Driven by increasing pressure on the agriculture industry to boost production to serve a steadily rising population, the global market for smart agriculture will see a 13.5% CAGR over the period between 2017 and 2025, according to a new report from Transparency Market Research. The market will rise from a valuation of $6.55 billion in 2016 to $23.44 billion by 2025, with new technology players continually joining the marketplace.
Technology solutions in the space include network management, agriculture asset management, supervisory control and data acquisition, logistics and supply chain management, smart water management, and others.
In addition to increasing pressure on the market due to population growth, other drivers include:
One of the key restraints for the global smart agriculture market, however, is the lack of awareness among a large share of global population regarding the vast benefits of advanced farming techniques on production volumes and reduction in time required for undertaking several common procedures.
This challenge is especially prevalent in emerging countries across the globe where farmers continue to struggle and deal with other challenges such as water supply shortages, bad weather, and a lack of understanding regarding newly available technologies. The high cost of smart agricultural devices is also a hurdle.
But vendors can capitalize on this "vast untapped market" by implementing smart marketing techniques and by utilizing funds from government bodies, which are becoming more frequent in emerging economies
Nevertheless, this vast untapped market can be tapped through proliferative marketing techniques, funds from government bodies, which are more frequently coming by in emerging economies as governments plough in more resources towards the improvement of the agriculture sector, and the rising network of internet in rural and remote areas. Additional support is likely to come in through favorable initiatives from not only governments but also social bodies that aim at the empowerment of the agriculture industry in emerging countries.
The global market for smart agriculture features a highly fragmented vendor landscape. As a variety of regional companies continue to enter the market, it is likely to remain highly competitive in the next few years.
In 2016, the leading four companies, namely Raven Industries, Inc., Trimble Navigation, Deere & Co, and AgJunction, Inc., collectively held only about 15.5% in the market, which translates to a larger access of smaller players to demand and growth opportunities, according to the report.
Geographically, the market in North America is likely to emerge as the most promising regional market owing to the high demand for automation in the field of commercial agriculture.
