Agriculture Gateway Market - By Component (Hardware, Software, Service) By Connectivity (Wired, Wireless), By Deployment Model (Cloud-based, On-premises), By Technology, By Application, By End User & Forecast, 2024 - 2032

Agriculture Gateway Market - By Component (Hardware, Software, Service) By Connectivity (Wired, Wireless), By Deployment Model (Cloud-based, On-premises), By Technology, By Application, By End User & Forecast, 2024 - 2032

Agriculture Gateway Market Size

Agriculture Gateway Market was valued at USD 2.4 billion in 2023 and is estimated to register a CAGR of over 10.4% between 2024 and 2032. The growth of the market is driven by multiple factors such as increasing demand for precision agriculture, government initiatives supporting the technology adoption in agriculture, and investments by companies and different end-users.

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The need to optimize agricultural processes and enhance productivity has led to the widespread adoption of precision agriculture. This involves the use of AI technologies, drones, sensors, and IoT devices to monitor and manage agricultural operations precisely. These technologies enable farmers to make data-informed decisions, improving resource allocation and crop yields while reducing environmental impacts. For instance, in January 2024, Advantech expanded its IoT solutions for smart agriculture, integrating AI-driven analytics to enhance farm management efficiency.
 

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Globally, many governments are focused on investing in agriculture to improve food security and rural livelihoods which drives the growth of the market. Continuous innovations in agritech, including the development of driverless tractors, precision irrigation systems, and advanced sensor technologies, are revolutionizing traditional farming methods. Also, there is a growing demand for food with the increase in population across the globe. Agriculture gateway platforms can help farmers meet this demand by connecting them with new markets and buyers. These platforms help farmers improve their farm management practices by providing them with access to data and analytics tools. For instance, in February 2024, Cisco launched a new suite of smart agriculture solutions focusing on connectivity and data management to optimize farm operations. With the launch of the new suite, Cisco has integrated its capabilities in the smart agriculture sector.

The agriculture gateway market faces numerous challenges such as connectivity issues and technical complexities, regulatory and compliance hurdles. Many rural and agricultural areas lack reliable internet connectivity, which is crucial for the effective use of IoT devices and smart farming solutions. This limits the effectiveness and reach of these technologies. In addition, the complexity of setting up and managing IoT systems and integrating various technologies can be overwhelming for farmers. This requires a level of technical expertise that is not always available, leading to potential operational challenges. Further, the agriculture sector faces various regulatory requirements that can hinder the adoption of new technologies. Compliance with these regulations can be time-consuming and costly, creating barriers to innovation and hindering the growth of the market.

Agriculture Gateway Market Trends

There is a growing trend towards digital agriculture, utilizing IoT devices to collect real-time data on soil conditions, crop health, and environmental factors. This data helps in precision farming, enabling farmers to make data-driven decisions, optimize resource use, and improve crop yields. The use of drones, robotic harvesters, and advanced sensors is revolutionizing field management. These technologies provide precise monitoring and control, allowing for targeted interventions and better resource management.

In addition, there is a growing emphasis on sustainable farming practices. Technologies that support regenerative agriculture, such as no-till farming and adaptive grazing, are being adopted to enhance soil health, biodiversity, and ecosystem resilience. Digital twins and AI are being used to create virtual models of farming environments, which help in predicting real-world outcomes and optimizing farming practices. These technologies offer significant improvements in agronomical research and decision-making, allowing farmers to anticipate crop needs and environmental impacts. With the growing smartphone penetration in rural areas, agriculture gateways are being optimized for mobile devices, allowing farmers to access crucial information and manage operations in a more convenient manner.

Agriculture Gateway Market Analysis

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Based on connectivity, the market is divided into wired and wireless. In 2023, the wireless segment held approximately USD 1.6 billion. Wireless technologies such as Wi-Fi, LoRaWAN, and ZigBee offer advantages such as ease of installation, flexibility, and scalability. These technologies support a wide range of applications including remote monitoring of soil moisture, weather conditions, and crop health, which are critical for precision agriculture?. Many governments are recognizing the potential of smart agriculture and investing in programs that promote the adoption of wireless connectivity solutions in farms. This includes subsidies and grants for farmers to implement these technologies.

Innovations in wireless communication protocols and the development of robust IoT platforms have made it easier to deploy and manage large networks of connected devices in agricultural settings. For instance, in January 2024, Deere & Co. announced a strategic partnership with SpaceX's Starlink to provide satellite-based internet connectivity to its machines. This initiative aims to enhance connectivity in rural areas, allowing farmers to fully utilize precision agriculture technologies and improve overall operational efficiency?.

