Smart agriculture solution market

Market Overview

Smart agriculture or smart farming is a farming management concept that uses modern technology to increase the quality and quantity of agricultural products. Smart agriculture solution helps various entities including farmers and distributors in the value chain, in order to transform and reorient agricultural systems to optimize food productivity. This, in turn, ensures higher productivity with the effective use of resources and prevention of food loss to a certain extent. Both hardware and software components are part of smart agriculture solutions. Hardware components include sensor monitoring, smart detection, GPS enabled ranging systems, and drones.

The global Smart Agriculture Solution Market was accounted for US$ 18975.7 Mn in terms of value in 2019 and is expected to grow at CAGR of 11.2% for the period 2020-2027.

Market Dynamics- Drivers

1. Wide availability of low-cost sensors is expected to drive growth of the global smart agriculture solution market during the forecast period

Cost and size of various sensors such as temperature, load, and vibration have decreased significantly in the recent past. This is typically due to technological advancements in the semiconductor industry along with intense competition among various manufacturers. Such sensors are an important component in the market and serve to collect and formulate information required for testing and monitoring health and status of crops, soil, weather, etc. Thus, these factors are expected to drive growth of the global smart agriculture solution market during the forecast period.

2. Rising need to address soil erosion from intensive farming is expected to propel the global smart agriculture solution market growth over the forecast period

Condition and status of soil and its properties are crucial for making decisions concerning sustainable soil management, which in turn, contributes to appropriate land use. It is vital to carry out soil assessments and undertake analysis and mapping of data and information through soil surveys. Therefore, these factors are expected to propel the global smart agriculture solution market growth over the forecast period.

Smart Agriculture Solution Market - Impact of Coronavirus (Covid-19) Pandemic

Many governments around the globe such as India, Spain and Italy have imposed nationwide lockdown to prevent the spread of COVID-19 disease. For instance, India have imposed lockdown from 25 March to 1 May until the further notice. Lockdown resulted in the shortage of the workers at the farms. Due to the manpower shortage the farms are struggling to carry out the plantation activities. Moreover, there is also shortage of transportation facilities such as Trucks and Trains. Owing to above mentioned factors, the COVID-19 pandemic is expected to restrain the market growth during the year 2020.

Statistics:

North America held dominant position in the global Smart Agriculture Solution market in 2019, accounting for 51.9% share in terms of value, followed by Europe and Asia Pacific respectively

Figure 1: Global Smart Agriculture Solution Market Share (%) in terms of Value, By Region, 2019

Market Dynamics- Restraints

1. Lack of established wireless and broadband coverage in rural areas is expected to restrain growth of the global smart agriculture solution market during the forecast period

Lack of adequate infrastructure for wireless and broadband coverage, especially in emerging economies such as Africa and India is a major challenging factor. There is a lack of proper infrastructure for wireless coverage, which in turn, hinders the adoption of smart agriculture solutions. Thus, these factors are expected to restrain growth of the global smart agriculture solution market during the forecast period.

2. Uncertainty of weather and political factors is expected to hinder the global smart agriculture solution market growth over the forecast period

Factors such as weather and local political and economic changes cannot be accounted for and cannot be calibrated. Thus, these factors are expected to hinder the global smart agriculture solution market growth over the forecast period.

Market Opportunities

1. Adoption of novel technologies can present lucrative growth opportunities

Major companies in precision agriculture are focused on providing data services, in order to aid farmers to optimize yield capacity and enhance resource utilization. For instance, in March 2016, TerrAvion launched areal data services for farmers with the aid of drones and thermal imagery technology.

2. Research and development activities can present business opportunities

Major companies in the market are focused on research and development activities, in order to innovate novel products. For instance, in June 2016, Agribotix LLC introduced the Agribotix Agrion system, which is an agricultural drone solution, in order to aid farmers to evaluate the entire field. Furthermore, in May 2015, SemiosBio Technologies Inc. introduced a module i.e., Forst module, for its precision farming platform in order to broaden its solution offerings.

Figure 2: Global Smart Agriculture Solution Market Value (US$ Mn), 2017 - 2027

The global Smart Agriculture Solution market was valued at US$ 18975.7 Mn in 2019 and is forecast to reach a value of US$ 44,358.5 Mn by 2027 at a CAGR of 11.2% between 2020 and 2027

Market Trends

1. Increasing partnerships with various entities

Major companies in the market are focused on partnership and collaboration activities, in order to gain a competitive edge in the market. For instance, in January 2016, Agribotix LLC partnered with Hawkins Manufacturing, Inc. in order to enhance its presence across North America. Moreover, in November 2016, Trimble Navigation Ltd. partnered with Precision AG, Agrinetix, Géo-Pro, and Avidor High Tech France and KOREC in order to enhance its presence in the markets in North America and Europe.

2. Major investment by market players is another trend

Key players in the market are investing significantly in other ventures, in order to expand the market presence. In April 2016, SemiosBio Technologies Inc. received investment from Agtech community with the aid of Haywood Securities. This investment is expected to aid the company in broadening its presence and solution portfolio.

Competitive Section

Major companies operating in the global 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.

Key Developments

1. Major market players are focused on product launches, in order to enhance expand the product portfolio. For instance, in November 2019, Trimble Navigation Ltd. introduced precision agriculture solutions GFX-350 Display and NAV-500 Guidance Controller at Agritechnica 2019, Germany.
2. Key companies in the market are involved in mergers and acquisitions, in order to enhance the market presence. For instance, in August 2018, AgEagle Aerial Systems Inc., a provider of drone imagery data analysis, acquired Agribotix LLC.