• Global connected agriculture node shipments will grow at a CAGR of 30% from 23 million units in 2022 to reach 187 million units by 2030.
• Crop farming will be the fastest growing segment in the connected agriculture market, followed by drones and robots, tractors, and livestock monitoring.
• Connectivity penetration in farms will remain below 10% by 2030.
• China, Europe and North America will be key markets for connected agriculture equipment.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – May 4, 2023

Global connected agriculture device/node shipments will grow by 30% annually to reach 187 million units by 2030 from 23 million in 2022, according to Counterpoint’s latest Global Connected Agriculture Market report. The need for connectivity is driven by large farms and livestock, and manpower shortage in some countries. China will grow the fastest over the forecast period to become the top market for connected agriculture products. Further, the connected agriculture market’s crop farming segment is expected to grow at the fastest pace (41% CAGR) during 2023-2030, followed by drones and robots, tractors, and livestock monitoring.

Connected agriculture, also known as smart farming or digital farming, refers to the use of technology, such as sensors, drones and other digital tools, to optimize agricultural production. Connected agriculture enables farmers to monitor and manage their crops and livestock more efficiently by collecting and analyzing data in real time. This data can help farmers make more informed decisions about planting, irrigation, fertilization, pest control and other things. Connected agriculture allows for more precise and targeted use of resources, which can reduce waste and improve yields.

Commenting on connected farm equipment like tractors, drones and agriculture robots, Senior Research Analyst Soumen Mandal said, “Drones are emerging as a key technology supporting agriculture primarily for visual inspection, spraying and mapping. But the current usage is very low due to the non-availability of skilled manpower, insufficient battery life and high computational costs. Similarly, the usage of robots in agriculture is still limited due to technological challenges and high prices. However, there will be significant potential for drones and robotics going forward, especially in China, Europe and North America.

The rising trends of electrification and autonomous operations are driving connectivity adoption in the tractor market. India has a 45% share in the global tractor market but the country’s brands are very selective in providing connected solutions, thus slowing the overall connectivity penetration in the global tractor market.”

Senior Research Analyst Akshara Bassi said, “We will see increased penetration of smart devices, especially smart collars and pedometers among livestock farmers, in the coming years due to the productivity benefits and ease of livestock management offered by these devices. We expect the smart livestock market to grow at 18% annually over the forecast period driven by lower pricing, mass availability of affordable connectivity options, low maintenance of the devices and subsidies by governments to digitize agriculture.” Bassi added, “Increase in labor wages and shortage of labor also drive the farms to automate some of the tasks without impacting their productivity.”

Commenting on the market outlook, Associate Director Mohit Agrawal said, “During the forecast period, the shipments of connected agricultural devices and end nodes are expected to increase by 30% YoY to reach 187 million units from 23 million units in 2022, mainly driven by the crop farming industry. China is projected to be the largest market, propelled by government initiatives and the rise of cooperative farming. Meanwhile, in Western markets such as the US and Europe, the adoption of technology is driven by the large size of farms and manpower scarcity. Despite having the world’s largest arable land, India is expected to lag behind in technology adoption due to the relatively small size of its farms.

The lack of technology awareness among farmers, small landholdings and inadequate cellular network coverage in farming areas are the key challenges for connected farming. As a result, the penetration of connectivity in farms will remain below 10% even in 2030, and a significant proportion of the connected nodes will rely on non-cellular technologies.”

The comprehensive and in-depth ‘Global Connected Agriculture Market, 2022’ report is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at [email protected] for questions regarding our latest research and insights.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Mohit Agrawal

Soumen Mandal

Akshara Bassi

Counterpoint Research

[email protected]

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