Top 3 Technologies Shaping Smart Agriculture Market01 Jun 2018 • by Natalie Aster
LONDON – By 2050, the world population is anticipated to increase by around 16.5%, and to satisfy their daily food demand, the agriculture industry is predicted to ramp up its production by nearly 70%. With rapidly mounting demands, the adoption of modern technologies providing better results at less cost and in less time has become of paramount importance in the agricultural sector.
The major trend that will predominantly influence the agriculture market in the years ahead is the increasing penetration of innovative technological solutions. Thus, the agriculture market players are increasingly adopting various digital solutions and smart agricultural techniques, which help to get rid of many lengthy procedures involved in crop production, reduce human efforts, improve utilization of available resources, reduce the time-consuming process of crop yielding, increase the effectiveness of the supply chain, and also considerably enhance the research activities in this field.
Today, the smart agriculture industry is changing at such a brisk pace, that it is quite hard to keep up with it. Here are just three of prominent technological innovations shaking up the agriculture industry:
“Greater efficiency” is one of the core objectives of the smart agriculture industry. To attain this target, the Internet-of-Things (IoT) is making its way at a robust pace in this field. The installed base of IoT devices in the agriculture sector is slated to exceed 75 million by the end of this decade – a 150% gain from the year 2015 when only 30 million IoT devices were installed. Consistent adoption of IoT technology in smart agriculture is resulting in a larger volume of agricultural information generated across various applications. Thus, the average volume of Big Data that is generated and managed by individual farms will likely see a staggering upturn: from nearly 0.5 million data points in 2017 to more than 4 million data points in 2050.
Shares of key IoT applications in agriculture, in 2016 and 2022*
Currently, North America captures the biggest chunk (around 75%) of the world’s IoT in agriculture market. By 2025, the value of North American IoT in agriculture market is projected to surge to USD 20.1 billion.
The world’s IoT in agriculture market is poised to enjoy an impressive growth at a CAGR of appr. 28.3% in the short-run.
Robotics is one of the most lucrative opportunities for the agriculture market players to focus on. With ongoing technological advancements, robotics solutions become more and more sophisticated and are able to tackle even more complicated tasks. In the coming years, prices for robots are likely to come down, which means that they will become more affordable – this is expected to spur further penetration of robots in the agriculture sector.
The world’s market for agricultural robots is evolving at an exciting pace, with a high number of both established and new agricultural technology companies designing, piloting, and launching an array of innovative robotic systems to perform a broad range of tasks. By 2024, world’s total shipments of agricultural robots are supposed to surpass the 594,000 units mark, whilst revenues generated by the agricultural robots market are anticipated to skyrocket to USD 74.1 billion.
World agricultural robots market revenue and shipments during 2015-2024*
Regionally, the highest penetration of agricultural robots is registered in North America. This is attributed majorly to the rapid adoption of robotics in the regional agriculture industry, presence of many top players, and increasing industrialization of the farming sector. The North American agricultural robots market is set to demonstrate moderate growth in the short-term. Meantime, the APAC agriculture robots market is poised to rise at a high rate due to remarkable advancements in farming practices, expanding adoption of innovative technologies, and increasing investments in the robotics industry, especially in Japan, China, and South Kores.
3. ARTIFICIAL INTELLIGENCE
In the wake of escalating necessity to produce more food with fewer resources, Artificial intelligence (AI) is one of the key engines of the technological revolution in the agriculture industry. Farmers across the globe are increasingly using smart sensors to gather data which is further stored on farm management systems; the enhancing need to effectively process and analyze collected agricultural data is paving the way for AI adoption in agriculture. AI brings the potential to fundamentally change almost every aspect of the agriculture industry from preventing poor harvests and disease outbreaks to considerably improving various operations and processes.
Global spending on AI software is anticipated to see immense growth in the near future and come up to USD 373.7 million by the year 2024.
Revenues of AI software in the agriculture industry during 2015-2024* (in million USD)
The world’s AI in agriculture market is poised for an amazing increase at a 22.5% CAGR through 2025. In value terms, this market is set to go up from USD 518.7 million in the past year to exceed USD 2.62 billion by the year 2025. The major factors boosting the AI in agriculture market comprise the mushrooming demand for agricultural products, rising adoption of advanced technologies and information management systems, and also favourable government initiatives promoting the implementation of high-tech agricultural techniques, amidst others.
Booming technological progress has a great influence on all industries, and agriculture is not an exception. Agricultural outputs must double through the next 30 years to feed the rapidly increasing global population (which is set to reach 8.9 billion by the year 2050) in the context of declining arable lands. The adoption of digital technologies and smart agricultural techniques allows to enhance the efficiency of agricultural production and satisfy the escalating demand for food. Through 2026, the world’s smart agriculture market is forecast to see a fourfold increase, the CAGR is poised to hover around 12%. The hardware segment will be at the forefront of the market growth, with a share of above 50% of the overall tech solutions for agriculture.
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