Smart Agriculture Market to Hit USD 60.1 Bn by 2033, 11.3% CAGR

Introduction

The global smart agriculture market is poised for substantial growth, expected to surge from USD 20.6 billion in 2023 to USD 60.1 billion by 2033, with a steady CAGR of 11.3% during this period.

This growth is fueled by the increasing adoption of advanced technologies like IoT, AI, and data analytics in farming, which enhance productivity and efficiency. These technologies facilitate precise monitoring and management of agricultural resources, leading to optimized outputs and reduced wastage.

Challenges in this market include the high initial investment costs and the complexity of integrating new technologies with existing agricultural practices. Moreover, the limited technical expertise among farmers, particularly in developing regions, also hampers adoption rates.

Autonomous Solutions, Inc. has been actively advancing its technology in smart agriculture, focusing on autonomous farming equipment that enhances efficiency and safety. A notable advancement is their partnership with CNH Industrial to develop autonomous tractors, unveiled at the Farm Progress Show.

These tractors are designed for broad-acre and row-crop farming, equipped with autonomous seeding, planting, and tillage capabilities. This partnership reflects ASI’s strategic focus on leveraging its autonomous technology in practical applications within agriculture​

Key Takeaways

• Smart Agriculture Market is anticipated to be USD 60.1 billion by 2033. It is estimated to record a steady CAGR of 11.3% in the forecast period 2023 to 2033. It is likely to total USD 20.6 billion in 2023.
• Sensors and control systems are crucial in facilitating precision agriculture and data-driven decision-making.
• Soil sensors, water sensors, and climate sensors provide real-time data on environmental conditions and crop health, aiding resource utilization and increasing crop yield.
• Cloud-based software is popular due to its accessibility, scalability, and data management capabilities.
• Data services, analytics services, and farm operation services play a significant role in data-driven decision-making and resource utilization.
• Large farms dominate the adoption of smart agriculture solutions due to scalability.
• Precision farming is the leading application, driven by technologies like GPS, sensors, and drones.
• In 2023, North America held a dominant market position in the smart agriculture sector, capturing more than a 44% share.

Smart Agriculture Statistics

Innovative Farming Boosts Global Food Production

• The UN Food and Agriculture Organization (FAO) predicts that the agriculture industry will need to produce 70% more food while only being able to use 5% more land. This means approximately 1 billion tons more wheat, rice, and other cereals, and 200 million more tons of livestock per year, on almost the same agricultural surface area.
• U.S. farmers increased their use of cover crops by 8 million acres (+75%) over the past 10 years.
• Sustainable soil use and resource conservation efforts increased by 41 million acres in 10 years. And an impressive 20% of all U.S. farmland is used for conservation and wildlife habitat.
• Kenya is the top agritech investment hub in Africa, raising $608 million in the past decade, which accounts for about one-third of all agritech funding on the continent since 2013.
• Nigeria has emerged as a major player with $154 million raised in 2022 through various funding rounds. The country is recognized for its technology-driven solutions for farmers.

Global Investment in Agritech Startups Escalates

• Egypt ranks third in agrifoodtech investments, securing $112 million across 24 deals in September 2022. The agricultural sector is vital to its economy, contributing approximately 12% to its GDP.
• The UK ranks second globally with $1.3 billion in agrifoodtech investments in 2023. The focus has shifted towards innovations that enhance on-farm performance and climate technology.
• In 2023, the Indian government introduced this fund to encourage agri-startups founded by young entrepreneurs in rural areas, with an increased agricultural credit target set at ₹20 lakh crore (approximately $2.4 billion) focused on various sectors including animal husbandry and fisheries.
• This fund provides equity and debt financing to early-stage agritech startups. As of recent reports, the ASF has invested in over 50 startups, facilitating their growth and innovation in various domains such as farm management and supply chain solutions.
• After rigorous screening, 20 innovations were selected for pilot testing. This initiative not only provided funding but also mentorship workshops for over 400 agritech startups, enhancing their capacity to innovate and implement solutions effectively.

Emerging Trends

• Agricultural IoT Applications: IoT technology is revolutionizing farming by integrating devices and sensors throughout agricultural operations, facilitating real-time data gathering and analysis. This integration aids in the precise monitoring of crop vitality, soil conditions, and climatic variables, thereby enhancing decision-making processes and operational efficiencies.
• Advanced Precision Agriculture: Leveraging data-driven strategies, precision agriculture fine-tunes the application of essential resources like water, nutrients, and pesticides. By accurately managing environmental factors such as soil moisture and fertility, this approach boosts both the yield and sustainability of farming practices.
• Controlled Environment Agriculture: Utilizing vertically arranged growth systems, this method allows for intensive crop production in controlled settings. Employing techniques such as hydroponics and aeroponics significantly conserves water and space while eliminating the risks of soil-related issues, leading to higher productivity in smaller areas.
• Technological Enhancements in Livestock Management: Innovations in livestock agriculture include automated systems for feeding and milking that streamline operations and improve animal health and welfare. Through the use of sensors and AI, these systems enhance the precision of health monitoring and nutritional management, thereby optimizing farm output and reducing resource wastage.
• Laser-Based Crop Protection: To counteract pests and bird interference more effectively than conventional scarecrows, farmers are now turning to laser technologies. These systems emit a green laser light that scares away birds without being visible to humans, offering a non-intrusive yet efficient solution to protect crops from potential damage.

