Market Analysis and Insights:
The market for Connected Agriculture was estimated to be worth USD 15.4 billion in 2022, and from 2023 to 2031, it is anticipated to grow at a CAGR of 10.76%, with an expected value of USD 39.23 billion in 2031.
The rising need for enhanced agricultural efficiency and productivity serves as a fundamental catalyst for the connected agriculture sector. As the world's population is projected to surpass 9 billion individuals by 2050, there is an escalating requirement to optimize agricultural production for food security purposes. Embracing connected agriculture solutions like precision agriculture, intelligent irrigation systems, and livestock monitoring empowers farmers to oversee and manage their crops and animals more efficiently, thereby enhancing productivity and minimizing resource wastage. Furthermore, the capacity to gather and analyze real-time data equips farmers with valuable insights for making well-informed decisions regarding farming practices, ultimately boosting yields and reducing expenses. The integration of Internet of Things (IoT) and Artificial Intelligence (AI) technologies has further catalyzed the expansion of connected agriculture by facilitating seamless connectivity and automation in farming activities. In essence, the key driving factors behind the growth of the connected agriculture industry revolve around the necessity for sustainable and productive farming techniques to meet the escalating global food requirements.
Connected Agriculture Market Scope:
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2031 |
| Study Period | 2018-2031 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2031 | USD 39.23 billion |
| Growth Rate | CAGR of 10.76 % during 2023-2031 |
| Segment Covered | By Component, By Platforms, By Services, By Application, By Region. |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | IBM Corporation, AGCO Corporation, Deere &Company, Trimble Inc., Cisco Systems, Inc., SAP SE, Climate Corporation, Accenture Plc, Agjunction Inc., and Iteris Inc. |
Market Definition
Connected agriculture involves leveraging advanced technology and digital innovations to enhance farming operations, increase efficiency, and facilitate informed decision-making within the agricultural sector.
This approach integrates intelligent devices, sensors, and data analytics to establish a seamless network that improves resource allocation and supports precision farming practices. Modern agricultural practices are enhanced through connected agriculture, also referred to as smart farming, which is increasingly pivotal in the global agricultural sector. By leveraging technology for precision data collection on crops, soil conditions, and weather patterns, connected agriculture promotes efficiency and sustainability. This enables informed decision-making on irrigation, fertilization, and pest control, leading to better resource management and higher crop productivity.
Furthermore, remote monitoring and control capabilities reduce labor requirements and minimize environmental impact. Additionally, real-time market data accessible to farmers through connected platforms empowers them to make strategic choices regarding crops, pricing, and distribution. Through these means, connected agriculture equips farmers with the necessary resources and insights to boost productivity, profitability, and adaptability in a rapidly changing agricultural environment.
Key Market Segmentation:
Insights On Key Component
Platform
The platform is expected to dominate the Global Connected Agriculture Market. With the increasing adoption of digital technologies in agriculture, platforms play a crucial role in integrating various components and providing a centralized system for data collection, analysis, and decision-making. These platforms enable farmers and agricultural businesses to connect with different stakeholders, such as input suppliers, advisory services, marketplaces, and financial institutions. By providing a comprehensive digital infrastructure, platforms help optimize farming operations, enhance productivity, and improve overall efficiency in the agricultural value chain. As a result, the platform is projected to be the dominant component in the Global Connected Agriculture Market.
Solution
As agriculture becomes more digitized, the solution within the By Component category is also expected to play a significant role in the Global Connected Agriculture Market. Solutions encompass a wide range of applications and software designed to address specific challenges faced by farmers and agricultural businesses. These include farm management systems, precision agriculture tools, livestock monitoring solutions, and supply chain management software, among others. By offering tailored solutions to meet the diverse needs of agriculture stakeholders, this contributes to the overall growth of the connected agriculture market. While platforms may dominate the market due to their holistic approach, solutions also holds substantial importance in enabling smart and connected farming practices.
Services
Although platforms and solutions dominate the Global Connected Agriculture Market, services still have a crucial role in supporting the adoption and implementation of connected agriculture solutions. Services in the connected agriculture market include consulting, training, technical support, and maintenance services. These services are essential for assisting farmers and agricultural businesses in the integration, customization, and troubleshooting of technological solutions. Moreover, service providers offer domain expertise and guidance in leveraging connected agriculture technologies to maximize farm productivity and profitability. While services may not have the same market dominance as platforms and solutions, their significance in facilitating the successful implementation of connected agriculture cannot be overlooked.
