The world population is growing rapidly, and the global population is expected to reach 10 billion in 2057. This is expected to increase the demand for food. To address the escalating demand for food from the limited farmlands and labor, established agriculture machinery developers and technology vendors are introducing innovative solutions in the farming arena. These solutions are focused on helping farmers to fill the supply-demand gap by ensuring high yield, increased profit, and protection of the environment. The approach of using information technology (IT), digital technologies, precision algorithms, and sensors to ensure optimum utilization of resources in order to achieve high crop yields and reduced operational costs is called smart farming. Smart farming agriculture technologies comprise specialized equipment, software, and IT services. Apart from the growing demand for food, there are several other microeconomic factors that are expected to contribute to the growth of the smart farming market.
Read Report Overview: Global Smart Farming Market
Precision Agriculture Application Segment Dominates the Smart Farming Market
The precision agriculture applications of the smart farming market have the largest share and are expected to lead the application segment during the forecast period 2021-2026. The major demand for digital transformation in crop farming is due to its largest share in total agriculture revenue. Precision agriculture has the capability to improve crop yields and decrease input needs. Thus, with the growing adoption of digital technologies and precision algorithms, the smart farming market is expected to grow at a higher pace during the forecasted period.
Services Segment Is Expected to Witness Highest Growth Rate in the Global Smart Farming Market
The hardware system segment accounted for the largest share in the smart farming market since IoT and other devices are crucial for smart farming deployment, and it is expected to remain the same during the forecast period. The services segment is anticipated to witness the highest growth rate during the forecast period 2021-2026. This is mainly due to the growing implementation and integration of digital technologies in conventional agricultural practices, which requires integration services.
Asia-Pacific and Japan to Witness Fastest Growth in the Global Smart Farming Market
Asia-Pacific and Japan is expected to register the highest growth rate during the forecast period 2021-2026. This is due to ongoing efforts to digitize every industry, which will also benefit the agricultural industry. Apart from that, the regional governments are enacting technology-friendly policies, which are expected to further put a significant impact on the market.
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Competitive Landscape
The global smart farming market has a huge potential, and it is also positively impacted by a positive outlook toward digitization. However, the market currently needs inter-organizational collaboration as well as involving farmers in the development process so that products and solutions can be designed and developed to address the challenges being faced by the farmers and the industry. As per industry experts, smart farming solutions operators have somehow failed to create value for the farmers, especially in developing nations. Thus, application-oriented solutions are needed from the key players rather than technology-centric solutions.