Agriculture Automation and Control Systems Market - 2023-2030

Overview

Global Agriculture Automation and Control Systems Market reached US$ 4.3 billion in 2022 and is expected to reach US$ 6.69 billion by 2030, growing with a CAGR of 5.71% during the forecast period 2023-2030.

There is a growing trend towards integrating artificial intelligence (AI) and machine learning algorithms into agriculture automation systems. These technologies enable predictive analytics, pattern recognition, and autonomous decision-making, allowing farmers to optimize resource use, enhance crop yield, and minimize operational costs. The market is witnessing increased demand for AI-powered solutions that offer advanced insights and recommendations to improve agricultural productivity and efficiency.

For instance, on March 21, 2023, Kerala's largest hydroponic farm was set to emerge in Thiruvananthapuram. In a technology-driven farming initiative, Kerala Startup Mission (KSUM)-supported uFarms.io had extended its IoT farm automation system to Uptown Urban Farms Pvt Ltd to establish the state's first and largest automated hydroponic farm in the capital city.

North America leads the adoption of precision agriculture technologies, including GPS-guided equipment, drones, and sensors. These technologies enable farmers to collect real-time data on soil conditions, crop health, and weather patterns, allowing for precise management of inputs such as water, fertilizers, and pesticides. The market in North America is witnessing increased investment in precision agriculture solutions to optimize yields, reduce costs, and improve sustainability.

Dynamics

Growing Demand for Food Production

The rising demand for food necessitates higher productivity from agricultural operations. Automation and control systems enable farmers to optimize processes such as planting, irrigation, fertilization, and harvesting, leading to increased efficiency and higher yields. This efficiency gains traction in the global agriculture automation and control systems market as farmers seek ways to meet growing food demands sustainably.

As the global population continues to grow, there is an increasing need for scalable agricultural solutions. Automation and control systems offer scalability by allowing farmers to expand their operations without proportionally increasing labor requirements. This scalability makes such systems attractive investments in a market where the demand for food is continuously expanding.

For instance, on September 25, 2023, Robotics Plus, an agritech company headquartered in New Zealand, introduced Prospr, an autonomous, multi-use hybrid vehicle engineered to perform various tasks in orchards and vineyards with enhanced efficiency and sustainability, thereby reducing dependence on labor. Prospr has been released for commercial use by Robotics Plus, a leading expert in the development and production of groundbreaking agricultural robotics solutions.

Labor Shortages in the Agriculture Sector

Labor shortages often lead to higher labor costs or the need to invest in alternative labor sources, such as migrant workers. In response to labor shortages, farmers are increasingly turning to automation and control systems to perform tasks that would otherwise require manual labor. This trend drives market growth as farmers seek solutions to mitigate the impact of labor scarcity on their operations.

Labor shortages often lead to higher labor costs or the need to invest in alternative labor sources, such as migrant workers. Automation and control systems offer a cost-effective alternative by reducing dependency on manual labor, thereby helping farmers minimize labor-related expenses and improve profitability in a competitive market environment, which are factors driving the market.

High Initial Investment

Small-scale farmers with limited financial resources may find it challenging to afford the upfront investment required for automation and control systems. The substantial initial investment often results in a longer period for farmers to realize a return on their investment. This extended ROI period may deter potential buyers from investing in automation technologies, especially in regions where access to credit or financing options is limited, impacting the market's growth potential.

Agricultural producers in regions with lower economic development may face difficulties competing with larger, more financially capable farms that can afford to invest in automation and control systems. This economic disparity can hinder the market growth. High initial investment costs can deter risk-averse farmers from adopting new technologies, they are uncertain about the potential benefits of automation, and this risk aversion slows down market expansion.

Segment Analysis

The global agriculture automation and control systems market is segmented based on type, application, and region.

Increasing Yield Monitoring System Integration with Precision Agriculture

Yield monitoring systems collect and analyze a wealth of data related to crop health, soil conditions, and environmental factors. This data enables farmers to make informed decisions regarding planting strategies, irrigation schedules, and crop management practices, leading to improved yield outcomes. The increasing emphasis on precision agriculture and data-driven farming practices further propels the adoption of yield monitoring solutions in the market.

Yield monitoring is often integrated with other precision agriculture technologies, such as GPS-guided equipment and variable rate application systems. This integration enables farmers to implement site-specific management practices tailored to the unique needs of each field or crop zone. As precision agriculture continues to gain traction worldwide, the demand for integrated yield monitoring solutions is expected to increase, contributing to its growth in the market.

