The smart agriculture market is anticipated to account to US$ 11.3 Bn in 2016 and is expected to grow at a CAGR of 11.5% during the forecast period 2016 – 2025, to account to US$ 30.01 Bn by 2025.
Over the years, agriculture sector worldwide has stumbled upon certain challenges, including scarcity of sufficient food for the budding malnourished population, constant fundamental decline in arable land and dearth of technology supporting augmented productivity along with reduced dependency on labors. Presently, there are more than 7 billion people living on this earth, and the number is expected to increase in the coming years. As the population globally increases, a large portion of the land is expected to be captured for sufficing the shelter demand of people. This would in – turn lead to shrinkage in the land for farming and other agricultural activities. To address these challenges, the government bodies globally are collaborating with industry participants. By integrating technology with farming, the farmers would be able to do effective farm monitoring, decision making, crop management, produce improved farm output and farm house hold income.
Further, substantially growing food demand especially due to increasing population is anticipated to raise the concern for food security. Food security is a term used to define the condition where each and every person, at any point of time, has economic, social and physical access to nutritious, safe and adequate food, which satisfies their dietary needs and preferences for a healthy and active life. To ensure food security in future, the world is expected to produce approximately 70% more food than today, which is highly challenging, looking at the changing climatic conditions. Changing climate has become one of the major threat to food security. Since past few years, the change in climate has imposed an adverse impact upon all the aspects of food security, particularly for the population below the poverty line. Furthermore, alteration in climate is also expected influence the crop yield patterns, majorly in underdeveloped regions of world, such as sub – Saharan Africa.
To address these challenges, the food organization across the globe are stressing upon adoption of technologies, that would help the farmers and other agriculture related entities to analysis and forecast the best way to yield crops and produce other food supplements in mass. By integrating smart technologies in agriculture industry, these challenges can be tackled in an optimal way. The concept of smart agriculture is likely to eliminate the threat of declining pasture and crop yields in the future and also help the poor farmers adopt climate change.
Irrigation System Application Segment is Expected to Grow at a Remarkable Growth Rate
Traditionally the farmers were manually controlling the irrigation system, where the lands were irrigated at regular intervals. This process resulted into excessive water consumption thus, causing wastage of water. Irrigation, therefore, at dry ecologies was a challenging task, these areas had inadequate rainfall. Hence, there was urgent need for an automated system that could accurately measure and control water requirements and save time.
The emergence of smart agriculture concept was mainly focused upon judicious usage of water, and make use of advanced technology to perform these tasks in relatively less time. A smart irrigation system enables the farmers to make effective usage of fertilizers, reduce wastage and thereby increase the crop yield. A smart irrigation system is a combination of various intelligent farming solutions, which includes sensors (temperature, soil moisture, temperature, light, etc.) and automated irrigation system. However, the tremendously growing population and overexploitation has led to a situation where the demand for water is constantly increasing, thus the demand for smart irrigation system is expected to spur in the years to come.
Product Type Market Insights
Global smart agriculture market is segmented by product type into following categories; hardware, software and services. Hardware product type segment of smart agriculture is further sub-divided into sensor based monitoring system, smart detection system, GPS enabled ranging system and drones. Furthermore, the services segment is categorized into climatic information, supply chain management and others (system integration, maintenance and consulting services). Smart equipment used in farming requires both hardware and software components to work. Also, system integration includes installation of these equipment to work efficiently. This equipment requires up gradation on timely basis as well as proper maintenance along with consulting services, which plays an essential role in selecting the right equipment for specified application.
Application Market Insight
Smart agriculture is an approach associated with cost effectiveness to achieve sustainable agriculture to successfully increase the output in the altering climate by implementing innovative technology. Its main purpose is to identify agricultural strategies suitable for worldwide stakeholders. By implementing smart agriculture, the farmers can reap its benefits by increasing the inputs from fertilizers and labors thus, resulting into more opportunities for income.
There are several types of applications of smart agriculture such as precision farming, livestock monitoring, yield monitoring, soil health monitoring, irrigation systems, VRT, asset management, smart greenhouse and others.
Global Smart Agriculture Segments:
Smart Agriculture Market – By Product Type
Smart Agriculture Market – By Application
Smart Agriculture Market – By Geography
Table of Contents1.1 List of Tables
List of TablesTable 1: Global Smart Agriculture Market Revenue and Forecasts to 2025 (US$ Mn)
List of FiguresFigure 1: Smart Agriculture, Global Revenue (US$ Mn), 2016 & 2025
The List of Companies - Smart Agriculture Market1. AGCO Corporation