Use Cases

• Environmental Monitoring through IoT: By using IoT sensors across agricultural fields, smart agriculture systems can gather continuous data on weather conditions such as temperature, humidity, and precipitation. This wealth of data aids farmers in making strategic decisions about when to plant and irrigate, enhancing crop growth conditions, boosting yields, and reducing unnecessary resource use.
• Automated Greenhouse Control: In greenhouses, IoT technologies enable the automated adjustment of internal conditions including temperature, moisture levels, and lighting based on sensor data. This automation supports the cultivation of healthier plants and conserves energy by maintaining ideal growth environments efficiently.
• Field Crop Management: Utilizing advanced field sensors, smart agriculture systems collect crucial data related to soil conditions and crop health. This allows farmers to proactively manage potential threats like pests and diseases early on, safeguarding crops and enhancing productivity.
• Health Monitoring of Livestock: IoT applications in livestock management involve using sensors to track health indicators such as heart rate and temperature. Access to this immediate data helps farmers quickly identify and address health issues in animals, improving overall herd health and preventing widespread illnesses.
• Precision Agriculture Practices: Precision farming employs IoT technologies to meticulously gather environmental and crop data, enabling precise application of water, fertilizers, and pesticides. This targeted approach not only maximizes crop output but also helps in reducing the ecological footprint by minimizing resource depletion and chemical runoff.

Major Challenges

• Initial Investment Requirements: Deploying smart agriculture systems requires a large upfront investment in technology such as IoT sensors, devices, and advanced data analytics systems. This financial burden can be especially challenging for small and medium-sized farms.
• Complexity in Data Handling: The effective management of the large volumes of data generated by smart agriculture tools is a significant hurdle. This involves complex data collection, storage, and analysis processes that demand advanced software and specialized skills.
• Challenges with Technology Adoption: The adoption of smart agriculture technologies often necessitates major changes to existing farming operations and systems, along with comprehensive training for users. This can complicate the integration process.
• Connectivity Limitations: For smart agriculture technology to function optimally, strong and consistent internet connectivity is essential. Unfortunately, many agricultural regions, particularly those that are remote, lack reliable internet access, which can impede the utilization of these technologies.
• Security Concerns: As agricultural processes become more connected and reliant on digital technologies, they become more vulnerable to cyber threats. Ensuring robust cybersecurity measures to protect data and maintain the integrity of IoT systems is crucial to mitigate these risks.

Market Growth Opportunities

• IoT and Blockchain Advancements: Integrating IoT devices in farming improves precision agriculture by delivering timely and precise data, enhancing decision-making processes. Additionally, blockchain technology can significantly advance the transparency of the agricultural supply chain, ensuring products are traceable from origin to consumer.
• Innovative Technologies in Greenhouses: The adoption of advanced technologies like energy-efficient HVAC systems and LED grow lights in greenhouses is escalating. These innovations are pivotal in optimizing environmental conditions, which in turn boosts crop yields and decreases resource usage.
• Expansion into New Markets: With the increasing acceptance of smart agriculture technologies, there is a notable potential for market expansion into new regions, especially those that are early in their technology adoption phase.
• Strategic Partnerships with AgriTech Startups: Collaboration between traditional agricultural companies and agritech startups can drive faster innovation. These partnerships effectively merge longstanding agricultural practices with modern technologies to develop novel farming solutions.
• Diversification into Precision Aquaculture and Forestry: Beyond conventional farming, there is an expanding opportunity in sectors like precision aquaculture and forestry. These fields can leverage advanced monitoring and control systems, including underwater vehicles, to enhance operations and sustainability.