For instance, on August 8, 2022, OneSoil launched its latest offering, OneSoil Map, a robust data visualization and mapping solution that integrates proprietary AI with satellite imagery. This innovative platform provides live data and comprehensive insights into crop conditions across fields worldwide. Utilizing Mapbox Globe technology, OneSoil Map empowers agricultural enterprises to visualize extensive global datasets, track crop yield trends over time, and gain insights on a global scale like never before.

Geographical Penetration

Established Infrastructure and Production Facilities and Continuous Innovations in North America

North America is at the forefront of technological innovation, with a robust ecosystem of research institutions, technology companies, and agricultural stakeholders contributing to the development and adoption of automation and control systems. The region's leadership in fields such as artificial intelligence, robotics, and sensor technology positions it as a key player in the global market.

Agricultural producers in North America are showing a strong propensity for adopting advanced technologies to improve efficiency, productivity, and sustainability. For instance, on April 12, 2022, World FIRA, the premier event in agricultural robotics, inaugurated FIRA USA in Fresno, California, from October 18th to 20th. This initiative aimed to offer autonomous systems and robots to growers in California and across North America. Organized jointly by the Global

Organization For Agricultural Robotics (GOFAR), the University of California Agriculture and Natural Resources, the Western Growers Association, and the Fresno-Merced Future of Food (F3) Initiative, FIRA USA 2022 brought together specialty crop growers, robot manufacturers, industry leaders, academics, technologists, startups, and investors.

COVID-19 Impact Analysis

The pandemic disrupted global supply chains, leading to shortages of components and equipment necessary for the production of automation and control systems. Restrictions on movement and social distancing measures have exacerbated existing labor shortages in the agriculture sector. This has increased the demand for automation technologies that can reduce reliance on manual labor, driving market growth as farmers seek solutions to maintain productivity amidst workforce challenges.

Changes in consumer behavior and preferences due to the pandemic have influenced market dynamics. The pandemic has accelerated the digital transformation of agriculture, with farmers increasingly adopting digital tools and technologies to optimize operations and adapt to changing market conditions. This includes the adoption of automation and control systems for remote monitoring, predictive analytics, and decision support, driving market growth in the long term.

Russia-Ukraine War Impact Analysis

The conflict disrupted global supply chains for agricultural commodities, as both Russia and Ukraine are major exporters of grains, oilseeds, and other agricultural products. This disruption led to supply shortages and price volatility in agricultural markets, prompting farmers worldwide to invest in automation and control systems to mitigate risks associated with disruptions in the supply of agricultural commodities.

In response to geopolitical tensions and supply chain disruptions, many countries prioritized domestic agricultural production to ensure food security and reduce reliance on imports. This shift towards self-sufficiency drove investments in automation and control systems to optimize domestic production and increase yields, thereby boosting the global market for agricultural automation technologies.

By Type

• Yield monitoring
• Irrigation management
• Field mapping
• Weather tracking & forecasting
• Crop scouting
• Farm labor management
• Inventory management

By Application

• Commercial
• Personal

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On January 9, 2023, Siemens announced a collaboration with 80 Acres Farms, an indoor vertical farming company. 80 Acres Farms currently operates five production farms in southwestern Ohio, along with a newly established farm in Florence, Kentucky, and research and development facilities in Arkansas and the Netherlands. The partnership between the two companies aims to leverage innovative technology in the agriculture sector, with a focus on promoting sustainable, healthy, traceable, and more productive farming practices.
• On November 6, 2023, the Department of Agriculture and Farmers Welfare (DA&FW), in partnership with the Wadhwani Institute for Artificial Intelligence (Wadhwani AI), created Krishi 24/7. This groundbreaking solution is the first-ever AI-powered platform for automated agricultural news monitoring and analysis. The development of Krishi 24/7 received support from Google.org.
• On August 8, 2023, Bhu-Vision (Krishi-RASTAA) launched as an IoT-based automated soil testing and agronomy advisory platform. This innovative solution accurately conducts 12 parameters of soil testing automatically, swiftly generating a soil health card directly on the mobile devices of farmers and stakeholders within just half an hour.

Competitive Landscape

The major global players in the agriculture automation and control systems market include Agribotix LLC, Argus Control Systems Limited, CropX Inc., CNH Industrial N.V., GEA Group Aktiengesellschaft, The Contec Group, DroneDeploy, Deere & Company, Smarter Technologies Group, and B&R.

Why Purchase the Report?

• To visualize the global agriculture automation and control systems market segmentation based on type, application, and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous agriculture automation and control systems market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of critical products of all the major players.

The global agriculture automation and control systems market report would provide approximately 54 tables, 45 figures, and 213 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies