The smart agriculture market is poised for significant growth, fueled by the increasing adoption of new-age technologies such as the Internet of Things (IoT) and artificial intelligence (AI) in the agricultural industry. Farmers are embracing these technologies to enhance farming efficiency, focusing on livestock monitoring and disease detection. Moreover, macroeconomic factors such as shrinking arable land, the need to reduce Greenhouse Gas Emissions (GHG), and the growing global population’s dependence on agriculture products to combat rising starvation further contribute to the demand for smart agriculture practices.
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According to the UN FAO 2020 report, if current agriculture production trends continue, the number of individuals suffering from hunger will exceed 840 million by 2030, putting additional pressure on the agriculture industry. This presents a tremendous opportunity for technology providers to expand their IT services in the agriculture domain by offering support for cutting-edge technologies like robotics, cloud-based solutions, AI sensors, and IoT-enabled RFID tags. Governments are also actively promoting the adoption of technology in agriculture through initiatives such as partnerships with technology companies.
For instance, the Indian government partnered with Microsoft to empower small-scale farmers in optimizing crop yield through AI sensors. Microsoft is collaborating with state governments, farmers, the Ministry of Electronics and Information Technology (MeitY), and the Ministry of Agriculture and Farmers Welfare to develop an AI ecosystem in farming. The rising penetration of technology, supported by government initiatives, is expected to drive the demand for smart agriculture practices, consequently contributing to the growth of the smart agriculture market.
5G to Create an Impactful Opportunistic Scenario in the Smart Agriculture Market
The global rollout of 5G cellular technology is anticipated to have a significant impact on smart agriculture, also known as ag-tech. Smart agriculture aims to maximize food production by providing farmers with data that enables informed decision-making. With 5G technology, agri-businesses can remotely collect data through IoT devices and effectively manage equipment. The advent of 5G is expected to create new opportunities in the smart agriculture market by facilitating data aggregation, predictive analytics, animal monitoring and tracking, video-equipped drone operations, and the monitoring of autonomous vehicles in agriculture practices.
Precision Farming to Contribute Largely to the Growth of the Global Smart Agriculture Market
The increasing adoption of precision farming practices is expected to contribute significantly to the growth of the smart agriculture market. Precision farming focuses on enhancing the accuracy of agricultural practices and inputs by considering agro-climatic conditions and crop requirements. The perceived benefits of precision farming, including enhanced agriculture productivity, prevention of soil degradation, efficient use of water resources, and reduced production costs, have driven its adoption worldwide, supporting the growth of the smart agriculture market.
North America to Maintain Dominance, while APAC Remains Lucrative
Developed economies in North America are expected to maintain their dominance in the smart agriculture market due to various technological advancements and favorable macroeconomic conditions. The region’s increasing GDP per capita, coupled with the rise of technology start-ups, has opened new pathways for smart agriculture. Agricultural organizations in North America have also formed the North America Climate Smart Agriculture Alliance (NACSAA) to educate cultivators on enhancing agricultural productivity, further bolstering the growth of the smart agriculture market.
Asia Pacific (APAC) is projected to exhibit high potential for smart agriculture adoption.
While still in its nascent stage, smart agriculture has gained significant traction in the region, supported by favorable government initiatives. For example, the Ministry of Agriculture in Japan is providing funds for precision farming to support smart agriculture. Similarly, the Indian government has launched various initiatives to foster smart agriculture, such as the digitalization of Primary Agricultural Credit Society (PACS), Pradhan Mantri Krishi Sinchayee Yojana (PMSKY), Management of Agricultural Extension in Hyderabad (MANAGE), One Nation One Market, and mentoring agri-tech start-ups.
Global Smart Agriculture Market: Competitive Landscape
Key players in the smart agriculture market include AGCO Corporation, CropMetrics, DeLaval, Ag Leader Technology, Granular Inc., and The Climate Corporation. These companies are at the forefront of driving technological advancements in the agriculture industry and shaping the future of smart agriculture.
