Smart Agriculture Solution Market is Estimated to Witness High Growth Owing to Opportunity of Improving Farm Productivity
Smart agriculture solutions include offerings such as hardware, software, and services that enable advanced farming techniques. Growing focus on precision farming and optimized resource utilization is driving demand for these solutions. Key products include sensors, automation & control systems, drones, and analytical & mobile apps. Smart agriculture solutions help farmers monitor soil conditions, optimize water & fertilizer usage, detect crop diseases, and maximize yield.
The global Smart Agriculture Solution Market is estimated to be valued at US$ 33424.85 Mn in 2023 and is expected to exhibit a UCAGR of 6.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
With rising global population and depleting arable land, improving farm productivity through optimal resource utilization has become imperative. Smart agriculture solutions enable precision farming practices that can significantly boost crop yields even with limited resources. Adoption of sensing, automation, and data driven farming techniques through smart agriculture solutions can help address the pressing need for increased food production in a sustainable manner. It is estimated that smart agriculture solutions can potentially increase crop yields by over 20% and reduce production costs by about 10-15%. This huge yield gain potential provides a major market opportunity for increased adoption of smart agriculture solutions worldwide.
Porter's Analysis
Threat of new entrants: The threat of new entrants is low as this market requires high capital investments and technology which acts as a barrier.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are many players in the market offering similar smart agriculture solutions.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as suppliers have standard products and buyers can choose from various suppliers.
Threat of new substitutes: The threat of substitutes is low as there are no close substitutes for smart agriculture solutions.
Competitive rivalry: The competitive rivalry is high due to the presence of many established players.
SWOT Analysis
Strength: Smart agriculture solutions provide high crop yields, optimize resource usage and help farmers take data-driven decisions. They reduce costs and help improve farm productivity.
Weakness: Initial setup costs of smart agriculture solutions are high. Rural farmers may find it difficult to afford these technologies. Dependence on internet connectivity and technology could also be an issue.
Opportunity: Growing global population and reducing availability of arable land creates opportunities for smart agriculture to maximize output. Developing countries offer potential for market expansion.
Threats: Cybersecurity threats could compromise farm data and operations. Climatic uncertainties continue to impact crop yields.
Key Takeaways
The Global Smart Agriculture Solution Market Size is expected to witness high growth. The global Smart Agriculture Solution Market is estimated to be valued at US$ 33424.85 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2024 to 2031.
The Asia Pacific region dominates the market currently due to the large farmland areas and growing acceptance of new technologies among farmers. Countries like China, India are fastest growing markets.
Key players operating in the Smart Agriculture Solution market are Halliburton, Ashland Global Specialty Chemicals Inc., Ecolab Inc., Baker Hughes Inc., Innospec Inc., JSC Gazprom Neftekhim Salavat, BASF SE, Evonik Industries AG, Clariant AG, GasHydrate LLC, and Schlumberger Limited. Big data analytics capabilities and technological innovations are helping key players improve their service offerings.
Get More Insights On This Topic: https://www.trendingwebwire.com/the-global-smart-agriculture-solution-market-growth-accelerated-by-precision/
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