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Key Trends Influencing the Growth of the Smart Agriculture Market in 2025: Artificial Intelligence-Powered Platform Revolutionizes Global Agricultural Decision-Making
Smart Agriculture Market
What Is the Expected CAGR for the Smart Agriculture Market Through 2025?
In recent times, the size of the smart agriculture market has seen swift expansion. The market, which is projected to rise from $16.25 billion in 2024 to $18.34 billion in 2025, will experience a compound annual growth rate (CAGR) of 12.8%. The significant growth observed in the past period is primarily due to factors such as increasing global population, awareness about climate change, government schemes and aids, shortage of farm labour, and growing concerns about water scarcity.
What's the Projected Size of the Global Smart Agriculture Market by 2029?
In the forthcoming years, the smart agriculture market is predicted to witness a substantial rise, escalating to $28.44 billion by 2029 with a compound annual growth rate of 11.6%. The growth anticipated during this forecast period can be ascribed to the highlight on sustainable agriculture, the demand for organic produce in the market, an increased focus on sustainable farming methods, and the implementation of intelligent irrigation systems. The key trends projected for this period encompass precision farming and precision agriculture, the use of Internet of Things (IoT) sensors, the application of farm management software and platforms, the introduction of robotics and automation in farming, using blockchain technology for maintaining supply chain transparency, climate-smart agriculture, and the formation of collaborations and alliances in the agtech ecosystem.
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Top Growth Drivers in the Smart Agriculture Industry: What's Accelerating the Market?
The swift growth in population leading to increasing strain on food supply systems is set to boost the development of the smart agriculture market in the near future. Food supply systems encompass all the players and interactions that occur within the food value chain, starting from raw material supply to crop production, livestock farming, fishery, and all other agricultural output to final production, processing, wholesale, retail, and food preparation for consumption and waste management. By ensuring a fair and effective exchange of information, smart agriculture promotes informed decision-making, connecting all stakeholders in the food supply chain. An example illustrating this is the Global Report on Food Crises (GRFC) 2024 by the World Food Programme, an Italy-based non-profit. The report points out the massive challenge of eradicating hunger by 2030. It noted that in the preceding year, around 282 million people, which amounts to 21.5% of the population inspected across 59 nations and territories, faced severe food insecurity requiring immediate help for food and livelihoods. Consequently, the mounting stress on food supply systems resultant of the accelerating population growth fuels the expansion of the smart agriculture market.
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What Trends Will Shape the Smart Agriculture Market Through 2029 and Beyond?
Key players in the smart agriculture industry are prioritizing the development of technological advances like superior AI integration. This innovation offers precise crop yield predictions and reveals ideal global growth conditions. Superior AI integration denotes the incorporation of AI technology into different systems, facilitating automatic decision-making, data assessment, and improved user interactions. For instance, Cropin, a software firm from India, introduced a product named Sage in July 2024. The goal of this product is to revolutionize agricultural decisions by offering thorough data and insights. This cutting-edge AI-enabled agri-data platform amalgamates generative AI, climatic data, crop information charts, and evolved models to give real-time insights about yield predictions and ideal worldwide growth conditions. By using a grid-based mapping system, the platform provides detailed data for 13 primary crops, which caters to 80% of the world's food requirement. Ultimately, this platform aids stakeholders in making choices driven by data to improve food security.
What Are the Main Segments in the Smart Agriculture Market?
The smart agriculture market covered in this report is segmented -
1) By Offering: Hardware, Software, Services
2) By Farm Size: Small, Medium, Large
3) By Application: Precision Farming, Livestock Monitoring, Precision Aquaculture, Precision Forestry, Smart Greenhouse, Other Applications
Subsegments:
1) By Hardware: Sensors, Drones And Aerial Imaging, Automated Machinery, IoT Devices
2) By Software: Farm Management Software, Data Analytics Platforms, Precision Agriculture Software, Supply Chain Management Solutions
3) By Services: Consulting Services, Managed Services, Technical Support And Maintenance, Training And Education
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Which Top Companies are Driving Growth in the Smart Agriculture Market?
Major companies operating in the smart agriculture market are Deere & Company, AG Leader Technology Inc., Trimble Inc., Bayer Crop Science LP, Syngenta AG, Corteva Agriscience Inc., PrecisionHawk Inc., The Climate Corporation, Farmers Edge Inc., Taranis Inc., Raven Industries Inc., AeroFarms LLC, Granular Inc., AgriWebb Pty Ltd, Ecorobotix AG, CropX Inc., SmartFarm LLC, Indigo Ag Inc., Ceres Imaging Inc., Hexagon AB, FarmLogs Inc., Parrot Drones SAS, Vultus Inc., Prospera Technologies Inc., Fieldin Inc., Sentera Inc., Harvest CROO Robotics LLC, Blue River Technology Inc., AgFunder Inc., AgroStar
Which Regions Will Dominate the Smart Agriculture Market Through 2029?
North America was the largest region in the smart agriculture market in 2024. Asia-Pacific is expected to be the fastest-growing region in the smart agriculture market report during the forecast period. The regions covered in the smart agriculture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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