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Based on the deployment model, the agriculture gateway market is categorized into cloud-based, and on-premises. The cloud-based segment is expected to hold over USD 4.7 billion by 2032. The growth is driven by factors such as data integration and analysis, scalability, accessibility, cost, and environmental benefits. Cloud computing enables the integration and analysis of vast amounts of data from various sources, including sensors, weather stations, and satellite imagery. This allows for real-time monitoring and decision-making, which is critical for precision agriculture.

By leveraging cloud-based systems, farmers can reduce the need for physical infrastructure and on-site IT support, eventually reducing overhead costs. Cloud-based agriculture solutions contribute to sustainable farming practices by minimizing waste and optimizing resource use. This technology helps in reducing the environmental footprint and also aligns with increasing regulatory and consumer demands for sustainable agriculture. These solutions offer scalability, allowing farmers to adjust their usage based on the size and needs of their operations.  For instance, in May 2024, Fiware Foundation partnered with multiple agri-tech startups to develop open-source platforms for agricultural data interoperability and scalability. The partnerships were aimed at the growth of operational efficiency for SMEs in the market. Owing to the partnerships, the Fiware Foundation is expected to reach out to wider companies.

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In 2023, North America dominates the agriculture gateway market with around 31% of the market share. Countries such as the U.S., and Canada boast well-established agricultural sectors with large-scale farms that have the capital and resources to invest in new technologies such as agriculture gateways. In addition, the farmers in North America are generally more receptive to adopting new technologies compared to their counterparts in other regions. This openness to innovation fuels the growth of the market. Further, the concept of precision agriculture, which uses technology for targeted interventions in farming, is gaining traction in the region. Consumers in the region are increasingly demanding safe and high-quality food products. For instance, in April 2024, Digi International unveiled a new line of IoT gateways for agriculture, supporting remote monitoring and data collection for precision farming.

The CAP (Common Agricultural Policy) prioritizes sustainability and innovation in European agriculture. This includes funding initiatives that promote the use of digital technologies such as agriculture gateways, encouraging farmers to adopt these solutions. consumers increasingly demand transparency in their food supply chain. Agriculture gateways can help in achieving these goals and attain significant growth in the region.

Asia-Pacific is home to a vast and growing population of farmers. Agriculture gateways offer solutions to help these farmers optimize resource usage and improve yields, even with limited land and resources. Governments in the region are increasingly focused on recognizing the potential of smart agriculture. They are constantly investing in programs that promote the adoption of digital technologies in farming. Further, water scarcity is a major concern in many parts of Asia-Pacific. The agriculture gateways help farmers use water more efficiently through data-driven irrigation systems which drives the growth of these solutions in the region.

Agriculture Gateway Market Share

Cisco Systems, Inc. is a prominent player in networking and cybersecurity solutions, playing a pivotal role in the market through its advanced technology offerings. The company provides essential tools for smart farming with its robust networking infrastructure, which includes IoT connectivity solutions, edge computing platforms, and comprehensive cybersecurity measures. Its IoT products enable seamless connectivity for agricultural sensors, drones, and smart irrigation systems, while edge computing solutions help process data in real-time to enhance farm operations.

Deere & Co. (John Deere) is a manufacturer of agricultural machinery and precision farming technologies, significantly influencing the agriculture gateway industry. John Deere’s extensive product range includes high-performance tractors, combine harvesters, and advanced planting and seeding equipment designed to boost farm productivity. The company’s Precision Ag technologies, such as GPS-guided systems and data analytics platforms, enable farmers to optimize crop management and enhance field operations.

Agriculture Gateway Market Companies

Major players operating in the agriculture gateway industry are

• Advantech Co. Ltd
• Cisco Systems, Inc
• Deere & Co
• Huawei Technologies Co. Ltd
• Kerlink
• Libelium Comunicaciones Distribuidas S.L
• SensoTerra
• Telit Cinterion
• Ubidots

Agriculture Gateway Industry News

• In June 2024, Huawei launched an AI-powered platform for smart farming, leveraging its cloud infrastructure to provide real-time agricultural insights.
• In February 2024, Libelium released a comprehensive sensor network for soil and crop monitoring, aiming to increase yield through precise environmental data.

The agriculture gateway market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2032, for the following segments

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Market, By Component

• Hardware
  • Sensors
  • Actuators
  • Others
• Software
  • Analytics
  • Control systems
  • Data management
• Service
  • Managed
  • Professional

Market, By Connectivity

• Wired
• Wireless

Market, By Deployment Model

• Cloud-based
• On-premises

Market, By Technology

• IoT solutions
• Artificial Intelligence and Machine Learning
• Big data analytics
• Others

Market, By Application

• Precision Farming
• Livestock Monitoring
• Smart Irrigation
• Others

Market, By End-user

• Research institutes
• Government agencies
• Farmers
• Agricultural cooperatives
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA