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Smart Agriculture Market Size - By Offering (Hardware, Software, Service), Application (Precision Farming, Livestock Monitoring, Precision Forestry, Smart Greenhouse), Growth Prospects, Regional Outlook & Global Forecast, 2023 - 2032

  • Report ID: GMI7104
  • Published Date: Oct 2023
  • Report Format: PDF

Smart Agriculture Market Size

Smart Agriculture Market size was valued at USD 18.5 billion in 2022 and is anticipated to grow at a CAGR of over 12% between 2023 and 2032. Smart agriculture enhances operational efficiency by providing real-time data on crop conditions, weather & soil health, allowing farmers to make data-driven decisions, optimize resource allocation, and reduce waste. It addresses the challenges of a growing global population and limited arable land by enabling precision farming techniques, such as automated machinery, precision irrigation & crop monitoring, and promoting sustainability by minimizing the use of water, pesticides & fertilizers through targeted application, thereby reducing environmental impacts.

Smart Agriculture Market

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This convergence of technology and agriculture meets the demand for higher yields, resource conservation, and food security, making it a driving force behind the smart agriculture market growth. For instance, in October 2022, Trimble launched its next-generation Trimble GFX-1060 and GFX-1260 displays for precision agriculture applications. Trimble's portfolio of innovative displays enables farmers to complete in-field operations quickly & efficiently while also mapping and monitoring field information in real time with precision.

Smart agriculture, often referred to as precision agriculture, is an innovative farming approach that utilizes advanced technology and data-driven solutions to optimize crop production & livestock management. It involves the integration of sensors, automation & data analytics to enhance decision-making, increase operational efficiency, and promote sustainability in agriculture. Smart agriculture aims to maximize yields, reduce resource wastage, and improve overall farm management by providing real-time insights into factors such as weather conditions, soil quality, and crop health.

The increasing reliance on interconnected technologies and data-driven decision-making leaves farms vulnerable to cyber threats & unauthorized data access. Breaches can compromise sensitive information, from crop yields and soil quality to operational strategies. Moreover, the aggregation of extensive agricultural data can raise ethical concerns about data ownership & usage. Farmers and agribusinesses must invest in robust cybersecurity measures to protect their digital assets and maintain trust among stakeholders. Failure to address these concerns can hinder the widespread adoption of smart agriculture solutions.

COVID-19 Impact

The COVID-19 pandemic had notable impacts on the smart agriculture market. It encouraged the adoption of digital technology and automation in agriculture since they have become critical in ensuring operational continuity and food supply. Farmers are seeking more efficient & remote management solutions, resulting in the growing use of precision agriculture instruments, remote monitoring, and data analytics. Supply chain interruptions also highlighted the importance of better inventory and resource management, fueling interest in smart agriculture solutions. Despite the early obstacles, the pandemic highlighted the importance of technology in agriculture, which is likely to encourage innovation and growth in this market in the future.

Smart Agriculture Market Trends

The use of Internet of Things (IoT) devices & sensors for real-time data collection and monitoring has continued to expand. These technologies provide valuable insights into soil conditions, weather, crop health, and livestock management. Precision farming techniques, such as variable rate application and precise planting, are becoming increasingly popular. These methods optimize resource utilization, reduce waste, and boost overall crop yields.

Sustainability is a growing concern in agriculture. Smart agriculture technologies are being used to reduce water & chemical usage, minimize environmental impacts, and enhance overall sustainability. The smart agriculture market is expanding globally, reaching not only large commercial farms but also small-scale & subsistence farming operations, thereby contributing to food security and economic development.

Smart Agriculture Market Analysis

Smart Agriculture Market Size, By Application, 2021-2032 (USD Billion)

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Based on application, the market is segmented into precision farming, livestock monitoring, precision forestry, and smart greenhouse. The precision farming segment held over 40% of the revenue share in 2022.


  • Precision farming techniques allow farmers to optimize the use of resources such as water, fertilizers, and pesticides. This efficiency translates to cost savings and increased profitability. By precisely tailoring planting, irrigation, and crop protection measures to the specific needs of each section of a field, precision farming can lead to higher crop yields and improved quality.
  • The growing global population is putting pressure on the agriculture sector to produce more food. Precision farming techniques help meet this rising demand by maximizing the output from available resources.


Smart Agriculture Market Share, By Offering, 2022

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Based on offering, the smart agriculture market is divided into hardware, software, and service. The software segment is anticipated to register a CAGR of 10% through 2032.