Key Players Analysis

• GEA Group Aktiengesellschaft contributes to smart agriculture by providing advanced solutions that enhance dairy farming. They focus on automated and efficient farming technologies, including the GEA DairyRobot R9500 for milking, and the GEA DairyFeed F4500, an autonomous feeding robot, to optimize feed efficiency and animal health.
• Autonomous Solutions, Inc. (ASI) focuses on delivering comprehensive turnkey solutions through designing, manufacturing, installing, and commissioning advanced conveyor systems and automation in various sectors such as airport baggage handling and automotive manufacturing.
• CropMetrics LLC leverages precision agriculture to optimize irrigation management through localized support and advanced tools. They work with a network of Precision Data Specialists to tailor irrigation programs that enhance both crop yields and profitability for producers.
• Ag Leader Technology specializes in precision farming tools that integrate seamlessly with existing agricultural machinery to enhance field operations year-round. Their offerings include advanced software solutions and hardware that aid in planting, application, and harvest, improving operational efficiency and decision-making on the farm.
• BouMatic Robotic B.V. has developed innovative solutions to enhance dairy farming efficiency through advanced robotics and management systems. Their Gemini UP milking robots improve cow welfare and milk quality while offering a highly efficient, compact design that can handle either single or double cow milking setups.
• Raven Industries is deeply involved in smart agriculture through its development of autonomous farming technologies. Their systems, which include both driverless and driver-assisted options, are designed to enhance farm productivity by improving time management, safety, and operational efficiency.
• Argus Control Systems Ltd specializes in advanced control systems for horticultural environments, providing customized solutions that allow for precision management of climate and nutrients. They cater to various sectors, including commercial horticulture and cannabis production, optimizing all aspects of plant growth through intelligent automation and monitoring systems.
• Grownetics, Inc. specializes in optimizing indoor agricultural operations by using advanced crop sensors, automation networks, and machine learning. Their technologies assist urban farmers and botanists in enhancing productivity while minimizing costs, focusing on sustainable and efficient cultivation practices.
• DeLaval Inc. is at the forefront of integrating smart, sustainable, and digital solutions into dairy farming. They specialize in enhancing dairy production efficiency and animal welfare through technologies like the VMS™ robotic milking system, which customizes milking to each cow’s needs, and the DeLaval RePro™ for advanced reproductive management.
• DICKEY-john provides innovative sensing solutions that revolutionize agricultural processes, focusing on accuracy and reliability across various farming applications. Their product range includes advanced sensors and control systems that optimize agricultural operations and increase production efficiencies.
• Farmers Edge Inc. leverages a comprehensive digital infrastructure to transform data into actionable insights for sustainable and profitable farming. They offer solutions that include real-time field data collection, crop monitoring, and management of carbon credits, aiming to enhance agricultural productivity and sustainability across various regions.
• AgJunction, Inc. is recognized for its innovative solutions in smart agriculture, specializing in advanced guidance, auto-steering, and autonomy for precision agriculture applications. They develop and sell essential hardware and software that enhance automated control for agricultural and construction equipment, focusing on North American markets.
• Gamaya focuses on enhancing the sustainability of sugarcane farming through advanced AI-powered analytics and remote sensing technologies. Their solutions are tailored to improve operational efficiencies, boost crop yields, and support carbon removal efforts in the sugarcane industry.
• Deere & Company is a leader in smart agriculture, utilizing advanced technologies to enhance farming productivity and efficiency. Their solutions include precision agriculture tools that help farmers make better decisions through real-time data on crop conditions, helping to increase yield and resource efficiency.
• CropZilla in the Smart Agriculture sector utilizes telemetry and sophisticated algorithms to create a digital model of farm operations. This model optimizes machinery and labor by analyzing costs and timeliness, ensuring financial decisions are informed and operations are efficient.
• Topcon Positioning Systems enhances smart agriculture through its advanced technology solutions like the Topcon Agriculture Platform (TAP). This platform allows farmers to gather and analyze data, optimizing farming operations from soil preparation to harvest, and integration.
• DroneDeploy leverages drone technology to enhance farm management, enabling quick aerial data collection over large areas to monitor crop health, optimize inputs, and improve yields without the need for physical field checks. This approach supports smarter, data-driven decision-making in agriculture.
• Trimble Inc. leverages its advanced technology to simplify farm management and enhance productivity across the agricultural sector. Through innovative solutions like the Farmer Core software and the GFX-750 display system, Trimble integrates machine-generated data and offers real-time operational insights to help farmers optimize their practices and increase returns.
• CLAAS KGaA mbH leverages its digital platform, CLAAS connect, to revolutionize smart farming by integrating advanced digital solutions that make farm management and fleet operations more efficient. This approach includes connecting machinery, automating documentation, and enhancing field performance, setting a foundation for precision farming and sustainable agricultural success.

Conclusion

Smart agriculture, powered by IoT and other cutting-edge technologies, is revolutionizing the way we farm by increasing efficiency and sustainability. This innovative approach utilizes data from sensors and devices to optimize farming practices, thereby increasing crop yields, conserving water, and enhancing food safety.

Furthermore, it supports environmental sustainability by minimizing reliance on fossil fuels and reducing waste. The future of farming with smart agriculture promises even greater advancements with the ongoing integration of AI, improving data analysis and decision-making processes.

Discuss Your Needs With Our Analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF