In the nascent stages of the Internet of Things (IoT) within the agricultural sector, the adoption was primarily centered around straightforward sensor technologies and a modest deployment of connected devices. These initial applications were largely aimed at tracking environmental variables, such as soil moisture levels and temperature, crucial for the well-being of crops.
Early iterations of IoT applications provided farmers with timely insights into these factors, enabling them to irrigate or aerate their crops based on current conditions rather than relying on pre-scheduled or reactive methods. This shift towards precision agriculture marked a significant milestone, ushering in a new era of data-driven decision-making previously unseen in the farming sector.
According to the BIS Research report, the global IoT in Agriculture Market is projected to reach $71.92 Billion by 2033 from $20.14 Billion in 2023, growing at a CAGR of 13.57% during the forecast period 2023-2033.
Segmentation 1: by Application
• Precision Crop Farming
• Livestock Monitoring and Management
• Indoor Farming
• Aquaculture
• Others
The precision crop farming sector is at the forefront of the IoT in agriculture market, holding a revenue share of $7.82 billion in 2022. The surge in demand for precision agriculture practices is fueling the expansion of the IoT in the agricultural sector.
Segmentation 2: by Component
• Hardware
o Processors and Sensors
o Communication Modules
o Others
• Software
In 2023, the software segment led the global IoT in agriculture market by component, achieving a revenue share of $9.74 billion. This dominance was driven by the necessity for software to integrate across multiple platforms for task execution.
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 emerged as the fastest-growing market across all regions with a Compound Annual Growth Rate (CAGR) of 14.93%. Within North America, the United States is expected to exhibit the most significant growth in the IoT in agriculture market compared to other countries in the region, with an anticipated CAGR of 12.67%.
Market Drivers: Increase in Demand for Agricultural Efficiency and Productivity
The agricultural sector faces increasing pressures from rising labor shortages and the escalating costs of inputs, making the need for improved operational efficiency more critical than ever. IoT technologies play a pivotal role in automating various agricultural tasks, thus reducing the need for manual labor and increasing overall efficiency. An example of this innovation is AGCO Corporation, which offers advanced farming equipment equipped with IoT features that streamline operations such as planting, harvesting, and data collection.
Market Opportunities: Integration of IoT in Robotics
The incorporation of IoT technology into agricultural robotics presents significant opportunities for cost savings and operational enhancements. Robots equipped with IoT sensors can perform tasks like harvesting, weeding, and planting more efficiently than human workers. The initial investment for a medium-sized IoT-enabled agricultural robot can vary between $30,000 and $100,000, based on its functionality and complexity. Despite the upfront costs, the investment often pays off over time through savings on labor and increased crop productivity.
In 2022, established companies held the majority of the IoT in agriculture market, comprising 73% of the market share, while startups secured 27%.
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
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.
