Smart Agriculture Market Forecasts to 2030 - Global Analysis By Type (Precision Farming, Livestock Monitoring, Precision Aquaculture, Precision Forestry, Smart Greenhouse and Other Types), Offering, Application, End User and By Geography

According to Stratistics MRC, the Global Smart Agriculture Market is accounted for $26.2 billion in 2024 and is expected to reach $62.8 billion by 2030 growing at a CAGR of 15.7% during the forecast period. Smart agriculture, also known as precision agriculture, refers to the use of advanced technologies such as IoT, AI, drones, and big data to optimize farming practices. This approach aims to enhance crop yield, reduce resource consumption, and improve overall farm management. By leveraging real-time data and automation, smart agriculture allows farmers to make informed decisions, monitor crop health, and efficiently manage resources like water and fertilizers, ultimately leading to sustainable and productive farming.

According to a report published by the Food and Agriculture Organization, an Italy-based United Nations agency that provides information and support for sustainable agriculture, in 2021, acute food insecurity at crisis or worse levels was faced by almost 193 million people in 53 countries or territories (IPC/CH Phases 3-5), an increase of over 40 million people.

Market Dynamics:

Driver:

Rising demand for food

The market is witnessing a significant surge in demand for food due to rapid population growth and increasing urbanization. Advanced technologies such as IoT, AI, and data analytics are being integrated into farming practices to enhance productivity, reduce waste, and optimize resource usage. These innovations are crucial in meeting the growing food demand sustainably while addressing challenges like climate change, limited arable land, and water scarcity. Consequently, investments in smart agricultural solutions are accelerating, driving market growth.

Restraint:

Lack of infrastructure and connectivity

The market faces significant challenges due to the lack of infrastructure and connectivity. Many rural areas lack reliable internet access, which is essential for real-time data collection and remote monitoring. Insufficient infrastructure, such as sensors, drones, and automated systems, hinders the adoption of advanced technologies. This digital divide limits farmers' ability to utilize precision farming techniques, reducing efficiency and productivity. Addressing these challenges requires substantial investment in rural broadband and modern agricultural infrastructure.

Opportunity:

Increased profitability and sustainability

Increased profitability and sustainability in the market are driven by precision farming techniques and IoT integration, optimizing resource use and reducing waste. Advanced data analytics and AI provide farmers with actionable insights, enhancing crop yields and lowering operational costs. Sustainable practices, such as soil health monitoring and efficient water management, further boost productivity while minimizing environmental impact.

Threat:

Limited farmer knowledge and skills

In the market, limited farmer knowledge and skills pose significant challenges. Many farmers lack familiarity with advanced technologies and data-driven farming practices, leading to suboptimal adoption and utilization. This knowledge gap hinders effective implementation of precision farming, IoT devices, and data analytics, resulting in reduced productivity and sustainability. Bridging this gap through education, training, and accessible resources is crucial for maximizing the benefits of Smart Agriculture and driving innovation in the sector.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the Smart Agriculture market, accelerating the adoption of advanced technologies due to labor shortages and supply chain disruptions. Farmers increasingly turned to automation, IoT, and AI-driven solutions to maintain productivity and ensure food security. This shift highlighted the importance of digital tools in managing agricultural processes, boosting investments in smart farming technologies. Despite initial setbacks, the crisis ultimately underscored the sector's resilience and potential for innovation-driven growth.

The feeding management segment is expected to be the largest during the forecast period

The feeding management is expected to be the largest during the forecast period. These innovations enhance efficiency, reduce waste, and improve yields by providing precise feeding schedules and nutrient management. Key players offer automated feeding systems, sensors for real-time monitoring, and software for data-driven decisions. As sustainability and productivity become paramount, this market is poised for significant growth, driven by increasing demand for smart farming solutions globally.

The aquaculture segment is expected to have the highest CAGR during the forecast period

The aquaculture segment is expected to have the highest CAGR during the forecast period. Aquaculture is a vital component of smart agriculture, leveraging advanced technologies for sustainable fish and seafood farming. Innovations such as IoT devices, automated feeding systems, and water quality sensors enhance efficiency and productivity. Smart aquaculture minimizes environmental impact through precise monitoring and management of resources, ensuring optimal conditions for aquatic life.

Region with largest share:

North America is projected to hold the largest market share during the forecast period driven by technological advancements and increasing adoption of precision farming techniques. Innovations such as IoT sensors, drones, and AI-driven analytics are revolutionizing farming practices, enhancing productivity, and optimizing resource utilization. Moreover, favorable government initiatives promoting sustainable agriculture practices further propel market expansion.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period. The countries are embracing technological advancements such as Internet of Things (IoT), precision agriculture, drones, and AI-based analytics to optimize farming practices, improve crop yield, and reduce operational costs. With a rapidly growing population, there is increasing pressure on agricultural productivity to meet the rising food demand. Smart agriculture technologies help farmers maximize their yield while efficiently utilizing resources.

Key players in the market

Some of the key players in Smart Agriculture market include Trimble Inc., Deere & Com, Topcon Positioning Systems, AKVA Group, Afimilk Ltd., CLAAS KGaA mbH, Allflex Livestock Intelligence, Farmers Edge Inc, Heliospectra AB, AGCO Corporation, Granular, Inc., Grownetics, Inc., Raven Industries, Innovasea Systems Inc. and GEA Group Aktiengesellschaft.

Key Developments:

In July 2023, Deere & Company announced the acquisition of Smart Apply, Inc. The company planned to leverage Smart Apply's precision spraying to assist growers in addressing the challenges associated with input costs, labor, regulatory requirements, and environmental goals.

In April 2023, AGCO Corporation announced a strategic collaboration with Hexagon, for the expansion of AGCO's factory-fit and aftermarket guidance offerings. The new guidance system was planned to be commercialized as Fuse Guide on Valtra and Massey Ferguson tractors.

Types Covered:

• Precision Farming
• Livestock Monitoring
• Precision Aquaculture
• Precision Forestry
• Smart Greenhouse
• Other Types

Offerings Covered:

• Software
• Services
• Hardware

Applications Covered:

• Inventory Management
• Farm Labor Management
• Feeding Management
• Milk Harvesting Management
• Breeding Management
• Genetics and Nurseries
• Yield Monitoring and Harvesting
• Other Applications

End Users Covered:

• Horticulture
• Agricultural Cooperatives
• Agribusinesses
• Research Institutions
• Aquaculture
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances