The global smart agriculture industry was pegged at US$16.74bn in 2019 and is projected to reach US$29.23bn by 2027, growing at a CAGR of 9.7% from 2021 to 2027, according to a report by Allied Market Research
The sustainable increase in agricultural productivity, climate change and ease of crop monitoring and harvesting have boosted the growth of the global smart agricultural market.
However, the lack of skilled labour to operate smart agriculture technologies and high investment costs to deploy expensive systems are hindering the market. On the contrary, the increase in vertical farming and the increase in public-private partnerships is expected to create lucrative opportunities for market players in the sector.
COVID-19 scenario:
-Lack of labourers, increased need for improved yields, and disruption in farm operations due to social distancing regulations have increased the demand for smart agriculture.
-The COVID-19 pandemic has encouraged the digitisation of farms and the integration of the Internet of Things ( IoT) into agricultural activities to maintain the health of crops and monitor livestock without labour.
The precision farming segment dominated the market
By type, the precision farming segment held the largest share in 2019, accounting for more than two-fifths of the global smart agriculture market, due to the growing revolution in precision farming technology and the benefits of precision farming from a service and product perspective.
However, the greenhouse segment is expected to have the highest CAGR of 12.4% during the forecast period, due to the benefits of smart greenhouses, such as maintaining a micro-climate environment for crops, minimising manual intervention and optimising the yielding process.
The service segment to manifest the highest CAGR through 2027
By component, the service segment is expected to register the highest CAGR of 11.1% during the forecast period as it helps farmers to take the next steps in their farm operation and to use data collected by sensors to improve low-cost crop production. However, the solution segment held the largest share in 2019, contributing to nearly three-fifths of the global smart agriculture market, helping to improve yield production by monitoring water quality, nutrient and mineral quality.
By region, the market in North America is expected to show the highest CAGR of 12.1% during the forecast period, due to an increase in population, improved lifestyle across the region, and technological advances in crop production. However, the global smart agricultural market in Asia-Pacific held the largest share in 2019, accounting for more than one-third of the market, due to a surge in smart agriculture and an increase in disposable income for investment in farming in the region.
For more information: www.alliedmarketresearch.com/smart-agriculture-market
