Global Smart Farming Market By Offering (Hardware, Software, Services), By Agriculture Type (Precision Farming, Smart Greenhouse), By Farm Size, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global smart farming market accounted for USD 19.5 billion and is expected to reach USD 53 billion in 2032. This market is estimated to register the highest CAGR of 10.5% between 2023 and 2032. Smart farming refers to the use of technology and data-driven solutions for improving efficiency, sustainability, and productivity in the agriculture industry.

The global smart farming market is rapidly growing due to the increasing demand for food due to population growth, the availability of advanced technologies, and the need to optimize resource utilization technologies which make it possible for collecting and analyzing large amounts of data.

The adoption of smart farming has some benefits for farmers which include, cost reduction, increased efficiency, and higher yields. These technologies can help farmers in optimizing their use of resources like fertilizers, pesticides, and water. These technologies also provide farmers with real-time insights into crop health and weather conditions.

Key Takeaways

1. Market Growth: The global smart farming market was valued at USD 19.5 billion in 2022 and is projected to reach USD 53 billion by 2032, with a compound annual growth rate (CAGR) of 10.5% during the forecast period.
2. Smart Farming Definition: Smart farming involves the use of technology and data-driven solutions to enhance efficiency, sustainability, and productivity in the agriculture industry.
3. Factors Driving Market Growth: Population growth and increased food demand are contributing to the rapid expansion of the smart farming market. Advanced technologies enable the collection and analysis of vast amounts of data, aiding in resource optimization.
4. Benefits for Farmers: Smart farming technologies offer various benefits, including cost reduction, increased efficiency, and higher yields. Farmers can optimize resource usage, monitor crop health, and track weather conditions in real time.
5. Offering Segments: The smart farming market is categorized into three offering segments: Hardware, Software, and Services. In 2022, software was the most lucrative segment, accounting for 42.7% of the total revenue.
6. Agriculture Types: Livestock monitoring was the largest revenue-generating segment in 2022, with a market share of 34.8% and a projected CAGR of 10.3%. Precision aquaculture is the fastest-growing agriculture type, with a revenue share of 22.7% in 2022.
7. Farm Size Segments: Large farms held the largest share in the smart farming market (47.3%) due to their early adoption of advanced systems. Medium-sized farms are identified as the fastest-growing segment, with a CAGR of 10.3% and a market share of 32.7%.
8. Driving Factors: The adoption of technologies like IoT, ROVs, and AI in aquaculture is driving the market growth. Drones, sensors, and AI are simplifying data collection and analysis for agriculture. Consumers’ increasing concern for the environment and food origin is boosting smart farming adoption.
9. Challenges: The agriculture industry is decentralized, making it challenging to implement standardized solutions. Implementing smart agriculture in fragmented lands can lead to high costs and resource wastage.
10. Opportunities: Growing adoption of livestock monitoring technology is expected in emerging countries, creating demand for technologies like feeding robots and milking robots. Precision agriculture, drones, and IoT offer opportunities to optimize crop yields and reduce environmental impact. Vertical farming technologies are emerging as a potential growth area.
11. Latest Trends: Use of AI and machine learning for data-driven decision-making. Growth of IoT devices like drones and sensors. Increasing demand for vertical farming and farm management software.
12. Regional Analysis: North America accounted for the largest revenue share in 2022 (42.8%) and is expected to register a CAGR of 11.2%. Asia Pacific (APAC) is projected as the fastest-growing region with a CAGR of 10.8%, driven by government support and rising awareness.
13. Key Market Players: Prominent industry players include Ag Leader Technology, AGCO Corporation, AgJunction Inc., Deere & Company, and others.

By Offering Analysis

The Software Segment is The Most Lucrative Segment in The Offering Segment in the Smart Farming Market.

Based on offerings, the market for smart farming is segmented into hardware, software, and services. Among these types, the software segment is the most lucrative in the global smart farming market, with a projected CAGR of 10.2%. The total revenue share of software smart farming is 42.7% in 2022.

Owing to the growing automation of raw material production and product manufacturing in the dairy and food industry can drive milking robots in the future. Drones are expected to witness the highest growth during the forecast period. The rising need to reduce labor costs and improve productivity is expected to positively impact the profitability of dairy & food processing industries.

The Service Segment is Expected to Grow in the Projected Period in the Smart Farming Market.

Followed by service, which accounted for the fastest-growing offering segment in the smart farming market, and its estimated market share is 31.6% in 2022. Owing to the surge in demand for specialized services for smart agriculture. Additionally, the growing need for training labors to use advanced hardware solutions, increase the shelf-life of smart agriculture hardware, and apply these solutions in small, medium-sized, and large farms drives the growth of maintenance and support, as well as connectivity and assisted professional services.

