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Smart Farming Market Projected to Surpass $117.20 Billion by 2034

17 Jan 2025


The Smart Farming Market incorporates advanced technologies such as IoT, artificial intelligence, and big data analytics to optimize agricultural processes. These innovations address key challenges in agriculture, including resource efficiency, yield enhancement, and sustainable practices. The smart farming market is crucial for transforming traditional farming methods into data-driven precision agriculture, improving productivity while addressing environmental concerns.

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Global Smart Farming Market Overview

The smart farming market is driven by advancements in IoT, AI, and data analytics, which enable precision farming techniques. These technologies support optimized resource utilization, real-time monitoring, and predictive analytics, enhancing agricultural productivity and sustainability. Despite challenges like high implementation costs and the digital divide, the market benefits from growing adoption rates and supportive government policies promoting smart agricultural practices. According to BIS Research, the global smart farming market is expected to grow significantly, from $17.40 billion in 2024 to $117.20 billion by 2034, registering a CAGR of 19.09% during the forecast period.

Global Smart Farming Market Segmentation

Segmentation 1: based on Application

•    Precision Farming or Precision Agriculture
     o    Precision Irrigation
     o    Yield Monitoring and Crop Scouting or Forecasting
     o    Precision Planting
     o    Precision Spraying
     o    Precision Fertilization
     o    Farm Management
     o    Other
•    Livestock Monitoring and Management
     o    Milk Harvesting
     o    Animal Health Monitoring and Comfort
     o    Feeding Management
     o    Livestock Tracking
     o    Other
•    Aquaculture
     o    Feed Management
     o    Aquatic Species Tracking and Navigation
     o    Water Quality Management
     o    Other
•    Others

Segmentation 2: based on Product Type

•    Hardware
     o    Displays/Yield Monitors
     o    Flow and Application Rate Control Valves
     o    Farm Computers, and Mobile Devices and Laptops
     o    Agricultural Sensors
     o    Guidance and Steering Systems
     o    Other
•    Software
     o    Farm Operation Management
     o    Hardware Control Application
     o    Data and Predictive Analytics

Segmentation 3: based on Region

•    North America
•    Europe
•    Asia-Pacific
•    Middle East and Africa
•    South America

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Key Market Players

•    Ag Leader Technology
•    AGCO Corporation
•    CNH Industrial N.V.
•    Deere & Company
•    Hexagon AB
•    KUBOTA Corporation
•    Climate LLC
•    BASF
•    CropX inc.
•    Connecterra B.V.
•    Naïo Technologies
•    DJI
•    Signify Holding
•    ams-OSRAM AG
•    Afimilk Ltd.
•    Allflex
•    Nedap N.V.
•    Cargill, Incorporated
•    GEA Group Aktiengesellschaft
•    AKVA group ASA
•    Eruvaka Technologies Pvt. Ltd
•    AquaManager

Global Smart Farming Market Demand – Drivers, Opportunity and Challenges

Market Drivers

The smart farming market is driven by the increasing emphasis on sustainable agriculture and precision farming practices. The global demand for food highlights the importance of resource-efficient farming methods to conserve water and reduce greenhouse gas emissions. Precision agriculture, leveraging tools like drones, sensors, and data analytics, enhances productivity and lowers costs. As challenges related to climate change and food security become more pressing, these advancements are redefining agricultural practices and driving market expansion.

Market Restraints

Key challenges for the smart farming market include limited technical expertise among farmers and increasing concerns about data security. Many farmers, particularly small-scale operators, face difficulties in adopting advanced technologies due to insufficient skills, which hampers the effective utilization of precision tools. Additionally, the rise of connected technologies has heightened vulnerability to cybersecurity threats, raising concerns about operational risks. Addressing these barriers will require focused training programs, strengthened cybersecurity protocols, and clear policies for data management to build trust and promote adoption.

Market Opportunities

The smart farming market presents significant growth potential through investments in agricultural technology startups and blockchain technology. Increasing funding in the sector is accelerating the development of advanced solutions, including IoT sensors and AI-based analytics, thereby driving innovation. Collaborations between startups and research institutions further boost technology integration. Blockchain technology enhances transparency and traceability across the agricultural value chain, addressing food safety and quality concerns while maintaining data integrity. These advancements are paving the way for sustainable growth in the market.

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Analyst View

According to Debraj Chakraborty, Principal Analyst, BIS Research, “Smart farming market has been undergoing transformative growth, driven by advancements in precision agriculture, rising investments in agri-tech startups, and the integration of blockchain technology. Precision farming optimizes resource use, enhancing productivity while minimizing environmental impact. Increased funding accelerates the development of innovative technologies such as IoT sensors and AI-driven platforms, boosting adoption. However, challenges such as farmers' lack of technical expertise and concerns over data security remain critical. Blockchain enhances transparency and traceability, addressing key value chain issues. As sustainability and technological innovation converge, the market is set for significant expansion, offering solutions to global food security challenges and fostering a more efficient and resilient agricultural ecosystem.”

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