Connected Agriculture Market Size, Share & Segmentation By platforms (Device Management, Application Enablement, Connectivity Management), By Component (Solution, Services), By services (Consulting, Integration and Implementation, Support and Maintenance), By Application (Pre-Production Management, In-Production Management, Post-Production Management), By Region and Global Forecast 2023-2030

Connected Agriculture Market Report Scope & Overview:

Connected Agriculture Market size was valued at USD 3.78 billion in 2022 and is expected to grow to USD 15.16 billion By 2030 and grow at a CAGR of 18.96 % over the forecast period of 2023-2030.

Connected agriculture refers to the utilization of modern technology to enhance, manage, and regulate farming processes, ultimately leading to increased agricultural product production and quality. With the advent of digital technology, the collection and analysis of vast amounts of data has become more accessible and cost-effective. This development has the potential to revolutionize farming operations by providing real-time insights into soil conditions, moisture levels, and weather patterns. The primary objective of connected agriculture is to provide farmers, agribusinesses, fertilizer companies, and food and beverage companies with real-time data that can be used to connect with potential buyers, traders, and sellers. By leveraging this data, stakeholders in the agricultural industry can make informed decisions that lead to increased productivity and efficiency. connected agriculture represents a significant step forward in the evolution of farming practices. By embracing modern technology and leveraging data-driven insights, the agricultural industry can unlock new levels of productivity and profitability.

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Market Dynamics

Drivers

• Farmers are increasing their use of smartphones and the internet in order to boost the market.

• Growing emphasis on agricultural farming will boost market expansion.

Connected agriculture enables farmers to maximize crop production while reducing expenses and effort associated with traditional agricultural methods. Connected agriculture boosts production by allowing farmers to properly invest time and money in the right mix to evaluate optimum planting density, estimate fertilizers, and anticipate crop yields. Farmers currently rely on the most recent agricultural advancements, such as the usage of cell phones and other linked gadgets. Advanced connected technologies such as low power wide area (LPWA), Zigbee, WiFi, and new wireless sensor technologies aid farmers in the planning and execution of different agricultural activities such as purchasing supplies, inventory control, timely planting and harvesting, and so on.

Restrains

• High capital investment is required to build linked agricultural infrastructure.

Opportunities

• Mobile technology integration in agricultural operations.

• Governments are taking initiatives and R&D activities for adopting technologies in agriculture.

Challenges

• End-users lack of knowledge

Farmers are unaware of the benefits of embracing linked agriculture technologies. The majority of farmers in underdeveloped nations still use conventional agricultural practices. They are unaware of technical advancements in the agricultural industry. Farmers find it challenging to implement sophisticated technology for linked agriculture solutions. This creates a technology divide and makes understanding the principles and advantages of linked agriculture challenging for farmers. There is a disconnect between connected agricultural service providers and farmers, which is caused by vendors' incapacity to reach farmers. Farmers in developing nations, in particular, confront this difficulty since they are still dealing with basic requirements such as energy and water scarcity. Governments and market participants throughout the world are taking steps to give farmers training and consulting in order to address this issue; yet, many farmers remain beyond the scope of such efforts. Many developing nations are investing in teaching and informing their agricultural populations about the benefits of linked agriculture solutions and services in order to address this difficulty. Furthermore, further support from social bodies to elevate the degree of knowledge among farmers on how to increase farm production and improve farm operations efficiency will help empower agriculture stakeholders.

Impact of the Russia-Ukraine War

The war has resulted in the disruption of transportation networks and logistical challenges, making it difficult for farmers to access necessary resources and technologies. Connected Agriculture relies heavily on efficient supply chains to deliver inputs such as sensors, drones, and other connected devices to farmers. Disruptions in the supply chain can lead to delays, increased costs, and limited availability of these technologies. The conflict has created a climate of instability and uncertainty in the region, which can deter investments in agricultural technologies. Businesses may be hesitant to invest in Connected Agriculture solutions in areas affected by the war due to concerns about the safety of their investments and the long-term viability of the market. The war has caused infrastructure damage, including damage to agricultural facilities, communication networks, and power grids. Connected Agriculture relies on robust infrastructure, such as internet connectivity and reliable power supply, to function effectively. Infrastructure damage can hamper the implementation and adoption of connected technologies, limiting their potential impact on agricultural productivity. During times of conflict, governments often allocate resources and prioritize sectors such as defense and security over other areas, including agriculture. This shift in priorities can lead to reduced investments and support for Connected Agriculture initiatives. Government funding and assistance programs that were previously available for the adoption of connected technologies in agriculture may be diverted to address more immediate needs arising from the war. The Russia-Ukraine war has had broader economic implications, including currency devaluation, inflation, and reduced foreign investment. These factors can negatively affect farmers' purchasing power and willingness to invest in expensive technologies. As a result, the adoption of Connected Agriculture solutions may slow down or face resistance due to financial constraints.

