Smart Agriculture Market Size, Growth, Report 2023-2032
The global smart agriculture market was estimated at USD 20.35 billion in 2022 and it is expected to surpass around USD 71.82 billion by 2032, poised to grow at a CAGR of 13.44% from 2023 to 2032. The smart agriculture market in the United States was accounted for USD 5.2 billion in 2022.
Key Pointers
Report Scope of the Smart Agriculture Market
| Report Coverage | Details |
| Revenue Share of North America in 2022 | 45% |
| CAGR of North America from 2023 to 2032 | 12.15% |
| Revenue Forecast by 2032 | USD 71.82 billion |
| Growth Rate from 2023 to 2032 | CAGR of 13.44% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Companies Covered | Ag Leader Technology, AGCO Corporation, AgJunction, Inc., AgEagle Aerial Systems Inc., Autonomous Solutions, Inc., Argus Control Systems Ltd, BouMatic Robotic B.V., CropMetrics, CLAAS KGaA mbH, CropZilla, Deere & Company, DICKEY-john, DroneDeploy, DeLaval Inc, Farmers Edge Inc, Grownetics, Inc., Granular, Inc., Gamaya, GEA Group Aktiengesellschaft, Raven Industries, Trimble Inc., Topcon Positioning System |
Increasing automation of commercial greenhouses and growing implementation of the controlled environment agriculture (CEA) concept in greenhouses, in a bid to obtain a higher yield and maintain optimum growing conditions, are the key factors driving demand during the forecast period. Cultivators realize the potential benefits of growing plants inside a greenhouse, which has led to the development of commercial greenhouses. Cultivators have shifted from the conventional lighting systems to LED grow lights as the latter can easily be integrated into a CEA setup. Although LED grows lights are high in cost, they are an ideal option for indoor farming, owing to their long-term benefits in terms of energy efficiency.
Key technologies driving the market demand include livestock biometrics, such as RFID, biometrics, and GPS to help cultivators automatically obtain information regarding livestock in real-time. Furthermore, infrastructural health sensors are used for monitoring material conditions and vibrations in buildings, factories, bridges, farms, and other infrastructure. Coupled with an intelligent network, infrastructural health sensors help provide information to the maintenance team in real-time. In addition, agricultural robots are being used to automate farming processes, such as soil maintenance, weeding, fruit picking, harvesting, planting, plowing, and irrigation, among others.
To sustain profits, farmers are increasingly adopting smarter and more efficient agriculture technologies to deliver high-quality products to the smart agriculture market in sufficient quantities. Mobile technology aids in offering innovative services and applications that are used across the agricultural value chain.
Machine-to-Machine (M2M) applications are particularly suited for the agricultural sector, enabling farmers to monitor equipment, assess the environmental impact on production, precisely manage livestock and crops, and keep track of tractors and other agricultural equipment. M2M is an integral part of IoT, which describes the coordination of multiple devices, appliances, and machines connected to the internet through multiple networks.
The COVID-19 pandemic has brought widespread disruption to the global supply chain, resulting in food shortages and inflation. Necessary measures are required to strengthen the food supply chain and prepare for any future crisis. The ongoing pandemic has highlighted the significance of being able to carry out agricultural operations remotely. The ability of smart agricultural practices to help farmers recoup losses in a relatively shorter lead time is expected to drive future market growth.
Agriculture Type Insights
In 2022, the livestock monitoring segment accounted for a market share of 22% of the global smart farming market. Furthermore, the smart farming market has been segmented into precision farming, smart greenhouse, and others. The others segment includes fish farming and horticulture. Precision livestock monitoring supports the real-time monitoring of the health, production, and welfare of livestock to ensure optimal yields. Factors such as the increasing size of dairy farms and rising technological advancements, such as precision livestock monitoring, have urged market players to focus on new product launches and substantial cost savings associated with livestock monitoring management.
The market estimates and forecasts of the smart greenhouse segment include vertical farming. The smart greenhouse enables farmers to cultivate crops with minimal human intervention. Climatic conditions such as soil moisture, temperature, and humidity are continuously monitored, and any variation observed in them triggers an automated action.
Smart farming is an integrated approach to managing farming activities, such as preserving resources and optimizing yields, by implementing IoT and information communication technologies. Smart farming entails real-time data on the conditions of soil, air, and crops. It aims to ensure the profitability and sustainability of the farm yield while protecting the environment.
