Global Connected Agriculture Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Solution (Bartering, Tendering, Trading), By Service (Micro-Insurance, Micro-Lending, Mobile Payment, Mobile Information), And By Geography - Forecasts From 2021 To 2026

The global connected agriculture market is projected to grow at a CAGR of 15.54% to reach US$4.089 billion by 2026 from US$1.487 billion in 2019.

Most of the agricultural techniques used nowadays are based on intensive cultivation. Advanced technological strategies are used in order to manage and improve the agricultural activities involved in pre-production, in-production, and post-production. Connected agriculture involves four major steps that help farmers, livestock producers, growers, cooperatives, and agribusiness to make decisions effectively and efficiently. These steps are:

• Data sensing 
• Data communication 
• Data storage
• Data processing 

Connected agriculture is offering new and technical solutions, thereby helping the farmers in managing the day-to-day work of farms with efficacy. 

A major reason for the growth of this market is the ever-growing world population and the rise in the demand for agricultural products.

According to the “World population is expected to grow by over third, or 2.3 billion people, between 2009 and 2050. Nearly all of this growth is forecast to take place in developing countries. Among the latter group, sub-Saharan Africa’s population would grow the fastest (+114 percent) and East and Southeast Asia’s the slowest (+13 percent). “At the same time, the per capita income is also projected to grow by 2050. The economies of developing countries are expected to grow significantly faster than those of developed countries. The inequality in per capita income is also expected to be reduced considerably. The absolute reduction in economic poverty is also expected to fall. These trends indicate that the market demand for food is expected to rise. According to the “Demand for cereals, for both food and animal feed uses is projected to reach some 3 billion tonnes by 2050, up from today’s nearly 2.1 billion tonnes. The projections show that feeding a world population of 9.1 billion people in 2050 would require raising overall food production by some 70 percent between 2005/07 and 2050. Production in the developing countries would need to almost double.” The international trade in agricultural commodities is also projected to expand over the coming years. With the rapidly increasing population and growing demand for food, the connected agricultural market is expected to witness a boost in the coming years.

The increase in technological advancement and the demand for digitalization is expected to drive the demand for this market in the forecast period.

Technological advancement is likely to act as one of the major key drivers for the market. There exists an enormous amount of connected agriculture solutions. Moreover, the price of agricultural equipment is witnessing a steep decline. There’s a sharp increase in the demand for inventory management, field management, and labour management solutions. Also, many companies are investing a lot in upgrading techniques and research and development. These growth strategies have enabled them to create a competitive edge. Globally, the connected agricultural market is segmented into North America, South America, and Europe. Africa and Asia Pacific region. North America constitutes the largest share of the market and is projected to flourish and dominate the market in the coming years too. Most of the small and marginal farmers of North America have successfully adopted connected agriculture in their routine farming. Asia Pacific regions are also expected to witness growth in the market due to heavy investment and implementation of cloud-based solutions.

The various initiatives taken by the government across the globe are anticipated to fuel the growth of this market.

Agriculture is seen as one of the most powerful tools to end poverty. Development in the agricultural sector is expected to raise incomes among the poorest two to four times more effectively as compared to the other sectors. Agriculture also contributes to economic growth. Thus, governments across the globe are indulging in promoting digital innovations and technologies. Government policies and frameworks are one of the key driving elements. These policies end up creating an enabling environment for a competitive digital agriculture market. However, in developing countries, there still exists a low level of administrative capacity. Moreover, the increase in the use of mobile phones has led to the significant adoption of connected agriculture techniques across the globe. The various multiple applications available related to agriculture have significantly reduced the workload and have given small and marginal farmers exposure to the technologically advanced world.

Impact of COVID-19 On the Connected Agriculture Market

The impact of COVID-19 on the connected agriculture market is estimated to be positive. Due to the imposition of the lockdown, the economy is facing a shortage of labour and supply chain disruptions. The pandemic has largely created a negative impact on the livelihoods of millions of workers. The connected agriculture practice enables farmers to monitor their fields more precisely and effectively. Due to this dramatic labor shortage created because of the ongoing coronavirus, the globally connected agriculture market is expected to grow.

Global Connected Agriculture Market Scope:

Segmentation:

• By Solution
  • Bartering
  • Tendering
  • Trading
• By Service
  • Micro-Insurance
  • Micro-Lending
  • Mobile Payment
  • Mobile Information
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • The Middle East and Africa
    • Saudi Arabia
    • South Africa
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Thailand
    • Taiwan
    • Indonesia
    • Others