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The Connected Agriculture Market size is estimated to grow by USD 4,148.92 million from 2023 to 2027 and the market’s growth momentum will accelerate at a CAGR of 19%. The growth of the market depends on several factors, including maximizing profits in farm operations.
North America holds a major share in the global connected agriculture 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.
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.
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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 the connected agriculture 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, connected agriculture 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 connected agriculture market during the forecast period.
Automated irrigation systems are a key trend influencing the connected agriculture 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 the connected agriculture 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 connected agriculture 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 Connected Agriculture Market Customer Landscape
Vendors 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 - 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 share growth by the solution segment will be significant during the forecast period. Connected agriculture 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 connected agriculture 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.
This connected agriculture market report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. In 2021, connected agriculture solution providers in the agriculture industry resumed operations after a long period of lockdown restrictions triggered by the pandemic. Vendors resumed their operations by adhering strictly to safety guidelines to bring business activities back to normal. The vaccination drives conducted in 2021 in the region resulted in the removal of all restrictions, which boosted the demand for agricultural products. Furthermore, with the government's focus on reviving the economy, the market is expected to witness several investments in the agriculture industry in the region, which is expected to increase the demand for connected agriculture technology during the forecast period.
The connected agriculture market report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by deployment, application, and region.
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 4,148.92 million |
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 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 forecast period. |
Customization purview |
If our 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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