The market for smart agriculture in the world is predicted to experience dramatic growth in the coming years 2023-2027. The main reasons are technological advances and the rising demand for food. Population growth and rapid urbanization are driving the market for smart agriculture worldwide. Smart agriculture helps farmers in growing more efficiently by making use of advanced technologies. Here, we will discuss Smart Agriculture Market Forecast, share, size, and Growth for 2022-2027.
Smart agriculture provides real-time information regarding the soil conditions and air as well as the crops. This not only guarantees an excellent crop yield but also ensures sustainability while protecting the natural environment. Other factors contributing to the growth of the market include increasing consciousness among the farmers rising investment in research and development of technology, product development, as well as government support to improve infrastructure in smart agriculture.
Need for Smart Agriculture Market:
1. Rising Demand for Food
In light of the increasing population, the increase in demand for food is driving the expansion of the market for smart agriculture. Based on the United States Food and Agriculture Organization the global population is expected to grow to 9 billion people by the year 2050.
This is predicted to increase the demand for food by 70 70%. Farmers are likely to face pressure to increase the yield of their crops which will make them choose smart farming, which is expected to boost the development in the marketplace. Smart agriculture isn't just increasing the yield of crops, it also decreases the waste of precious resources like pesticides, fertilizers, water, and even soil.
2. Technological Advancements
Recent years have seen rapid advances have been made in the field of smart agriculture to maximize the advantages. Technologies such as artificial intelligence and location systems, sensors robotics, artificial intelligence, and many more are widely utilized by farmers to increase the efficiency of their operations, efficiently manage more resources and decrease wasted resources.
When employed to its maximum potential will benefit farmers by reducing the negative impact on crop yields. Modern technologies like VRT software for data management artificial intelligence yield sensors, mapping software, and GPS can help farmers maximize the yield of their crops.
As an example, back in the year 2020, Topcon Agriculture, California located electrical and electronic manufacturing company, announced they are launching a new cloud-based platform tool that will allow farmers to make use of connectivity and data analytics in cultivation. Therefore, as a result of these technological advances in smart agriculture, it is expected to propel the market's expansion.
3. Increasing Investments and Initiatives
The governments of different nations are investing in study and development (R&D) initiatives to introduce modern agricultural methods, which helps in the expansion of the value of the market. Furthermore, increasing investments by both the private and the public sectors, in conjunction with the demand for a reduction of resource consumption is anticipated to provide new opportunities to profit from the global market for smart agriculture over the next few years.
For example, the US Department of Agriculture, announced an investment of $1 billion to help America's climate-smart farmers, ranchers, and forest landowners improve climate-smart practices.
Impact of covid 19 on the Smart Agriculture Market
The market for smart agriculture was forecast to shrink in 2020 because of the expansion of COVID-19.The virus affected the supply chain as a few of the most prominent players in the smart agriculture industry are within China and the United States and China, and the virus was the most destructive to strike these countries in the early quarter of 2020.
In the second quarter of the year 2020, the intelligent agriculture sector began to gain momentum because of new contracts and orders.The market was anticipated to grow in 2021 because of the rising demand for automation and equipment products across a variety of applications like horticulture, greenhouses that are smart and precision livestock, precision forestry, and precise farming.In the end, the increasing demand for automation as well as the application of technological advancements in agriculture are expected to push the smart agriculture market ahead.
In the global smart agriculture market, the period following the pandemic is crucial.Because of a dearth of farmers who are trained to implement advanced technology, and the cost of initial adoption, the market expansion is expected to be slowed.Factors like the growing use of emerging technologies like AI and IoT however, on the other side, are expected to remain the main driver of market expansion during the forecast period.
Market Segmentation for Smart Agriculture Market
The global market for smart agriculture is divided into the offering, application, and business.Based on the type of offering the market is split into software, hardware, and services.Based on the hardware it is split into HVAC systems, sensing devices systems, grow light systems, control and automation systems, and many more.
Based on software the market is split into cloud-based and internet-based and cloud-based.Based on the services offered the market is split into managed and professional.Based on the type of application the market is split into precision agriculture smart greenhouses, livestock monitoring, and others.With precision farming, the market can be divided into yield monitoring fields cartography, crop scouting forecasting, and tracking of weather as well as farm inventory and labor management, among others.
Based on monitoring of livestock market segmentation, the market is split into breeding management, feeding management, and many more.With the help of smart greenhouses, the market is split into fertilizer and water management, HVAC management, and others. For the purposes of the country of origin, it is the United States is expected to be a lucrative market over the coming years due to increasing demand for food items and the advancement of technology in the United States.
Market Players for Smart Agriculture Market
AGCO Corporation, AgJunction, Inc., Ag Leader Technology, Inc., AgEagle Aerial Systems Inc., Autonomous Solutions, Inc., Argus Control Systems Ltd. BouMatic Robotic B.V., GEA Group Aktiengesellschaft, Topcon Positioning Systems, Inc., DeLaval Holding AB, Allflex USA, Inc., Afimilk Agricultural Cooperative Ltd., AKVA Group, Heliospectra Ab, LumiGrow Inc are some of the top companies operating on the market.