Global Internet of Things (IoT) in Agriculture Market 2023-2030

Global Internet of Things (IoT) in Agriculture Market 2023-2030

Global IoT in Agriculture Market Size, Share & Trends Analysis Report by Type (Hardware and Software), by Farm size (Small, Medium, and large size farm), and by Application (For Precision Agriculture, Livestock Monitoring, Aquaculture Management, Greenhouse Automation and Soil and Crop Monitoring), Forecast Period (2023-2030)

The global IoT in the agriculture market is anticipated to grow at a CAGR of 11.5% during the forecast period (2023-2030). Growing demand for food due to the growing population, increasing government support, growing technological advancements in IoT technology, and rapidly changing climate conditions are driving demand for IoT technology in the agriculture sector.

Segmental Outlook

The global IoT in the agriculture market is segmented by Type, farm size, and applications. Based on type the market is sub-segmented into hardware-based IoT services and software-based IoT services. The market is sub-segmented into small, medium, and large farms based on farm size. Based on application the market is sub-segmented for precision agriculture, livestock monitoring, aquaculture management, greenhouse automation, and soil and crop monitoring uses. The demand for livestock monitoring-based IoT services is expected to grow considerably. According to the Food and Agricultural Organization of the United States, crop and livestock diseases and infections caused approximately 9.0% of total loss between the years 2008 to 2018. The adoption of IoT technology can help to reduce livestock loss. It can be used in remote monitoring of livestock health such as temperature, and activity levels, to get early warnings for potential disease and other health problems by monitoring air quality in livestock barns, precision feeding, and animal tracking among others.

The Demand for Precision Agriculture and Soil and Crop Monitoring IoT Services Is Expected to Grow Considerably

Environmental uncertainties are one of the biggest reasons for global agriculture production and livestock losses. According to a 2008 to 2018 study of Food and Agriculture organizations in the United States, disasters such as drought, storms, and floods are the biggest reasons for agricultural production loss. Out of these disasters, over 34.0% of agricultural production and livestock loss is caused by draught alone, costing over $37 billion loss in least developed countries and low- and middle-income countries followed by floods which accounted for 19.0% of total agricultural production and livestock loss.Effective usage of IoT technology in agriculture can help farmers prepare to reduce or eliminate losses such as precision irrigation, water management systems, early warning, or weather uncertainties.

Regional Outlook

The global IoT in agriculture market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, North America holds a prominent share in global IoT in the agriculture market. According to the 2023-2032 OECD-FAO Agricultural Outlook, North America provides 11% of total agricultural output. One of the major factors is the country accounts for 10% of the land used for agriculture globally and the availability of agricultural land per capita is highest among all regions. The region accounts for 12% of global exports, which is the highest after Latin America and Southeast Asia. Apart from a significant presence in global agricultural output, the region is also focusing on more organic food production and optimized production. Although the overall fertilizer import in the US has declined by 22% in 2022, the country has seen significant investments to improve production efficiency. Also, the shortage of labor force, significant presence of market leaders in the regions, and growing government support for smart agriculture are driving growth for IoT services and products in agriculture in the North American region.

The Asia-Pacific Region is Expected to Grow Significantly in the Global IoT in Agriculture Market.

The Asia-Pacific region accounts for approximately 60% of the global population. With the growing population, regional food demand is also growing significantly. Additionally, the agricultural sector is one of the major contributors to regional economies such as China and India and is expected to grow. As per the third Advance Estimates of National Income, 2021-22 released by the National Statistical Office (NSO) of India, Ministry of Statistics & Programme Implementation, the agriculture, and allied sectors contributed approximately 18.6 % of India's GVA (Gross value added) at current prices during 2021-22. Although the regional agricultural sector has seen significant growth in recent years, it is also facing severe challenges such as drought and other natural calamities, soil degradation, volatile prices, and inadequate infrastructure linkage among others. To overcome these challenges the private and public sector in the region is focusing on smart agriculture by focusing on research and development and introducing better policies. For instance, in May 2023, The Indian Institute of Information Technology Bangalore (IITB) and the Indian Institute of Horticultural Research (IIHR) announced to be developing an automated greenhouse system using Internet of Things (IoT) sensors and Artificial Intelligence/Machine Learning (AI/ML) techniques to improve precision agriculture. The system, called AutoGrow, aims to optimize crop yield and resource usage based on real-time data.

Market Players Outlook

The major companies serving the IoT in the agriculture market include AGCO Corporation, CropX, Inc., John Deere GmbH & Co. KG., Topcon Positioning Systems, AG Leader Technology, Inc. Arable Labs, Inc. among others. The companies are majorly focusing on research and development and new product launches to stay competitive in the market. For instance, in March 2023, Mahindra's AgTech business, Krish-e, launched the Krish-e Smart Kit (KSK), an IoT-based device that provides equipment owners with real-time data on their tractors and farm equipment, such as GPS location, fuel consumption, and engine performance. The data can be accessed through a smartphone app.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global IoT in the agriculture market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.