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Market Overview
The global connected agriculture market has been valued at USD 2.86 billion in 2018 and is expected to grow at a CAGR of 17.08 % over the forecast period 2019 - 2024 to reach a market value of USD 5.97 billion by 2024. According to United States Department of Agriculture, the average farm size in 2017 was 444 acres which just takes time to monitor and check on. Also, the world needs to increase food production by almost 50% by 2050 to feed a population of nine billion, as per Food and Agriculture Organisation of the United States. Thus demand for connected agriculture is bound to grow in coming years.
- There are a number of applications of drone technology convergence with advanced image data analytics that can be utilized in the agriculture industry. Drones fitted with infrared, multispectral and hyperspectral sensors can analyse crop health and soil conditions precisely and accurately. Drones such as the DJI Agras MG-1 (DJI, 2017) are designed for precision variable rate application of liquid pesticides, fertilizers and herbicides.
- Demand for smart water practices is also a major factor dominating the market. Agriculture accounts for, on average, 70% of all water withdrawals globally, and an even higher share of “consumptive water use” due to the evapotranspiration requirements of crops. More productive and resilient agriculture requires a major shift in the way water, soil, nutrients and other agricultural resources are managed.
- However, there is a steep learning curve for farmers, especially in countries where literacy level is low. This is because connected agriculture involves setting up of IoT architecture and sensor networks. Getting farmers thoroughly acquainted with the concept of smart farming, and the tools/devices involved in it, is of the utmost importance.
Scope of the Report
Agricultural innovation is critical to feeding the world's growing population while reducing the environmental impact of farming. Connected agriculture leads to increasing farm productivity while in the midst of climate change. It also improves the farming practices using network management, agriculture asset management, supervisory control and data acquisition.
Key Market Trends
Smart Irrigation to Dominate the Market
- As the world population grows, there is an increasing demand for crops, thus highlighting the need for smart irrigation practices. Smart irrigation practices help to decrease the loss of water caused by using the traditional system and control the amount of water flowing into the plants.
- Worldwide, over 330 million hectares are equipped for irrigation. Irrigated agriculture represents 20% of the total cultivated land, but contributes 40% of the total food produced worldwide.
- In order to support clients in moving towards agricultural water stewardship, the World Bank is strengthening its overall approach to water in agriculture.
- The Bank’s work on water in agriculture is supported by the Water in Agriculture Global Solutions Group (GSG), a membership-based organization which provides services to its members and other stakeholders interested in enhancing how water is used in agriculture in terms of sustainability, productivity, and equity.
Asia-Pacific to Witness the Highest Growth
- There have been latest cases of drones being used in agriculture in APAC region, which stress their popularity. For instance, Indian state of Maharasthra signed a partnership with the World Economic Forum (WEF) Centre for the Fourth Industrial Revolution exploring the use of drones for various governmental services, especially agriculture.
- The Department of Agriculture (DA) in the Philippines is evaluating the potential of drones in changing how seeds are planted, how fertilizers and pesticides are applied, and how crops are monitored. Moreover, the ministry of Japan set a goal to introduce agricultural drones for more than half of the land area planted with rice, wheat, and soy across Japan by fiscal 2022.
- Besides, created in partnership with the Inclusive Business Action Network (iBAN), a global initiative focused on scaling up inclusive business models, the Digital Directory serves to make digital solutions more visible to farmers and other agricultural stakeholders in Southeast Asia.
- All these factors will contribute significant;y to the growth of the market in the region over the forecast period.
Competitive Landscape
The entry barrier for this market is high due to already existing players who are pioneers in IoT devices. Hence the market is concentrated with few of the companies dominating the market.
- December 2018 - IBM partnered with Hello Tractor (on-demand mobile platform providing tractors) to apply several technologies including the Watson Decision Platform for Agriculture, blockchain, the Internet of Things (IoT) and IBM Cloud, to the app.
- November 2018 - Microsoft teamed up with airborne remote sensing and analytics firm SlantRange to develop powerful and scalable aerial measurement and data solutions for the global agriculture market.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
The global connected agriculture market has been valued at USD 2.86 billion in 2018 and is expected to grow at a CAGR of 17.08 % over the forecast period 2019 - 2024 to reach a market value of USD 5.97 billion by 2024. According to United States Department of Agriculture, the average farm size in 2017 was 444 acres which just takes time to monitor and check on. Also, the world needs to increase food production by almost 50% by 2050 to feed a population of nine billion, as per Food and Agriculture Organisation of the United States. Thus demand for connected agriculture is bound to grow in coming years.
