Global Smart Agriculture Market Size By Component (Hardware, Software, and Services), Application (Precision Farming, Livestock Monitoring, Fish Farm Monitoring, Smart Greenhouse, and Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030

Market Perspective

The global Smart Agriculture Market was valued at USD 14.32 billion in 2022 and is projected to reach USD 45.39 billion by 2030, growing at a CAGR of 15.55% from 2023 to 2030.

The global smart agriculture market integrates cutting-edge technology with traditional farming practices, with the aim of revolutionizing agricultural operations. Its applications are diverse, encompassing precision farming, livestock monitoring, smart greenhouses, and agricultural drones. Precision farming involves the use of IoT, sensors, and data analytics to optimize crop production. It allows farmers to monitor crop health, soil conditions, and environmental factors in real-time, thus enabling informed decision-making for irrigation, fertilization, and pest control. Livestock monitoring utilizes IoT-enabled devices to track animal health, location, and behavior, thereby facilitating better management and care. Smart greenhouses integrate technology to create optimal conditions for plant growth, ensuring better yields and resource efficiency. Agricultural drones can be utilized for crop monitoring, spraying, and surveying large fields efficiently.

Key factors supporting the growth of the smart agriculture market include the increasing global population, which demands higher food production, a need for sustainable farming practices to conserve resources, and the advent of advanced technologies that facilitate precision and efficiency in agriculture. The demand for higher yields, improved quality, and the need to minimize the environmental impact of farming practices are major factors propelling the adoption of smart agriculture technologies.

Key Insights

• Based on component, the hardware segment accumulated the largest market share of 37.58% in 2022
• Based on application, the precision farming segment acquired the largest market share of 62.52% in 2022
• On the basis of region, North America accounted for the largest market share of 37.58% in 2022

Technological Advancements Revolutionizing Agriculture Aid Smart Agriculture Market Growth

Technological advancements revolutionizing agriculture serve as a significant driver contributing to the growth of the market. The rapid evolution and integration of cutting-edge technologies such as IoT, AI, and data analytics in farming practices have transformed conventional methods. These innovations have enabled farmers to make data-driven decisions, optimizing crop management, resource utilization, and overall farm operations. The fusion of technology with agriculture has improved efficiency, increased productivity, and allowed for more sustainable farming practices, catering to the growing demands for food production and quality.

High Initial Investment Costs Hinder Smart Agriculture Market Development

The high initial investment costs associated with implementing smart agriculture technologies serve as a significant restraint to market growth. Integrating advanced technologies into agricultural practices requires substantial capital for acquiring sensors, IoT devices, AI software, and other infrastructure. This initial financial outlay might be a deterrent for smaller or resource-constrained farms. Additionally, ongoing maintenance and training costs further contribute to the financial burden, thereby limiting the widespread adoption of smart agriculture practices.

Recent Developments

October 2022: Trimble Inc. unveiled cutting-edge agriculture displays with enhanced connectivity and intuitive interfaces. These displays empower farmers with integrated precision agriculture features, optimizing farming operations and boosting productivity.

June 2021: The global marketing and sales partnership between Bosch and BASF Digital Farming, known as Bosch BASF Smart Farming (BBSF) GmbH, received approval from all merger control authorities. This joint venture aims to offer smart farming technologies through a unified platform.

Segmentation Analysis

Based on component, the market is segmented into hardware, software, and services. The hardware segment dominated the market with a revenue share of 52.85% in 2022 due to the fundamental role hardware plays in enabling the implementation of advanced technological solutions on farms. Hardware in smart agriculture encompasses a wide array of physical devices and equipment, including sensors, drones, automated machinery, and other tangible components necessary for data collection, monitoring, and automation in agricultural practices.

Based on application, the market is classified into precision farming, livestock monitoring, fish farm monitoring, smart greenhouse, and others. The smart greenhouse segment is anticipated to grow at a robust CAGR of 15.53% over the forecast period owing to the imperative for sustainable agriculture, and the utilization of advanced technologies. These controlled environments optimize resource efficiency, enabling year-round production, minimizing climate impact, and ensuring high-quality, consistent crop yields. The demand for locally grown, premium produce, irrespective of seasons, fuels the increasing adoption of smart greenhouse solutions. Furthermore, the technology's ability to enhance productivity and reduce environmental impact aligns with the global agricultural shift toward precision, sustainability, and reliable crop production.

North America Held the Largest Market Share Due to Implementation of Advanced Agricultural Technologies

North America dominated the smart agriculture market in 2022 with the highest valuation of USD 5.38 billion due to its early adoption and widespread implementation of advanced agricultural technologies. The region boasts a robust infrastructure for technological innovation, with a high concentration of tech companies and agricultural research institutions. Additionally, the region's large-scale commercial farming and proactive approach towards sustainable and efficient farming practices have accelerated the adoption of smart agriculture technologies, thereby solidifying North America's leading position in the market.

Asia Pacific to Emerge as the Fastest-Growing Region Owing to Industrial Expansion

Asia-Pacific is experiencing significant growth in the smart agriculture market, with the highest CAGR of 19.99% from 2023 to 2030. This growth is mainly driven by several factors, including rapid urbanization, which leads to a shrinking agricultural workforce, and a growing population. To meet the increasing food demands, there is a growing emphasis on leveraging technology to enhance agricultural productivity. Governments in countries such as China, India, and Japan are promoting smart agriculture initiatives by offering subsidies and support for adopting advanced farming techniques. Additionally, the increasing awareness among farmers regarding the benefits of smart agriculture and the availability of cost-effective technological solutions tailored for small-scale farming operations are driving the rapid growth of the smart agriculture market in Asia-Pacific.

Competitive Landscape

The global smart agriculture market is fragmented with key players such as Deere & Company, Trimble Inc., Raven Industries, AGCO Corporation, Topcon Positioning Systems, Autonomous Solutions, Inc., DeLaval Inc., Farmers Edge Inc, BouMatic Robotic B.V., and AgJunction, Inc., among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, Product introductions, and collaborations to expand their business globally and enhance their competitive position.

The global Smart Agriculture Market is segmented as follows:

By Component

• Hardware
• Software
• Services

By Application

• Precision Farming
• Livestock Monitoring
• Fish Farm Monitoring
• Smart Greenhouse
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • South Africa
  • North America
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America