Internet of Things (IoT) in Agriculture Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Internet of Things (IoT) in Agriculture Market is segmented By Type (Small Farms, Mid-Sized Farms, Large Farms) By Component (Hardware, Software) By Application (Precision Aquaculture, Precision Farming, Precision Livestock, Precision Forestry, Others) and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Market Overview

Global Internet of Things (IoT) in Agriculture Market reached US$ 31.10 billion in 2023 and is expected to reach US$ 83.26 billion by 2031, growing with a CAGR of 13.1% during the forecast period 2024-2031.

The agriculture industry has been receiving immense attention in its continuous development due to increasing demand for agri-produce to meet the rising global demand. Producers are willing to adopt updated technologies to increase the yield. Among agritech submarkets, 21% of farmers have adopted farm-management software.

Following closely, 15% of farmers have utilized remote-sensing and precision agriculture hardware. Around 4% of farmers intended to adopt farm-management software, precision-agriculture hardware, remote-sensing solutions, or sustainability-related technologies, while 2.5% accounted for additional automation and robotics adoption.

North America dominates the global market with a greater contribution of agriculture in region growth gaining better attention in its development. The agriculture, food, and related industries played a significant role in contributing to United States' gross domestic product in 2023. These industries contributed approximately $1.530 trillion, equivalent to a 5.6% share of the GDP. The output of American farms, on the other hand, contributed $203.5 billion, making up around 0.7% of the total GDP.

Market Scope

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Market Dynamics

Benefits Associated with IoT Technologies

IoT technologies are revolutionizing farming practices by providing real-time data and insights to optimize crop management, irrigation, fertilization and pest control. This allows farmers to make data-driven decisions and improve farming efficiency, minimizing resource wastage, maximizing crop yields, and reducing operational costs. IoT sensors, drones, and smart devices collect data on various aspects like soil moisture levels, crop health, and weather conditions.

Drone technology, smart irrigation systems and livestock monitoring sensors are widely used in precision farming. Precision agriculture with the help of IoT empowers farmers to become more efficient and sustainable, leading to increased food production, reduced environmental impact, and improved farm profitability. Remote monitoring and management along with crop health monitoring and disease detection provide a greater support system for the farmers in in their predictive analytics.

Increasing Demand for Food Traceability and Safety

Consumer demand for transparency and accountability in the food supply chain is driving the need for IoT solutions that enable traceability, monitoring and quality control throughout the agricultural value chain. IoT sensors can track food from farm to fork, allowing early detection of potential contamination issues and faster, more targeted product recalls.

IoT data can provide valuable insights into optimal storage conditions, weak links in the supply chain, and factors like temperature and humidity that affect food quality. By ensuring food safety and traceability, IoT in agriculture benefits consumers, farmers and retailers. Integration of IoT with blockchain can enhance traceability and consumer trust, increasing its adoption and utilization globally.

High Costs of Internet of Things in Agriculture

Adopting IoT technology in agriculture requires a significant upfront investment in hardware, sensors, connectivity infrastructure, software platforms and implementation services. However, for small-scale or resource-constrained farmers, the initial cost of IoT adoption can be a major hampering factor to adopt.

In addition, the ongoing costs associated with maintenance, data management, and others also add to the financial burden. The high cost of entry may discourage farmers from adopting IoT solutions, especially in regions with limited access to financing or government support programs. These cost considerations remain a significant obstacle to widespread IoT adoption in agriculture, hindering market growth and technology penetration.

Segment Analysis

The global internet of things (IoT) in the agriculture market is segmented based on type, component, application and region.

Enhanced Efficiency and Resource Optimization of Precision Agriculture

The global internet of things (IoT) in the agriculture market is segmented based on application into precision aquaculture, precision farming, precision livestock, precision forestry and others. The precision farming segment accounted for the largest share of the global market. The adoption of IoT solutions in precision agriculture techniques optimizes productivity, reduces input costs and improves operational efficiency.

Precision farming uses IoT technologies to collect data on soil conditions, crop health, and weather patterns to make informed decisions about planting, irrigation, fertilization, and pest management. By optimizing input use, it can lower production costs and increase profitability while promoting environmental sustainability. It's scalable, adaptable and data-driven, enabling farmers to monitor crop performance, mitigate risks and achieve better outcomes.

Geographical Penetration

Greater New Technology Adoption in North America

North America dominated global agriculture market. The regional countries including United States, Canada, and Mexico have a long history of agricultural innovation and are early adopters of new technology solutions. The region has many leading IoT technology companies, research institutions, and agricultural enterprises that drive advancements in precision agriculture and IoT solutions have a high degree of technology adoption like various automation, control & sensing systems and others.

According to Farmers’ Global Insights Survey, McKinsey, May 2022, in North America about 61% of farm-management software most popular use-case. In 2022, North America led in adopting global ag-tech with about 61% currently using or planning to adopt it in the next 2 years. The rising adoption of agricultural technology has contributed highest growth of the regional market.

Governments in North America, including United States and Canada, provide support and incentives to promote the adoption of IoT in agriculture. Financial assistance and loan programs from USDA support the adoption of precision agricultural technology. For instance, between 2017 and 2021, the USDA and the National Science Foundation allocated nearly $200 million in funding towards precision agriculture research and development, with a focus on partnerships for AI research institutes.

Competitive Landscape

The major global players in the market include IBM Corporation, Groupe X-TELIA Inc., Arable, Fujitsu Limited, BASF SE, Murata Manufacturing Co., Ltd., Avanijal Agri Automation Pvt. Ltd, Cropin Technology Solutions Pvt Ltd, SAP SE and Semios.

COVID-19 Impact Analysis

The COVID-19 pandemic had both negative and positive impacts on the internet of things (IoT) in the agriculture market. The lockdowns and trade restrictions caused disruptions in supply chains, resulting in delays in the production and delivery of IoT devices and sensors for agriculture, resulting in the delayed implementation of new IoT solutions in farms.

On the positive side, the pandemic highlighted the importance of efficiency and resilience in food production, leading to an increased demand for precision agriculture solutions that use IoT to optimize resource use and minimize labor requirements. Similarly, due to the labor shortages caused by lockdowns and travel restrictions, farmers turned to IoT solutions for remote monitoring and automation of agricultural tasks, reducing their reliance on manual labor.

Key Developments

• In March 2024, GroGuru launched the world's first wireless underground system soil sensor probe for monitoring the root zone of annual field crops. The probe has six sensors measuring soil moisture and temperature and integrates the patented GroGuru WUGS system. It was developed in partnership with AquaCheck.
• In July 2023, Aurea Imaging, a prominent crop intelligence provider for fruit growers, announced the release of TMS TreeScout. This is the world's first tractor-mounted sensor for precision orchard management that is fully integrated with AI and 3D computer vision.
• In September 2022, Agritech company Cropin launched Cropin Cloud, the first industry-specific cloud for agriculture.

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• To visualize the global internet of things (IoT) in agriculture market segmentation-based type, component, application and region, as well as understand key commercial assets and players.
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The global internet of things (IoT) in agriculture market report would provide approximately 62 tables, 53 figures and 228 pages.

Target Audience 2024

• Manufacturers/ Buyers
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