Smart Farming Market – Know the Factors Driving the Market!

BIS Research
November 1, 2018
3 min read

By BIS Research


With the exponential growth of world population, subsequent rise in global demand for food, shrinking agricultural lands, and depletion of finite natural resources, the need to enhance farm yield has become critical. Deployment of automation and control systems to steer the application of agricultural inputs along with sensing systems to monitor the need will be crucial to augment the growth of the market. Smart farming is also expected to reduce the ecological footprint of daily farming. In emerging countries, growth is expected to be driven by rising awareness among governments of different countries about the need to elevate farm produce while taking care of the environment. Furthermore, rising concerns over global food security and sustainability have led to extensive investments in smart farming technology by the governments across the world. According to a market intelligence report by BIS Research titled, Global Smart Farming Market, the smart farming market is projected to grow from $9,575.3 million in the year 2017 to $23,139.5 million by 2022, at a CAGR 19.3% from 2017 to 2022. High growth in the market is expected to be driven by the need to apply site-specific farming and variable rate application of raw materials and resources as per requirements. The global smart farming market has been strongly motivated by the substantial support of governments in terms of investments, favorable initiatives, and trade policies.

Agriculture industry has witnessed numerous revolutions over decades starting from the domestication of livestock and crops to the organized use of crop rotation using new farming techniques. This was followed by the large-scale usage of fertilizers and pesticide and systematic breeding called as the green revolution. Finally, with the introduction of Information and Communication Technologies (ICT) in farming since the last decade, farming industry has been witnessing another revolutionary phase. Integration of sensing systems into farming equipment have led to the generation of large amounts of data when analyzed with farm management software provide farmers with valuable insights to promote yield growth. Incorporation of navigation systems into agricultural machinery and systems has led to their precise movement and application in the field.

Integration of Internet of Things (IoT) into smart farming equipment reduced exploitation of resources and offered site-specific farming. These technological advancements in the farming practices and equipment represent a technological revolution which has the potential to create disruptive changes in the farming industry. Utilization of technology to make farming efficient and cost-effective with reduced negative impact on environment is termed as smart farming.

As per the report of BIS Research, over the past five years, agricultural robots have also been incorporated into farming operations as they treat soil and crops selectively as per their requirements and reduce the need for manual labor. Also, this upcoming trend of smart farming is not only there in developed countries but developing countries have also realized its importance. In countries such as China and Japan large deployments of smartphones and internet of things systems have led to the rapid adoption of smart farming solutions. Government of several countries have also realized the need and advantages of these technologies and thus, their initiatives to promote precision farming techniques are expected to further drive the growth of the smart farming market. The growth of this market is driven by certain other factors mentioned in the figure below.

Figure 1

Drivers and Restraints-Global Smart Farming Market 

Source: Secondary Research, Expert Interviews, and BIS Research Analysis

 

However, such revolutionary changes in farming practices not only come with opportunities but also some challenges which prove to be a restraint in the growth of the global smart farming market. As per the preceding figure, the awareness and knowledge about newer technological advancements with the advent of smart farming is yet to spread extensively, especially in emerging countries. Moreover, some of the growers are hesitant in introducing smart farming solutions due to the high cost of initial investment required to acquire smart farming solutions.



This content was developed in collaboration with BIS Research and views expressed herein do not necessarily reflect those of Aliaba Group or its affiliates.

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