The global smart agriculture market was valued at USD 22.65 billion in 2023 and is projected to grow at an impressive compound annual growth rate (CAGR) of 13.7% from 2024 to 2030. This growth is largely driven by the increasing automation of commercial greenhouses and the rising adoption of controlled environment agriculture (CEA) practices within these greenhouses. These approaches aim to optimize growing conditions and maximize yield, which cultivators are increasingly recognizing as vital to their success. The shift towards commercial greenhouses is underscored by a growing understanding of the benefits associated with controlled environments for plant growth.
A significant development in this space is the transition from conventional lighting systems to LED grow lights. Despite their higher upfront costs, LED lights are favored for indoor farming due to their energy efficiency and longevity, making them an ideal choice for integration into CEA setups. This advancement not only supports sustainability but also enhances the overall efficiency of agricultural practices.
Machine-to-Machine (M2M) applications have emerged as a critical component of the agricultural sector, facilitating a range of functionalities for farmers. These applications enable real-time monitoring of equipment, assessment of environmental impacts on production, precise management of livestock and crops, and tracking of tractors and other essential agricultural machinery. M2M technology is a core element of the Internet of Things (IoT), which connects multiple devices and machines to the internet, allowing for coordinated and efficient agricultural operations.
The Smart Agriculture Market report provides a detailed overview of current trends and developments within the Agtech landscape. It analyzes the key drivers and challenges that influence the growth of agricultural technology, offering invaluable insights for stakeholders. Additionally, the report explores the transformative potential of smart farming systems and agriculture analytics, highlighting their capacity to revolutionize agricultural practices and enhance productivity. With precise market size estimations and forward-looking predictions, this report serves as a crucial resource for businesses and investors seeking to leverage the opportunities presented by the rapidly evolving agricultural technology sector.
Gather more insights about the market drivers, restrains and growth of the Smart Agriculture Market
Application Segmentation Insights
In 2023, the yield monitoring segment commanded a significant market share of 43.19%. This dominance is primarily due to the escalating demand for monitoring crop growth and minimizing waste through timely provision of necessary water and nutrients. The applications within this segment encompass various agricultural management functions, including irrigation management, yield monitoring, crop scouting, field mapping, weather forecasting and tracking, inventory management, and farm labor management. Among these, the weather monitoring and forecasting segment is expected to exhibit the highest growth rate during the forecast period, driven by the increasing need for data-driven decision-making in agriculture.
As water scarcity becomes a pressing concern and environmental awareness among consumers grows, there is an urgent need to modify agricultural management practices to conserve vital natural resources such as soil, air, and water. Consequently, the irrigation management segment is anticipated to experience substantial growth in the coming years. Precision irrigation technologies are being developed to offer innovative solutions that optimize water usage by aligning irrigation inputs with crop yields across different areas of a field.
The application of smart greenhouse technologies includes a variety of critical functions, such as water and fertilizer management, HVAC (heating, ventilation, and air conditioning) management, and yield monitoring, among others. Notably, the HVAC management segment is poised for significant expansion during the forecast period, fueled by the increasing number of greenhouse farms implementing sophisticated climate control systems. Maintaining precise temperature and humidity levels is crucial for hydroponic grow rooms and aquaculture, driving demand for effective HVAC management solutions.
In the realm of livestock monitoring, applications encompass a range of activities, including milk harvesting, breeding management, feeding management, and overall animal comfort management. The Food and Agriculture Organization (FAO) highlights that technological advancements in livestock and agricultural production systems are essential for addressing global food shortages. Specifically, animal comfort management allows farmers to monitor and enhance the well-being of their livestock, ensuring species-appropriate behavior. The adoption of automated solutions is expected to mitigate the limitations of human labor, leading to improved animal welfare and operational efficiency within the livestock sector.
Overall, the convergence of technology and agriculture is paving the way for more sustainable and efficient practices, addressing both the challenges of food production and the imperative for environmental stewardship. As these trends continue to unfold, stakeholders across the agricultural landscape will be better positioned to harness the benefits of smart agriculture technologies.
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