Today, most precision agricultural solution providers are committed to developing and introducing smart solutions that can aid the existing farming techniques as well as increase the yield to a much greater extent. As the global population continue to increase, farmers are faced with the challenge of doubling the production volumes within the limited space for cultivation. Hence, the adoption of advanced irrigation techniques and technologies has become quite crucial.
Integration of smart technology in the agricultural sector has allowed farmers to carry out irrigation activities in a more efficient manner. Moreover, companies are concentrating on providing essential data services that can assist farmers to enhance resource utilisation and maximise yield capacity. A report published by Future Market Insights (FMI) reveals that the global market for smart agriculture solution reached a valuation of more than US$ 10 Billion in 2016 registering a 5% additional growth than the previous year. In addition, this market is estimated to increase threefold by the end of 2026, reflecting a compound annual growth rate of around 11.2% between 2016 and 2026. Of late, several advanced hardware components have come into the market, specifically for smart agriculture operations. Last year, a US-based imagery service provider – TerrAvion, started offering aerial data for agricultural purposes, the data is collected using drones and thermal imagery technology. TerrAvion’s particular data service is believed to be highly credible and aimed at helping farmer increase productivity.
FMI’s report reveals that heavy investments are being made for further research and development of smart agriculture solutions. This, in turn, is making a positive impact on the global market for smart agriculture solution. Small- and medium-sized agricultural solution providers are collaborating with sensor manufacturers to develop smart agricultural tools. For instance, Lab IX, Flex technology accelerator and Robert Bosch Venture Capital GmbH (RBVC) invest in the US-based CropX Inc., This collaboration was majorly aimed at enhancing CropX’s product offering as well as increase its market presence. Such increasing collaboration projects amongst various companies existing in the value chain is expected to churn out better agricultural solutions in the forthcoming years. Likewise, Trimble Navigation Ltd. partnered with Agrinetix, Avidor High Tech France, Precision AG and KOREC in order to gain higher recognition in the markets of Europe and North America.
Robust Adoption of Smart Agriculture Solution in Asia Pacific excluding Japan (APEJ)
The use of smart agriculture solution in developed regions such as Europe and North America has already gone to the next level. In 2016, the market for smart agriculture solution in North America was valued at over US$ 5,000 Mn, which is anticipated to exceed US$ 15 Bn by 2026. Meanwhile, the APEJ region seems to be going in the same direction. Many of the emerging countries in the APEJ region is rapidly adopting smart agriculture solution for increasing agricultural productivity. The region’s smart agricultural solution market is expected to witness a healthy rise in terms of value over the next couple of years.