PUBLISHER: The Business Research Company | PRODUCT CODE: 2087332
PUBLISHER: The Business Research Company | PRODUCT CODE: 2087332
Smart agriculture refers to the use of advanced technologies such as Internet of Things (IoT), artificial intelligence (AI), sensors, drones and data analytics to enhance farming practices. These technologies enable real-time monitoring of crops, soil conditions, weather patterns and livestock, allowing farmers to make precise and data-driven decisions. The primary purpose of smart agriculture is to increase crop yield, optimize resource usage and ensure sustainable farming. It helps farmers minimize water, fertilizer and pesticide use, reduce operational costs and adapt to changing environmental conditions.
The smart agriculture market consists of revenues generated by entities (organizations, sole traders and partnerships) by providing smart farming technologies and related services that enable precision farming, automated monitoring and data-driven agricultural practices. The market includes integrated solutions combining hardware, software and services designed to improve crop yield, optimize resource utilization and enhance farm management efficiency.
The global smart agriculture market was valued at $11,051.2 million in 2020 which grew till 2025 at a compound annual growth rate (CAGR) of more than 11.00%.
Declining Availability Of Arable Land
During the historic period, the smart agriculture market was driven by the declining availability of arable land. As the amount of cultivable land decreased due to urbanization, land degradation and environmental pressures, agricultural producers increasingly required smart agriculture solutions to maximize yield, optimize resource utilization and enhance productivity on limited land. For instance, in July 2024, according to the Australian Bureau of Statistics, a Australia-based government agency responsible for national statistics and economic data, Australia reported 369 million hectares of agricultural land, down 5% from 2020-21, reflecting a continued reduction in available farmland. Therefore, the smart agriculture market was significantly driven by declining availability of arable land during the historic period.
Internet Of Things (IoT), Smart Infrastructure And Connected Ecosystems
Major companies in the smart agriculture market are increasingly prioritizing internet of things (IoT), smart infrastructure and connected ecosystems to enhance real-time farm monitoring, autonomous field operations and data-driven decision-making while reducing reliance on manual intervention, fragmented machinery systems and disconnected farm data across agricultural workflows. These connected technology initiatives leverage advanced IoT-enabled equipment, AI-powered perception systems, interoperable communication networks and cloud-based farm management platforms to replace traditional standalone farming practices with integrated digital ecosystems that continuously optimize productivity, improve resource efficiency and enable remote visibility and control. For example, in March 2026, Elitecon International Ltd, an India-based FMCG enterprise, launched its "Empowering Farmers through Smart & Sustainable Agriculture" initiative in collaboration with ICAR-National Institute for Research on Commercial Agriculture (ICAR-NIRCA), incorporating advanced technologies such as sensor-based irrigation systems, automated fertigation, IoT-enabled farm monitoring and drone-assisted crop protection to improve resource efficiency, reduce irrigation water usage by 60-65%, lower energy consumption by up to 45% and increase crop productivity by nearly 15%, illustrating how IoT, smart infrastructure and connected ecosystems are transforming smart agriculture into highly efficient, data-driven and interconnected farming systems.
The global smart agriculture market is fairly fragmented, with a large number of small players operating in the market. The top 10 competitors in the market made up 19.28% of the total market in 2024.
Smart Agriculture Global Market Opportunities And Strategies To 2035 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global smart agriculture market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for smart agriculture? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The smart agriculture market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider smart agriculture market; and compares it with other markets.