By Agriculture Type Analysis

The Livestock Monitoring Segment Accounted for the Largest Revenue Share in Smart Farming Market in 2022.

Based on agriculture type, the market is segmented into precision farming, livestock monitoring, precision aquaculture, precision forestry, and smart greenhouse. Among these types, the livestock monitoring segment is expected to be the most lucrative segment in the global smart farming market, with the largest revenue share of 34.8% and a projected CAGR of 10.3% during the forecast period.

It supports the real-time monitoring of the health, welfare, and production of livestock to ensure optimal yields. Factors like the increasing size of dairy farms and technological advancements like livestock monitoring have urged market players to focus on new product launches.

The Precision Aquaculture Segment is the Fastest Growing Agriculture Segment in Smart Farming Market.

The precision aquaculture vehicle segment is projected as the fastest growing agriculture type segment in the smart farming market, with a revenue share of 22.7% in 2022, and registering a CAGR of 9.6% from 2022 to 2031. Owing to rising investments in technological research and product innovation.

Rising adoption of advanced technologies like IoT, ROVs, and AI for the real-time monitoring of aquaculture farms. Additionally, the rising demand for protein-rich aqua food and increasing support by worldwide governments for infrastructure development in aquaculture, these factors drive the precision aquaculture segment.

By Farm Size Analysis

Large Farms Hold the Significant Share in Farm Size Segment in Smart Farming Market.

Based on farm size, the market is divided into small farms, medium farms, and large farms. Among this size, large farms are dominant in the farm size segment in the smart farming market, with a market share of 47.3% and a CAGR of 10.8. This is because large farms are early adopters of smart farming technology due to their ability to invest in more advanced systems and equipment.

Large firms have the advantage of scalability, which means that they can spend the cost of smart farming technologies over a larger area of land. Large firms operate on thin profit margins, and any gains in efficiency can have a significant impact on their bottom line.

Medium-Sized Segment is Identified as Fastest Growing Farm Size Segment in Projected Period.

Medium size is also an important farm size segment in the smart farming market and it is expected to grow faster in the farm size segment in the smart farming market with a CAGR of 10.3% and a market value is 32.7%.

It is the fastest growing due to the resources and flexibility to take advantage of many smart farming technologies, adoption of these technologies can have a significant impact on the agriculture industry. Medium-sized farms can be better suited for adopting smart farming technologies. They adopt new technologies quickly and make changes in their operations based on new insights and data.

Key Market Segments

Based on Offering

• Hardware
• Software
• Services

Based on Agriculture Type

• Precision Farming
• Livestock Monitoring
• Precision Aquaculture
• Precision Forestry
• Smart Greenhouse
• Other Types

By Farm Size

• Small Farms
• Medium Farms
• Large Farms

Driving Factors

The rising Adoption of IoT, ROVs, and AI Drives the Market Growth of the Smart Farming Market.

In recent years, the global aquaculture industry has seen significant advances in aquaculture techniques and tools. Aquaculture farm owners are increasingly adopting cutting-edge technologies such as IoT, machine learning, remotely operated vehicles (ROEs), AI, and acoustic-telemetry tracking systems. These technologies can be used in aquaculture farming to increase production, reduce the wastage of resources, improve accuracy and repeatability, as well as provide high profitability for farm owners.

Technology advancements such as drones, sensors, and AI have made collecting and analyzing data about crop growth, weather patterns, soil health, and other aspects of agriculture much easier and more cost-effective. Consumers are becoming more concerned about the environment and want to know the origin of their food. Smart farming is a way for farmers to produce food sustainably and give consumers more information about where their food comes from.

Restraining Factors

A fragmented Agriculture Industry and limited Access to Technology are Some Restraints for the Smart Farming Market.

Agriculture is a decentralized industry that includes many small, medium, and large farms that operate independently. Because each farm is different and has its own requirements, it makes it difficult to implement a standard machine-to-machine solution (M2M).

Incorrect allocations of input and resources can lead to high costs. Smart agriculture technology implementation in divided lands can lead to high costs and wasted time and money. It is also difficult to manage, supervise, and collect data from scattered lands. Farmers also find it difficult to achieve economies of scale when using M2M solutions.

Growing Opportunities

The rising Adoption of Livestock Monitoring Solutions and IoT-based Farming Solutions Creates Opportunities in the Smart Farming Market.

