PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1824481
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1824481
The connected agriculture market will grow at a CAGR of 20.91% to be valued at USD 14.096 billion in 2030 from USD 5.455 billion in 2025.
Connected agriculture leverages digital technologies like IoT, AI, big data analytics, and mobile connectivity to enhance farming productivity, sustainability, and market access. By integrating IoT sensors, cloud platforms, drones, and farm management software, it enables real-time data collection and data-driven decisions, optimizing resource use and crop yields. The global connected agriculture market, part of the $273.8 billion AgTech sector in 2024, is growing rapidly due to rising food demand, technological advancements, and government support. Key applications include precision farming, smart greenhouses, livestock monitoring, and supply chain management, catering to farms of all sizes. Challenges such as high costs and limited digital literacy in rural areas may hinder adoption, but innovations in AI and connectivity are driving market expansion.
Market Trends
The connected agriculture market is advancing through sustainable and climate-smart farming practices, addressing environmental challenges like climate variability and water scarcity. IoT-enabled precision farming and AI-driven analytics optimize water, nutrient, and pesticide use, while robotics and automation address labor shortages. Regenerative agriculture solutions promote soil health and biodiversity, and precision viticulture enhances vineyard management. Mobile-based platforms, such as trading and payment systems, improve market access and financial inclusion for farmers, particularly in remote areas. The market is supported by growing smartphone penetration, with 6.8 billion global subscriptions in 2024, enabling access to real-time data on weather, soil, and prices. However, infrastructure gaps in rural regions and high implementation costs pose challenges to scaling these technologies.
Growth Drivers
Rising Global Food Demand
The projected global population of 9.8 billion by 2050, requiring a rise in cereal production to 3 billion tonnes from 2.1 billion, is a primary driver. Connected agriculture technologies, such as IoT sensors and precision farming, boost yields to address food security, driving market growth.
Technological Advancements
Innovations in IoT, AI, and cloud computing enable real-time data analysis and automation. For instance, Taranis's generative AI-powered agronomy engine, launched in July 2024, integrates multimodal data to optimize farm management, enhancing yields and sustainability.
Government Support
Government initiatives, such as the U.S. Department of Agriculture's $500 million investment in precision agriculture in 2023 and India's National Pest Surveillance System (NPSS) launched in August 2024, promote adoption through subsidies and digital platforms, connecting farmers to pest management solutions.
Sustainability Imperatives
Climate change and resource scarcity drive demand for smart irrigation and soil sensors, aligning with sustainability goals by optimizing resource use and reducing environmental impact.
Market Restraints
High initial costs for IoT sensors, drones, and cloud platforms can be prohibitive for smallholder farmers. Limited digital literacy in rural areas and inadequate internet connectivity hinder adoption, particularly in developing regions, limiting market reach.
Geographical Outlook
North America
North America leads the connected agriculture market, driven by advanced technological infrastructure and widespread precision agriculture adoption. The U.S. dominates with innovations like Deere & Company's AI-powered autonomous tractors (2023) and Trimble's precision farming solutions. Government support, including $500 million from the USDA in 2023, bolsters adoption. Canada and Mexico contribute through smart irrigation and market proximity, respectively, with trading and mobile information segments dominating.
Asia Pacific
Asia Pacific is the fastest-growing market, fueled by large agricultural bases in China and India. China leverages AI platforms like Alibaba's ET Agricultural Brain (expanded in 2023), while India's NPSS (August 2024) connects 10 million farmers to pest management via mobile apps. High smartphone penetration and initiatives like India's Digital Agriculture Mission (2021-2025) drive mobile information and micro-lending segments.
The connected agriculture market is transforming farming through IoT, AI, and automation, driven by rising food demand, technological advancements, and government support. North America and Asia Pacific lead, with the latter growing fastest due to its vast agricultural base and digital adoption. Challenges like high costs and infrastructure gaps must be addressed. Industry stakeholders should focus on scalable, cost-effective solutions, farmer education, and leveraging government initiatives to capitalize on market opportunities.
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