IoT in Agriculture Market Size By Offering (Hardware, Software), By Application (Precision Farming, Livestock Monitoring), By Geographic Scope And Forecast

IoT in Agriculture Market Size And Forecast

IoT in Agriculture Market size was valued to be USD 16.38 USD Billion in the year 2024 and it is expected to reach USD 33.43 Billion in 2031, at a CAGR of 10.29% % over the forecast period of 2024 to 2031.

• The IoT (Internet of Things) in Agriculture market involves the integration of various IoT technologies and devices into agricultural practices aimed at enhancing productivity, efficiency, and sustainability. This market encompasses interconnected sensors, devices, and software applications that collect, analyze, and utilize data to optimize agricultural operations.
• In Agriculture, IoT enables the monitoring and management of various aspects of operations, such as soil moisture, weather conditions, livestock health, and crop growth. By providing real-time insights and facilitating data-driven decision-making, IoT technologies assist farmers in optimizing resource utilization, waste reduction, and overall agricultural yields.
• The applications of IoT in Agriculture are wide-ranging, spanning from precision farming and livestock monitoring to smart greenhouses and agricultural drones. IoT-enabled devices and systems aid farmers in making more informed decisions, automating routine tasks, and enhancing overall operational efficiency.

Global IoT in Agriculture Market Dynamics

The key market dynamics that are shaping the IoT in Agriculture market include

Key Market Drivers

• Increasing Need for Efficient and Sustainable AgricultureThe demand for more efficient and sustainable agricultural practices is being driven by the growing global population and the imperative to ensure food security. Agriculture can be made more sustainable through the optimization of resource utilization, waste reduction, and overall productivity improvement, all facilitated by IoT technologies.
• Advancements in Sensor TechnologyThe IoT in Agriculture market has been significantly influenced by the development of low-cost, high-precision sensors. These sensors, capable of accurately measuring and monitoring various environmental factors, crop and livestock health, and other critical parameters, provide valuable data for informed decision-making.
• Rising Adoption of Precision FarmingPrecision farming, which utilizes advanced technologies like GPS, drones, and AI, is gaining momentum in the agricultural sector. IoT-enabled precision farming solutions assist farmers in optimizing inputs, reducing waste, and enhancing crop yields, thereby propelling the adoption of IoT technologies in agriculture.
• Increasing Demand for Real-Time Data and AnalyticsReal-time insights and data-driven decision-making capabilities are increasingly sought after by farmers and agricultural organizations to improve their operations. IoT in Agriculture offers access to real-time data on soil moisture, weather conditions, pest infestations, and other factors, enabling better-informed decision-making and proactive management of agricultural activities.
• Growing Emphasis on Automation and RoboticsAgricultural practices are transforming through the integration of automation and robotics, facilitated by IoT technologies. Automated systems for tasks such as irrigation, spraying, and harvesting can boost efficiency, cut labor costs, and enhance overall productivity in the agricultural sector.
• Government Initiatives and Supportive PoliciesGovernments across various regions are rolling out policies and incentives to encourage the adoption of IoT and smart agriculture technologies. They recognize the potential of these technologies to improve food security, sustainability, and rural development.

Key Challenges

• High Initial Investment and Deployment CostsThe implementation of IoT technologies in agriculture often necessitates significant upfront investments in hardware, software, and infrastructure. Costs associated with sensors, connectivity devices, and data analytics platforms can present a barrier, particularly for small-scale farmers with limited resources.
• Connectivity and Data Integration ChallengesWidespread adoption of IoT in Agriculture faces challenges in ensuring reliable and consistent connectivity, especially in remote agricultural areas. Seamlessly integrating data from various IoT devices and legacy systems is crucial but can be complex and costly.
• Cybersecurity and Data Privacy ConcernsConcerns regarding cybersecurity risks and the protection of farmer and farm data are growing as IoT devices collect and transmit sensitive agricultural data. Addressing these concerns about data privacy and security is vital for fostering trust and wider acceptance of IoT technologies in the agricultural sector.
• Fragmented and Diverse Agricultural LandscapeThe agricultural sector exhibits high fragmentation, characterized by varying farm sizes, crop types, and regional disparities. Developing IoT solutions capable of catering to this diverse landscape and offering customized, scalable services poses a significant challenge for technology providers.
• Lack of Digital Literacy and Technology AdoptionMany farmers, particularly those in developing regions, may exhibit limited digital literacy and resistance to adopting new technologies. Overcoming this challenge necessitates comprehensive training, support, and demonstration of the tangible benefits of IoT in Agriculture.
• Regulatory and Policy ConsiderationsThe regulatory landscape concerning data privacy, intellectual property rights, and the use of emerging technologies in agriculture can vary widely across regions. Navigating these regulatory complexities and ensuring compliance can present challenges for IoT solution providers and farmers.

