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The Connected Agriculture Market size is estimated to grow by USD 4.15 billion from 2023 to 2027 and the market’s growth momentum will accelerate at a CAGR of 18.61%. Enhancing profitability in agricultural endeavors necessitates vigilant monitoring of weather patterns and climatic shifts. The proliferation of IoT technologies in farming fosters market expansion, yet a notable knowledge disparity between farmers and technology providers persists. Challenges such as implementation hurdles and substantial capital outlay for establishing connected agricultural infrastructure hinder growth prospects. To optimize farm operations, it's imperative to bridge the information gap between stakeholders and leverage IoT solutions effectively. While the integration of IoT holds promise for agricultural innovation, addressing implementation issues is paramount for realizing its full potential. Overcoming barriers to entry and facilitating seamless collaboration between farmers and technology providers are crucial steps in driving sustainable growth and maximizing returns in the agricultural sector.
North America holds a major share in the global market and will contribute the maximum revenue to the overall market on the backdrop of higher technology awareness and adoption of advanced products and technologies in agriculture. Amid the rising potential for growth in the market, several start-ups are emerging in the region that specializes in data collection and data analytics for the agriculture market. Since 2015, US businesses have started adopting AI for communication and automated reporting across all sectors. In the agriculture industry, remote monitoring and predictive analytics have assumed a dominant role. This has necessitated the widespread incorporation of the IoT, cloud-based systems, and sensor technologies. All these factors will enhance the growth of the market.
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This market research report extensively covers market segmentation by component (solution, platforms, and services), application (in-production management, post-production management, and pre-production management), and geography (North America, APAC, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the solution segment will be significant during the forecast period. It enables data collection through sensors and farm equipment, and the data is transmitted through wireless technology. These sensors help in measuring soil conditions using parameters such as temperature and moisture. Solutions such as satellite imaging of farm fields allow farmers to assess crop growth and crop rotation cycles. Moreover, smart irrigation systems manage and save water by measuring the soil moisture level and automating the irrigation process.
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The solution segment showed a gradual increase in market share with USD 814.74 million in 2017 and will continue to grow by 2021. Connected agricultural solutions assist farmers in increasing their yield and improving the quality of food crops. Soil sensors alert farmers about soil conditions such as acid levels or evaporation-based scheduling. Farmers can monitor their livestock by observing the animals' heart rate, blood pressure, and breathing rates. IoT sensors are utilized to monitor the daily activities and health conditions of cattle. It must be noted that data centers, especially information technology (IT) spending play a crucial role in this segment as well. Such factors will contribute to the growth of the solution segment in the global market during the forecast period.
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North America is projected to account for 35% of the market's growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the regional market is attributed to factors such as higher technology awareness and the adoption of advanced products and technologies in agriculture. Several start-ups that specialize in data collection and data analytics for the agriculture industry are emerging in the region. Since 2015, US businesses have started adopting AI for communication and automated reporting across all sectors. In the agriculture industry, remote monitoring and predictive analytics have assumed a dominant role. This has necessitated the widespread incorporation of IoT, cloud-based systems, and sensor technologies.
In the realm of agriculture, the market is revolutionizing traditional farming activities through innovative technological solutions across the entire production cycle, from pre-production to in-production and post-production phases. By leveraging data sensing, data communications, data storage, and data processing, farmers and agribusinesses can optimize operations and maximize Return on Investment (ROI).
This market caters to a wide array of stakeholders, including farmers, growers, livestock producers, farming cooperatives, and governments, facilitating seamless collaboration and informed decision-making. Essential features like device management, configuration management, and advanced communication technologies ensure efficient water and irrigation management, breeding and feed management, and crop scouting. Real-time information and farm irrigation capabilities empower farmers with actionable insights, improving productivity and sustainability. As the market continues to evolve, it serves as a catalyst for agricultural innovation, driving efficiency and profitability in the modern farming landscape.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Maximizing profits in farm operations is notably driving market growth. Connected agriculture technology enables farmers to monitor and regulate remote operations and provide logical data to analyze several aspects of an agriculture farm. It is a rapidly emerging technology that will help farmers enhance agricultural deliverables. Farmers can control and monitor the equipment, crop, and livestock through their smartphones and receive statistical predictions for crops and livestock.
Smart sensors, satellite imagery, and other cloud-based technologies are highly beneficial for observing and recording data during crop planting and harvesting activities, thereby maximizing production output and minimizing the cost of resources. In animal husbandry, these practices help in data collection through sensors and visual imaging. Moreover, the installation of machinery allows for the automated milking of cattle, which helps in increasing production and saving labour costs, which will drive the growth of the market during the forecast period.
