Posted on March, 19, 2021 at 11:26 am
The global demand for smart agriculture is expected to hit USD 20,635 million by 2026, rising at a CAGR (Compound annual growth rate) of more than 14 per cent from 2019 to 2026, according to a new research report published by Polaris Market Research.
The ‘Smart Agriculture Market Report,[By Part (Hardware, Software, Services); By Application (Precision Farming, Yield Monitoring, Soil Monitoring, Irrigation System, Fish Farming, Horticulture, Livestock Monitoring, Smart Greenhouse, Others); By Region]: Market Size & Forecast, 2019-2026’ provides a broad overview of various smart farming applications along with insights related to currency.
During the last decade, the agriculture industry has undergone an enormous transformation due to the ever-increasing demand for sustainable practices in farming. Multiple companies are involved in developing sustainable solutions and systems for farming. Also, it is observed that due to the benefits of smart agriculture solutions, farmers gain the capability to improve yield via optimizing inputs and well-organized management of their farms. These factors have collectively resulted in rapid deployment of the smart farming solutions in various applications. Consequently, significant growth is anticipated in this market owing to the attractiveness of well suited and smart agriculture solutions over the risks associated with traditional farming methods.
Growth in population and increasing preference towards automation of farm operations is expected to further support the market growth. The need for automation in farming operations is driven by the capability of improvement in produced crop quality, maximization of crop production, and enhanced productivity. Increased necessity to monitor livestock, along with the need to minimize the use of pesticides and fertilizers further boosts the adoption of smart agriculture. Other factors driving the growth of the smart farming market include growth in the global agricultural industry, reducing the availability of labour, and high labour costs. However, high initial investment costs associated with the adoption of smart agriculture systems might restrain the growth in this market. Demand from emerging economies coupled with technological advancements are factors expected to present numerous opportunities for the growth in the smart farming market during the forecast period.
North America accounted for the highest revenue share among all regions in the smart farming market during 2018. This is primarily due to high market penetration in the U.S. and is further supported by extensive R&D activities by companies and the presence of a proper regulatory environment in this region. The different components used in precision farming include hardware, software, and services. During 2018, the hardware component segment accounted for the largest share in this market due to popularity and demand of hardware components such as Automation & control systems, sensing devices, LED grow lights, and HVAC systems which are widely used in farms to increase crop yield and improve productivity.
Some of the key players profiled in the smart farming market report include AG Leader Technology, AGCO Corporation, Trimble Inc., Precision Planting, Inc., AgJunction, Inc., Agribotix LLC, Deere & Company, The Climate Corporation, Autonomous Solutions, Inc., Drone Deploy, Raven Industries, CLAAS KGaA mbH, and CNH Industrial. Due to the presence of a higher amount of small and medium-sized companies along with the large enterprises operating in this space, the market is observed to be highly fragmented.
Source: East Africa AgriNews