Connected Agriculture Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Connected Agriculture Market size is expected to grow from USD 5.20 billion in 2023 to USD 8.80 billion by 2028, at a CAGR of 11.10% during the forecast period (2023-2028).

The demand for advanced agricultural techniques to optimize crop yields while using the least amount of resources, such as water, fertilizer, and seeds, is the key factor driving the growth of the connected agriculture market. Farmers and businesses will be able to manage their time more effectively on the farm while using fewer resources by putting various linked agricultural technologies into practice.

Key Highlights

• Water management in agriculture is critical for increasing agricultural yields while decreasing costs and contributing to environmental stability. Agriculture officials are concerned about water scarcity and are working to enhance agricultural water management. Water management solutions in linked agriculture, which incorporate the Internet of Things (IoT), mobile applications, Big Data analytics, and decision support systems, are assisting in the production of environmentally friendly and optimum agricultural outputs for a growing population.
• Connected agriculture enables farmers to maximize crop cultivation while reducing expenses and effort associated with traditional agricultural methods. Connected agriculture boosts production by allowing farmers to expertly invest time and resources in the right combination to more precisely evaluate optimum sowing density, estimate fertilizers, and predict crop yields. Farmers currently rely on the most recent agricultural advancements, such as the usage of cell phones and other linked equipment. Sophisticated connected technologies such as low power wide area (LPWA), Zigbee, WiFi, and new wireless sensor technologies aid farmers in the planning and execution of various agricultural operations such as purchasing supplies, inventory control, timely planting and harvesting, and so on.
• Data collection is the first stage of precision agriculture and, thus, the most researched. This is accomplished mostly through the determination of soil fertility (one sample from the field, a polygon, or a zone). Zones are created using aerial or satellite imagery and are based on yield maps or photographs of the same crop over numerous years. It is done to boost yields eventually. A one-hectare polygon grid is the most often used soil testing method. This grid dimension is adequate for understanding the field's variability and what is going on in it. Finally, based on the soil scan, task maps are created for precise fertilizer and liming applications.
• There is a lack of understanding of connected farm technology, and installation is prohibitively expensive. These are the technology's constraints over the anticipated timeframe. The majority of farmers worldwide are small-scale farmers who cannot afford such costly equipment. This technique necessitates competent and knowledgeable farmers, large initial investments, and effective farming instruments, making farmers unwilling to gather information from it. Because of its high cost, it is only suitable for large and industrialized farms.
• The Covid pandemic brought attention to using artificial intelligence (AI). Data is used in real-time by artificial intelligence and machine learning models to get insightful knowledge, such as when to plant seeds, which crops to choose, which hybrid seeds to select for higher yields, and other things. Precision agriculture, often known as artificial intelligence systems, is assisting in enhancing the overall quality and accuracy of harvests. AI technology aids in the detection of pests, plant diseases, and undernutrition in farms. Artificial intelligence (AI) sensors can identify and target weeds before deciding which herbicide to use.

Connected Agriculture Market Trends

Upsurge in Demand for Smart Water Management Systems

• Smart water management (SWM) uses information and communication technology (ICT) and real-time data and responses, which is an integral part of the solution for water management challenges. The potential application of smart systems in water management is vast and includes solutions for water quality, water quantity, efficient irrigation, leaks, pressure and flow, floods, droughts, and much more. Water scarcity may directly affect nearly 20% of the human population by 2025, UN reports state, and indirectly influence the rest of the planet's inhabitants. Smart water systems based on the combination of the IoT, big data, and AI technologies may help stop these predictions and undo the damage the imprudent usage of water resources has already caused.
• The World Bank and Imagine H2O, a non-profit organization, partnered recently to fund technologies that promote global water sustainability. Many new enterprises aim at providing real-time digital information to farmers in remote and previously unavailable regions, such as moisture levels in their fields and impending weather conditions. Farmers received mobile management platforms as well. Flood risk detection, DNA fingerprinting technology to find the source of water pollution, and wave-driven autonomous desalination facilities for small island settlements are among the innovative technologies backed by the World Bank and Imagine H2O.
• In Chile and Peru, "water-smart" technologies help fruit producers adapt to the increase in droughts and water scarcity. These innovative technologies are focused on enhancing the efficiency of irrigation and restoring the health of soils. AQUA4D is a technology that improves the dissolution and distribution of minerals in the water. By this method, soils retain water for a longer interval, reducing water consumption by farmers. In contrast, a better balance of minerals in the water can improve the quality and salinity of the soil.
• Water usage facilities and water treatment plants can do their part by ensuring that their monitoring equipment is up-to-date and as accurate as possible. While SCADA systems are more commonplace in modern operations, cloud-based SCADA systems in water treatment facilities and plants are further expected to enhance the scalability of operations in the foreseen period. Adding to the scenario, technological advancements in smart meters and their integration with communication solutions like SCADA have transformed water management to address the challenges faced by water utilities, farmers, residents, and industries, in terms of erroneous billing and water management.
• According to IEA, by 2040, it is predicted that the total amount of water that will need to be withdrawn will be 4,350 billion cubic meters. The increase in water consumption in recent decades has outpaced population growth by a factor of two. Such huge water consumption and withdrawal would create an opportunity for smart water management systems.

