IoT In Agriculture Market By Type, Application, Component & Region for 2024-2031

IoT In Agriculture Market Valuation - 2024-2031

The demand for IoT in agriculture is fast expanding due to a number of variables. The global population is expanding, resulting in increased food consumption. To satisfy demand, farmers can use IoT technology to raise crop yields and livestock output. Climate change presents enormous problems to agriculture, such as droughts and floods, but IoT devices can assist farmers in monitoring and adapting to these changing conditions. The market size surpass USD 16.38 Billion valued in 2024 to reach a valuation of around USD 33.43 Billion by 2031.

IoT technology can assist farmers improve the sustainability of their activities by maximizing resource utilization and lowering environmental impact. As the benefits of IoT become more widely understood, demand for IoT solutions in agriculture is projected to increase. The rising demand for cost-effective and efficient IoT in agriculture is enabling the market grow at a CAGR of 10.29% from 2024 to 2031.

IoT In Agriculture Market: Definition/ Overview

The Internet of Things (IoT) in agriculture refers to the integration of sensors, devices, and data analytics into farming practices to enhance productivity, efficiency, and sustainability. This technology allows farmers to collect and analyze data from various sources, such as soil moisture sensors, weather stations, and livestock trackers. Applications include precision farming, where real-time data is used to optimize irrigation, fertilization, and pest control; livestock monitoring for health and productivity; and supply chain management to track produce from farm to market.

The future of IoT in agriculture is promising, driven by advancements in technology and an increasing focus on sustainable practices. As connectivity improves with the rollout of 5G and satellite internet, more remote areas can adopt IoT solutions, expanding their potential. Innovations such as artificial intelligence and machine learning will further enhance data analysis, enabling predictive insights for better decision-making. Additionally, the growing demand for organic and locally sourced food will push farmers to utilize IoT for improved traceability and quality assurance, ultimately transforming the agricultural landscape into a more efficient and responsive ecosystem.

Will the Increasing Global Food Demand Drive the IoT In Agriculture Market?

Increasing global food demand is expected to drive the IoT in agriculture market. With the world population projected to reach 9.7 billion by 2050, there is a pressing need to boost food production by 70%, according to the FAO. IoT technologies can play a crucial role in meeting this demand by enhancing agricultural efficiency through smart farming solutions, which optimize crop yields, reduce resource wastage, and improve decision-making. This aligns with the growing need for sustainable and precise agricultural practices to ensure food security.

Water scarcity and the need for efficient irrigation are key drivers of the IoT in Agriculture market. With agriculture consuming 70% of global freshwater withdrawals and water management needing a 15-20% improvement by 2050 to ensure food security, IoT-enabled precision irrigation systems offer a solution. These systems help farmers reduce water usage by providing real-time data on soil moisture and crop conditions, ensuring water is used efficiently while maintaining optimal crop growth, thus addressing both sustainability and productivity needs in agriculture.

Will the High Initial Investment Hamper the Growth of the IoT In Agriculture Market?

The high initial investment could restrain the growth of the IoT in Agriculture market. Implementing IoT solutions, such as precision irrigation, requires significant upfront costs for devices, sensors, software, and infrastructure. Many small and medium-scale farmers may find these expenses prohibitive, limiting widespread adoption. Ongoing maintenance and technical expertise required to operate these systems can add to the financial burden. This cost barrier can slow down the market's growth, especially in developing regions where access to capital and technology infrastructure is limited.

Internet connectivity issues can restrain the growth of the IoT in Agriculture market. Many agricultural areas, particularly in rural and remote regions, lack reliable internet infrastructure, which is essential for IoT devices to function properly. IoT systems rely on real-time data transmission and monitoring, and poor connectivity can lead to delays or inaccuracies in data collection, limiting the effectiveness of precision agriculture solutions. This challenge is particularly significant in developing countries where digital infrastructure is underdeveloped, creating a barrier to widespread adoption of IoT technologies in agriculture.

Category-Wise Acumens

Will Real Time Monitoring Propel the Hardware Segment for the IoT In Agriculture Market?

The Hardware Segment is dominating in the IoT In agriculture market. Real-time monitoring is a key driver of the hardware segment in the IoT in agriculture market. Real-time data collection from sensors, drones, and automated machinery enables farmers to monitor critical parameters such as soil moisture, crop health, and weather conditions instantly. This leads to optimized decision-making, reduced wastage, and improved yields. The growing demand for precision farming and the need to manage resources efficiently makes IoT hardware like sensors, actuators, and connectivity devices essential. As farmers look to improve productivity and sustainability, the adoption of IoT hardware for real-time monitoring continues to grow, driving this segment forward.

Data collection is driving the hardware segment of the IoT in agriculture market. IoT systems in agriculture rely heavily on various sensors, devices, and gateways to monitor critical factors like soil moisture, temperature, humidity, crop health, and equipment performance. These sensors generate massive amounts of real-time data, enabling farmers to make informed decisions. As precision farming grows in popularity, the demand for hardware such as drones, smart irrigation systems, and field sensors rises. The need to increase agricultural efficiency and sustainability is pushing the development of sophisticated IoT hardware that can handle data collection and analysis at scale.

Will Flexibility and Scalability Promote the Software Systems Segment for the IoT In Agriculture Market?