Automated irrigation systems are a key trend influencing the market growth. Automated irrigation systems can be further classified into closed-loop systems, open-loop systems, volume-based systems, and time-based systems. Automated irrigation systems are highly beneficial in reducing crop production costs, enhancing harvest yield, minimizing environmental impacts, and agrochemical leaching. Since these systems are AI-controlled, they can significantly reduce the water required for irrigation, thereby allowing farmers to take predictive decisions.
Pest attacks are a major problem faced by farmers, and autonomous early warning systems can help prevent massive outbreaks of pests like oriental fruit flies. These systems minimize farmers' reliance on chemical pesticides, thereby saving costs and minimizing the effects of pesticides on crops and the environment. Autonomous warning systems are incorporated with wireless sensors and a global system for mobile (GSM) networks that can capture and communicate environment-related fluctuations. Based on machine learning technologies, automated early warning systems are easily deployed in fruit farms and can deliver information to the smartphones of farm owners. Such factors will contribute to the growth of the market in focus during the forecast period.
The knowledge gap between farmers and technology providers may impede market growth. Countries such as India and China are major global agriculture producers and potential markets for connected agriculture solution vendors. However, the lack of awareness and funds prevents vendors from venturing into these countries. Farmers often resist adopting connected agriculture as they do not trust the technology used in such methods. Other areas where AI fails in agriculture include system integrity, analytical ability, and the complex decision-making skills needed for agricultural practices.
Traditional farmers rely more on their pre-requisite knowledge and hands-on experience and trust their capabilities to make decisions based on actual parameters, which minimizes the impact of predictive tools offered by AI. Managing crop quality and in-field inventory to make decisions based on predictions requires farmers to rely more on AI technologies. Despite the implied benefits offered by AI, farmers in many countries across APAC mistrust the technology due to the low awareness level, which will restrict the growth of the globally market in agriculture-reliant countries during the forecast period.
The market research report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product launches, to enhance their presence in the market.
Accenture Plc - The company offers connected agriculture solutions such as Accenture Connected Crop Solution.
The market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
A qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is driven by technological solutions revolutionizing farming activities. From data sensing to communications, storage, and processing, growers, livestock producers, and farming cooperatives leverage these innovations. Agribusinesses, including grape wine growers, seed and fertilizer companies, and food and beverage firms, benefit from real-time information for efficient operations and improved ROI. Device and configuration management, along with communication technologies, enhances water and irrigation management, breeding, and feed management. Challenges like limited resources and environmental problems are mitigated through drones and advanced farming solutions. Integration of mobile technology via phones and tablets, along with user-friendly apps, fosters accessibility to climate data and weather changes. Bridging the technological gap through education and training mitigates issues like electricity and water shortages, paving the way for sustainable agriculture.
Moreover, the market thrives on seamless data communications, efficient data storage, and robust data processing systems. It caters to diverse stakeholders, including seed companies, food and beverage companies, and governments, enabling them to optimize Return on Investment (RoI) through effective device management and compatible operating systems. Features like crop scouting, farm irrigation, and animal health monitoring streamline agricultural operations, while insights into feeding behavior and hygiene bolster productivity and sustainability. Additionally, functionalities such as location tracking and insurance mitigate risks, ensuring a healthy farm yield amidst fluctuating weather conditions and environmental challenges like global warming and deforestation. Integration of mobile phones, tablet computers, and user-friendly apps facilitates data access and management, overcoming barriers like electricity and water shortages. Collaboration with social bodies and education level advancements further enriches the agricultural landscape, driving progress and resilience in the face of evolving demands and constraints.
Connected Agriculture Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.61% |
Market growth 2023-2027 |
USD 4.15 billion |
Market structure |
Fragmented |
YoY growth (%) |
16.49 |
Regional analysis |
North America, APAC, Europe, South America, and the Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, Canada, China, India, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Ag Leader Technology, AGCO Corp., Cisco Systems Inc., Decisive Farming Corp., Deere & Co., Epicor Software Corp., Gamaya, International Business Machines Corp., Iteris Inc., Link Labs Inc., Microsoft Corp., Oracle Corp., Orange SA, Sage Group Plc, SAP SE, SWIIM System Ltd., Topcon Positioning Systems Inc., Trimble Inc., and Vodafone Group Plc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the Market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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