Asia-Pacific to Witness the Highest Growth

• Japan's agricultural production expenses are high in comparison to other countries, owing to the high cost of agricultural inputs such as fertilizers and agricultural gear. According to the Ministry of Agriculture, Forestry, and Fisheries, rice cultivation, Japan's principal agricultural commodity, costs, on average, JPY 9,180 in total input costs for every 60kg of rice produced last year. Fertilizer expenditures account for 13% of this total, with agricultural machinery and implementation accounting for the remaining 32%. As a result, advancements in connected agriculture that reduce fertilizer waste or lower machinery costs will tremendously benefit Japanese farmers.
• The Maharashtra government has yet to develop a policy following the Center's clearance of the use of drones to spray pesticides in October 2022. Before approving subsidies under the Center-approved drone purchase program, the state administration is awaiting clarifications. Drones are being promoted as a way to combat the labor crisis and advance agricultural mechanization. International agrochemical company Syngenta said on Monday that two of its fungicide formulations had been given the go-ahead for drone spraying by the central pesticide board, the organization in charge of spraying regulations.
• The Department of Agriculture (DA) in the Philippines is evaluating the potential of drones to change the way seeds are planted, the way fertilizers and pesticides are applied, and the way crops are monitored. Moreover, the Ministry of Japan set a goal to introduce agricultural drones for about half of the land planted with rice, wheat, and soy across Japan by 2022.
• In August 2022, Automat, India's manufacturer of irrigation sprinklers, filtration equipment, and fertilization equipment, today launched five new smart irrigation solutions for Rajasthan farmers at its UDGHOSH event-a first-of-its-kind program to bring innovative technology to Indian farmers. To address the issue of low water levels for irrigation in Rajasthan, Automat India has launched five IoT-based autonomous irrigation systems that would assist farmers in monitoring, controlling, and wisely utilizing water. Each brand's goods, such as MachClean (Sand Media Filter), Turbo (Automatic Screen Filter), Hydromat (control Valves), Auto drip (Low-cost automation kit), and Aqua Disc (Automatic Disc Filter), would make irrigation easier for farmers while saving them time and money.
• In April 2022, the Thai government committed to accelerating its plans for a national digital transformation of the country's food and agricultural sectors, with a particular emphasis on big data, smart agriculture, e-commerce, and agribusiness development. Since the adoption of the national Thailand 4.0 and 20-year National Strategy frameworks, Thailand has expanded its focus on the digitalization of its food and agricultural supply chain.

Connected Agriculture Industry Overview

The connected agriculture market is moderately competitive owing to the presence of multiple players. The players in the market are adopting strategies like product innovation, mergers, and acquisitions in order to expand their product portfolio and expand their geographic reach and primarily to stay competitive in the market.

In January 2023, through a Knowledge Transfer Partnership (KTP), Aston University collaborated with engineering firm Solargen Technologies (SGT) and the University of Nairobi to develop a smart irrigation system that uses solar and wind energy to provide year-round watering of land and improve crop production in Kenya. SGT is Kenya's largest provider of energy, water, and irrigation solutions and services. They collaborate with non-governmental organizations, governments, and people to provide customized energy, water, and food security solutions to communities in rural and conflict-affected areas of Eastern Africa.

In February 2022, Agrology was planning to include Wyld Network's satellite-based IoT connectivity into its predictive agriculture platform for global, 24 hours a day, seven days a week data collection. Agrology and Wyld Networks announced a cooperation today to integrate Wyld Connect into Agrology's ground truth predictive agriculture technology. Wyld Connect is a low-cost Internet of Things (IoT) worldwide connectivity network based on low-orbit satellite technology. The solution assures that Agrology ground truth sensors will continue to collect data from even the most remote areas and will be able to communicate that data to Agrology customers swiftly, regardless of network status.

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