Analysis by Technology (Indoor Vertical Farming, Automated Farming, Livestock Farming, Modern Greenhouse, Precision Farming, and Others); and by Application (Livestock Monitoring & Management, Indoor Farming, Aquaculture, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2022-2035
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The global smart farms market is estimated to garner a revenue of USD 71,300.2 Million by the end of 2035 by growing at a CAGR of 12.74% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of USD 15,187.2 Million in the year 2022. The growth of the market can be attribute to growing population all around the globe, hence further leading to an increase in demand for food. According to a recent United Nations assessment, the need for food to support the world's population would increase by about 49% in 2050 compared to 2012. Crop and animal production would require about 160 to 600 million additional hectares of land, the majority of which is already covered by forests and other vital ecosystems. Hence the market for smart farming is anticipated to boost over the forecast period.
However, the need for more food and agricultural land would further lead to deforestation Agricultural expansion was responsible for roughly 89% of worldwide deforestation between 2000 and 2018. This has a negative influence on related ecosystem services including carbon sequestration and biodiversity. Hence the demand for climate smart agriculture (CSA) is estimated to increase. CSA stands for a strategy that sustainably boosts productivity, improves resilience (adaptation), mitigates GHG emissions when practicable, and helps meet development and food security goals. It enables those in charge of agricultural systems to react to CC (climate change) effectively. The CSA reduces GHG emissions where possible, adapts to CC (climate change), and sustainably boosts productivity and incomes without destroying trees. Hence this factor is anticipated to boost the market growth.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
12.74% |
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Base Year Market Size (2022) |
USD 15,187.2 Million |
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Forecast Year Market Size (2035) |
USD 71,300.2 Million |
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Regional Scope |
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Growth Drivers
The adoption of numerous software and hardware applications in the farming business is aided by the expanding use of smartphones in agriculture. Additionally, an increase in smartphone usage is a result of telecom providers' deeper penetration into the agriculture sector, which enables the development of extensive linkages between different users to offer value-added services to prospective clients. As a result, the market for smart agriculture is able to generate more revenue. A survey of about 576 farming homes found that approximately 97% of participants own a mobile phone. About 24 percent of users obtain information about farming and livestock, more than 22 percent find information about buying and selling goods, and about 17 percent get alerts.
By 2050, the demand for food is anticipated to rise globally by about 69%.
Microsoft and the Indian government have teamed up to support India's small-holder farmers. The alliance aims to boost farmers' incomes through improved price management and increased agricultural yield using AI sensors. The collaboration would accelerate the use of AI in farming.
Ag Leader Technology improved its InCommand displays in November 2020 and announced the addition of guiding and steering solutions with year-round precision farming to its lineup.
In India's agriculture industry, there are currently about 999 aerial vehicles in use.
Challenges
The global smart farms market is segmented and analyzed for demand and supply by technology into indoor vertical farming, automated farming, livestock farming, modern greenhouse, precision farming, and others. Out of which, the precision farming segment is anticipated to garner the largest revenue of USD 35,573.9 Million by the end of 2035, up from a revenue of USD 6,617.4 Million in the year 2022. Further, this segment is expected to grow at a highest CAGR of 13.91% over the forecast period, backed by growing deforestation which is further boosting the need for climate smart agriculture (CSA). Agriculture is one of the main causes of deforestation. About 89% of global deforestation is attributable to the extension of farmland, which includes the planting of crops for human and animal use as well as the removal of forests for animal grazing. Grazing alone is responsible for approximately 39% of deforestation. Additionally, growing population could be also the driving factor for the growth of the segment as population are demanding more food. Hence to satisfy human food demand by causing least harm to the environment the adoption of precision farming is expected to boost.
The global smart farms market is also segmented and analyzed for demand and supply by application into livestock monitoring & management, indoor farming, aquaculture, and others. Amongst these, the livestock monitoring & management segment is estimated to garner the largest market revenue of USD 31,470.6 Million by the end of 2035, up from a revenue of USD 5,796.8 Million in the year 2022. Further, the segment is estimated to grow at a highest CAGR of 14.00% over the forecast period, backed by growing demand for livestock products, along with growing government initiatives in order to support livestock farmers. Further government are also encouraging livestock farmers to adopt technology, such as livestock monitoring systems in order to meet the growing demand for livestock products. For instance, sensors could be used by farmers to track location and motion of livestock as well as to keep an eye on their behavior and health. By using this information, pasture management, nutrition, and any emerging health problems may all be optimized. Intelligent ear tags could follow specific animals, keep track of their movement, and even check their body temperatures. Drones could track and count cattle in wide fields, while cameras and other imaging technology could be used to assess a herd's general health. The delivery of food, water, and veterinary care to animals may all be managed and automated with the use of smart farming technologies.
Our in-depth analysis of the global smart farms market includes the following segments:
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By Technology |
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By Application |
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The North American smart farms market, amongst the market in all the other regions, is projected to hold the largest market revenue of USD 29,418.5 Million by the end of 2035, up from a revenue of USD 6,129.6 Million in the year 2022. The growth of the market in this region can be attributed to increasing number of US-based market suppliers and significant technological investment made by North American farmers. Additionally, rising government measures to boost the growth of agriculture sector in the region is largely responsible for the growth of the region smart farming market over the forecast period. Also, availability of large number of agriculture land is also estimated to boost the growth of the market in this region. In 2020, the USDA-NASS 2021 study estimates that 363 million hectares, or 37% of the country's total land area, was used for agricultural production, with more than 2 million open-field farms in operation.
However, the market in APEJ region is estimated to grow at the highest CAGR of 15.59% over the forecast period, backed by rising adoption of smart factory techniques, which includes technologically advanced and smart irrigation controllers along with AI-based land analytics services, in countries such as China and India. Additionally, there has been growing agritech startups which is also estimated to boost the market growth in this region. For instance, there are over 450 agritech firms in India, according to the Federation of Indian Chambers of Commerce & Industry (FICCI), and they are expanding at a 25% yearly pace. These agritech startup usually adopt precision farming hence further boosting the market growth
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global smart farms market that are included in our report are, Ag Leader Technology, AGCO Corporation, AgJunction LLC, Autonomous Solutions, Inc., Argus Embedded Systems Pvt. Ltd, CropMetrics, Deere & Company, DeLaval, Trimble Inc., Topcon, and others.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The major factors driving the growth of the market are growing adoption of smartphones in agriculture, rise in demand for food supply, surge in government initiatives to promote smart farming, and others.
Ans: The market is anticipated to attain a CAGR of 12.74% over the forecast period, i.e., 2023 – 2035.
Ans: Growing environmental concerns, difficulty in managing enormous amounts of data to make effective decisions, and high initial cost of autonomous equipment used in farms are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Ag Leader Technology, AGCO Corporation, AgJunction LLC, and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by technology, application, and by region.
Ans: The precision farming segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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