A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled “Smart Agriculture – Global Market Trajectory & Analytics”. The report presents fresh perspectives on opportunities and challenges in a significantly transformed post Covid-19 marketplace.
As population increases food demand also increases and food growers are seeking means for increasing efficiency of their activities and also reducing environmental impact of the rapidly growing farming activities. Smart agriculture technologies play a key role in enabling farmers achieve these goals.
Increasing global demand for food, growing need of livestock health and growing support from the governments to adopt advanced agricultural techniques are some of the major factors driving the market growth. Smart agriculture not only reduces the emissions but also increases productivity. Advanced technologies such as data analytics, Artificial Intelligence, Aerial image-based analytics, sensor-based resource mapping, predictive analytics for livestock and crops are being adopted by agri-tech companies to enhance the farming processes. AI powered crop monitoring systems enable predictive analysis enabling farmers make informed and data driven decisions. Smart drones are also being used for spraying fields in a more efficient and faster manner.
Amid the Covid-19 crisis, the global market for Smart Agriculture estimated at US$ 10 billion in 2020, is projected to reach a revised size of US$ 17.1 billion by 2026, growing at a CAGR of 9.4% over the analysis period. Hardware, one of the segments analysed in the report, is projected to grow at a 8.9% CAGR to reach US$11.7 billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Software segment is readjusted to a revised 10.6% CAGR for the next 7-year period. This segment currently accounts for a 22.5% share of the global Smart Agriculture market.
The Smart Agriculture market in the US is estimated at US $3.5 billion in 2021. The country currently accounts for a 33.56% share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of US$ 1.7 billion in 2026 trailing a CAGR of 12.6% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.4% and 8.2% respectively over the analysis period.
Within Europe, Germany is forecast to grow at approximately 8.3% CAGR while Rest of European market (as defined in the study) will reach US$ 1.9 billion by the end of the analysis period. Increased adoption of smart agricultural techniques and tools is expected to drive the growth of smart farming market in the North America region. Growing demand for food and diary items is the major factor driving the smart agriculture market in the Asia-Pacific region. In addition, the rural economies in the region are mostly based on agriculture, which is expected to drive the demand further for latest techniques in smart agriculture.
Services Segment to reach US$ 2.2 billion by 2026
The demand for consulting and system integration services has been growing due to the growing adoption and application of smart devices in the agricultural sector. Availability of cost efficient cloud based services that motivates the farmers to implement smart farming is expected to influence market growth. In the global Services segment, USA, Canada, Japan, China and Europe will drive the 9.4% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$ 955.1 million in 2020 will reach a projected size of US$ 1.8 billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$ 176.3 million by 2026.
