In the early stages of adopting the Internet of Things (IoT) in agriculture, the industry embraced simple sensor-based technologies and had a minimal implementation of connected devices. These devices were mainly utilized to track environmental conditions such as soil moisture and temperature, crucial for maintaining crop health.
Today, the agricultural sector leverages the Internet of Things (IoT) to revolutionize farming practices, a concept often termed 'Precision Agriculture.' This technology allows a network of intelligent devices to interact and automate decision-making in real time. Sensors spread throughout farms collect data on soil moisture, nutrient levels, weather conditions, and crop health, which is then relayed to centralized management systems.
This information enables farmers and agricultural businesses to make informed decisions about the timing of planting, watering, and harvesting, thus minimizing waste and enhancing crop yields. Drones equipped with advanced imaging capabilities survey crop health from above, and autonomous tractors and harvesters guided by GPS technology reduce labor needs and improve field management.
The Internet of Things (IoT) has revolutionized the agriculture industry, leading to a profound transformation in farming methods and supply chain management. The adoption of IoT in agriculture, frequently referred to as 'smart farming,' has transformed it into a data-centric enterprise.
As per the BIS Research report, the global IoT in agriculture market is expected to grow at a CAGR of 13.57% during the forecast period (2023-2033) and is expected to reach $71,929.6 Million by 2033. Market size in 2023 was $20,148.9 Million.
Market Segmentation:
Segmentation 1: by Application
• Precision Crop Farming
• Livestock Monitoring and Management
• Indoor Farming
• Aquaculture
• Others
The IoT in agriculture market is led by the precision crop farming segment, with a $7,829.3 million share in 2022 in terms of revenue. Increasing demand for precision farming techniques is driving the growth of the IoT in agriculture industry.
Segmentation 2: by Component
• Hardware
o Processors and Sensors
o Communication Modules
o Others
• Software
The software segment dominated the global IoT in agriculture market (by component) in 2023, with a $9,748.8 million share in terms of revenue due to the need to be integrated into various platforms to carry out the tasks.
Segmentation 3: by Region
• North America - U.S., Canada, and Mexico
• Europe - U.K., Germany, France, Spain, Italy, Netherlands, Denmark, and Rest-of-Europe
• Asia-Pacific - Japan, India, China, Australia and New Zealand, Indonesia, Vietnam, Malaysia, and Rest-of-Asia-Pacific
• South America - Brazil and Argentina
• Middle East and Africa - Africa
Asia-Pacific was the highest-growing market among all the regions, registering a CAGR of 14.93%. Rest-of-the-World is expected to gain traction in IoT in agriculture adoption due to the growing demand for modern agricultural methods among countries.
In North America, the U.S. is anticipated to show the highest growth in the IoT in agriculture market among other countries in North America. The U.S. is anticipated to grow at a CAGR of 12.67%.
The growth of the U.S. in the IoT in agriculture market is mainly due to the factor that the U.S. has a robust start-up ecosystem that drives innovation in the agricultural IoT sector. Start-ups such as Farmers Edge and Arable Labs are pushing this innovation by offering cutting-edge solutions.
In April 2023, Bosch announced that it would collaborate with AGCO Corporation to integrate and commercialize Smart Spraying technology on Fendt Rogator sprayers, as well as create further innovative features.
In January 2024, Deere & Company established a partnership with SpaceX to deliver cutting-edge satellite communications (SATCOM) services to farmers. Using the industry-leading Starlink network, this solution would enable farmers experiencing rural connectivity issues to utilize precision agricultural tools fully.
In March 2023, Bayer and Microsoft formalized their cooperation, which they announced a little over a year ago, to develop a cloud-based collection of data tools and data science solutions for the food and agriculture industries.
The IoT in agriculture market features established key players who possess a deep understanding of the market dynamics, alongside startups eager to carve out a niche in this highly competitive arena.
In 2022, established players held a dominant 73% share of the market, while startups secured 27%. As agricultural technologies continue to advance across the globe, an increasing number of companies are expected to enter the global IoT in agriculture market annually.
Some prominent names established in this market are:
• Deere & Company
• Microsoft
• CNH Industrial N.V
• Robert Bosch GmbH
• Kalera Inc.
• Heliospectra AB
• Signify Holding
• AKVA Group ASA
• Eruvaka Technologies
• AGRIVI
• Climate LLC
• AeroFarms
According to Komal Yadav, Lead Analyst, BIS Research, “IoT in agriculture, also known as smart farming, is radically changing traditional farming processes by using modern sensors, devices, and software solutions. This connectivity allows for real-time data gathering and analysis, as well as accurate monitoring and control of crops, livestock, and farming equipment. The applications are numerous, ranging from precision agriculture, which optimizes field-level management of planting, crop management, and harvesting, to livestock monitoring, which employs sensors to assess animal health and improve feeding.
Looking ahead, the growth of IoT in agriculture is expected to accelerate, driven by factors such as rising food demand due to global population growth, need for improved sustainability practices to combat climate change, and agriculture industry's increased adoption of advanced technologies to improve yield and efficiency.”
