According to a new market intelligence report by BIS Research, the global smart farming market is expected to reach $23.14 billion by 2022, rising at a compound annual growth rate (CAGR) of 19.3% from 2017 to 2022.
The market growth is primarily attributed to the increasing demand for higher crop yield, the growing penetration of information and communication technology (ICT) in farming, and the increasing need for climate-smart agriculture.
The Growing Use of Smart Farming Worldwide
In the coming years, smart farming is projected to create a massive impact on the agricultural economy by bridging the gap between small and large-scale businesses. The trend is not only pertinent in developed countries — developing countries have also realized its immense importance as well.
In countries such as China and Japan, wide-scale deployments of smartphones and internet of things (IoT) systems have led to a rapid adoption of precision agriculture solutions. The governments of several countries have also realized the need for, and the advantages of these technologies, and thus, their initiatives to promote precision farming techniques are expected to drive the growth of the market further.
However, such revolutionary changes in farming practices not only come with opportunities but also certain challenges which prove to be a restraint in the growth of the market. The awareness and knowledge about newer agriculture technology are yet to spread extensively, especially in emerging countries.
Types of Precision Agriculture
According to the report, in 2017, the hardware systems solution segment held more than 72% of the total global smart farming market. The precision crop farming application currently holds the largest market share of over 31%.
Companies in the market offer a variety of solutions for several types of precision crop farming applications such as precision irrigation, yield monitoring and forecasting, variable rate application, crop scouting, and recording keeping, among others.
Precision irrigation products have been a major contributor to the large market share of precision crop farming. With the growing need for the appropriate use of agricultural inputs, variable rate application products in the market are expected to propagate the growth of the precision crop farming market in the next five years.
The introduction of autonomous milking robots into milk harvesting is expected to augment the growth of smart agriculture in the livestock sector. In addition, growing urbanized areas and the increasing demand for fresh agricultural produce all year round shall propagate the growth of indoor farming.
Aquaculture is also witnessing greater integration of aquaculture management software for the efficient breeding of aquatic species.
Where Precision Farming Is Taking Off
Regionally, North America is at the forefront of the global smart agriculture market, with high market penetration in the U.S. However, Mexico is expected to have the highest market growth in the coming five years.
The Asia-Pacific region is projected to display the fastest market growth from 2017 to 2022. The region presents an immense scope for market development, owing to the increasing urban population size, growing market penetration of internet in farm management, and favorable government investments. Moreover, the presence of economically advancing countries such as India and China are expected to make the region a primary part of the growth of precision agriculture in the upcoming years.
Automated Farming Trends
A change in the global aging demographic has triggered the adoption of automation in farming practices. Automation and control systems manufacturers have witnessed a definite surge in their sales due to this profound change in the farming industry.
Over the past five years, agricultural robots have also been incorporated into farming operations as they treat soil and crops selectively as per their requirements and reduce the need for manual labor. UAV/drones generated the highest revenue amongst all agricultural robots utilized in smart farming. The majority of robot deployment was done for crop management.
Agriculture Companies to Watch in This Space
Key players operating in this market have ramped up their product launch activities over recent years to generate public awareness about their existing and new products and technologies and compete with their competitors’ product portfolio.
Partnerships and collaborations strategies have also been significantly employed for expansion in the smart farming market. With the increasing growth in the global market, companies operating in this industry are compelled to come up with collaborative strategies with other agricultural OEMs to sustain in the intensely competitive market. For instance, in February 2018, Trimble Inc. and Aquarius Spectrum Ltd. signed an agreement for the distribution of Aquarius Spectrum’s wireless leak detection and monitoring solutions for water utilities.
The report profiles 24 leading agriculture companies engaged in precision agriculture, which include:
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Farming and Agriculture Market Research
For more information, download the full industry report by BIS Research, which provides critical insights into the future of agriculture technology. This comprehensive report draws on research from extensive primary interviews and secondary research, along with analytical tools that have been used to build forecasts and predictive models.
Click this link to visit the report page, download a sample, and learn more.
About the Publisher: BIS Research is a global market research company that provides comprehensive reports covering 12 technology verticals. Its team includes industry veterans, experts and analysts with diverse backgrounds in consulting, investment banking, government, and academia.