Offering Insights
Based on offerings, the software segment is likely to portray the highest growth rate from 2023 to 2032. The hardware segment has further been bifurcated into automation & control systems, HVAC systems, LED grow lights, RFID tags & readers, and sensing devices. Automation & control systems are further segmented into application control devices, milking robots, guidance systems, driverless tractors, mobile devices, remote sensing, variable rate technology, drones, and wireless modules.
The growing automation of raw material production and product manufacturing in the dairy and food industry is likely to drive the milking robots segment in the future. Automation technology has improved milk quality and animal welfare. The rising need to reduce labor costs and improve productivity is expected to positively impact the profitability of the dairy & food processing industries. Factors such as increased milk frequency, efficient management of the herd, cow health, and welfare benefits are driving the demand for milking robots.
The drones sub-segment under the automation & control system is expected to witness the highest growth rate during the forecast period. Several types of drones include hybrid and fixed-wing. Fixed-wing drones comprise a rigid wing having a predetermined airfoil, which aids in its flight by generating lift caused by the drone’s forward airspeed. Forward thrust acquired by a propeller, an electric motor, or an internal combustion engine produces this airspeed.
Rotary blade drones comprise single rotor and multi-rotor type drones that revolve around a fixed mast, which enables them to fly in any direction and hover in one place. Hybrid drones can stay in flight for years at a stretch as they operate on multiple sources of energy. Solar panels mounted on the wings of the hybrid drones provide fuel during the flight.
Application Insights
In 2022, the yield monitoring segment held a market share of 44%. This is attributable to the growing demand for monitoring crop growth and reducing overall wastage by providing timely required water and minerals. The application of agriculture type includes irrigation management, yield monitoring, crop scouting, field mapping, weather tracking & forecasting, inventory management, and farm labor management. The weather monitoring & forecasting segment is anticipated to witness the highest growth rate during the projected period.
Growing water scarcity and increasing environmental consciousness among consumers have urged the need to modify agricultural management practices conserving natural resources such as soil, air, and water. The irrigation management segment is expected to have considerable growth during the projected period. Precision irrigation offers a combination of solutions and systems to effectively utilize water by matching the irrigation inputs to yields in each area of a field.
The application of smart greenhouse includes water & fertilizer management, HVAC management, yield monitoring, and others. The HVAC management segment is expected to expand significantly during the forecast period as increasingly greenhouse farms are employing it. The need for maintaining different temperatures and humidity for hydroponic grow rooms and aquaculture areas drives demand for the HVAC management segment.
Applications of livestock monitoring include milk harvesting, breeding management, feeding management, animal comfort management, and others. According to the Food and Agriculture Organization (FAO), technological advancements in livestock and agricultural production system will play a significant role in addressing food shortages. Animal comfort management allows farmers to track and manage an animal’s status and well-being. The adoption of automated solutions is expected to overcome the limitations of human labor, thereby providing species-appropriate behavior.
Regional Insights
North America dominated the global smart agriculture market with a market share of 45% in 2022. It is expected to register a CAGR of 12.15% from 2022 to 2032. Growing government initiatives and regulations to enhance the agriculture industry in the region are expected to drive the North American regional demand during the forecast period. Various agricultural organizations have come together to form the North America Climate Smart Agriculture Alliance (NACSAA), a platform for educating and equipping the cultivators for sustainable agricultural productivity. With the rising concern for water conservation, governments in North America are actively providing subsidies to enhance the applications of smart irrigation. For instance, the government of California has provided a rebate on smart controllers.
The Asia Pacific is anticipated to witness the highest growth during the projected period. Although smart farming is in the adoption stage in this region, the growing government support and rising awareness among cultivators are expected to drive the regional demand during the forecast period. For instance, in Japan, the ministry of agriculture has been providing funds for developing precision agriculture. The farmers’ associations and community-based organizations in each country play a major role in promoting sustainable agriculture.
The market for Singapore is also expected to witness considerable growth as 90% of the total food consumption is fulfilled through imports. The growing adoption of organic agriculture among small farmers in South America is likely to enhance the regional market demand during the projected period.
