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The smart farming market share is expected to increase to USD 7.04 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 13.65%.
This smart agriculture market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers smart farming market segmentations by application (soil and crop management, fleet management, storage and irrigation management, and indoor farming), product (automation and control systems and smart agriculture equipment and machinery), and geography (North America, Europe, APAC, Middle East and Africa, and South America). The smart farming market report also offers information on several market vendors, including Ag Leader Technology, AGCO Corp., AgJunction Inc., Auroras Srl, Bacancy Technology, Bayer AG, Cropin Technology Solutions Pvt. Ltd., Cultyvate, Deere and Co., Digital Matter, DTN, Farmers Edge Inc., Gamaya, PrecisionHawk Inc., Raven Industries Inc., Robert Bosch GmbH, Telit Communications Plc, Topcon Positioning Systems Inc., Trimble Inc., and TSI Inc. among others.
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Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The availability of low-cost cloud services encourages farmers to adopt smart farming is notably driving the smart agriculture market growth, although factors such as high initial investment in smart farming technology may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the smart farming industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Smart Farming Market Driver
One of the key factors driving the global smart agriculture industry growth is the availability of low-cost cloud services that encourages farmers to adopt smart farming. In smart farming, sensors and other monitoring tools are of great importance as they collect information about the soil, crop health, and environmental conditions that might affect the crops. The vast amount of information generated by these monitoring devices is collected in the cloud so that farmers can get easy access to the information they need. The systems provide farmers with a better understanding of different parameters through which crop production can be increased. Moreover, the adoption rate of cloud technology is increasing at a high rate. Some of the major benefits of implementing cloud technology in agriculture are as follows:
Key Smart Farming Market Trend
Big data in smart farming is one of the key smart agriculture market trends that is expected to impact the industry positively in the forecast period. Improvement in wireless communication in the agricultural field is leading to growth in production level. The improvements in functional safety and repair and maintenance of equipment in the field are giving rise to a crop production level. In addition, with the use of GPS trackers and sensors, granular data points on soil conditions and detailed information on wind and pesticide requirements can be conveyed to farmers. Data acquisition and storage have become easier with the help of big data analysis, and this promotes decision-making and other practices used by farmers. Such factors will further support the market growth in the coming years.
Key Smart Farming Market Challenge
One of the key challenges to the global smart agriculture industry growth is the high initial investment in smart farming technology. Investment in these tools is a major concern in many places. Moreover, software integration is expensive and requires high initial investments. The charges for other data analytics tools and training are also high, which adds to the overall cost incurred by farmers. The cost varies from one vendor to another, based on the type of tools being adopted. The adoption of smart farming technology depends on the land area. For instance, farmers that have a small land area find it difficult to match the level of investment with the crop production level in their fields. For larger farms, although investments are not a major concern, the integration cost of hardware and software solutions with the entire farm area remains a major challenge. This may limit the market growth in the forecast years.
This smart farming market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global smart farming market as a part of the global agricultural products market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the smart farming market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the smart farming market encompasses successful business strategies deployed by the key vendors. The smart farming market is fragmented and the vendors are deploying growth strategies such as technological innovation to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The smart farming market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the smart farming market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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39% of the market's growth will originate from North America during the forecast period. The US is the key market for smart farming in North America. Market growth in this region will be faster than the growth of the market in South America.
The rapid adoption of smart farming tools and techniques will facilitate the smart farming market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the outbreak of COVID-19 disrupted the economy of North America. The rising number of COVID-19 cases in the first half of 2020 forced the governments of several countries such as Canada, Mexico, and US in the region to adopt stringent lockdown restrictions. However, in H1 2021, manufacturing and supply chain operations of vendors resumed owing to the initiation of large-scale COVID-19 vaccination programs in North America. Such factors are expected to increase the demand for smart farming solutions in the coming years, which will drive the growth of the regional smart farming market during the forecast period.
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The smart farming market share growth by the soil and crop management segment will be significant during the forecast period. The use of smart farming is highly important in farming, as the overall management of farms manually is comparatively difficult. The condition of the crop can be affected by different parameters, such as temperature, humidity, climate, and damage caused by insects. Hence, due to this, the smart farming market for soil and crop management will be in demand in the forecast years.
This report provides an accurate prediction of the contribution of all the segments to the growth of the smart farming market size and actionable market insights on post COVID-19 impact on each segment.
Vertical Farming Technologies market - The market share is expected to increase to USD 8.52 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 24.74%.
Precision Farming market - The market share should rise by USD 3.52 billion from 2022 to 2026 at a CAGR of 8.41%.
Smart Farming Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.65% |
Market growth 2022-2026 |
$ 7.04 billion |
Market structure |
Fragmented |
YoY growth (%) |
12.52 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 39% |
Key consumer countries |
US, China, Australia, France, and Germany |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Ag Leader Technology, AGCO Corp., AgJunction Inc., Auroras Srl, Bacancy Technology, Bayer AG, Cropin Technology Solutions Pvt. Ltd., Cultyvate, Deere and Co., Digital Matter, DTN, Farmers Edge Inc., Gamaya, PrecisionHawk Inc., Raven Industries Inc., Robert Bosch GmbH, Telit Communications Plc, Topcon Positioning Systems Inc., Trimble Inc., and TSI Inc. |
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, Market condition analysis for 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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