Technology Penetration in Agri Domain to Drive Smart Agriculture Market Growth
Pervasiveness of technology has not left any industry untouched and agriculture is no exception. Significant increase in the adoption of new age technology such as Internet of Things (IoT) and artificial intelligence (AI) by farmers coupled with growing focus on livestock monitoring and detection of diseases in a bid to enhance farming efficiency continue to influence the growth of the smart agriculture market and various smart agriculture techniques. Moreover, macroeconomic factors such as shrinking arable land, rising focus on reducing Green House Emissions (GHG), burgeoning population worldwide and growing dependence on agriculture products to reduce rising starvation issue is expected to fuel demand for smart agriculture practices.
For instance, according to UN FAO 2020 report, if existing agriculture production trends continue, the number of hunger afflicted individuals would surpass 840 million by end of 2030 in turn adding extra pressure on the agriculture industry. This has translated in a huge opportunity for technology providers to scale their IT services in the agriculture domain by offering support for new technologies surrounding robotics, cloud-based, AI sensors and RFID tags using IoT. Such activities are also promoted by governments to encourage the adoption of technology in the agriculture industry. For instance, Indian government partnered with Microsoft to empower small scale farmers in India to optimize crop yield through AI sensors. Microsoft has been working with state governments, farmers and MeitY (Ministry of Electronics and Information Technology) along with Ministry of Agriculture and Farmers Welfare in a bid to develop an AI ecosystem in farming. Rising penetration of technology supported by government initiatives is expected to drive the demand for smart practices in agriculture, in turn contributing to the smart agriculture market growth.
5G to Create and Impactful Opportunistic Scenario in the Smart Agriculture Market
With 5G rolling out worldwide, the cellular technology with high bandwidth is expected to make a significant impact on smart agriculture or ag-tech. Smart agriculture primarily focuses on maximizing food production by providing farmers with data that can be leveraged to make informed business decisions. Using 5G technology, agri businesses through IoT can glean data remotely and carry out effective equipment management. Trending 5G can enable new applications by replacing short range ones. 5G is likely to create new opportunities in the smart agriculture market as it can facilitate data aggregation, predictive analytics, animal monitoring and tracking, video-equipped drone operations, and monitoring of autonomous vehicles in agriculture practices.
Precision Farming to Largely Contribute Towards Growth of Global Smart Agriculture Market
Increasing precision farming practices are expected to account for a significant share in fuelling growth of the smart agriculture market. Precision farming focuses on enhancing accuracy of agricultural practices and inputs by relating them to agro-climatic conditions and crop. Perceived benefits of precision farming such as agriculture productivity enhancement, prevention of soil degradation in cultivable lands, effective use of water resources and reduction in the agricultural production costs have fuelled its adoption worldwide, consequently complementing the smart agriculture market growth.
North America to Maintain Status Quo as Dominating a Region; APAC to Remain Lucrative for Smart Agriculture Market
Developed economies in North America are expected to cement dominance in the smart agriculture market on the back of various technology-related and macroeconomic factors. The increasing GDP per capita coupled with growing technology start-ups in the region has paved new pathways for smart agriculture. Moreover, agricultural organizations have collaborated with each other to form North America Climate Smart Agriculture Alliance (NACSAA) that is solely focused on educating cultivators to enhance agricultural productivity, which is expected to bolster growth of the smart agriculture market in the region.
On the other hand, Asia Pacific is poised to showcase higher lucrativeness apropos to adoption of smart agriculture practices. Albeit being in the nascent stage, smart agriculture has gained significant traction in the region backed by favourable government support. For instance, ministry of agriculture in Japan is supporting smart agriculture by providing funds for precision farming. Similarly, various initiatives are carried out by Indian government to support smart agriculture. Few such initiatives influencing the growth of the smart agriculture market are digitalization of Primary Agricultural Credit Society (PACS), Pradhan Mantri Krishi Sinchayee Yojana (PMSKY), Management of Agricultural Extension in Hyderabad (MANAGE), One Nation One Market and mentoring start-ups in agri-tech.
Global Smart Agriculture Market: Competitive Landscape
Few of the players in the smart agriculture market include AGCO Corporation, CropMetrics, DeLaval, Ag Leader Technology, Granular Inc., and The Climate Corporation.
Global Smart Agriculture Market is Segmented as Below:
By Farm Size
Key Elements Included In The Study: Global Smart Agriculture Market
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