Global Smart Farming Market – Industry Trends and Forecast to 2031

Smart Farming Market Analysis and Size

The smart farming advances rapidly, benefiting from technological innovations such as IoT sensors, drones, and AI algorithms. These advancements optimize agricultural processes, enhancing efficiency, yield, and sustainability. Farmers leverage real-time data for precise decision-making, reducing resource wastage and environmental impact. Smart farming revolutionizes agriculture, promising higher productivity and profitability while conserving resources for future generations.

For instance, AGCO Corporation, a U.S.-based agriculture equipment manufacturer, offers various products, including tractors, combines, sprayers, and smart farming technologies. Their solutions enhance farming efficiency through precision and advanced machinery for smart agricultural technology.

The global smart farming market size was valued at USD 16.30 billion in 2023, is projected to reach USD 42.92 billion by 2031, with a CAGR of 12.86% during the forecast period 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

Smart farming integrates technology with agriculture to optimize production efficiency, resource management, and sustainability. Utilizing sensors, drones, and data analytics enables precise monitoring of crops, soil conditions, and livestock health. Automation and AI-driven insights empower farmers to make informed decisions, enhance yield, reduce waste, and mitigate environmental impact, ensuring a more resilient and profitable agricultural sector.

Smart Farming Market Dynamics

Drivers

• Rising Demand for Sustainable Agriculture

Consumer demand for sustainable agriculture surges as people prioritize environmental health and food quality. Smart farming techniques address this by minimizing waste, reducing chemical inputs, and improving soil fertility. For instance, precision irrigation systems optimize water usage, while drones enable targeted pesticide application, minimizing environmental impact. These practices meet consumer preferences for eco-friendly products and ensure long-term agricultural sustainability.

• Growing Government Support and Subsidies

Governments globally incentivize smart farming through subsidies and grants, fostering agricultural modernization and food security. These initiatives drive adoption and investment in advanced technologies, ensuring sustainable and efficient farming practices. Governments strive to boost productivity and resilience in agriculture by fostering innovation, thereby addressing the increasing food demand and ensuring sustainability in the sector.

Opportunities

• Need for Increased Efficiency

As the global population expands and arable land diminishes, the need for maximizing agricultural productivity intensifies. Smart farming technologies, such as precision farming, are crucial in this pursuit. Through leveraging data analytics and IoT sensors, farmers can optimize resource usage such as water, fertilizers, and pesticides. For instance, precision irrigation systems adjust water delivery based on soil moisture levels, ensuring efficient usage while maintaining crop health and yield.

• Rising Data-Driven Decision Making

Smart farming employs big data analytics to glean insights on crop health, soil conditions, pests, and yield forecasts. Leveraging data-driven decision-making, farmers optimize operations, enhancing profitability. This approach enables precise resource allocation and proactive management, ensuring efficient farming practices while mitigating risks and ultimately driving sustainable agricultural outcomes.

Restraints/Challenges

• Lack of Connectivity Infrastructure

Limited internet access in rural areas hampers the adoption of smart farming, impeding the market's growth. Insufficient connectivity hinders farmers' ability to leverage advanced technologies vital for efficient agricultural operations, hindering their access to tools and data necessary for optimizing productivity and sustainability in farming practices. Addressing this challenge is pivotal for expanding the reach and effectiveness of smart farming solutions in rural communities, unlocking their full potential for modern agriculture.

• High Initial Investment

The high initial investment required for smart farming technologies is a barrier, particularly for smaller farms or regions with limited financial resources, hindering the market growth. This financial constraint limits the adoption of innovative solutions, slowing the overall development and implementation of smart farming practices in agriculture.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market, contact data bridge market research for an analyst brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

• In October 2023, Deere & Co. collaborates with Sweden-based Delaval and Norway-based Yara on the Milk Sustainability Center and digital precision agriculture tools. These partnerships focus on aiding farmers in tracking livestock and fertilizer data for informed, environmentally conscious business decisions
• In April 2023, AGCO Corporation and Hexagon announced a strategic collaboration aimed at expanding AGCO’s factory-fit and aftermarket guidance offerings, contributing to advancements in precision farming technology and solutions for agricultural productivity
• In March 2021, DeLaval introduced the RC550 & RC700, robotic collectors designed for solid floors, enhancing cow comfort and hoof condition while conserving water through their unique rotary manure intake system
• In November 2021, John Deere introduced the Work Planner feature, streamlining farmers' work setup experience. This tool assists operators in field work efficiency and provides holistic farm management capabilities, enhancing productivity and operational effectiveness

Smart Farming Market Scope

The market is segmented on the basis of agriculture type, software, services, solution, and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Agriculture Type

• Precision Farming
• Livestock Monitoring
• Fish Farming
• Smart Greenhouse
• Others

 Software

• Web Based
• Cloud Based

Service

• System Integration and Consulting
• Support and Maintenance
• Connectivity Services
• Managed Services
• Professional Services

 Solution

• Network Management
• Agriculture Asset Management
• Supervisory Control and Data Acquisition
• Logistics and Supply Chain Management
• Smart Water Management
• Others

 Application

• Yield Monitoring
• Field Mapping
• Crop Scouting
• Weather Tracking and Forecasting
• Irrigation Management
• Farm Labour Management
• Financial Management
• Feeding Management
• Milk Harvesting
• Breeding Management
• Fish Tracking and Fleet Navigation
• Water Quality Management
• HVAC Management
• Others

Smart Farming Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided by agriculture type, software, services, solution, and application as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.

Asia-Pacific is expected to witness significant growth in the market due to adopting variable rate technology, smart irrigation controllers, and AI-based farm analytics services, optimizing agricultural practices for efficiency and sustainability in the region.

North America is expected to dominate the market due to the gradual deployment of smart agriculture services within the region. This trend underscores the region's leadership in adopting innovative technologies to enhance agricultural practices and productivity.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Smart Farming Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

• Grownetics, Inc. (U.S.)
•  Auroras s.r.l. (Italy)
•  Granular, Inc. (San Francisco)
•  TOPCON CORPORATION (Japan)
• Climate LLC. (U.S.)
•  Farmers Edge Inc. (Canada)
• DICKEY-john. (U.S.)
•  Conservis, a division of Traction Ag Inc. (U.S.)
•  Ag Leader Technology. (U.S.)
•  Raven Industries, Inc. (U.S.)
•  Iteris, Inc. (U.S.)
•  Reed Business Information Ltd (U.S.)
•  AgJunction (Canada)
•  Trimble Inc. (U.S.)
•  Deere & Company. (U.S.)
•  Mothive (U.S.)
•  CropX inc. (U.S.)
•  Ceres Imaging, Inc (U.S.)
•  GAMAYA (Switzerland)
•  AgriData Incorporated (U.S.)
•  AgEagle Aerial Systems Inc. (U.S.)
• Aker Solutions (Norway)

SKU-29601