- There are a number of applications of drone technology convergence with advanced image data analytics that can be utilized in the agriculture industry. Drones fitted with infrared, multispectral and hyperspectral sensors can analyse crop health and soil conditions precisely and accurately. Drones such as the DJI Agras MG-1 (DJI, 2017) are designed for precision variable rate application of liquid pesticides, fertilizers and herbicides.
- Demand for smart water practices is also a major factor dominating the market. Agriculture accounts for, on average, 70% of all water withdrawals globally, and an even higher share of “consumptive water use” due to the evapotranspiration requirements of crops. More productive and resilient agriculture requires a major shift in the way water, soil, nutrients and other agricultural resources are managed.
- However, there is a steep learning curve for farmers, especially in countries where literacy level is low. This is because connected agriculture involves setting up of IoT architecture and sensor networks. Getting farmers thoroughly acquainted with the concept of smart farming, and the tools/devices involved in it, is of the utmost importance.
Scope of the Report
Agricultural innovation is critical to feeding the world's growing population while reducing the environmental impact of farming. Connected agriculture leads to increasing farm productivity while in the midst of climate change. It also improves the farming practices using network management, agriculture asset management, supervisory control and data acquisition.
Key Market Trends
Smart Irrigation to Dominate the Market
- As the world population grows, there is an increasing demand for crops, thus highlighting the need for smart irrigation practices. Smart irrigation practices help to decrease the loss of water caused by using the traditional system and control the amount of water flowing into the plants.
- Worldwide, over 330 million hectares are equipped for irrigation. Irrigated agriculture represents 20% of the total cultivated land, but contributes 40% of the total food produced worldwide.
- In order to support clients in moving towards agricultural water stewardship, the World Bank is strengthening its overall approach to water in agriculture.
- The Bank’s work on water in agriculture is supported by the Water in Agriculture Global Solutions Group (GSG), a membership-based organization which provides services to its members and other stakeholders interested in enhancing how water is used in agriculture in terms of sustainability, productivity, and equity.
Asia-Pacific to Witness the Highest Growth
- There have been latest cases of drones being used in agriculture in APAC region, which stress their popularity. For instance, Indian state of Maharasthra signed a partnership with the World Economic Forum (WEF) Centre for the Fourth Industrial Revolution exploring the use of drones for various governmental services, especially agriculture.
- The Department of Agriculture (DA) in the Philippines is evaluating the potential of drones in changing how seeds are planted, how fertilizers and pesticides are applied, and how crops are monitored. Moreover, the ministry of Japan set a goal to introduce agricultural drones for more than half of the land area planted with rice, wheat, and soy across Japan by fiscal 2022.
- Besides, created in partnership with the Inclusive Business Action Network (iBAN), a global initiative focused on scaling up inclusive business models, the Digital Directory serves to make digital solutions more visible to farmers and other agricultural stakeholders in Southeast Asia.
- All these factors will contribute significant;y to the growth of the market in the region over the forecast period.
Competitive Landscape
The entry barrier for this market is high due to already existing players who are pioneers in IoT devices. Hence the market is concentrated with few of the companies dominating the market.
- December 2018 - IBM partnered with Hello Tractor (on-demand mobile platform providing tractors) to apply several technologies including the Watson Decision Platform for Agriculture, blockchain, the Internet of Things (IoT) and IBM Cloud, to the app.
- November 2018 - Microsoft teamed up with airborne remote sensing and analytics firm SlantRange to develop powerful and scalable aerial measurement and data solutions for the global agriculture market.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
Frequently Asked Questions
This market study covers the global and regional market with an in-depth analysis of the overall growth prospects in the market. Furthermore, it sheds light on the comprehensive competitive landscape of the global market. The report further offers a dashboard overview of leading companies encompassing their successful marketing strategies, market contribution, recent developments in both historic and present contexts.
- By product type
- By End User/Applications
- By Technology
- By Region
The report provides a detailed evaluation of the market by highlighting information on different aspects which include drivers, restraints, opportunities, and threats. This information can help stakeholders to make appropriate decisions before investing.