Insights On Key Platforms
Connectivity Management
Connectivity Management is expected to dominate the Global Connected Agriculture Market. With the increasing adoption of IoT technology in the agriculture industry, connectivity becomes crucial for effective data transmission and communication between devices and systems. Connectivity Management solutions enable seamless connectivity and the management of various connected devices, sensors, and networks. It ensures reliable and secure data transmission, enables real-time monitoring and control, and facilitates efficient decision-making in agriculture operations. The demand for connectivity management solutions is expected to grow significantly as farmers and agricultural enterprises increasingly rely on connected devices and systems to optimize productivity, reduce costs, and enhance overall operational efficiency.
Device Management
Device Management is another key segment the By Platforms category of the Global Connected Agriculture Market. Device Management solutions play a critical role in the efficient monitoring and management of connected devices used in agriculture. These solutions enable hardware provisioning, firmware updates, remote device monitoring, and troubleshooting. Device Management helps ensure the smooth functioning and performance of connected devices, thereby enhancing productivity and minimizing maintenance efforts. While connectivity management is expected to dominate the global market, device management remains a key component in driving the adoption and effectiveness of connected agriculture technologies.
Application Enablement
Application Enablement is also a significant within the By Platforms category of the Global Connected Agriculture Market. Application Enablement platforms provide a framework for developing and deploying connected agriculture applications and solutions. These platforms enable data integration, visualization, and analytics, allowing farmers and agribusinesses to gain valuable insights into their operations. Application Enablement solutions also facilitate the customization and scalability of connected agriculture applications based on specific farming needs and requirements. Although connectivity management is expected to dominate the market, application enablement platforms play a vital role in driving innovation and adding value to the connected agriculture ecosystem.
Insights On Key Services
Consulting
The Consulting is expected to dominate the global connected agriculture market. Consulting services play a crucial role in helping farmers and agricultural businesses make informed decisions regarding the implementation of connected technologies. With the increasing adoption of IoT and other advanced technologies in the agricultural sector, there is a growing demand for consulting services that offer expertise in leveraging these technologies effectively.
Consulting helps farmers optimize their operations, improve yields, reduce costs, and enhance overall efficiency. Additionally, consulting services assist in identifying the specific needs and requirements of farmers, thereby enabling the development of customized solutions. As a result, the Consulting is likely to lead the global connected agriculture market due to its vital role in guiding and enabling the implementation of connected technologies. Integration and Implementation While the Consulting is expected to dominate the global connected agriculture market, the Integration and Implementation plays a crucial role in enabling the actual deployment of connected agricultural solutions.
Integration and implementation services involve the seamless integration of various IoT devices, sensors, and data analytics platforms into existing agricultural systems. These services ensure compatibility, interoperability, and efficient functioning of the connected solutions. By facilitating the implementation of connected technologies, this contributes significantly to enhancing the precision, productivity, and sustainability of agriculture. Although not expected to dominate the market, Integration and Implementation services are vital for successful adoption and utilization of connected agricultural solutions.
Support and Maintenance
In the global connected agriculture market, the Support and Maintenance focuses on providing ongoing technical assistance, troubleshooting, and maintenance services for connected agricultural systems. These services play a crucial role in ensuring the continuous functioning and optimal performance of IoT devices, sensors, and data analytics platforms used in agriculture. Support and Maintenance services help in identifying and resolving any technical issues or glitches faced by farmers and agricultural businesses. This contributes to maximizing the uptime, reliability, and longevity of connected agricultural solutions. Although not expected to dominate the overall market, Support and Maintenance services are vital for the smooth operation and utilization of connected technologies in agriculture.
Insights On Key Application
In-Production Planning and Management, In-Production Planning and
Management is expected to dominate the Global Connected Agriculture Market.This involves the use of connected agriculture technologies during the actual production process, such as monitoring and optimizing crop growth, managing livestock, and ensuring efficient resource utilization. With the increasing adoption of IoT devices and sensors in farming operations, the need for real-time data and insights to enhance production efficiency is crucial. In-Production Planning and Management offers farmers the ability to monitor crop health, track livestock behavior, predict yield, and optimize resource allocation. This 's ability to directly impact and improve agricultural production makes it a dominant force in the global connected agriculture market.
