The Global Smart Agriculture Market, By Component (Hardware (Sensor Monitoring System, Smart Detection System, GPS Enabled Ranging System And Drones), Software, Service (Climate Information Service, Supply Chain Management Service And Others(System Integration, Maintenance and Consulting Service)), By Solution (Automated Machinery Guidance Control, Tractor Collision and Obstacle Detection, Machinery Safety and Parameter Monitoring, Variable Rate Technology and Building and Premise Surveillance) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 44,358.5 Million by 2027, exhibiting a CAGR of 11.2% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Smart farming represents the application of modern information and communication technologies (ICT) into agriculture that can be called the third green revolution. This ensures higher productivity gains with the effective use of resources and prevention of food loss to a certain extent. Hardware components include smart agriculture systems that utilize components such as sensor monitoring, smart detection, GPS-enabled ranging systems, and drones. Service components include various information-based subscription and managed services such as climate information services and supply management services. Furthermore, variable rate technology includes a system utilizing local conditions on the field for precise control of inputs required on the farm.
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.
Growing adoption of M2M-based monitoring and tracking across various industries is expected to drive growth of the global smart agriculture solution market during the forecast period
Machine-to-machine (M2M) involves no human intervention and devices communicate with each other. It refers to technologies that allow both wired and wireless systems to communicate with various other connected devices. M2M is an integral part of the Internet of Things (IoT) and offers several benefits to the industry and business. As M2M communication is gaining traction, M2M applications and connectivity are becoming a major focus area for market players such as communication service providers (CSP) and industry vertical application developers. Some of the end-use applications of M2M are building automation, smart city, smart grids, healthcare, and industrial automation. Agriculture application of M2M is expected to gain traction and is anticipated to significantly drive growth of the global smart agriculture market in the near future. Thus, these factors are expected to drive growth of the global smart agriculture solution market during the forecast period.
Smart Agriculture Solution Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 Pandemic have adversely affected the economies of various countries around the globe. According to the International Monetary fund Analysis, the global economy is expected to shrink down by 3% percent in the year 2020 compared to year 2019. Due to the reduction in the size of global economy the spending or purchasing power of people also decreases. Moreover the farmers are also expected to reduce the expenditure on adopting the new technologies for the agriculture.
Rising adoption of livestock monitoring solutions can present lucrative growth opportunities
In many emerging economies such as India, Brazil, China, and Indonesia, livestock monitoring solutions are being adopted. On-site tracking sensors can provide reliable data about the location and physical condition of the animals. These solutions offer better growth, improved pasture management, improved tracking of events and dates, and enhanced management of feedstock. Major companies in the market can capitalize on these opportunities by providing novel solutions and gain a competitive edge in the market.
Fragmented agriculture industry is expected to hamper the global smart agriculture solution market growth over the forecast period
The global agriculture industry is highly fragmented with the presence of large and small & medium-sized players. Domestic players offer agricultural solutions at a competitive price, which makes it challenging for international players to expand their market presence. Furthermore, there is a possibility of counterfeit and pirated products, which hinders the revenue share of market players. Hence, these factors are expected to hamper the global smart agriculture solution market growth over the forecast period.
Among regions, North America is expected to witness significant growth in the global smart agriculture solution market during the forecast period. This is owing to presence of major market payers and increasing proactive government initiatives and support for automation of greenhouses across the region.
Europe is expected to register a significant growth rate in the global smart agriculture solution market during the forecast period. This is owing to a strong R&D base and higher adoption of precision farming technology across the region. Furthermore, increasing number of livestock and growing adoption of advanced technologies is expected to boost the regional market growth over the forecast period.
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.