Smart agriculture involves the implementation of modern technologies and equipment for improving agricultural productivity. Smart agriculture utilizes various monitoring technologies such as sensors, automation systems, drones, irrigation management systems, analytical tools, and imaging technologies that capture real-time data on crop and soil conditions. This data helps predict weather conditions, detect crop diseases, optimize water and fertilizer usage, and increase productivity. Smart farming techniques help reduce human intervention and labor costs while increasing crop yields and quality. The global smart agriculture solution market is primarily driven by the increasing adoption of advanced technologies and precision farming techniques. The utilization of technology such as sensors, networks, and connected devices allows farmers to monitor and control agricultural operations remotely. Climate change and need for sustainable practices are further fueling the demand for smart farming technologies.
The global smart agriculture solution Market is estimated to be valued at US$ 29014.62 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The adoption of advanced technologies and precision farming techniques has emerged as a key driver of the global smart agriculture solution market. The implementation of technologies such as sensor networks, GPS systems, drones, variable rate technology (VRT), and automation systems allow farmers to collect real-time data and monitor soil conditions, weather changes, water levels, etc. remotely. This helps optimize resource usage, maximize productivity, and minimize wastage. For instance, sensor-based precision irrigation systems help apply the right amount of water only where needed thereby conserving water.
Another major driver is the need for sustainable agricultural practices owing to the challenges of climate change. Issues such as decreasing arable land, water scarcity, declining soil fertility necessitate the adoption of smart and precision farming tools to boost yields on existing farmland. Techniques such as protected agriculture, soil moisture monitoring, and crop stress detection can help secure food production in a resource-efficient way.
Segment Analysis
The smart agriculture solutions market is dominated by the precision farming segment occupying over 70% of the market share. Precision farming technology enables site-specific collection and application of data for optimizing agricultural production. It helps monitor the crop growth more closely and take immediate actions to improve yields. Precision farming solutions like GPS, GIS, intelligent sensing, variable rate technology etc. ensures optimum utilization of resources like water, seeds, fertilizers etc. leading to higher profitability.
PEST Analysis
Political: Supportive government policies for adoption of smart farming practices and providing subsidies on agricultural equipment and technologies is boosting market growth. However, lack of infrastructure in developing regions poses challenges.
Economic: Rising global population, diminishing arable land and need to optimize production is propelling demand for smart agriculture solutions. Higher crop yields through precision agriculture enhances farmer incomes.
Social: Younger generation of farmers are more receptive to new technologies. However, lack of awareness and skills hamper adoption in certain areas.
Technological: Advancements in IoT, AI, remote sensing, robotics etc. are integrating intelligence in agriculture. Rapid proliferation of internet and connectivity are enabling real-time monitoring and management of fields remotely.
Key Takeaways
The Global Smart Agriculture Solution Market Growth is expected to witness high supported by the need to boost productivity and optimize resource usage. The global smart agriculture solution Market is estimated to be valued at US$ 29014.62 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030.
Regional analysis related content comprises
North America accounts for over 30% value share led by developed agriculture sector and progressive farmers in countries like US. Asia Pacific is emerging as the fastest growing region owing to initiatives by governments in nations such as India and China to promote smart farming practices.
Key players related content comprises
Key players operating in the smart agriculture solution market are Halliburton, Ashland Global Specialty Chemicals Inc., Ecolab Inc., Baker Hughes Inc., Innospec Inc., JSC Gazprom Neftekhim Salavat, BASF SE, Evonik Industries AG, Clariant AG, GasHydrate LLC, and Schlumberger Limited. Ecolab Inc. and Schlumberger Limited have significant market presence for irrigation management and soil scanning solutions respectively.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it