Global Internet of Things (IoT) in Agriculture Market – Industry Trends and Forecast to 2031

Global Internet of Things (IoT) in Agriculture Market, By Component (Hardware, Software, Connectivity and Services), Application (Livestock Monitoring, Precision Crop Farming, Indoor Farming, Aquaculture, Integrated Pest Management, Water Supply Management, Others), Type (Small Farms, Mid-Sized, Large), Farm Production Planning Stage (Pre-Production Planning, Production Planning, Post-Production Planning), System (Sensing and Monitoring System, Automation and Control System, and Others) – Industry Trends and Forecast to 2031.

Internet of Things (IoT) in Agriculture Market Analysis and Size

The supply chain management is a major application of internet of things (IoT) technology in agrciluture. IoT devices, such as sensors and RFID tags, are used to track the movement and condition of agricultural products from farm to market. For instance, Raven Industries debuted its first autonomous farm device for harvesting activities in January 2021. This device assists farmers in monitoring autonomous cars by enabling them to create field plans, modify speeds, and track location activities. These IoT devices provide real-time data on location, temperature, humidity, and other factors, facilitating better inventory management, reducing waste, and improving overall efficiency in agricultural production and distribution processes.

Global internet of things (IoT) in agriculture market size was valued at USD 15.15 billion in 2023 and is projected to reach USD 32.71 billion by 2031, with a CAGR of 10.10% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

The integration of connected devices, sensors, and data analytics into farming practices to optimize various aspects of agricultural operations. Through IoT, farmers can remotely monitor and control farm equipment, track environmental conditions, and gather real-time data on soil moisture, crop health, and livestock activity. This technology enables precision agriculture, allowing for more efficient resource management, reduced waste, and improved decision-making processes.

Internet of Things (IoT) in Agriculture Market Dynamics

Drivers

• Rapid Technological Innovations Leads to Increased Adoption of Internet of Things in Agriculture

Advancements in sensor technology, connectivity, and data analytics have enabled the development of IoT solutions tailored to agricultural needs. These innovations provide farmers with real-time insights into soil health, crop conditions, and environmental factors, allowing for precise and data-driven decision-making. As technology continues to evolve, new applications and capabilities emerge, driving further integration of IoT into agricultural practices and enhancing productivity, sustainability, and efficiency in the industry.

For Instance,

In February 2021, DeLaval expanded its robot lineup with the launch of the RC550 and RC700 models, aligning with technological innovations driving IoT adoption in agriculture. These robots focus on enhancing cow comfort and hoof condition on solid flooring, demonstrating a shift towards precision livestock farming enabled by IoT solutions. With their innovative rotational dung intake technology, these robots efficiently manage manure without requiring additional water, displaying the advancements driven by IoT are transforming animal husbandry practices.

• Increasing Government Initiatives Provides Guidance for Implementation of IoT among Farmers

Many governments worldwide are implementing policies and programs to encourage the modernization and digitization of agriculture. These initiatives often include financial incentives, subsidies, and grants to support farmers in adopting IoT technologies. Additionally, governments may invest in research and development initiatives to advance IoT solutions specifically tailored for agriculture. Regulatory frameworks and standards set by governments also provide clarity and guidance for the implementation of IoT in farming practices. Overall, government support creates a conducive environment for the adoption of IoT in agriculture, promoting efficiency, sustainability, and competitiveness in the sector.

Opportunities

• Growing Adoption of Drones in Agriculture Expands Spatial Coverage         

Drones equipped with IoT sensors and cameras can collect vast amounts of data on crop health, soil moisture, and pest infestations with unprecedented efficiency and accuracy. This data, when integrated with IoT platforms, provides farmers with real-time insights and actionable intelligence to optimize crop management practices. Drones enhance the spatial coverage and resolution of IoT sensor networks, enabling comprehensive monitoring of large agricultural areas. As farmers recognize the value of drone technology in improving yields, reducing costs, and minimizing environmental impact, they are increasingly integrating drones into their IoT-driven precision agriculture strategies, driving the overall growth of IoT adoption in the agricultural sector.

• Increasing Adoption of IoT by Farmers in Response to Escalating Environmental Concerns

With growing awareness of climate change and environmental degradation, there is increased pressure on farmers to adopt sustainable farming practices. IoT technologies enable farmers to monitor and manage resources more efficiently, such as water, fertilizer, and pesticides, thereby reducing waste and minimizing environmental impact. IoT provides real-time data on soil conditions, weather patterns, and crop health which helps farmers make informed decisions to optimize resource use and mitigate the effects of climate change on agricultural production. As environmental regulations become more stringent, IoT solutions offer a pathway for farmers to achieve compliance while maintaining profitability and sustainability in their operations.

Restraints/Challenges

• High Initial Costs Limits the usage of Internet of Things (IoT) in Agriculture

The initial investment required for purchasing IoT devices, sensors, and infrastructure can be substantial, especially for small-scale farmers or those operating in resource-constrained regions. Additionally, ongoing expenses for maintenance, data storage, and connectivity further contribute to the overall cost of implementing IoT solutions. High costs may deter farmers from investing in IoT technology, particularly if they perceive the return on investment to be uncertain or if alternative, less expensive methods are available.