Pre-Production Planning and Management Pre-Production Planning and Management focuses on the implementation of connected agriculture technologies in the early stages of farming, including crop selection, soil analysis, seed selection, and farm planning. Although this plays a vital role in setting up the foundation for successful agricultural production, it is not expected to dominate the Global Connected Agriculture Market. While it provides valuable insights and decision-making support, its impact is limited to the initial stages of farming, and the true potential of connected agriculture is realized during the production and post-production phases. Post-Production Planning and Management Similarly, Post-Production Planning and Management, which encompasses activities such as crop harvesting, storage, distribution, and market analysis, is unlikely to dominate the Global Connected Agriculture Market. Although it plays a crucial role in ensuring efficient post-harvest processes and supply chain management, its contribution to the overall connected agriculture market is not as impactful as the In-Production Planning and Management . Therefore, based on my research and analysis, In-Production Planning and Management is expected to dominate the Global Connected Agriculture Market due to its direct and significant impact on agricultural production efficiency and resource optimization.
Insights on Regional Analysis:
Europe is expected to dominate the Global Connected Agriculture market. With its advanced technological infrastructure, strong government support, and well-established agricultural practices, Europe has a competitive edge in implementing connected agriculture solutions. The region has a high adoption rate of smart farming techniques and precision agriculture practices, utilizing Internet of Things (IoT), cloud computing, and data analytics to optimize crop yields, reduce resource wastage, and increase productivity.
Furthermore, the presence of major agricultural equipment manufacturers and technology providers in Europe contributes to the growth of the connected agriculture market in the region.
North America:
North America showcases significant potential in the global connected agriculture market. The region has a highly developed agricultural sector with large-scale commercial farms and advanced farming techniques. Factors such as the increasing adoption of precision farming technologies, extensive use of drones for crop monitoring, and government initiatives to promote digital agriculture contribute to the market's growth. Moreover, North America has a strong presence of leading technology companies and IoT providers, facilitating the implementation of connected agriculture solutions.
Asia Pacific:
Asia Pacific exhibits promising growth prospects in the global connected agriculture market. The region has a large agricultural sector, accounting for a substantial share of global food production. Growing population, rising demand for food, and the need for increased agricultural productivity drive the adoption of connected agriculture solutions in Asia Pacific. Additionally, advancements in wireless connectivity, mobile technologies, and data analytics offer opportunities for the deployment of smart farming solutions in the region. However, challenges related to infrastructure development, technology awareness, and affordability could hinder the market's growth.
Latin America:
Latin America presents significant opportunities in the global connected agriculture market. The region has vast agricultural land and a diverse range of farming practices. Adoption of precision agriculture techniques, IoT-enabled farming equipment, and remote sensing technologies is increasing in Latin America. The region also benefits from government initiatives to modernize the agricultural sector and improve productivity. However, limited access to technology, infrastructure challenges, and socioeconomic factors in certain areas could pose barriers to widespread adoption of connected agriculture solutions in Latin America.
Middle East & Africa:
Middle East & Africa is gradually embracing connected agriculture solutions to address the challenges posed by water scarcity, limited arable land, and unfavorable environmental conditions. The region faces significant agriculture-related constraints, making the adoption of smart farming techniques and innovative technologies crucial. Efforts by governments and organizations to promote sustainable agriculture, enhance water management practices, and increase farm efficiency contribute to the growth of the connected agriculture market in the Middle East & Africa. However, factors like limited technological infrastructure and lack of awareness among small-scale farmers may impede the market's progress in some areas.
Company Profiles:
Prominent figures within the Global Connected Agriculture industry are pivotal in spearheading innovative efforts and delivering technological advancements to boost agricultural output and effectiveness. Their nerships with farmers, governmental bodies, and various ies facilitate the adoption of interconnected agricultural methodologies, fostering informed decision-making based on data within the sector.
Prominent contributors in the realm of connected agriculture encompass IBM Corporation, AGCO Corporation, Deere & Company, Trimble Inc., Cisco Systems, Inc., SAP SE, Climate Corporation, Accenture Plc, Agjunction Inc., and Iteris Inc.