The Software Systems Segment is dominating in the IoT In agriculture market. Flexibility and scalability are crucial drivers for the software systems segment in the IoT in agriculture market. As agricultural practices evolve and diversify, farmers require adaptable solutions that can integrate various IoT devices and platforms seamlessly. Scalable software systems enable the management of large volumes of data generated by sensors and equipment, allowing for real-time monitoring and analysis. This adaptability supports precision farming, optimizes resource use, and enhances productivity, making it essential for modern agricultural practices to meet the growing demands for efficiency and sustainability.

Interoperability will significantly drive the software systems segment for the IoT in agriculture market. As various IoT devices and systems are deployed across farms, the ability to seamlessly communicate and share data is crucial for optimizing operations. Interoperability facilitates better integration of sensors, drones, and agricultural management software, enabling farmers to make data-driven decisions. This connectivity enhances efficiency in resource use, improves crop monitoring, and fosters automation in processes such as irrigation and pest control, ultimately leading to increased productivity and sustainability in agriculture.

Country/Region-wise Acumens

Will the Rapid Adoption of Advanced Farming Technologies Accelerate the Asia Pacific Region for IoT In Agriculture Market?

Asia Pacific is dominating in IoT in agriculture market due to various factors. The rapid adoption of advanced farming technologies will drive the IoT in agriculture market in the Asia Pacific region. This growth is fueled by government initiatives aimed at modernizing agriculture and addressing the increasing demand for food production, with the FAO projecting that the region will contribute nearly 50% of global agricultural output by 2030. Additionally, a study by the Asian Development Bank indicates that IoT device usage in agriculture will grow at a CAGR of 12.7% from 2021 to 2026, suggesting that by 2025, over 500 million farming operations will leverage IoT technologies to enhance crop yields and optimize resource management. This trend underscores the crucial role of IoT in meeting the challenges of food security and sustainable agriculture in the region.

Government initiatives to modernize agriculture will significantly drive the IoT in agriculture market in the Asia Pacific region. For instance, India's Digital Agriculture Mission 2021-2025 aims to integrate 100 million farmers into a digital ecosystem, providing access to real-time data and IoT-enabled decision support systems. This initiative is projected to boost agricultural IoT device deployment by 200% in India by 2025, highlighting the potential for increased efficiency and productivity. Such government-led efforts not only enhance farmer connectivity and access to vital information but also encourage investments in technology, paving the way for a more robust and technologically advanced agricultural sector across the region.

Will Advancements in Technological Infrastructure Enhance the North American Region for IoT In Agriculture Market?

North America is rapidly growing in IoT in agriculture market due to several factors. Advancements in technological infrastructure will drive significant growth in the IoT in agriculture market in North America. The region's robust technological framework facilitates the rapid adoption of IoT solutions, as evidenced by the USDA's projection of a 20% annual increase in IoT technology adoption in U.S. agriculture through 2025. Additionally, the USDA's allocation of $100 million for smart farming technologies underscores the government's commitment to enhancing agricultural innovation. Similarly, in Canada, a report indicates that IoT device usage in agriculture is expected to grow at a CAGR of 14.5% from 2023 to 2028, with over 65% of large-scale farms anticipated to utilize IoT technologies by 2026. This synergy of funding, infrastructure, and technology adoption positions North America as a leader in leveraging IoT for agricultural optimization.

Adoption of precision farming techniques will drive the IoT in agriculture market in North America. The U.S. Farm Bureau reports that implementing IoT solutions has resulted in a 15% increase in crop yields and a 20% reduction in water usage on farms that have adopted these technologies. This efficiency not only enhances productivity but also addresses sustainability challenges, making precision farming increasingly attractive. Additionally, the National Institute of Food and Agriculture (NIFA) projects that the number of connected devices in U.S. agriculture will exceed 75 million by 2025, up from 35 million in 2021, indicating substantial growth potential. As precision farming continues to deliver tangible economic benefits-projected to contribute $47 billion to the U.S. GDP by 2027-it will further drive the adoption of IoT solutions in the agricultural sector.

Competitive Landscape

The IoT in agriculture market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support.

The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the IoT in agriculture market include:

• John Deere, Trimble Inc.
• AGCO Corporation
• Raven Industries
• DeLaval
• Topcon Positioning Systems
• Hexagon Agriculture
• Climate Corporation
• Ag Leader Technology
• PrecisionHawk

Latest Developments

• In February 2023, HARDWARIO a.s. announced the CHESTER-V1 extension module for its IoT gateway CHESTER at the IoT Solution World Congress in Barcelona. This new module enables connection to the Astrocast satellite network, ensuring data transmission from remote locations. This innovation boosted HARDWARIO's market presence, attracting new customers in agriculture, mining, and oil and gas sectors, thereby expanding their IoT deployment opportunities
• In December 2022, HARDWARIO a.s. and ADASTRA formed a strategic partnership in retail digitalization. The agreement saw HARDWARIO redefining its role, exiting its subsidiary ADASTRA Lab, while continuing as a key supplier of IoT components. This collaboration aimed to deliver advanced, scalable solutions globally, focusing on smart shelving and scales. The partnership benefited HARDWARIO by expanding its market reach through ADASTRA's expertise in IoT solutions, enhancing product innovation and competitiveness in retail technology

IoT In Agriculture Market, By Category

• Type:
• Hardware
• Software
• Services
• Application:
• Precision Farming
• Livestock Monitoring
• Greenhouse Management
• Component:
• Software Systems
• Automation and Control Systems
• Sensing and Monitoring Systems
• Region:
• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa