The global IoT in Agriculture Market size was estimated to be USD 19.33 Billion in 2019 and it is forecasted to reach USD 48.22 Billion market size by 2027. The market shall witness growth at a CAGR of 12.9% over the forecast period, this growth can be attributed to the growing usage of the Internet of Things (IoT) for various agricultural applications in order to improve the crop productivity and streamlining various agricultural processes.
The internet of things (IoT) integrates various agricultural tools, equipment, and machinery by using the software. Such integration helps in standardizing various agricultural processes, maximizing the production, and reducing the wastage; therefore it increases net output from the agricultural land. Substantial growth in the global population has increased the demand for food in the recent few decades, especially in developing countries where the crop production to population growth ratio is highly imbalanced. Technology can play a crucial role in growing the agricultural productivity of such developing countries. With the help of Advanced software real-time data is collected from various agricultural activities, which is then processed and analyzed and provides actionable insights using the data. Few prominent applications of IoT in agriculture include livestock management and monitoring, precision farming and plant disease management and control, etc.
Governments of various countries have supported the usage of technology for improving agricultural productivity. The government provides subsidies to farmers who are willing to implement Technology for improving their agricultural output. Increasing awareness about Greenhouse gas emission, climate change, and application of Technology for agricultural benefits is expected to drive the market growth for IoT in the agricultural market.
Most of the agricultural industry in developing countries such as India are dependent on traditional agricultural methods till today; lack of proper education and the high cost of technology acts as a barrier in the adoption of new technologies in such markets. Therefore, It is highly necessary for companies to create awareness among farmers from developing countries about such agricultural technologies in order to improve adoption. IoT in agriculture provider companies can offer educational programs, training programs, free installation, and technical support to farmers in order to improve their sales. As the new generation is entering the agricultural ecosystem, the adoption of various technologies in the agricultural industry expected to rise substantially in the upcoming few years.
IoT in Agriculture Market Trends Analysis
The agriculture IoT market is segmented based on offering type into hardware, software, and services. The agriculture IoT services segment is anticipated to emerge as the largest market between 2020 to 2027. Services include farm monitoring and operation, data collection and analysis services, installation, customization, and maintenance services. The data collected through various resources are used by the decision support system (DSS) for creating alert about various agricultural conditions and providing an actionable plan for overcoming the situation.
On the basis of application type, the market has been segmented into livestock monitoring, Precision farming, fish farm monitoring, Precision forestry, smart greenhouse, and others. The Precision farming segment accounted for the largest agriculture IoT market share in 2019. The growth can be attributed to the rising demand for food due to the increasing population, increasing the need for improving farm efficiency and output. Precision farming can revolutionize the agricultural industry by introducing advanced technologies in the world of agriculture, search technology shall positively benefit the humankind in the times to come.
Precision farming is also known as Precision agriculture carefully monitors large farm fields to detect inter and intra-field variability, it collects data using satellite imagery using GPS & GNSS, and shares the collected data with the decision support system (DSS) which helps in the farm management.
The North America agriculture IoT market accounted for the largest Market share in 2019, growing technological adoption in the US and Canada is expected to boost the regional market growth. Moreover, increasing usage of technology for improving crop productivity in Canada, which imports the majority of its food from the United States and Latin American countries; is anticipated further the growth of the demand for the agriculture IoT market.
Europe agriculture IoT market emerged as the second-largest Market in 2019, growing support by the European Union for using advanced technologies in agriculture is expected to boost the regional market growth. Moreover increasing animal farming such as cattle farming, fish farming, and growing dairy industry in the region is expected to further grow the regional market.
Agriculture IoT Market Share Insights
The agriculture IoT market is highly fragmented in nature, being a new technology the competition in this market is relatively lower. New technology companies are entering this market with innovative software platforms or services. Companies in this particular market perform strategic initiatives such as merger and acquisition, research and development, new product development for improving their existing market share. Following the list of top market leaders in the agricultural IoT market in 2019.
- AG Leader Technology (AG Leader)
- AGCO Corporation (AGCO)
- AgJunction Inc. (AgJunction)
- DICKEY-john Corporation
- Deere & Company
- GEA Farm Technology
- Komatsu Forest AB
- Raven Industries
- Topcon Positioning Systems