Connected Agriculture Market Size, Share, Growth Analysis, By Component, By Platform, By Application, By Region - Industry Forecast 2024-2031

Global connected agriculture market size was valued at USD 3.50 billion in 2022 and is poised to grow from USD 4.17 billion in 2023 to USD 16.88 billion by 2031, growing at a CAGR of 19.10% in the forecast period (2024-2031).

Connected agriculture involves the use of advanced, smart technologies to monitor, assess, and manage agricultural activities, aiming to enhance both production and quality of crops. Thanks to advancements in digital technology, it is now possible to collect and analyze extensive data, making agricultural operations more insight-driven and potentially more efficient. This approach provides real-time information on soil conditions, air humidity, and weather patterns, enabling farmers, agribusinesses, fertilizer suppliers, and food and beverage companies to better connect with customers, traders, and retailers, which helps in more effective planning and decision-making for harvesting. By adopting connected agriculture solutions, farm owners and businesses can optimize their operations, manage resources more efficiently, and improve their overall productivity. These technologies not only facilitate better time management on farms but also support more sustainable practices by reducing resource consumption. As a result, connected agriculture stands to significantly impact the agricultural sector by fostering smarter and more responsive farming methods, ultimately leading to improved yields and quality of produce.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Connected Agriculture market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Connected Agriculture Market Segmental Analysis

The global connected agriculture market segmentation is based on component, application, and region. Based on component the market is segmented into solution, platform and services. Based on platform, the market is segmented into device management, connectivity management and application enablement. Based on services, the market is segmented into consulting, integration & implementation and support and maintenance. Based on application the market is segmented into pre-production planning & management (field mapping, crop planning and yield monitoring, weather tracking and forecasting, farm labor management and equipment monitoring and maintenance), in-production planning & management (water and irrigation management, breeding & feed management, crop scouting, production monitoring & maintenance, animal tracking & navigation and agri finance & insurance management), and postproduction planning & management (processing, inventory management, transportation and quality assurance and control). Based on region the global connected agriculture market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Drivers of the Global Connected Agriculture Market

The connected agriculture sector is growing rapidly due to the increasing demand for solutions that enhance crop yields and farm productivity. Many service providers are focusing on the global connected agriculture market to offer real-time information to their users. Mobile-based transaction services are also helping farmers manage their expenses effectively, which contributes to the market's expansion. The ability to operate smoothly in rural areas is another factor driving the growth of connected agriculture. Additionally, the ease of accessing agricultural information is expected to further boost the global market in the coming years. This combination of technological advancements and improved access is propelling the connected agriculture industry forward.

Restraints in the Global Connected Agriculture Market

The expansion of connected agriculture faces challenges due to limited end-user knowledge and high initial costs. Farmers need to make substantial investments in satellite equipment, drones, Geographic Information Systems (GIS), and Global Positioning Systems (GPS) to gather essential data. Implementing connected farming technologies requires significant financial outlay, which can be a barrier for many small or marginalized farmers who struggle with the high costs of advanced equipment. The necessary investment in sustainable farming tools and expertise means that currently, only large, industrial farms can afford to adopt these cutting-edge technologies. This high cost of technology is a key factor limiting the broader adoption of connected agriculture.

Market Trends of the Global Connected Agriculture Market

As the global population grows, the demand for crops is increasing, highlighting the need for efficient irrigation methods. Smart irrigation technologies are designed to reduce water wastage from conventional systems and regulate the precise amount of water delivered to crops. Currently, irrigation systems cover about 330 million hectares of land worldwide. Although only 20% of all cultivated land is irrigated, this sector is crucial, contributing to 40% of global food production. To support better water management in agriculture, the World Bank is advancing its strategies to promote agricultural water stewardship and help stakeholders improve their water usage practices.