The global agriculture IoT market is expected to reach an estimated $24 billion by 2031 with a CAGR of 9.5% from 2025 to 2031. The major drivers for this market are the rise in the adoption of VRT, the rising adoption of the Internet of things (IoT) and artificial intelligence (AI) by farmers and growers, and government support of precision agriculture practices.
The future of the global agriculture IoT market looks promising with opportunities in precision farming, precision livestock, precision aquaculture, precision forestry, and smart greenhouses markets.
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and why?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
The future of the global agriculture IoT market looks promising with opportunities in precision farming, precision livestock, precision aquaculture, precision forestry, and smart greenhouses markets.
- With in the farm type category, small farm is expected to witness the highest growth over the forecast period due to reduction in the cost of farm automation equipment and technological developments.
- Within the application category, precision aquaculture is expected to witness the highest growth due to the growing demand for real-time tracking of fishing activity.
- In terms of regions, APAC is expected to witness the highest growth over the forecast period due to the adoption of Internet of things technologies in agriculture is projected to be at an extraordinary rate in this region.
Emerging Trends in the Agriculture IoT Market
It's exciting how various trends are shaping the agriculture IoT market due to recent technological advancements and the ever-changing nature of agriculture. Below are five significant trends that influence the future of agriculture through IoT:- Precision Agriculture: This sub-segment focuses on optimizing farming practices through the use of IoT devices and data analytics. It collects data on health, moisture, and crop status from the soil and bases decisions on that data to increase productivity and resource efficiency.
- Remote Monitoring and Control: IoT technologies enable remote monitoring of farm activities. Farmers can view their crops and data from machinery from anywhere on Earth and intervene early to reduce crop loss.
- Data-Driven Decisions: As more agricultural data becomes available, decision-making is shifting toward data-driven approaches. This enables farmers to track trends and patterns, enhancing the precision of yield predictions, managing input resources effectively, and planting at optimal times.
- Integration of Drones: IoT sensors in drones have become essential in agriculture. They monitor crop health conditions, irrigation needs, and pest control from an aerial perspective.
- Sustainability and Eco-Friendly Practices: Sustainability has gained significant importance in the agriculture IoT market. IoT solutions are being developed to reduce resource waste, chemical usage, and promote environmentally friendly farming practices.
Recent Developments in the Agriculture IoT Market
Recent developments in the agriculture IoT market reflect how more and more farmers are adopting technology to improve agricultural practices. Here are five major developments making a significant impact in the sector:- Introduction of Advanced Sensor Technologies: Sophisticated sensor technologies are being introduced to farms to capture more accurate data on soil moisture, temperature, and nutrients. Recent innovations allow farmers to monitor crop conditions more accurately and optimize resource usage.
- Increased Use of IoT Platforms: Multiplexing various sources of agricultural data through IoT platforms is becoming common. These platforms offer integrated and comprehensive insights to farmers regarding any decision-making that requires aggregated data from numerous sensors and devices.
- Increasing Smart Irrigation Solutions: New smart irrigation solutions based on IoT monitoring of soil moisture allow for the automatic adjustment of watering cycles, saving water and enhancing crop health while addressing environmental concerns.
- Increased Investment in AgTech Startups: Today, significant investments are flowing into agricultural technology-focused IoT startups. This influx of capital increases the pace of innovation and accelerates the development of solutions specifically for agriculture.
- Agri-Business Collaboration with Research Institutes: Collaborations between agricultural companies and research institutes have become more common. These partnerships aim to develop innovative IoT solutions that address the real-time needs of agriculture and help solve specific issues within the industry, promoting further innovation.
Strategic Growth Opportunities for Agriculture IoT Market
The agriculture IoT market offers numerous opportunities for strategic growth. These may include advanced sensor technologies that improve data collection and analysis, increased IoT platforms for data aggregation, smart irrigation solutions for resource conservation, increased investment in AgTech startups to foster innovation, and collaboration with research institutions to maintain technological advancements.- Development of Smart Farming Solutions: The agriculture IoT market presents various strategic growth opportunities across applications. Five key opportunities are listed below, which stakeholders can leverage for growth.
- Smart Farming Solutions: There is a growing need for smart farming solutions. Various companies can offer integrated IoT systems that optimize farm practices to achieve high productivity and sustainability - new necessities in agriculture.
- Development of Telemetry Systems: Developing telemetry systems to provide real-time data on agricultural equipment and operations is necessary. Companies can extend these systems to enable farmers to track remote monitoring of their equipment, increasing operational efficiency.
- Investment in Predictive Analytics: With vast amounts of data now available, companies can offer predictive analytics services. Predictive analytics enables farmers to forecast crop yields, plan planting schedules effectively, and manage resources efficiently.
- Alliances with AgTech Companies: Forming alliances with AgTech companies can lead to market expansion and facilitate easier access to innovative IoT solutions. These collaborations may further propel bespoke solutions tailored to specific agricultural challenges.
- Combination of IoT and Renewable Energy Solutions: The integration of IoT with renewable energy solutions, such as solar-powered sensors, presents a unique growth opportunity. This supports sustainability while enhancing agricultural effectiveness and efficiency.
Agriculture IoT Market Drivers and Challenges
The agriculture IoT market is driven by various factors and challenges that define its growth dynamics. Understanding these will be pertinent for stakeholders looking to navigate this changing landscape. Below are five major drivers and three key challenges affecting the market.The factors driving the agriculture IoT market include:
- Technological Advancements: Rapid developments in IoT technology, including sensor advancements and data analytics, are driving the adoption of digital solutions in agriculture. These improvements enhance resource utilization and crop yields.
- Focus on Sustainability: Rising concerns about environmental issues and sustainable farming practices are motivating farmers to adopt more eco-friendly methods and conserve resources.
- Government Support and Funding: Many governments now offer incentives and financial support for the cultivation of agricultural sectors through IoT technologies. This support fosters innovation and induces the adoption of cutting-edge solutions.
- Increased Demand for Transparency from Consumers: Consumers are demanding more transparency in food production. Agriculture IoT can facilitate traceability, ensuring products meet consumer expectations.
- International Population Growth: The growing global population necessitates increased food production. Agriculture IoT provides the necessary tools to boost productivity sustainably.
Challenges in the agriculture IoT market include:
- High Implementation Expenses of Adopting IoT Technologies: Many farmers, regardless of size, face limitations in adopting advanced solutions due to the high upfront costs associated with implementing IoT technologies.
- Data Privacy and Security Concerns: The use of IoT in agriculture raises significant data privacy and security issues. Farmers’ reluctance to adopt new technologies may stem from concerns over potential data breaches.
- Lack of Infrastructure: The inability to develop IoT solutions in many regions is hindered by insufficient infrastructure. Poor internet connectivity and limited technology availability may limit the success of digital agriculture initiatives.
List of Agriculture IoT Companies
Companies in the market compete based on product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies agriculture IoT companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base.Some of the agriculture IoT companies profiled in this report include:
- Ponsse
- Komatsu Forest
- InnovaSea Systems
- Steinsvik
- TeeJet Technologies
- Afimilk
- PrecisionHawk
- Hexagon Agriculture
- Farmers Edge
- Tigercat
Agriculture IoT by Segment
The study includes a forecast for the global agriculture IoT market by hardware type, farm type, farm production planning stage, application, and region.Hardware Type [Analysis by Value from 2019 to 2031]:
- Precision Farming Hardware
- Precision Livestock Hardware
- Precision Aquaculture Hardware
- Precision Forestry Hardware
- Smart Greenhouses Hardware
- Others
Farm Type [Analysis by Value from 2019 to 2031]:
- Large
- Mid-Sized
- Small Farms
Farm Production Planning Stage [Analysis by Value from 2019 to 2031]:
- Pre-Production Planning
- Production Planning
- Post-Production Planning
Application [Analysis by Value from 2019 to 2031]:
- Precision Farming
- Precision Livestock
- Precision Aquaculture
- Precision Forestry
- Smart Greenhouses
- Others
Region [Analysis by Value from 2019 to 2031]:
- North America
- Europe
- Asia Pacific
- The Rest of the World
Country-Wise Outlook for the Agriculture IoT Market
The agriculture IoT market is transforming rapidly as farmers increasingly embrace smart technologies in pursuit of productivity and sustainability. This transformation is characterized by sensor integration, data analytics, and connectivity solutions, enabling farmers to monitor and manage agricultural practices in real time. Changing traditional farming methods with these technologies is altering agricultural practices globally, particularly in the United States, China, Germany, India, and Japan. These changes impact data-driven decision-making, resource utilization, and address challenges related to climate change and food security.- United States: The United States leads the global market, with daily advancements in precision farming technology. Farmers can monitor real-time soil moisture levels, crop health, and current weather conditions through IoT devices. Major agricultural companies are investing in data analytics solutions to optimize yield and resource use. Additionally, government initiatives promoting sustainable farming practices are expanding IoT adoption across the industry. Both automation and smart farming technologies are enhancing efficiency and productivity standards.