  • Smart agriculture relies on data for optimizing the various aspects of farming. Farm management software allows farmers to collect, analyze, and visualize data from sensors, drones & other sources. This data-driven decision-making helps in precision agriculture, from planting and irrigation to pest control.
  • With the rising use of IoT devices & sensors in agriculture, software is needed to gather & process the data generated. These technologies contribute to more accurate monitoring & control of farm operations.


U.S. Smart Agriculture Market Size, 2021-2032 (USD Billion)

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North America smart agriculture market accounted for 35% of the revenue share in 2022. The region has a strong agricultural sector and a high level of technology adoption. Farmers are increasingly turning to smart agriculture solutions to enhance productivity and reduce operational costs. There is also a growing emphasis on sustainable & efficient farming practices, driven by environmental concerns. Smart agriculture technologies help achieve these goals by optimizing resource utilization. Government support & investments in agricultural innovations along with a well-established infrastructure for technology adoption are contributing to market expansion. The need to meet rising food demand and improve crop yields is fueling the adoption of smart agriculture solutions.

Smart Agriculture Market Share

Players operating in the industry focus on implementing different growth strategies to strengthen their offerings and expand their market reach. These strategies involve new product developments & launches, partnerships & collaborations, mergers & acquisitions, and customer retention. These companies also heavily invest in research & development initiatives to introduce innovative and technologically advanced solutions in the market. Some of the major companies operating in the smart agriculture industry are mentioned below:

  • Deere & Company
  • Trimble Inc.
  • AGCO Corporation
  • Topcon Positioning Systems
  • DeLaval Inc
  • Ag Leader Technology
  • Raven Industries

Smart Agriculture Industry News

  • In September 2022, John Deere launched three new Deere-powered self-propelled forage harvesters (9500, 9600, and 9700) to its lineup. Each model addresses the needs of contractors, customer harvesters, and dairy & livestock producers challenged by increased operating costs, shorter harvesting windows, and a smaller pool of skilled workers.
  • In April 2021, Topcon Agriculture launched the new AGM-1 and AGS-2 manual guidance & autosteering receivers and the new Topnet Live cellular, satellite & bridging correction services: Realpoint, Starpoint, and Skybridge. These technologies are used in machine operations and all associated tasks including soil preparation, seeding, crop care & harvesting, where tracking location data is relevant to crop optimization.

The smart agriculture market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Offering

  • Hardware
  • Automation & control
    • Guidance & steering systems
    • GPS/GNSS devices
    • Displays
    • Drones
    • Irrigation controllers
    • Flow & application control devices
    • Variable rate controllers
    • Others
  • Sensing & monitoring
    • Yield monitors
    • Soil sensors
      • Temperature sensors
      • Nutrient sensors
      • Moisture sensors
    • Water sensors
    • Climate sensors
  • HVAC system
  • RFID tags & readers    
  • LED grow lights
  • Software
  • On-premises
  • Cloud-based
    • Software-as-a Service (SaaS)
    • Platform-as-a-Service (PaaS)
  • AI and data analytics
  • Farm management software
  • Service

Market, By Application

  • Precision farming
  • Yield monitoring
    • On-farm
    • Off-farm
  • Field mapping
    • Boundary mapping
    • Drainage mapping
  • Crop scouting
  • Weather tracking & forecasting
  • Variable rate
  • Irrigation management
  • Fertigation management
  • Inventory management
  • Farm labor management
  • Others 
  • Livestock monitoring
  • Breeding management
  • Feeding management
  • Milk harvesting management
  • Animal comfort management
  • Behavioral monitoring & control
  • Others
  • Precision forestry
  • Genetics & nurseries
  • Fire management
  • Harvesting management
  • Inventory & logistics management
  • Others
  • Smart greenhouse
  • HVAC monitoring
  • Yield monitoring & harvesting
  • Water & fertilizer management
  • Others
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • ANZ
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA
Authors: Suraj Gujar, Sandeep Ugale

Frequently Asked Questions (FAQ) :

The market size of smart agriculture reached USD 18.5 million in 2022 and is set to observe more than 12% CAGR between 2023 and 2032, says this GMI report.

The software segment is anticipated to register over 10% CAGR from 2023 to 2032, as the farm management software allows farmers to collect, analyze, and visualize data from sensors, drones & other sources.

North America market share was over 35% in 2022, as the region has a strong agriculture sector and a high level of technology adoption.

Deere & Company, Trimble Inc., AGCO Corporation, Topcon Positioning Systems, DeLaval Inc, Ag Leader Technology, and Raven Industries.

Smart Agriculture Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 16
  • Tables & Figures: 307
  • Countries covered: 20
  • Pages: 220
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