounting for over 30% share owing to rapid technology adoption among farmers of the region. The market in Asia Pacific is anticipated to grow at the fastest pace during the forecast period supported by government initiatives and availability of low-cost smart agricultural devices.
Regional analysis The US and Canada are major revenue contributors in North America due to large agricultural operations and availability of advanced infrastructure. In Asia Pacific, China, India and South East Asian countries are emerging lucrative markets propelled by initiatives like Digital India promoting use of precision farming technologies. Growing population and changing dietary habits in countries like Brazil and Argentina are stimulating market growth in Latin America.
Key players operating in the smart agriculture solution market are Dirt Road Data, Inc., AgJunction LLC, Iteris, Inc., Site-Specific Technology Development Group, Inc., CropMetrics LLC, Trimble Navigation Ltd., Agribotix LLC, AgEagle Aerial Systems Inc., Granular, Inc., AgriSight, Inc., and SemiosBio Technologies Inc. The players focus on strengthening their product portfolios catering to various crop types and developing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
