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Increasing Demand For Responsible Forestry Practices Drives Growth In The Smart Forestry Market: Pivotal Factor Influencing Smart Forestry Market Growth in 2025
Smart Forestry Market
Smart Forestry Market Size Growth Forecast: What to Expect by 2025?
The scale of the intelligent forestry market has swiftly expanded over the last few years. Projected to rise from a $4.95 billion market value in 2024 to $5.49 billion in 2025, its compound annual growth rate (CAGR) is estimated at 11.0%. The growth observed in the past period is credited to a growing eco-consciousness, an increased demand for proficient forest governance, governmental policies against deforestation, expanding apprehension about climatic changes and a thrust towards sustainable management of resources.
How Will the Smart Forestry Market Size Evolve and Grow by 2029?
The market size for smart forestry is predicted to see significant expansion in the coming years. It's anticipated that it will reach $8.25 billion by 2029, growing at a compound annual growth rate (CAGR) of 10.7%. The predicted growth in the foreseeable period can be credited to the broadening of IoT networks, increasing investments in precision farming, increasing emphasis on climate resilience, ramped up funding for green tech initiatives, and a surge in consumer demand for sustainably-harvested forest products. Key trends expected during the forecast period include the implementation of analytics powered by AI, the growth of IoT-enabled sensors, progress in drone and satellite image technology, the use of blockchain for supply chain transparency, development in data exchange via open platforms, and the emergence of climate-smart forestry technologies.
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What Drivers Are Propelling the Growth of Smart Forestry Market Forward?
The surge in the requirement for responsible forestry practices is set to fuel the expansion of the smart forestry market. These practices entail the management and utilization of forest resources in a way that ensures enduring ecosystem health, productivity, and biodiversity, while fulfilling societal, economic, and environmental needs of present and future generations. The need for responsible forestry practices is escalating due to elements like environmental consciousness, laws and regulations, and the need for sustainable products, programs, and certifications. Smart forestry bolsters responsible forestry practices by employing cutting-edge technologies for meticulous monitoring, sustainable resource control, and minimal environmental impact. For instance, GOV.UK reported in June 2023 that tree planting rates in England had escalated with a 40 percent increase in woodland creation to 3,128 hectares in 2022-23 compared to the previous year. Consequently, the burgeoning demand for responsible forestry practices is propelling the growth of the smart forestry market.
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Which Emerging Trends Are Transforming the Smart Forestry Market in 2025?
In the smart forestry market, leading companies are putting their energy into developing innovative solutions such as fresh digital platforms that can create a safe, efficient, and environmentally friendly workplace. The new digital platform is an internet-based system that allows individuals to engage, exchange, and work together through consolidated services and applications, thereby improving communication and functionality across different digital environments. To illustrate, Komatsu Limited, a company based in Japan that produces construction, mining, forestry, and military machinery, introduced a new digital platform in June 2024. This newly launched platform by Komatsu Limited provides a range of special features. It employs real-time data analytics and AI to boost equipment management and operational effectiveness at construction and mining locations. The platform can carry out predictive maintenance, minimize downtime and optimize machinery performance. It is also equipped with remote monitoring features, permitting operators to supervise machine health and productivity from any place, thereby improving general fleet management.
What Are the Key Segments in the Smart Forestry Market?
The smart forestrymarket covered in this report is segmented -
1) By Type: Machinery, Software
2) By Technology: Global Positioning System (GPS), Geographic Information System (GIS), Remote Sensing
3) By Application: Timber Harvesting, Forest Management, Reforestation
4) By End-User: Private Foresters, Government Agencies, Research Institutes
Subsegments:
1) Machinery: Harvesting Equipment, Forestry Vehicles, Tree Planting Machines
2) Software: Forest Management Software, Inventory Management Software, Geographic Information Systems (GIS)
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Who Are the Key Players Shaping the Smart Forestry Market's Competitive Landscape?
Major companies operating in the smart forestry market are Deere & Company, Hexagon AB, Trimble Inc., Maxar Technologies Inc., Esri International LLC, Ponsse Oyj, AFRY AB, Planet Labs PBC, Pix4D SA, Komatsu Forest AB, EcoTrust Software Ltda., Silvacom Ltd., GEOSYS, Rottne Industri AB, Tigercat International Inc., TreeMetrics, Skytec LLC, Agremo Ltd., ForestX AB, Landmark Spatial Solutions, CollectiveCrunch Oy, Blue Marble Geographics, GIS Cloud Ltd.
What Geographic Markets Are Powering Growth in the Smart Forestry Market?
North America was the largest region in the smart forestry market in 2024. The regions covered in the smart forestry market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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