Overview:
The global connected agriculture market was accounted at US$ 2.59 Bn in 2021 and is projected to witness significant growth, growing with CAGR of 16% across the forecast period from 2023 to 2030. Connectivity is the cornerstone of technological transformation that has been taking place across the globe. Connected agriculture aims to provide optimum production with minimal resources. According to FAO, population of the world is more than 7 billion today and is likely to reach 9.1 billion by 2050. About 70% increase in agriculture production is required to satisfy the hunger needs of this growing population. The traditional farming methods are making agriculture inefficient. But, with the help of connected agriculture, farming operations are becoming more productive and efficient.
On account of climate change, the agriculture sector across the globe is currently facing issues such as excessive heat and uneven rainfall. For instance, in April 2021 a report by India Today had suggested that for the 6th year in a row India witnessed below-normal level rainfall due to climate change, which has aggravated farm distress, particularly in the drought-prone areas. Uneven rainfall is hampering agriculture productivity in the regions like Maharashtra, Karnataka and Madhya Pradesh. Likewise, the agriculture sector in the U.S. and Australia is expected to face a decline in the crops production due to extreme rise in temperature. Moreover, water scarcity is also accounted as one of the major problem in the agriculture sector. For instance, agriculture consumes nearly 70% of fresh water . There is a massive need for advanced water management solutions and technologies which help in reducing the consumption of water for agriculture purposes. Connected agriculture benefits farmers in increasing efficiency by minimizing cost and efforts, it helps farmers to proficiently invest time and resources which thereby balances the cost and yield of crops. Rising demand of advanced technologies and increasing investments in this sector are some of the factors are driving the connected agriculture market worldwide.
Today, farmers are increasingly depending on several technologies for their day-to-day activities and are using connected technologies like zigbee and wireless sensor technologies in various agricultural operations like harvesting, inventory control etc. Moreover, government across several regions are joining hands with different financial institutions and agro-processing organizations to promote the growth of connected agriculture initiatives. These partnerships are expected to promote the implementation of IOT solutions in agriculture across the globe. On the other hand, connected agriculture requires high initial investment which is a serious challenge for middle to low income group of farmers. Also, lack of network connectivity is another major factor restraining the market growth.
Solution Segment is expected to hold the Largest Market Share in 2021
In 2021, the solution segment held for the largest share in the global connected agriculture market and is expected to continue with its dominance during the forecast period as well. Crop yield depends upon various factors like rainfall, humidity, temperature, condition of soil and variety of seeds. As a result of this, it becomes very difficult for farmers to interrelate those factors which will hamper the productivity of the farms. Connected agriculture permits in associating the available data which thus help farmers to increase the yield of crops. Also, there is a huge demand for collecting data through sensors for minimizing losses due to uncertain weather conditions. Solution segment also consist of technologies such as water management system, which by detecting heat and moisture from soil ensures adequate supply of water to the crops.
North America held Largest Share of Connected Agriculture Market
In 2021, North America represented the largest market for connected agriculture across the globe and is likely to dominate during the forecast period from 2023 to 2030. The growth of this region is mainly accredited to the countries including U.S. government bodies in North American region provide great support for several advanced agriculture and farming technologies for increasing the production and to fulfill growing demand of food grains. Also, people in the U.S. and other countries are readily adopting and accepting advanced technologies that can be further implemented in the several farming practices. Dependency of people on various hand-held devices like mobiles, computers etc. that uses IOT and early adoption of these technologies is boosting the market growth in the region. Furthermore, Asia Pacific is expected to witness a significant growth in connected agriculture market in the years to come as farmers in the region are gradually adopting modern methods of connected agriculture. Countries including india and China are expected to have largest market for connected agriculture in Asia Pacific region. Owing to large number of farming lands, there will be an increased demand of advanced farming methods in order to meet rising demand of food.
Competitive Insights
The major players identified in the connected agriculture market includes Deere & Company, Raven Industries, Hexagon Agriculture, Decisive Farming, Trimble Inc., The Climate Corporation, DICKEY-john, GEA Group, Precision Planting, LLC, Teejet Technologies, Introduction of new technologies and partnership are some of the major strategies implemented by major players in connected agriculture market. For instance, in September 2020 Raven Industries and Topcon Agriculture collaborated to share Slingshot API, a software-to-software interface which provides end-users to share information between softwares. Through this collaboration Topcon Agriculture can able to share data with Raven’s hardware in fields and provides integration to the customers using wireless connection.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Connected Agriculture market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