• Escalating Data Privacy and Security Concerns Complicate IoT Adoption for Farmers

As IoT devices collect and transmit sensitive data related to farm operations, crop conditions, and livestock management, there is a heightened risk of data breaches, cyberattacks, or unauthorized access. Farmers may be hesitant to embrace IoT solutions if they perceive a lack of robust security measures or uncertainty regarding regulatory compliance. The complexity of securing interconnected IoT ecosystems across various devices, networks, and data platforms presents ongoing challenges.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

• In 2022, Kacific Broadband Satellite Ltd announced a partnership with Farmer Charlie to provide satellite-powered agricultural data to farmers in Southeast Asia-Pacific. The collaboration aims to equip agribusinesses and smallholder farmers with essential environmental information and agricultural insights, helping them manage risks associated with extreme weather events such as droughts and floods
• In 2022, Semtech Corporation revealed that ICT International had integrated Semtech's Long-Range Wide-Area Network standard into their water quality monitoring system. This integration enhances ICT International's IoT solution for environmental applications, enabling efficient and reliable monitoring of water quality over long distances
• In 2021, Deere & Company introduced an upgraded version of ExactRate, an on-planter technology that accelerates the fertilization process for new crops and reduces the frequency of fertilizer tank refills during planting. This advancement enhances efficiency in agricultural operations while optimizing fertilizer usage for improved crop yields
• In 2020, Trimble Inc. acquired Midstates VRS, a network previously owned by Butler Machinery and Frontier Precision. This acquisition expanded Trimble's VRS Now GNSS connections, extending coverage to over 1 million square miles in North America. The purchase enhances Trimble's precision agriculture offerings by providing a high-performance GNSS system with a broader footprint

Internet of Things (IoT) in Agriculture Market Scope

The market is segmented on the basis of component, application, type and farm production planning stage, and system. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Hardware
  • Irrigation Controllers
  • Flow and Application Control Devices
  • Variable Rate Controllers
  • Soil Sensors
  • Water Sensors
  • Climate Sensors
  • Sensors for Livestock
  • Automation and Control Systems
  • Sensing and Monitoring Devices
  • Guidance and Navigation
  • Drones
  • Handheld Computers
  • Displays
  • Smart Harvesters and Forwarders
  • RFID Tags and Readers
  • LED Grow Lights
• Software
  • On-Premise
  • Cloud-Based
• Connectivity and Services

Application

• Livestock Monitoring
• Precision Crop Farming
• Indoor Farming
• Aquaculture
• Integrated Pest Management
• Water Supply Management
• Others

Type

• Small Farms
• Mid-Sized
• Large

Farm Production Planning Stage

• Pre-Production Planning
• Production Planning
• Post-Production Planning

System

• Sensing and monitoring system
• Automation and control system
• Others

Internet of Things (IoT) in Agriculture Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided by country, component, application, type and farm production planning stage, and system as referenced above.

The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Global (APAC) in the Global (APAC), Saudi Arabia, U.A.E., Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

The Asia-Pacific is expected to dominate the market due to its large population and growing demand for food. Government initiatives promoting the use of remote sensing technology for collecting satellite imagery and ground data further bolster this dominance by enabling efficient monitoring of agricultural conditions. With the IoT's integration, farmers in the region gain access to real-time data insights, facilitating precision farming practices to enhance productivity and address food security challenges effectively. This convergence of technology and agriculture underscores the region's pivotal role in leveraging IoT solutions to optimize agricultural processes and meet the needs of its burgeoning population.

Europe is expected to experience rapid growth in the market, driven by an increasing awareness of the advantages it offers in rural production. The region is experiencing a growing awareness of the ways in which IoT technologies can amplify efficiency, productivity, and sustainability in agricultural practices, driving increased demand. As Europe farmers recognize the potential benefits of IoT solutions in optimizing resource management, monitoring crop health, and improving yields, they are showing greater interest and investment in adopting these technologies. This trend positions Europe as a key growth market for applications of IoT in agriculture.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Internet of Things (IoT) in Agriculture Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the market are:

• Grownetics (U.S.)
• auroras s.r.l. (Italy)
• Granular, Inc. (U.S.)
• TOPCON CORPORATION (Japan)
• Farmers Edge Inc (Canada)
• DICKEY-john (U.S.)
• Conservis (U.S.)
• Ag Leader Technology. (U.S.)
• Raven Industries, Inc. (U.S.)
• Iteris, Inc. (U.S.)
• AgJunction (U.S.)
• Trimble Inc. (U.S.)
• Deere & Company. (U.S.)
• CropX inc. (Israel)
• Ceres Imaging (U.S.)
• Gamaya (Switzerland)
• AgriData Incorporated. (U.S.)
• AgEagle Aerial Systems Inc. (U.S.)
• Aker Solutions (Norway)