Middle East And Africa Agriculture Technology As A Service Market: Growth Prospects 2024-2032
Triton’s analysis estimated that the Middle East and Africa agriculture technology as a service market is set to garner revenue at 16.18% CAGR over the forecast years 2024-2032.
Countries in the Middle East and Africa region are addressing food security and water scarcity challenges through innovative agricultural technologies. For instance, the government of Dubai launched an initiative named ‘Grow Your Food’ to foster the adoption of organic farming and reduce reliance on food imports. The Ministry of Climate Change and Environment in UAE also launched the ‘Agricultural Innovation Centre’ to collaborate with leading international centers specializing in agricultural technologies by conducting joint scientific research and partnership programs to enhance the country’s agricultural system. Such factors lead to a consistent expansion of the reviewed market in this region.
The countries examined in this region include the United Arab Emirates, Saudi Arabia, Turkey, South Africa, and Rest of Middle East & Africa.
United Arab Emirates leads with the highest market share, accounting for nearly $5.84 million in 2023.
The UAE government has made significant investments in agritech to enhance food security and sustainability with initiatives such as the National Food Security Strategy 2051 to increase local food production by 30-40% within a decade.
Companies like Pure Harvest Smart Farms are implementing advanced technologies such as hydroponics and vertical farming, which have shown considerable success in the UAE’s harsh climatic conditions.
The UAE’s focus on the increase in the cultivation of high-demand crops and enhanced the overall efficiency of farming practices contributed to the sector’s robust development.
Agriculture Technology as a Service Market Trends in Saudi Arabia
In 2022, Saudi Arabia’s agriculture sector experienced a growth of over 7.8%. Aligned with Vision 2030, the country is advancing cutting-edge agricultural technologies, including vertical farming, hydroponics, aquaponics, drones, and automated farming. The sector is also set to receive a significant boost, with the Ministry of Economy and Planning announcing an investment of US$ 24.26 billion. As a result, Saudi Arabia has emerged as a promising market for next-generation farming innovations, thereby leading the expansion of the reviewed market.
The market segments for agriculture technology as a service consist of technology, application, and type. The application segment includes soil management, crop health management, yield mapping and monitoring, navigation and positioning, & other applications. Crop health management services optimize the application of crop protection chemicals and fertilizers to specific areas, resulting in significant cost savings and improved yields. These services use data from field monitoring systems, such as satellites and drones, to identify which sections of a farm need treatment.
Contender Analysis in the Agriculture Technology as a Service Market:
Hexagon AB provides a range of technology solutions, including software solutions, sensor solutions, and autonomous systems. Their offerings include sensor technology-equipped metrology systems, CAD (computer-aided design) software, and CAM (computer-aided manufacturing) software. Its products are used in various industries such as construction, mining, agriculture, aerospace, automotive, defense, and manufacturing. The company operates across Asia, Europe, Americas, the Middle East and Africa, with its headquarters located in Stockholm, Sweden.
The company’s agriculture division introduced an app, the HxGN AgrOn Control Room | Mobile, enabling users to monitor all field processes directly from their cell phones. This app was developed in response to the needs of managers and directors of agricultural companies for greater agility in overseeing operations and addressing related issues.
Some other notable contenders in the agriculture technology as a service market include Agco Corporation, Deere and Company, Trimble Inc, Raven Industries Inc, Fujitsu, Topcon Corporation, CLAAS KGaA mbH, Hexagon AB, IBM Corporation, and Microsoft Corporation.