Connected Agriculture Market Forecasts to 2030 - Global Analysis By Component Application and by Geography

According to Stratistics MRC, the Global Connected Agriculture Market is accounted for $4.40 billion in 2023 and is expected to reach $17.11 billion by 2030 growing at a CAGR of 21.4% during the forecast period. Using cutting-edge technical tools and services to enhance, manage, and regulate the farming activities involved in pre-production, in-production, and post-production is known as connected agriculture. Data sensing, data communications, data storage, and data processing are the four main components of connected agriculture. Various stakeholders, including farmers, growers, livestock producers, farming cooperatives, agribusinesses, grape wine growers, seed companies, fertilizer companies, food and beverage companies, and governments, can use the information produced by these steps to help them make real-time decisions that help them maximize their return on investment (RoI).

According to Food and Agriculture Organization (FAO), to keep up with the population growth, the food production rate must double between 2014 and 2050. The global demand for food is increasing by 2% every year; by 2050, there would be a need to produce 70% more food worldwide compared to the current production pattern.

Market Dynamics:

Driver:

Utilizing mobile technologies in agricultural activities

Rural farmers and small- and medium-sized agribusinesses benefit from mobile phones' quick access to the market. Small-scale farmers can get an advantage in the market by using smart phones to interact with new clients or agents who were previously unreachable. Farmers can obtain information on the availability of goods and their market prices using mobile devices. Farmers can access agricultural information through mobile applications designed specifically for agriculture, which enables them to properly use the information to make better decisions.

Restraint:

High costs

At present, socially connected agriculture methods and solutions are expensive to adopt on farms. The majority of farmers worldwide are small-scale or marginal farmers who find it challenging to make such a large investment in equipment. Farmers are reluctant to employ connected agriculture technology to collect essential data since it requires significant upfront costs, effective farming instruments, and knowledgeable and qualified farmers. Due to the high expense of technology, access to the newest technologies is primarily limited to large, industrialized farms. However, in order to acquire input data, farmers or growers must invest heavily in satellite equipment, drones, geographic information systems (GIS), and global positioning systems (GPS).

Opportunity:

Implementing mobile technologies in agricultural activities

The agriculture sector can contact more people in different regions of the country and around the world due to mobile phones. Around the world, connected agriculture practices are becoming increasingly popular, in large part to mobile technology as it has several user-friendly agricultural applications (apps) integrated within it. Additionally, in order to plan which crops to plant, when to harvest, and other agricultural tasks, farmers can use smart phones to obtain exact information on climatic data and weather fluctuations.

Threat:

Lack of knowledge among famers

The advantages of using connected agriculture technologies are not well known among farmers. The majority of farmers in developing nations continue to use conventional farming techniques. They are ignorant of the technological advancements occurring in the agricultural industry. Farmers find it challenging to embrace cutting-edge practices for linked agriculture solutions. Due to the resulting technological gap, it is challenging for farmers to comprehend the ideas behind the advantages of connected agriculture. Due to the vendors' inability to reach farmers, there is a gap between connected agriculture service providers and farmers.

COVID-19 Impact:

The linked agriculture market depends on the efficient exchange of equipment, technologies, and agricultural inputs. However, deliveries of essential components and machinery have been delayed because the COVID-19 epidemic disrupted global supply chains, which has had a lot of negative repercussions on the agriculture industry. The challenges faced by manufacturers and suppliers when obtaining raw materials and components had an impact on the development and accessibility of linked agriculture solutions. Due to the outbreak, farmers and other agricultural stakeholders are increasingly concentrating on urgent problems relating to health, safety, and economic stability. As a result, less attention has been paid to connected agriculture-related awareness campaigns, training programs, and educational activities. Farmers may not have easy access to the resources.

The in-production management segment is expected to be the largest during the forecast period

During the projected period, the in-production management sector is anticipated to be the largest. Planning is crucial since there is a lot of ambiguity surrounding financial risk. The connected agriculture production management segment promotes increased production rates and the manufacture of high-quality goods. Farmers can access real-time data through production planning and management to make proactive decisions that contribute to the generation of productive yields.

The platforms segment is expected to have the highest CAGR during the forecast period

The platforms segment is expected to have the highest CAGR during the forecast period. The device management solutions in platform segment helps in businesses manage, track, protect, and maintain a large number of devices used in the adoption of linked agriculture. The device management solution's configuration management capability is used to configure new devices in compliance with functional requirements. The devices use various communication technologies, and as a result, they have various operating systems and communication interfaces.

Region with largest share:

During the forecast period, North America is anticipated to hold largest share, due to the improvements in digital technology which would increase the productivity of agricultural activities in the countries of the region. The connected agriculture market in this region is being driven by an increase in the uptake of cutting-edge technologies including the Internet of Things (IoT), Artificial Intelligence (AI), big data, predictive analytics and data analytics. Additionally, the region is using connected agriculture solutions more and more due to increased government initiatives to promote sustainable farming practices to prevent environmental deterioration brought on by water loss, chemical runoff and CO2 emissions.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period as connected agriculture solutions are being used in nations including the Philippines, Japan, China, and India to improve agricultural practices, crop productivity, and crop quality. Growing public-private partnerships to encourage the adoption of sustainable agriculture initiatives to improve food security, agricultural process efficiency, and productivity also contribute to the expansion of the region's market revenue. Moreover, future growth in the digital agriculture services in the countries of the area will also be fueled by rising government initiatives to make digital solutions more accessible to farmers and agricultural stakeholders.

Key players in the market:

Some of the key players in Connected Agriculture Market include: Accenture, Ag Leader Technology, American Telephone and Telegraph (AT &T), Cisco, Decisive Farming, Deere & Company, Epicor Software Corp, Gamaya, International Business Machines(IBM), teris, Link Labs Inc., Microsoft, Oracle, Orange SA, Satsure, System Applications and Products in Data Processing(SAP),Trimble, Vodafone Group Plc

Key Developments:

In November 2022, Trimble Agriculture and xFarm Technologies today announced a new collaboration. Trimble, the global player in precision farming technology, can now provide farmers with more valuable and efficient solutions through integration with the xFarm app developed by tech company Farm Technologies, which uses its digital platform to support and simplify the work of 120,000 farms spread across 1.7 million hectares in over 100 countries.

In May 2022, AGRA and Microsoft, a technology provider, have announced an expansion of their relationship to accelerate digital agricultural transformation in Africa. The collaboration, which was formalized through a Memorandum of Understanding on the margins of the World Economic Forum in Davos 2022, expands on prior work between AGRA and Microsoft that focused on assisting AGRA's digital transformation as it strives to improve food security in Africa.

Components Covered:

• Solution
• Service
• Platforms
• Other Components

Applications Covered:

• Pre-Production Planning and Management
• Post-Production Planning and Management
• In-Production Planning and Management
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances