The presence of a large number of companies has rendered the competitive landscape of the global smart agriculture market highly fragmented. The cumulative share of the top four players nearly 15.5% in the market in 2016, hinting towards a highly competitive environment. Raven Industries, Inc., Trimble Navigation, Deere & Co, and AgJunction, Inc., are the top market players. Of these, AgJunction, Inc., emerged dominant in 2016 holding a little short of 6% of the overall market, finds Transparency Market Research (TMR) in its new study.
“A majority of the companies operating in the global smart agriculture market are looking to gain traction by means of innovation and technological improvements,” said a lead TMR analyst. Besides this, exploring lucrative pockets around the world and establishing units are key strategies of emerging at the fore of this highly competitive market. Acquiring small and local players is yet another popular strategy adopted by the leading players aiming for expanding their regional footprint.
According to TMR, exhibiting a promising 13.5% CAGR between 2017 and 2025, the global smart agriculture market is forecast to reach US$23.44 bn by the end of 2025. The market’s valuation stood at US$6.55 bn in 2016. Regionally, North America emerged dominant with a value-based share of 44.14% in the overall market in 2016. Through the course of the forecast period, the region is likely to maintain its dominance. In terms of application, the precision agriculture segment was at fore with a share of 49.09% in the overall market in 2016.
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Demand for Better Yield to Fuel Implementation of Smart Agriculture Technologies
As smart technologies make headway across industries, the agriculture sector is not to be left behind. A considerably rising demand for the same is noted especially across the agriculture sector in developed economies. These developments are currently implemented to reduce human effort at the same time boost agricultural yield. Latest technologies such as micro controller, cloud- or web-based platform, cameras, sensors, and smart devices, sensors, and cameras are implemented to help farmers understand their land condition better.
The need for latest and smart technologies in agriculture is primarily triggered by the persistent want for food to feed the globally rising population. Many countries are deploying smart agriculture also to keep track of their livestock and monitor their health. Besides this, the market is expected to gain impetus in response to the increasing demand for precision farming. Precision agriculture comprises remote sensors that capture multi-band images of crops from drones and UAVs. Also the rising trend of corporate farming is expected to fuel the demand for smart agriculture technologies. In addition, the rising scarcity of arable lands is tipping scales in favor of smart agriculture to help pursue greenhouse farming.
Lack of Knowledge among Farmers to Curb Growth Potential in Underdeveloped Nations
On the downside, the market is reeling under lack of awareness about advanced technologies among farmers. The scenario is exacerbated in developing and under-developed economies where farmers are coping with meager knowledge and feudalistic ways of selling crops. To make matters worse, the high cost of smart devices is inhibiting their use in the agriculture sector, despite abundant opportunities across emerging nations. Nevertheless, with internet penetrating even in remote areas, soon the aforementioned problems are likely to get mitigated. Besides the availability of high-speed internet, favorable government initiatives to educate farmers about the benefits of implementing smart technologies will aid in the market’s expansion.
The major players in the smart agriculture market are Deere & Co., Trimble Navigation Ltd., Raven Industries Ltd., AgJunction Inc., AGCO Corporation, SST Development Group Inc., Ag Leader Technology, Hexagon AB, Iteris Inc., TeeJet Technologies.