Connected Agriculture Market Size, Share & Industry Analysis, By Component (Solutions, Services), By Application (Pre-Production Management, In-Production Management, Post-Production Management) and Regional Forecast, 2019-2026

The global connected agriculture market size was valued at USD 1.84 billion in 2018 and is projected to reach USD 7.22 billion by 2026, exhibiting a CAGR of 19.1% during the forecast period. North America is expected to hold the largest share in the connected agriculture market during the forecast period. 

Connected agriculture can be defined as the implementation of advanced technologies to improve, manage, and control farming activities, which results in increased production and quality of agricultural products. Advancements in digital technologies have made it possible to collect and leverage a huge amount of data at minimal costs, which will help in making farming operations more insight-driven, and potentially more productive and efficient. Connected agriculture aims at providing real-time data about soil conditions, moisture levels, and weather conditions to plan for harvesting effectively and also help farmers, agribusinesses, fertilizer companies, and food and beverage companies to connect with potential buyers, traders, and sellers.

The connected agriculture market growth is mainly influenced by increasing demand for advanced farming solutions to maximize crop yields using minimum resources such as water, fertilizers, and seeds. By implementing various connected agriculture solutions, farmers and businesses will be able to do better time management at the farm level with less use of resources.

Besides this, increased demand for yield monitoring, field management, inventory management, and labor management are some of the major factors enhancing connected agriculture market growth during the forecast period. Diverse IoT-based applications such as precision farming, smart irrigation, and greenhouse farming will contribute to the growth of the connected agriculture market. The progressions in agriculture such as advanced devices, temperature and moisture sensors, machines, and aerial imaging, enable farmers to perform agricultural operations easily.  Nonetheless, the high initial investment to install connected agriculture solutions is expected to hamper the market growth.

MARKET DRIVERS

“Increasing Demand for Smart Water Management to Aid Market Growth”

The water management for agriculture is an essential factor to inflate crop yields with decreased costs while contributing to environmental stability. The leaders of agriculture are concerned about water shortages and are focusing on ways to improve water management in agriculture. Water management applications in connected agriculture, which embrace the internet of things (IoT), mobile applications, big data analytics, and decision support system are serving to produce eco-friendly and optimized agricultural outputs for a growing population.

In connected agriculture, sensors and IoT networks are programmed to collect data related to an individual plant's water usage, total water usage, soil moisture, air humidity, climate conditions, contaminants, and more. Water management processes can also be automated with well-designed integrations to use basic water-saving techniques, allowing farmers time to manage manual work.

“Increasing Use of Smartphone and Internet by Farmers to Boost the Market”

Connected agriculture facilitates farmers to maximize crop cultivation with reduced costs and the efforts associated with conventional ways of farming. Connected agriculture increases productivity by allowing farmers to invest both time and resources expertly in appropriate combination to more precisely evaluate optimum sowing density, estimate fertilizers, and to predict crop yields more precisely.

Farmers nowadays are relying on the latest developments in the agriculture sector, such as the use of smartphones and other connected devices. Advanced connected technologies such as low power wide area (LPWA), Zigbee, WiFi, and new wireless sensor technologies help farmers in planning and executing various agricultural operations such as purchasing products, inventory control, timely management of planting, and harvesting.

SEGMENTATION

By Component Analysis

“Solution Segment to Augment the Market Growth”

Based on the component, the market is classified into solution and services.

The solution segment is expected to hold the largest share in the global connected agriculture market. Remote monitoring through connected agriculture solutions enables production yields to increase, allowing farmers to improve the growing process. Connected agriculture solutions help farmers to increase production output, and improve food quality by helping them to predict moisture and dryness of the soil, erosion of soil, and other factors that boost crop growth. Connected agriculture solutions enable farmers to carry out financial transactions in rural areas easily. Soil sensors in the connected agriculture solutions are capable of alerting farmers about irregular soil conditions such as acid level, evaporation-based scheduling, and help farmers make faster and more appropriate decisions about crop production.

Connected agriculture solution helps farmers in livestock monitoring through observing heart rate, blood pressure, respiratory rates of animals. IoT sensors in connected agriculture are used to keep track of cattle’s daily activities and health-related issues.

The services segment is projected to exhibit a noticeable CAGR over the forecast period. The services segment includes consulting, integration and implementation, and support and maintenance. Increasing demand for high valued agricultural services, stringent government rules for consulting and management in agriculture businesses, and increasing adoption of advanced solutions are some of the major reasons driving connected agriculture services market growth.