COVID-19 Impact and Market Status:
The global connected agriculture market has experienced a rise in the utilization of digital solutions for overseeing and controlling agricultural operations as a result of the effects of Covid-19. The global agriculture sector has experienced profound disruptions as a result of the COVID-19 pandemic, with challenges emerging in various facets of the industry. Government-enforced lockdowns and social distancing measures have created obstacles for the connected agriculture market's supply chain and operations. Movement restrictions and transportation limitations have impeded the timely delivery of essential agricultural supplies such as fertilizers, seeds, and machinery impacting farm productivity. Moreover, the closure of farmers' markets and restrictions on agricultural trade have led to decreased demand for agricultural products, hindering the market's growth. Nevertheless, amidst these challenges, digital innovations have played a crucial role in addressing some of the issues faced by the industry. The integration of technologies such as remote sensing, Internet of Things (IoT) devices, and data analytics has empowered farmers to monitor crop health, optimize irrigation practices, and efficiently manage resources. The pandemic has underscored the significance of digitalization in agriculture, setting the stage for the connected agriculture market to expand in the future, albeit with temporary setbacks and adjustments.
Latest Trends and Innovation:
- In July 2020, John Deere, a leading provider of advanced agriculture technology, announced its acquisition of Unimil, a Brazilian technology company specializing in agricultural solutions.
- In September 2020, Trimble Inc., a provider of advanced positioning solutions, announced the acquisition of Kigacon, a leading provider of precision agriculture software and hardware solutions.
- In November 2020, Bayer AG, a multinational pharmaceutical and life sciences company, announced the acquisition of The Climate Corporation from Monsanto. The Climate Corporation is known for its advanced analytics platforms for agriculture.
- In January 2021, BASF SE, a German chemical company, announced its collaboration with Bosch, a global technology provider, to develop innovative connected agriculture solutions leveraging artificial intelligence and digital technologies.
- In April 2021, John Deere introduced its latest precision agriculture technology, the X9 series combine harvester, which offers enhanced efficiency, data analytics, and connectivity features for farmers.
Significant Growth Factors:
The expansion drivers of the Connected Agriculture Market comprise the rising utilization of IoT devices, progressions in data analytics, and the need for live monitoring and supervision in agricultural operations.
The demand for Connected Agriculture solutions has surged in recent years, driven by a confluence of factors that have reshaped the agricultural landscape. Technological progress stands at the forefront of this transformation, where the integration of smartphones, the Internet of Things (IoT), and cloud computing has revolutionized farming operations. This digital shift empowers farmers with real-time access to essential data like weather patterns, soil moisture content, and market prices, ultimately enhancing efficiency, productivity, and profitability within the sector.
The escalating global populace and the imperative to ensure food security have also catalyzed the expansion of the Connected Agriculture Market. In response to ened food requirements, farmers are increasingly turning to innovative technologies to optimize agricultural practices, curtail wastage, and uphold food integrity. This shift has given rise to pioneering farming methodologies including precision agriculture, smart irrigation systems, and livestock monitoring programs. Moreover, the widespread recognition of sustainable agriculture and ecological preservation has propelled the ascendancy of the Connected Agriculture domain. By amalgamating sustainable farming techniques like organic cultivation, integrated pest management, and precision agriculture with connectivity solutions, farmers are streamlining their operations to reduce reliance on chemicals, water, and resources, thereby lessening the industry's ecological footprint. Additionally, governments worldwide have initiated supportive programs to incentivize the adoption of connected agricultural technologies, fostering an environment conducive to market growth. Acknowledging the pivotal role of Connected Agriculture in addressing food security concerns, bolstering rural livelihoods, and curbing rural-urban migration, authorities are channeling investments into agricultural technology startups, research endeavors, and infrastructure enhancements. In essence, the Connected Agriculture Market's robust expansion can be attributed to the synergy of technological advancements, burgeoning global population, the imperative for sustainable agricultural practices, and government backing. These driving forces have ushered in an era of connected technologies in agriculture, empowering farmers to elevate productivity, trim expenses, and attenuate environmental repercussions.
Restraining Factors:
The restricted accessibility and elevated expenses of essential infrastructure present notable obstacles for the expansion of the Connected Agriculture sector. The Connected Agriculture Market has experienced notable growth in recent times due to its various advantages such as ened productivity, increased efficiency, and better decision-making capabilities. Nonetheless, there exist several impediments that impede the market's potential expansion. Among the primary obstacles is the limited understanding and awareness of connected agriculture solutions among farmers, icularly in developing regions. Moreover, the substantial initial investment required for the adoption of connected agriculture technologies like sensor-based systems and data analytics platforms serves as a major deterrent for small-scale farmers with constrained financial means. Additionally, deficient infrastructure, encompassing inadequate internet connectivity and power supply in rural areas, acts as a barrier to the optimal utilization of connected agriculture solutions. Data privacy and security apprehensions also present challenges to market growth, as farmers may be hesitant to disclose sensitive information to external service providers. Furthermore, the intricate regulatory frameworks and policies dictating data collection, ownership, and sharing further complicate the adoption of connected agriculture practices.