Key Trends

• Livestock Health and Welfare Monitoring FocusDeployment of IoT-enabled solutions is underway for monitoring the health, behavior, and well-being of livestock. Utilization of wearable sensors, GPS tracking, and advanced analytics allows for early detection of illness, optimization of feeding and breeding practices, and enhancement of overall livestock management.
• Smart Greenhouses and Urban Farming GrowthIoT technologies are facilitating the development of smart greenhouses and urban farming solutions. These technologies optimize growing conditions, automate irrigation processes, and remotely monitor plant and environmental parameters. The driving force behind this trend is the imperative for sustainable and efficient food production, particularly in constrained urban spaces.
• Emergence of Agriculture-focused IoT PlatformsA trend is emerging towards the development of integrated IoT platforms tailored specifically for the agricultural sector. These platforms offer a comprehensive suite of IoT applications, encompassing remote monitoring, predictive analytics, and farm management tools, to address the unique requirements of farmers and agricultural businesses.
• Utilization of Satellite and Drone-based ImageryIntegration of IoT sensors with satellite or drone-based imagery is enabling advanced precision farming techniques such as field mapping, crop monitoring, and yield forecasting. This amalgamation of diverse data sources provides farmers with a more holistic view of their operations, leading to informed decision-making.
• Renewable Energy and Sustainable Practices AdoptionIoT technologies are being utilized to promote the adoption of renewable energy sources like solar and wind power in agricultural operations. This trend is aligned with the broader focus on sustainability and reducing the environmental footprint of agricultural practices.

Global IoT in Agriculture Market Regional Analysis

Here is a more detailed regional analysis of the IoT in Agriculture market

Asia Pacific

• The largest market share in the global IoT in Agriculture market is currently held by the Asia Pacific region.
• Factors contributing to the dominance of the Asia Pacific region include its substantial agricultural workforce, increasing adoption of smart farming practices, and government initiatives promoting the utilization of IoT technologies in the agricultural sector.
• Countries such as China, India, and Japan are leading the adoption of IoT in Agriculture in the region, spurred by the imperative to enhance crop yields, optimize water usage, and mitigate labor shortages in the agricultural sector.

Europe

• The European region is currently experiencing rapid growth in the IoT in Agriculture market, with increasing emphasis on sustainable and precision farming practices driving this trend.
• The growth in the European region is supported by various government initiatives and funding programs aimed at promoting the adoption of advanced technologies, including IoT, in the agricultural sector.
• IoT in Agriculture adoption is led by countries such as the United Kingdom, Germany, and France, where farmers and agricultural organizations actively implement these technologies to enhance productivity and environmental sustainability.
• According to a report by the Food and Agriculture Organization (FAO), significant pressure is expected to be exerted on the agricultural sector to increase food production, as the global population is projected to reach 9.7 billion by 2050. The adoption of IoT technologies in agriculture is viewed as a crucial strategy to meet this growing demand for food sustainably.

Global IoT in Agriculture Market Segmentation Analysis

The IoT in Agriculture Market is Segmented based on Offering, Application, And Geography.