By Application Analysis

“In-production Management Segment to Gain Largest Share”

By application, the connected agriculture market has been diversified into pre-production management, in-production management, and post-production management. The in-production management segment is expected to hold the largest share in the global connected agriculture market.

In the agriculture business, planning is an important factor due to inherent uncertainty associated with weather, financial risks, and agricultural production. The in-production management segment of connected agriculture helps in good quality of products, a higher rate of production with a lower cost per unit. In-production management allows farmers to access real-time data to make proactive decisions that help in the production of effective yields. In-production management includes water and irrigation management, animal tracking and livestock management, and crop harvesting methods, which will assist farmers in analyzing the information and making the necessary adjustments to operate more efficiently with increasing profitability.

The growth of pre-production management in connected agriculture is anticipated to be promising, and continued benefits are expected to be in the forecast period. Pre-production management in connected agriculture supports agricultural producers and businesses by providing relevant information and consulting about planning and management before production starts. With pre-production management, farmers and agribusinesses will be able to analyze the market and sow the crops which are in high demand.

REGIONAL ANALYSIS

The connected agriculture market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North America is projected to hold the largest share in the connected agriculture market during the forecast period. In 2018, North America generated a revenue of USD 626.7 million and is expected to reach up to USD 2,353.9 million by 2026. The market growth in North America is mainly attributable to the presence of key players working on connected agriculture solutions, expanding technological advancements, and the rising adoption of agricultural drones.

Besides this, numerous government initiatives have been undertaken in developing countries such as US and Canada to encourage the implementation of advanced farming technologies, which has further elevated North America's connected agriculture market growth. Moreover, the adoption of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), big data, data analytics, and predictive analytics are expected to contribute significantly to the growth of the connected agriculture market in the region over the forecast period.

Asia Pacific is anticipated to be the fastest-growing region in the global connected agriculture market during the forecast period. Asia Pacific is a decisive region in the global food chain market, accounting for the highest amount of food and agricultural export. Countries in the region such as China, Japan, and India are embracing connected agriculture solutions for more sustainable use of available resources.

Governments and private organizations are constantly working to enhance the productivity and efficiency of agricultural land through automation, adoption of advanced technologies, and reduced use of pesticides. The region is expected to provide lucrative growth opportunities for connected agricultural vendors owing to the rising investments in connected infrastructure, digital farming practices, and the adoption of cloud-based solutions.

INDUSTRY KEY PLAYERS

“Various Market Players such as GAMAYA, Iteris, Inc., and IBM Corporation are Focused on Designing and Implementing More Vigorous Business Models in Connected Agriculture Solutions”

Gamaya is one of the leading companies in agriculture and provides solutions for large-scale monitoring and diagnostics of crops for precision agriculture. The company is helping farmers and agribusinesses by collecting airborne and space-borne imaging data along with climate and weather records. Gamaya helps farmers to use water, fertilizers, chemicals, and fuels more efficiently which will help them in improved quality and quantity of the production, minimize the impact on the environment, and reduce risks associated with drought, extreme weather conditions, and climate change.

Iteris, Inc. is a leading American company in applied informatics, providing consulting services and produces sensors and other devices that help record and predict traffic and weather conditions. Iteris’ ClearAg gathers accurate and location-specific descriptive and predictive insights, which will help in addressing more complex agricultural challenges effectively.

LIST OF KEY COMPANIES COVERED:

• IBM Corporation


• Microsoft


• Cisco Systems Inc.


• Iteris, Inc.


• Trimble Inc.


• Ag Leader Technology


• Decisive Farming


• GAMAYA


• SWIIM System, Ltd.


• Orange Business Services


• LINK LABS.


• Iteris Inc.

REPORT COVERAGE

The report offers an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are macro and microeconomic factors, SWOT analysis, Porter’s five forces analysis, and key connected agriculture industry trends, competitive landscape, and company profiles inclusive of recent industry developments such as mergers & acquisitions.

Report Scope & Segmentation

INDUSTRY DEVELOPMENT:

• October 2018 – Microsoft collaborated with SlantRange, Inc., a leading provider of remote sensing and analytics sensing for agriculture. This collaboration will bring a new set of powerful and scalable aerial measurements and data solutions to the global agriculture market.


• December 2018 – IBM Corporation collaborated with Hello Tractor to launch advanced agricultural analytics and decision-making tool which will help farmers to gain access to relevant information to increase their yield, forecasted weather data, and the use of appropriate fertilizer using remote sensing and IoT data