Despite these obstacles, the outlook for the Connected Agriculture Market remains positive. Efforts by governments, industry bodies, and technology firms to bolster awareness, provide financial assistance, enhance infrastructure, and formulate robust data protection laws are underway. With continued initiatives in these areas, the connected agriculture market is poised to overcome the existing constraints and expand, empowering farmers worldwide to harness technology for sustainable and profitable agricultural advancements.
Key Segmentation:
Component Overview
• Solution
• Platforms
• Services
Platforms Overview
• Device Management
• Application Enablement
• Connectivity Management
Services Overview
• Consulting
• Integration and Implementation
• Support and Maintenance
Application Overview
• Pre-Production Planning and Management
• In-Production Planning and Management
• Post-Production Planning and Management
Regional Overview
North America
• US
• Canada
• Mexico
Europe
• Germany
• France
• U.K
• Rest of Europe
Asia Pacific
• China
• Japan
• India
• Rest of Asia Pacific
Middle East and Africa
• Saudi Arabia
• UAE
• Rest of Middle East and Africa
Latin America
• Brazil
• Argentina
• Rest of Latin America
Frequently Asked Questions (FAQ) :
the connected agriculture market is growing at a CAGR of 10.76% during the forecast period.
The major contenders in the global connected agriculture market IBM Corporation, AGCO Corporation, Deere &Company, Trimble Inc., Cisco Systems, Inc., SAP SE, Climate Corporation, Accenture Plc, Agjunction Inc., and Iteris Inc.
The Global connected agriculture Market is Segmented on the basis of By Component, By Platforms, By Services, By Application, By Region.
Connected agricultural marketing is dependent upon the provision of resources engaged in the enhancement of agricultural production from farm to consumer. It is also the planning, systematization, administration, and management of agricultural production in such a way as to satisfy the specifications of the farmer, the producer, and the purchaser. This includes a range of consistent tasks, such as transport, grading, growing and harvesting, procurement, production preparation, packing and manufacturing, storage and food processing, sales, and advertisement. Considering the advancement of agricultural marketing, particularly in developing countries, there is a trend to focus on a variety of areas, in particular, infrastructure expansion; knowledge requirements; structured training of farmers and dealers in the sale and post-harvest concerns; and support for the expansion of an effective policy setting. The concept encompasses the entire spectrum of supply chain activities.
Platform Segment
In terms of platform, the market is bifurcated into device management, application enablement, and connectivity management. The device management segment is estimated to acquire significant market share during the forecast period. This is mainly attributed to its increasing adoption as it assists organizations to manage, track, secure, and sustain abundant devices that are used in connected agriculture deployment. Besides, the growing requirement for access and control over connected devices is expected to further fuel the market growth.
Application Segment
Based on the application segment, the market is segmented into pre-production planning and management, in-production planning and management, and processing. The in-production planning and management segment leads the market growth in 2019 and it is anticipated to hold its position during the forecast years. In-production planning and management of applications include water and irrigation management, planting and feed management, seed hunting, production and maintenance control, animal tracking and navigation, and agricultural finance and insurance administration.
The North American region dominated the overall market in 2019 and it is projected to keep its position during the forecast years 2018-2028. However, the Asia-Pacific region is anticipated to gather the highest growth over the forecast years. The market growth in this region is mostly ascribed to the growing need among agriculture stakeholders to adopt smart techniques to fuel the market growth in this region. Besides, initiatives by agriculture committees and organizations are also boosting the market growth in this region.
The major players of the global connected agriculture market are IBM, Microsoft, AT&T, Deere & Company, SAP SE, Accenture, Cisco, Oracle, Iteris, and Trimble. Moreover, the market comprises several other prominent players in the connected agriculture market that are SMAG, Ag Leader Technology, and Decisive Farming. The connected agriculture market consists of well-established global as well as local players. In addition, the previously recognized market players are coming up with new and advanced strategic solutions and services to stay competitive in the global market.