Impact of the Recession

During a recession, investors and venture capitalists tend to become more risk-averse, leading to a decline in available funding for startups and companies in the Connected Agriculture Market. This can hamper the development of new technologies, slow down innovation, and limit expansion opportunities for existing players. Connected Agriculture technologies, such as Internet of Things (IoT) devices, precision farming solutions, and data analytics platforms, often require substantial investments from farmers and agricultural organizations. In times of economic uncertainty, these stakeholders may be more hesitant to invest in new technologies, leading to a slower adoption rate of connected agricultural solutions. Governments and public institutions play a crucial role in promoting and supporting connected agriculture initiatives through policies, subsidies, and research funding. However, during a recession, governments often face budgetary constraints and may need to prioritize other sectors over agricultural investments, which could slow down the growth and adoption of connected agriculture technologies. In times of economic downturn, farmers may prioritize cost-saving measures and focus on traditional farming practices rather than investing in new technologies. They may be more concerned with immediate financial stability and may delay or forgo investments in connected agriculture solutions until economic conditions improve. Recessionary periods can lead to changes in consumer behavior and reduced purchasing power, which may affect the demand for agricultural products. Fluctuations in demand can impact the supply chain and the need for connected agriculture technologies to optimize production, logistics, and distribution.

Key Market Segmentation:

The Connected Agriculture Market is segmented into four types on the basis of By platforms, By Component, By services, and By Application.

By platforms

• Device Management

• Application Enablement

• Connectivity Management

By Component

• Solution

• Services

By services

• Consulting

• Integration and Implementation

• Support and Maintenance

By Application

• Pre-Production Management

• In-Production Management

• Post-Production Management

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Regional Analysis

During the forecast period, North America is expected to have the highest share of the connected agricultural market. The presence of major companies focusing on linked agriculture solutions, growing technology breakthroughs, and increased usage of agricultural drones are driving market expansion in North America.  Aside from that, several government efforts have been launched in emerging nations such as the United States and Canada to encourage the adoption of modern agricultural technology, which has boosted North America's connected agriculture market growth. Furthermore, sophisticated technologies like as the Internet of Things (IoT), Artificial Intelligence (AI), big data, data analytics, and predictive analytics are projected to considerably contribute to the region's connected agricultural market growth throughout the forecast period.

During the forecast period, Asia Pacific is expected to be the fastest-growing region in the worldwide connected agricultural market. Asia Pacific is a critical region in the global food chain economy, accounting for the majority of food and agricultural exports. Countries in the area, including China, Japan, and India, are adopting connected agriculture technologies in order to make better use of existing resources. Governments and corporate organizations are continually attempting to improve agricultural land production and efficiency through automation, the use of modern technology, and the use of fewer pesticides. Because of increased investments in linked infrastructure, digital farming practices, and the use of cloud-based solutions, the area is likely to create attractive development possibilities for connected agricultural suppliers.

REGIONAL COVERAGE:

North America

• USA

• Canada

• Mexico

Europe

• Germany

• UK

• France

• Italy

• Spain

• The Netherlands

• Rest of Europe

Asia-Pacific

• Japan

• South Korea

• China

• India

• Australia

• Rest of Asia-Pacific

The Middle East & Africa

• Israel

• UAE

• South Africa

• Rest of the Middle East & Africa

Latin America

• Brazil

• Argentina

• Rest of Latin America

Key Players:

The major players are Ag Leader Technology, AT&T, IBM, Orange Business Services, Decisive Farming, Accenture, Microsoft, SatSure, Iteris, Gamaya, LINK LABS., Deere & Company, SAP SE, Oracle, Trimble SMAG, Cisco, and others in the final report.

Accenture-Company Financial Analysis

Recent development

Automat, a pioneering project to provide cutting-edge technology to Indian farmers, will showcase five new smart irrigation solutions for Rajasthan farmers at its UDGHOSH event in August 2022. Automat is a manufacturer of irrigation sprinklers, filtration equipment, and fertilization equipment based in India.

Through strategic cooperation with EZ-Drops, a manufacturer of cutting-edge agricultural equipment, AGCO Corporation will debut a new fertilizer supply system for its dealers in North America in 2021. AGCO's RoGator dealers provided customized nutrition application system installations. This technique helped farmers reduce excessive nitrogen spraying, which reduces agricultural profitability.