- China: China is experiencing substantial growth in its agriculture IoT market. The government has promoted modernization for agricultural development, employing IoT technologies in crop management to improve food security. The increasing use of smart sensors and drones for crop condition monitoring and optimal irrigation is becoming standard practice. IoT data is being integrated into the e-commerce sector to enhance supply chain management. These innovations aim to maximize agricultural efficiency while meeting rising population demands. Digital agriculture is thus opening new investment opportunities for innovative IoT solutions from the government.
- Germany: The German agriculture IoT market is characterized by strong collaboration between technology providers and farmers. Smart farming solutions have improved productivity while ensuring sustainability. Precision agriculture technologies, such as satellite imaging and sensor networks, are employed for the in-depth collection of data on soil health and crop conditions. Eco-friendly IoT solutions are promoted through research and development initiatives that aim to minimize technology's environmental impact. This shift toward innovation and sustainability is changing the face of farming in Germany, giving the country a competitive advantage in the global market.
- India: India’s agriculture IoT market is experiencing robust growth as farmers adopt digital technologies to enhance productivity and address food insecurity. The government is introducing IoT solutions in the form of soil sensors and weather stations that provide real-time data to farmers. Innovative applications that aid in data-driven decision-making are emerging from new startups. The convergence of IoT with mobile platforms has empowered smallholder farmers to access improved market information and resources. These developments are crucial for enhancing agricultural efficiency in a country with a large rural population.
- Japan: Japan is leveraging leading IoT technologies to address farm labor shortages. Robotics and automation, combined with IoT solutions, are increasingly being implemented in Japanese farms. Intelligent sensors are used to analyze crop conditions for efficient resource use. The government actively promotes initiatives in smart agriculture that aim to increase productivity and sustainability through IoT. The emergence of collaborative agricultural cooperatives with technology companies fosters innovation in farming practices. The theme of modernization is transforming the future of Japan's agricultural sector.
Features of this Global Agriculture IoT Market Report
- Market Size Estimates: agriculture IoT market size estimation in terms of value ($B).
- Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
- Segmentation Analysis: agriculture IoT market size by various segments, such as by hardware type, farm type, farm production planning stage, application, and region in terms of value ($B).
- Regional Analysis: agriculture IoT market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
- Growth Opportunities: Analysis of growth opportunities in different hardware types, farm types, farm production planning stages, applications, and regions for the agriculture IoT market.
- Strategic Analysis: This includes M&A, new product development, and the competitive landscape of the agriculture IoT market.
- Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
This report answers the following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the agriculture IoT market by hardware type (precision farming hardware, precision livestock hardware, precision aquaculture hardware, precision forestry hardware, smart greenhouses hardware, and others), farm type (large, mid-sized, and small farms), farm production planning stage (pre-production planning, production planning, and post-production planning), application (precision farming, precision livestock, precision aquaculture, precision forestry, smart greenhouses, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and why?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
Table of Contents
1. Executive Summary
2. Global Agriculture IoT Market: Market Dynamics
3. Market Trends and Forecast Analysis from 2019 to 2031
4. Market Trends and Forecast Analysis by Region from 2019 to 2031
5. Competitor Analysis
6. Growth Opportunities and Strategic Analysis
7. Company Profiles of Leading Players
Companies Mentioned
- Ponsse
- Komatsu Forest
- InnovaSea Systems
- Steinsvik
- TeeJet Technologies
- Afimilk
- PrecisionHawk
- Hexagon Agriculture
- Farmers Edge
- Tigercat
Methodology
The analyst has been in the business of market research and management consulting since 2000 and has published over 600 market intelligence reports in various markets/applications and served over 1,000 clients worldwide. Each study is a culmination of four months of full-time effort performed by the analyst team. The analysts used the following sources for the creation and completion of this valuable report:
- In-depth interviews of the major players in the market
- Detailed secondary research from competitors’ financial statements and published data
- Extensive searches of published works, market, and database information pertaining to industry news, company press releases, and customer intentions
- A compilation of the experiences, judgments, and insights of professionals, who have analyzed and tracked the market over the years.
Extensive research and interviews are conducted in the supply chain of the market to estimate market share, market size, trends, drivers, challenges and forecasts.
Thus, the analyst compiles vast amounts of data from numerous sources, validates the integrity of that data, and performs a comprehensive analysis. The analyst then organizes the data, its findings, and insights into a concise report designed to support the strategic decision-making process.
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