In an era where technology is reshaping industries at an unprecedented pace, agribusinesses have found a powerful ally in satellite technologies. With the ability to revolutionize farming practices and optimize resource management, satellite imaging has emerged as the secret weapon for unlocking immense profit in the agricultural sector.
According to the BIS Research report, the global satellite imaging for agriculture market was valued at $0.51 billion in 2022, and it is expected to grow with a CAGR of 7.50% during the forecast period 2023-2028 to reach $0.78 billion by 2028.
Find more details on this report in this FREE sample
This article will discuss the essence of satellite imaging in agriculture, how industry players tackle food security challenges, and provide guidance for partnering with satellite technology companies.
Current Impact of Satellite Imaging in the Agriculture Industry
Satellite-based agricultural imaging involves utilizing data derived from satellites to remotely monitor, manage, and control various agricultural aspects such as crop conditions, soil quality, and other relevant parameters.
According to Pramod Khombare, an expert in satellite-based digital farming from Satyukt Analytics Private Limited, “incorporating satellite imaging for soil moisture mapping offers a cost-effective solution compared to deploying on-field soil moisture sensors, which can result in expenses ranging from $600 to $1,000 per acre of implementation.”
Recognizing the immense potential of satellite imaging in agriculture, the United Nations Food and Agriculture Organization (FAO) emphasizes the importance of enhanced management of global agricultural resources, particularly in developing nations.
Satellite Imaging Serving as a Boon for Agribusinesses
The agribusiness segment held a dominant position in the satellite imaging for agriculture market in 2022, accounting for a significant 66.6% share. The continuous advancements in satellite image and remote sensing technology have greatly benefited farm managers and modern farmers by enabling them to monitor farm conditions, track crop growth, assess weather patterns, and measure carbon levels.
The global satellite imaging market for agribusinesses is projected to reach $0.57 billion by 2028 from $0.34 billion in 2022 and $0.37 billion in 2023.
Satellite images are extensively used by government and non-governmental organizations (NGOs) to analyze land use patterns and facilitate planning for agricultural development, conservation, and other land-related activities.
Competitive Landscape for Agribusinesses
The global market for satellite imaging in agriculture is highly fragmented, with a small number of established players dominating the market and a large number of emerging start-ups. Competition among market participants centers around product offerings, pricing, innovation, and customized services.
Companies are focusing on providing solutions that meet the diverse needs of various crop types and applications. Pricing strategies are influenced by factors such as image resolution and quality, coverage area, frequency of image updates, analysis and value-added services, and subscription plans, all aimed at gaining a competitive advantage in the market.
Future Strategy of Agribusinesses
Satellite images are now crucial in evaluating the extent and nature of damage caused by significant disasters. However, they are equally valuable in monitoring smaller alterations in soil, water bodies, and vegetation. By analyzing historical data and specific biophysical parameters of the land, these changes can be detected in a timely manner and even anticipated.
Consequently, the primary objective of agribusinesses is to assist their clients in land management and increasing crop yields by leveraging satellite technologies to predict crop behavior.
Here are a few illustrative examples:
Satellite imaging plays a crucial role in evaluating the risks associated with global warming when providing loans to farming cooperatives and agro holdings. This technology enables insurance companies to gather essential data and assess the potential risks involved, allowing them to make informed decisions and provide appropriate coverage for their clients in the face of changing climatic conditions.
Digital platforms that provide comprehensive solutions for food growers and commodity buyers, facilitating the procurement of raw materials and field monitoring, use satellite imaging technology to broaden their market reach and enhance their capabilities. These platforms can forecast input supply requirements and analyze farmers' preferences in specific targeted areas by leveraging such technologies, enabling more precise decision-making and strategic planning.
Conclusion
The growing need for food production in an agricultural market characterized by uncertain conditions and rising input costs, including fertilizers and seeds, has driven investments in satellite imaging technology. This trend is expected to continue during the forecast period, particularly due to the increasing average farm sizes or the consolidation of small farms. As a result, the demand for satellite imaging in agriculture is anticipated to increase further.
Interested to know more about the developing technologies in your industry vertical? Get the latest market studies and insights from BIS Research. Connect with us at [email protected] to learn and understand more.