IoT in Agriculture Market, By Offering

• Hardware
• Software
• Services

Based on Offering, the IoT in Agriculture market is segmented into Hardware, Software, and Services. Hardware accounted for the largest market share in the global IoT in Agriculture market. The adoption of various hardware components, such as sensors, monitoring devices, and connectivity solutions, is driving the growth of this segment. These hardware devices play a crucial role in collecting data from agricultural fields, greenhouses, and livestock operations, enabling real-time monitoring and analysis. The growing need for precise and efficient data collection, coupled with the increasing availability of cost-effective hardware solutions, has fueled the demand for IoT hardware in the agriculture sector. This trend reflects the industry’s shift towards data-driven decision-making and the integration of advanced technologies to optimize agricultural practices, enhance productivity, and promote sustainable farming methods.

IoT in Agriculture Market, By Application

• Precision Farming
• Livestock Monitoring
• Smart Greenhouse
• Fish Farm Monitoring
• Others

Based on Application, the IoT in Agriculture market is segmented into Precision Farming, Livestock Monitoring, Smart Greenhouse, Fish Farm Monitoring, and Others. Precision Farming accounted for the largest market share in the global IoT in Agriculture market. The adoption of precision farming techniques, enabled by IoT technologies, has revolutionized agricultural practices. By leveraging sensors, drones, and data analytics, farmers can optimize resource utilization, monitor crop health, and make data-driven decisions. Precision farming allows for targeted application of water, fertilizers, and pesticides, leading to increased yields, reduced waste, and improved sustainability. This trend reflects the industry’s focus on maximizing efficiency, reducing environmental impact, and enhancing productivity through the integration of advanced IoT solutions in agricultural operations.

IoT in Agriculture Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

Based on Geography, the Global IoT in Agriculture Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. The Asia Pacific region held the largest market share in the IoT in Agriculture market and is expected to maintain its dominance throughout the forecast period. This dominance is attributable to the increasing population and consequent surge in food demand in the region. Moreover, government initiatives to leverage remote sensing technology and satellite data to monitor agricultural conditions across different regions are expected to drive demand growth. The adoption of IoT solutions in agriculture is being driven by the need to enhance productivity, optimize resource utilization, and ensure food security for the burgeoning population in the Asia Pacific region.

Key Players

The “IoT in Agriculture Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Deere & Company (US), Trimble (US), Raven Industries (US), AGCO Corporation (AGCO) (US), AgJunction Inc. (AgJunction) (US), DeLaval (Sweden), GEA Farm Technology (Germany), Lely (Netherlands), Antelliq (France), Trimble inc., TOPCON CORPORATION (Japan) and AG Leader Technology (AG Leader) (US). 

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

IoT in Agriculture Market Recent Developments

• In December 2020, Trimble Inc. bought Midstates VRS, a network previously owned by Butler Machinery and Frontier Precision. Trimble’s VRS Now® GNSS connections now have a larger footprint as a result of this acquisition. Trimble VRS now covers more than 1 million square miles in North America as a result of this acquisition. This purchase is excellent for providing precision agriculture with a high-performance GNSS system.
• In September 2020, Deere & Company bought Unimil (Brazil), a Brazilian producer of sugarcane harvester aftermarket parts. The company made investments in the Brazilian market as a result of this acquisition, which will help customers in Brazil lower their sugarcane production costs. Deere would also be able to offer a broader range of parts with more cost-effective options for consumers as a result of this acquisition.
• In July 2020, To expand its product portfolio, DeLaval purchased Milkrite |InterPuls (UK), a milking point solution provider to dairy producers. After the acquisition, Milkrite|InterPuls would continue to operate independently.
• In June 2020, Merck Animal Health, Allflex’s parent business, bought Quantified Ag. (US). Quantified Ag is a data and analytics company that specializes in animal health monitoring. Farmers will benefit from this deal because it will provide them with complementary products from both companies, as well as real-time information.
• In January 2020, Newfoundland Aqua Service Ltd (NAS), a significant provider of fish farming services in Newfoundland and Labrador, was bought by the AKVA group in January 2020. NAS produces fish cages, docks, boats and barges, and nets, as well as provides a variety of services such as on-land net cleaning and disinfection, net fabrication, testing, mending/repair, and antifoulant treatment. The corporation hopes to enhance its regional presence in this region with this acquisition.

Report Scope

Research Methodology of Market Research