As of now, the adoption of livestock monitoring technology in emerging countries like Mexico and Brazil is slow due to the high installation cost and less awareness among farmers. However, the growing demand for milk and dairy products, rise in per capita income of farmers, and increasing herd size and livestock farming in these countries are expected to create the demand for livestock monitoring technologies like feeding robots and milking robots, in the coming years. Precision agriculture is used to optimize crop yields by minimizing waste and reducing environmental impact.

It involves drones, sensors, and other technologies for developing and selling precision agriculture technologies. Agriculture drones can be used for a variety of purposes which include planting, spraying, and crop monitoring. IoT technologies can be used for collecting and analyzing data from agriculture devices and sensors which allows farmers to make better decisions about planting, irrigation, and fertilization. Vertical farming involves growing crops in vertically stacked layers and there are some opportunities for developing and selling vertical farming technologies.

Latest Trends

The adoption of AI and Machine Learning the rise of Farm Management Software are Some Recent Trends in the Smart Farming Market.

There are several recent trends in the smart farming market which include, the use of technology and data analytics for increasing agriculture production and improving efficiency. Acceptance of AI and machine learning for gathering and scrutinizing data related to crop growth, weather patterns, soil health, and other factors that impact crop production. These technologies help farmers in making data-driven decisions to increase their crop yields.

The growth of Internet of Things (IoT) devices like drones, unknown tractors, and sensors are becoming more prevalent in the smart farming market. These devices help farmers to monitor crops, automate different farming processes, and track livestock. Increasing demand for vertical farming and the rise of farm management software are some recent trends in the smart farming market.

Regional Analysis

North America Accounted for the Largest Revenue Share in the Smart Farming Market in 2022.

North America is estimated to be the most lucrative market in the global smart farming market, with the largest market share of 42.8%, and is expected to register a CAGR of 11.2% during the forecast period. Owing to the growing government support for enhancing the agriculture industry in the area.

Many agriculture organizations have come together to create the North America Climate Smart Agriculture, a platform for educating and equipping cultivators for sustainable agriculture production. With the rising concern for water conservation governments in North America are actively providing subsidies for enhancing the applications of smart irrigation.

APAC is expected as the Fastest Growing Region in a Projected Period in the Smart Farming Market.

Asia Pacific is expected as the fastest-growing region in the forecast period in the smart farming market with a CAGR of 10.8. Many factors like growing government support and rising awareness among cultivators are factors that can drive the regional demand during the forecast period. For example, in Japan, the Ministry of Agriculture has provided funds for developing precision agriculture. The community-based organizations and farmers’ associations in every country play a crucial role in promoting sustainable growth.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

In their quest to expand their product range, industry players engage in inorganic growth strategies like mergers and acquisitions. Ag Leader Technology, for example, upgraded it’s In Command displays in November 2020 and added SteadySteer and SteerCommand Z2 to its SteerCommand product line. These products offer end-users a single interface that controls and steers all farm equipment.

To increase their market presence and customer base, key market players are actively seeking partnerships and collaborations. AGCO Corporation, for example, formed a strategic partnership in April 2021 with EZ-Drops in order to give its dealers in North America access to a new nutrient supply network.

Market Key Players

Listed below are some of the most prominent smart farming industry players.

• Ag Leader Technology
• AGCO Corporation
• AgJunction Inc.
• AgEagle Aerial Systems Inc.
• Autonomous Solutions Inc.
• Argus Control Systems Ltd.
• BouMatic Robotic B.V.
• CropMetrics LLC.
• CLAAS KGaA mbH
• CropZilla Software Inc.
• Deere & Company
• DICKEY-john Corporation
• com
• DeLaval Inc.
• Farmers Edge Inc.
• Grownetics Inc.
• Granular Inc.
• Gamaya Inc.
• GEA Group Aktiengesellschaft
• Raven Industries Inc.
• Trimble Inc.
• Topcon Positioning Systems Inc.
• Other Key Players

Recent Developments

• In September 2022, Deere & Company recently added three self-propelled forage harvesters to its existing fleet. These machines are tailored specifically for milk and livestock producers, farmers, and harvesters; they may help contractors overcome problems like shorter harvest windows and a limited pool of experienced workers.
• In October 2021, Trimble Inc. launched two new displays, GFX-1060 & GFX-1260, for precision agriculture applications. These next-generation displays allow farmers to perform in-field tasks quickly and effectively. They can map and monitor the field data in real-time precisely.
• In April 2021, Topcon Positioning Systems has introduced its AGM 1 and AGS 2 manual guidance and autosteering receivers, as well as Topnet Live’s cellular and satellite bridging services Realpoint Skybridge and Starpoint. These receivers can be utilized for machine operations as well as all related tasks that need tracking data to optimize crop yields, such as soil preparation, harvesting, and seeding.

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