Smart Agriculture Market Segmentations:
By Agriculture Type
By Offering
By Application
By Regional
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Agriculture Type Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Smart Agriculture Market
5.1. COVID-19 Landscape: Smart Agriculture Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Smart Agriculture Market, By Agriculture Type
8.1. Smart Agriculture Market, by Agriculture Type, 2023-2032
8.1.1 Precision farming
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Livestock monitoring
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. Smart greenhouse
8.1.3.1. Market Revenue and Forecast (2020-2032)
8.1.4. Others
8.1.4.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Smart Agriculture Market, By Offering
9.1. Smart Agriculture Market, by Offering, 2023-2032
9.1.1. Hardware
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Software
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. Services
9.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Smart Agriculture Market, By Application
10.1. Smart Agriculture Market, by Application, 2023-2032
10.1.1. Precision farming application
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Livestock monitoring application
10.1.2.1. Market Revenue and Forecast (2020-2032)
10.1.3. Smart greenhouse application
10.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Smart Agriculture Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.1.2. Market Revenue and Forecast, by Offering (2020-2032)
11.1.3. Market Revenue and Forecast, by Application (2020-2032)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.1.4.2. Market Revenue and Forecast, by Offering (2020-2032)
11.1.4.3. Market Revenue and Forecast, by Application (2020-2032)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.1.5.2. Market Revenue and Forecast, by Offering (2020-2032)
11.1.5.3. Market Revenue and Forecast, by Application (2020-2032)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.2.2. Market Revenue and Forecast, by Offering (2020-2032)
11.2.3. Market Revenue and Forecast, by Application (2020-2032)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.2.4.2. Market Revenue and Forecast, by Offering (2020-2032)
11.2.4.3. Market Revenue and Forecast, by Application (2020-2032)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.2.5.2. Market Revenue and Forecast, by Offering (2020-2032)
11.2.5.3. Market Revenue and Forecast, by Application (2020-2032)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.2.6.2. Market Revenue and Forecast, by Offering (2020-2032)
11.2.6.3. Market Revenue and Forecast, by Application (2020-2032)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.2.7.2. Market Revenue and Forecast, by Offering (2020-2032)
11.2.7.3. Market Revenue and Forecast, by Application (2020-2032)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.3.2. Market Revenue and Forecast, by Offering (2020-2032)
11.3.3. Market Revenue and Forecast, by Application (2020-2032)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.3.4.2. Market Revenue and Forecast, by Offering (2020-2032)
11.3.4.3. Market Revenue and Forecast, by Application (2020-2032)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.3.5.2. Market Revenue and Forecast, by Offering (2020-2032)
11.3.5.3. Market Revenue and Forecast, by Application (2020-2032)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.3.6.2. Market Revenue and Forecast, by Offering (2020-2032)
11.3.6.3. Market Revenue and Forecast, by Application (2020-2032)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.3.7.2. Market Revenue and Forecast, by Offering (2020-2032)
11.3.7.3. Market Revenue and Forecast, by Application (2020-2032)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.4.2. Market Revenue and Forecast, by Offering (2020-2032)
11.4.3. Market Revenue and Forecast, by Application (2020-2032)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.4.4.2. Market Revenue and Forecast, by Offering (2020-2032)
11.4.4.3. Market Revenue and Forecast, by Application (2020-2032)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.4.5.2. Market Revenue and Forecast, by Offering (2020-2032)
11.4.5.3. Market Revenue and Forecast, by Application (2020-2032)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.4.6.2. Market Revenue and Forecast, by Offering (2020-2032)
11.4.6.3. Market Revenue and Forecast, by Application (2020-2032)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.4.7.2. Market Revenue and Forecast, by Offering (2020-2032)
11.4.7.3. Market Revenue and Forecast, by Application (2020-2032)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.5.2. Market Revenue and Forecast, by Offering (2020-2032)
11.5.3. Market Revenue and Forecast, by Application (2020-2032)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.5.4.2. Market Revenue and Forecast, by Offering (2020-2032)
11.5.4.3. Market Revenue and Forecast, by Application (2020-2032)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Agriculture Type (2020-2032)
11.5.5.2. Market Revenue and Forecast, by Offering (2020-2032)
11.5.5.3. Market Revenue and Forecast, by Application (2020-2032)
Chapter 12. Company Profiles
12.1. Ag Leader Technology
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. AGCO Corporation.
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. AgJunction
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. AgEagle Aerial Systems Inc.
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Autonomous Solutions, Inc.
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Argus Control Systems Ltd
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. BouMatic Robotic B.V.
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. CropMetrics
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. CLAAS KGaA mbH
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. CropZilla
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers