Smart Agriculture Market Size - By Offering (Hardware, Software, Service), Application (Precision Farming, Livestock Monitoring, Precision Forestry, Smart Greenhouse), Growth Prospects, Regional Outlook & Global Forecast, 2023 - 2032

Smart Agriculture Market Size - By Offering (Hardware, Software, Service), Application (Precision Farming, Livestock Monitoring, Precision Forestry, Smart Greenhouse), Growth Prospects, Regional Outlook & Global Forecast, 2023 - 2032

Smart Agriculture Market size is projected to expand at over 12% CAGR from 2023-2032 propelled by the pervasive integration of IoT and sensor technologies. The emergence of IoT devices and sensors is providing farmers with invaluable insights into soil health, weather conditions, and crop status for optimizing resource utilization and improving overall productivity. The growing innovations for enabling real-time data collection from fields, crops, and livestock for fostering precision farming practices is also fuelling the need for smart agriculture solutions.

Furthermore, supportive government policies, subsidies, and initiatives for promoting digital agriculture will accelerate the adoption of smart technologies in farming practices. To cite an instance, in February 2023, the Jammu and Kashmir government authorized the Sensor-based Smart Agriculture project worth Rs. 30.40 crore for integrating agriculture with technology powered by Artificial Insemination and IoT for practice automation, increased resource usage efficiency, and profitability.

The smart agriculture industry is segmented into offering, application & region.

Based on offering, the market value from the hardware segment is projected to expand at over 11.5% CAGR from 2023 to 2032 owing to the rising adoption of precision agriculture techniques. Of late, the higher popularity of precision agriculture is contributing to the increasing reliance on hardware components, such as GPS-guided tractors, seeders, and harvesters. The rapid adoption of precision farming tools to enable farmers to optimize planting, irrigation, fertilization, and harvesting processes will also contribute to the segment growth.

In terms of application, the smart agriculture industry value from the livestock monitoring segment is set to depict growth at over 12% CAGR from 2023-2032. This can be attributed to the growing awareness and emphasis on animal welfare standards in agriculture. Moreover, livestock monitoring technologies, such as wearables and sensors are gaining prominence as they enable farmers to closely track the health, behavior, and well-being of animals.

Regionally, the Asia Pacific smart agriculture industry held sizable revenue share in 2022 and is estimated to expand at over 13% growth rate from 2023-2032. The growing population across the APAC nations is surging the demand for food, further leading to the rising adoption of smart agriculture technologies for efficient agricultural production for addressing the food security concerns in densely populated countries.

Many organizations across the region are also taking initiatives to promote smart agriculture. For instance, in May 2023, Australia-based Griffith University collaborated with the Korean Technology Promotion Agency and Earthfix to develop smart farms by optimizing the sustainable use of land, food, and water. Furthermore, governments are offering subsidies, financial incentives, and technical support to farmers for adopting advanced agricultural technologies, in turn supporting farmers to invest in smart agriculture practices.