PUBLISHER: DataM Intelligence | PRODUCT CODE: 1423443
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1423443
Global Smart Farming Market reached US$ 11.12 billion in 2022 and is expected to reach US$ 22.45 billion by 2030, growing with a CAGR of 9.1% during the forecast period 2023-2030.
Smart farming is highly being adopted as it can help increase the overall productivity of the crop and reduces the usage of electricity, fuel, fertilizers, and water. Which helps the cost of production for farmers. Smart farming offers a wide range of advanced tools and systems that helps the farmers with precision monitoring of crops. These factors help in boosting the global smart farming market growth.
The smart farming market is continuously evolving, with new designs, techniques, and innovations emerging. Farmers show more willingness to adopt smart farming technologies as they help in precision farming and reduce wastage and usage of water. These factors help in boosting the market growth during the forecast period.
Furthermore, the government is also launching schemes to help the farmers to adopt these technologies. For instance, In September 2021, the government of India proposed a Production Linked Incentive (PLI) scheme for drones and drone components. This scheme has been widely welcomed by academia and industry experts. This scheme has multiple features to help the industry.
Increase in Demand for Precision Farming
Farmers are able to apply cutting-edge technologies to increase crop efficiency, cut waste, and boost total crop output, smart farming is becoming more and more popular. This technology can give farmers precise information on the crops, assisting them in managing the crop's resources., this can help in increasing the adoption of smart farming.
Furthermore, many key players are focusing to produce high-quality products to attract and help the farmers in order to achieve high production. For instance, In March 2022, Ambee launched SmartFarming Data', a new offering that brings data science techniques to farmers and agribusinesses to improve the health of their farms. This allows the farmers to understand their farms better, mitigate the impact of climate change on agriculture, take measures to monitor and mitigate soil degradation and increase agricultural productivity.
The continuous development of innovative smart farming technology helps increase the adoption of these technologies. Smart farming technologies offer a wide range of advanced technologies such as the Internet of things, drones, unmanned aerial vehicles, and some others. As these technologies offer precision monitoring of crops, they can help in increasing adoption by farmers.
Furthermore, key players are continuously launching innovative products in order to increase their consumer base. For instance, In July 2023, XAG agriculture drone P100 Pro has launched in Vietnam, it helps in increasing the efficiency and agility on farms to higher levels. This product provides Vietnamese farmers with a fully autonomous, easy-to-operate solution with a large payload of 50 kilograms. These launches help in boosting the market growth.
High Product Cost
The cost of smart farming technologies can vary depending on the advanced technologies used, quality of materials, brand, and area of availability. High-priced technologies can make them less accessible for a larger consumer base, especially for small-scale farmers, or undeveloped area farmers. These factors can cause declination in market size.
For instance, the high cost may vary on the type of product, for instance, According to Tractor Junction the Spraying drone costs between 3.5 lakh INR to 12.5 lakh INR. These high costs can reduce the adoption of the smart farming technologies which can cause declination in global smart farming market.
The global Smart Farming market is segmented based on agriculture type, offering, solution, farm size, distribution channel, application, end-user, and region.
Rising Demand For Effective Crop Productivity
The yield monitoring segment holds a major share of the global smart farming market. Smart farming provides sensor technology that helps in monitoring and collecting data regarding various factors such as soil moisture, temperature, humidity, and nutrient levels in crops. They help in providing the farmers to take decisions regarding irrigation, and fertilizers usage. These factors can help in increasing crop productivity.
Furthermore, many manufacturers are focusing to produce innovative products to attract large-scale farmers. For instance, In April 2023, Bosch BASF Smart Farming and Bosch and BASF Digital Farming started a joint venture, to make a global market and sell smart farming technology which is ONE SMART SPRAY. This offers customized agronomic recommendations, intelligent sensitivity levels, high-precision agronomic maps, automated documentation, and further features in ONE solution. This is truly smart weed control, which supports maximum input efficiency and more sustainable farming practices.
North America's Growing Smart Farming Industry
The North American smart farming market has witnessed significant growth and popularity covering maximum share in 2022. The farmers in this region are more attracted to these technology as they help in precision farming, helps in providing accurate information regarding the usage of fertilizers, water, and others. These factors help in driving the market in this region.
Furthermore, major manufacturing companies are expanding their market in this by launching a wide range of products. For instance, In May 2023, Volatus Aerospace Corp has announces it has received a Transport Canada special authority to operate heavy crop spraying drones weighing over 25 kg anywhere in Canada. This provides an ability to offer compliant drone crop spraying services across Canada for our precision agriculture clients.
Source: DataM Intelligence Analysis (2023)
The major global players include XAG, Ag Leader Technology, Inc., AgJunction Inc., Deere & Company, Afimilk Agricultural Cooperative Ltd., DeLaval, AKVA Group, Aquabyte Inc., BouMatic LLC, and InnovaSea Systems, Inc.
The pandemic brought a disruption in the supply chain due to government lockdown restrictions, it affected agriculture practices. Many manufacturing countries are shut down due to inadequate supply of raw materials and low employment ratio. These factors showed a negative impact on the global smart farming market.
The global smart farming market report would provide approximately 93 tables, 109 figures and 221 Pages.