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The agriculture analytics market size is forecast to increase by USD 1.23 billion at a CAGR of 12.97% between 2023 and 2028. The market is experiencing significant growth, driven by the rising global population and increasing food demand. This trend is leading to a greater focus on improving agricultural productivity and efficiency. Another key trend is the growing number of mergers and acquisitions in the global agriculture analytics industry, as companies seek to expand their offerings and gain a competitive edge. However, the high cost of implementing analytics in agriculture remains a challenge for many farmers and agribusinesses, particularly in developing countries. Despite this, the long-term benefits of using data analytics insights to optimize farming practices are expected to outweigh the initial investment costs. Overall, the market is poised for continued growth as technology continues to transform the agricultural sector. The market report forecasts market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The solutions segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the integration of advanced technologies such as 5G Mobile Networks, Satellite Capabilities, and the Internet of Things (IoT). These technologies enable mobility demand in digital agriculture, facilitating real-time data collection and analysis for Crop Management. Artificial Intelligence (AI) and Cloud Computing are crucial components of this market, providing farmers with insights into Farm Operations, Crop Yield, and Environmental Factors.
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The solutions segment accounted for USD 483.30 million in 2018. Vertical Farming and precision farming techniques are gaining popularity, particularly in large and medium-size farms, to optimize Farm Output and ensure Sustainability and Food Security. The implementation of AI in agriculture has led to the development of smart farming solutions, including positioning systems, navigation satellite systems, and drones, for efficient Land Preparation and Crop Growth Monitoring. Cloud Deployment and On-Premises Deployment models cater to various farm sizes, ensuring Data Security and strategic activities for farmers. Climatic conditions and Soil Degradation are critical factors that impact farm productivity, making Weather data analytics and Crop growth monitoring essential. Livestock farming also benefits from these advanced agricultural techniques, improving overall Farm Efficiency.
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North America is estimated to contribute 44% to the growth of the global market during the market forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Irrigation management plays a crucial role in modern agriculture, ensuring optimal water usage and enhancing crop yields. Sustainable practices, such as precision irrigation and drip irrigation, are increasingly adopted on farms to minimize water wastage and promote environmental stewardship. Agriculture analytics is a burgeoning field that leverages data and technology to optimize irrigation management and improve overall farm productivity. Advanced analytics tools provide insights into soil moisture levels, weather patterns, and crop health, enabling farmers to make informed decisions regarding irrigation scheduling and application rates. By implementing data-driven irrigation management strategies, farmers can reduce water usage, improve crop quality, and contribute to more sustainable agricultural practices.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market is witnessing significant growth due to the integration of advanced technologies such as 5G Mobile Networks, Satellite Capabilities, Artificial Intelligence, Cloud Computing, Internet of Things, and Positioning Systems in agriculture. The mobility demand for real-time data access and analysis is driving the market. Farm size is a crucial factor influencing the adoption of agriculture analytics. Vertical Farming, Crop Management, and Precision Farming are key applications of agriculture analytics. Predictive models based on climatic conditions, soil degradation, and farm operations are used to optimize farm output and improve efficiency. Livestock Analytics and Aquaculture Analytics are other emerging areas in agriculture analytics. Cloud Deployment and On-Premises Deployment are the two main deployment models for agriculture analytics. Data Security is a major concern in digital agriculture, and various measures are being taken to ensure data privacy and security. Weather data analytics, Land Preparation, and Farm Operations are some of the other areas where agriculture analytics is being used to enhance productivity and efficiency. Navigation satellite systems and Drones are being used for crop growth monitoring and farm management. The use of AI and IoT in agriculture analytics is expected to revolutionize farming practices, from crop management to livestock farming. The market is expected to grow at a rapid pace in the coming years, driven by the increasing food demand and the need for sustainable farming practices.
The rising global population boosting food demand is notably driving market growth. The global agriculture sector is experiencing significant transformation due to the increasing food demand resulting from population growth. According to the United Nations, the global population is projected to reach approximately 10.3 billion by the mid-2080s, necessitating innovative agricultural solutions to ensure food security. In response, farmers and agricultural businesses are embracing advanced technologies to optimize resource use, enhance crop yield, and promote sustainability. 5G mobile networks and satellite capabilities are revolutionizing agriculture analytics by enabling real-time data collection and analysis. Artificial intelligence, cloud computing, and the Internet of Things are key technologies driving this transformation. These technologies enable precision farming, vertical farming, and livestock farming, among other agricultural techniques. Farm size is a significant factor influencing the adoption of agriculture analytics. Large farms and medium-size farms are increasingly deploying cloud-based solutions for data security and efficiency.
Further, on-premises deployment is also an option for farms with specific infrastructure requirements. Climatic conditions, soil degradation, and weather data analytics are critical environmental factors that agriculture analytics addresses. Positioning systems, navigation satellite systems, drones, and precision farming techniques enable farmers to monitor crop growth and optimize farm operations. Smart farming, field planning, and crop management are strategic activities that benefit from agriculture analytics. Digital agriculture is a growing trend, with companies like Farmers Edge leading the way in providing advanced solutions. Sustainability and food security are key priorities, making agriculture analytics an essential component of modern farming practices. Thus, such factors are driving the growth of the market during the forecast period.
The growing mergers and acquisitions in the industry are the key trends in the market. The market is experiencing significant growth as the demand for mobility and sustainability in farming increases. With the advent of 5G mobile networks and satellite capabilities, real-time data collection and analysis are becoming essential for farmers to optimize farm operations and improve crop yield. Companies are integrating Artificial Intelligence (AI), Cloud Computing, the Internet of Things (IoT), and digital agriculture technologies to offer advanced solutions for farm management. Mergers and acquisitions are on the rise, with larger agritech firms and technology providers acquiring smaller, specialized companies to expand their offerings. For instance, in March 2024, Bayer AG launched a pilot program for a generative AI-powered virtual assistant to assist farmers with crop management.
Further, this tool, designed for farmers worldwide, offers quick and accurate responses to agronomy-related queries and information on Bayer's agricultural products. The market also caters to various farm sizes, from large to medium-size, with solutions for vertical farming, livestock farming, and precision farming. Cloud deployment and on-premises deployment options ensure data security, while smart farming techniques incorporate positioning systems, navigation satellite systems, drones, and precision farming methods. Environmental factors, including weather data analytics and crop growth monitoring, are crucial for efficient farm management. Land preparation, farm output, and farm operations are also optimized through the use of agricultural techniques and technology. Climatic conditions and soil degradation are monitored to ensure sustainable farming practices and food security. Thus, such trends will shape the growth of the market during the forecast period.
The high cost of implementing analytics in agriculture is the major challenge that affects the growth of the market. The market is experiencing significant growth due to the increasing demand for mobility and food security, driven by the implementation of advanced technologies such as 5G mobile networks, satellite capabilities, and the Internet of Things (IoT). Artificial intelligence (AI) and cloud computing are key enablers of digital agriculture, facilitating activities such as crop management, farm output optimization, and environmental factor analysis. Vertical farming, precision farming, and livestock farming are gaining popularity, particularly in large and medium-size farms. Cloud deployment and on-premises deployment are popular infrastructure options, with data security being a critical concern. The integration of advanced analytics requires substantial investments in technology and infrastructure, which can be a challenge for farmers and agribusinesses in developing regions.
Further, the cost of implementing various smart farming apps can range from simple farm management apps, which monitor crops, harvests, and expenses, to precision agriculture apps with basic sensors, which provide real-time data monitoring of soil moisture, temperature, and other environmental factors. The estimated cost for a simple farm management app ranges from USD 25,000 to USD 35,000, while a basic analytics app costs between USD 15,000 and USD 20,000. Weather forecast apps cost between USD 5,000 and USD 10,000, and the total estimated cost for these apps ranges from USD 25,000 to USD 65,000. Sustainability and food security are strategic priorities, with AI and smart farming techniques being used to optimize farm operations, improve crop yield, and mitigate the impact of environmental factors such as climatic conditions and soil degradation. Positioning systems, navigation satellite systems, and drones are essential tools for precision farming, enabling farmers to monitor crop growth, land preparation, and farm output with greater efficiency. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
A.A.A Taranis Visual Ltd. - The company offers agriculture analytics solutions such as Taranis AcreForward-a comprehensive drone farming solution and others.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the integration of advanced technologies such as 5G Mobile Networks, satellite capabilities, artificial intelligence (AI), Cloud Computing, the Internet of Things (IoT), and various agricultural techniques in farming. The mobility demand for real-time data access and analysis is propelling the market forward. Key areas of focus include food demand, vertical farming, crop management, farm size, and digital agriculture. Cloud deployment and on-premises deployment are popular choices for data storage and processing. Data security is a critical concern, with the need for secure and reliable data handling. Strategic activities by key players such as farmers edge, sustainability, and food security initiatives are driving the market. Crop yield, efficiency, and climatic conditions are essential factors influencing the market. Weather data analytics, crop growth monitoring, land preparation, farm operations, farm output, and farmers' income are significant areas of interest. Environmental factors, such as soil degradation, positioning systems, navigation satellite systems, drones, precision farming, livestock farming, large farms, medium-size farms, and infrastructure, are also shaping the market. AI and smart farming are transforming agriculture by providing insights into crop growth, livestock health, and farm management. Overall, the market is poised for growth, with various opportunities arising from the integration of technology and data analytics in farming practices.
Market Scope |
|
Report Coverage |
Details |
Page number |
220 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.97% |
Market growth 2024-2028 |
USD 1.22 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.61 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, China, UK, Canada, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A.A.A Taranis Visual Ltd., Accenture Plc, AGCO Corp., AGEAGLE AERIAL SYSTEMS Inc., Agribotix, Bayer AG, Conservis Corp., Corteva Inc., Cropin Technology Solutions Pvt. Ltd., Deere and Co., Farmers Edge Inc., International Business Machines Corp., Iteris Inc., Microsoft Corp., Oracle Corp., PrecisionHawk Inc., SAP SE, Trimble Inc., Vistex, Inc., Wipro Ltd., and Xylem Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Type
9 Market Segmentation by Application
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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