Internet of Things (IoT) in Agriculture Market is Rapidly Growing at a CAGR 9.50% By 2032

Published Date : 19 Apr 2024

The global internet of things (IoT) in agriculture market size surpassed USD 14.83 billion in 2023 and is estimated to gain around USD 33.57 billion by 2032, growing at a CAGR of 9.50% from 2023 to 2032. The boosting factor of the IoT in agriculture market growth is the increasing demand for technology in agriculture for efficiency and enhanced productivity.

Internet of Things (IoT) in Agriculture Market Size and Growth Rate From 2023 to 2032

Market Overview

The Internet of Things (IoT) in agriculture market raises the application of modern internet of things technologies to the agricultural industry. This creative approach demands incorporating various IoT applications, such as GPS systems, drones, sensors, drones, and other connected equipment that can collect and transfer data related to harvest health, soil conditions, weather patterns, and livestock to improve farming capacity. The increasing need for agricultural manufacturing adapted to the rising population and growing interest in agriculture techniques farming are enhancing the market growth.

In addition, disease observation in plants to improve land efficiency also fuels market development. The shortage of expert farmers for executing IoT in agriculture and the risk related to the data security of IoT can control market growth. Government initiatives for motivating modernized farming techniques, along with technological advancements and increasing.

Increase adoption of remote sensing and VRT by farmers worldwide

Accurate farming can help prevent the negative impact of nature on crops by collecting geospatial information on livestock, soil, plants, and inter and intra-field data. It also helps to decrease the wastage of resources and the overall cost of the crops by supplying inputs about their needs for irrigation, nutrients, liquid fertilizers, herbicides, nutrients, and pesticides. Land fertility and productivity can be maximized by making use of advanced technologies like GPS and data management software, remote sensing, and VRT (Variable rate technology), which is also helpful in decreasing the farming cost and cost of workers. These are the factors responsible for the growth of the internet of things (IoT) in agriculture market.

Intelligent data collection

The Internet of Things made it easier to process and collect information. Farmers have received data from sensors installed on the farm. The devices monitor crop health, crop quality, soil composition, and weather conditions. In addition, the information is processed and stored automatically. Farmers can receive tables, charts, and graphs to improve farming development strategies. Hence, this advanced driver may boost the growth of the internet of things (IoT) in the agriculture market.

However, the high upfront cost of deploying modern agriculture equipment can restrain the Internet of Things (IoT) in agriculture market. Right now, agriculture IoT applications and tools are costly, thereby making it expensive for smaller farmers in developed countries and most farmers in emerging economies. However, for a high initial economic investment to arrange satellite devices, VRT, GPS, drones, and GIS, precise farming also needs a skilled workforce to maintain these technology-enabled appliances. Precise livestock farming technologies involved automated milking and feeding artificial robots, as well as monitoring and sensing appliances. Farmers must make vast investments in automation and distribution compartments, GPS-enabled livestock observing systems, and robotic appliances.

Internet of Things (IoT) in Agriculture Marklet Report Scope

Report Coverage Details
Market Revenue in 2023 USD 14.83 Billion
Projected Forecast Revenue by 2032 USD 33.57 Billion
Growth Rate from 2023 to 2032 CAGR of 9.50%
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Internet of Things (IoT) in Agriculture Market Top Companies

  • Deere & Company
  • Ducor Petrochemicals
  • Trimble Inc.
  • AGCO Corporation
  • Raven Industries, Inc.
  • Komatsu, Ltd
  • Farmer Edge Inc.
  • CropX, Inc.
  • The Climate Corporation
  • AgJunction Inc.
  • TeeJet Technologies
  • Topcon Positioning Systems, Inc.
  • ICKEY-john
  • CSIR
  • LTIMindTree

Recent Development by CSIR

  • In January 2022, in South India, the Council of Scientific and Industrial Research (CSIR) has launched technology-driven initiatives to enhance the productivity of farmer’s income. This research aims to improve productivity and soil health. This project was based on the Internet of Things (IoT) and drone cameras.

Recent Development by LTIMindtree

  • In January 2024, in Mumbai, Technology consulting company LTIMindtree launched an innovation lab for farmers. This company has especially focused on digital agriculture. The aim behind this launch was to offer technologies such as IoT, drones, automation, and GenAI for high-quality crops at lower costs.

Regional Insights

Asia Pacific dominated the internet of things (IoT) in agriculture market in 2023 due to the existence of countries relying upon agricultural ability, as well as extending populated regions such as India and China. This locality's increasing interest is basically because of more remarkable information on current agricultural innovation and the execution of ideal informal laws to support farm digitization. In addition, as urbanization increases and the need for more remarkable food security improves, so does the interest in computerized agricultural business, bringing about the Internet of Things suggestions in agriculture.

In India, the agriculture industry is the leading platform in the surge of innovation and efficiency, so the Internet of Things (IoT) in agriculture is the leading and most developed market. According to EET India, the Internet of Things (IoT) system in agriculture is classified into various sections, which include positioning, connectivity, power management, security, processing, signal conditioning, and sensors. Based on the Nasscom report, India has over 450 agritech firms, and this number is still growing. India has nurtured so many agritech firms that they help farmers work smarter with the help of Internet of Things (IoT) systems.

  • For instance, Aarav Unmanned Systems has launched IoT drones for farming. These drones provide 3D geographical topography data so farmers can manage their farming plans for pesticide spray, irrigation, and fertilization.

In China, agriculture has developed from mechanical to modern. The Internet of Things (IoT) systems make a significant contribution to the advancement of China's intelligent and modern agriculture. Data processing, networks, and intelligence have become the major features of China's new agricultural infrastructure market. According to the Agriculture and Food Organization, China is the major manufacturer of meat, cereals, eggs, cotton, fishery products, poultry, fruits, and vegetables under the Internet of Things (IoT), artificial intelligence (AI), robots and modern drones.

  • For instance, in August 2022, the Chinese Academy of Agriculture Sciences launched an initiative to drive technological innovations in agriculture through Internet of Things (IoT) systems.

Market Potential and Growth Opportunity

Rising adoption of drones in agriculture

Drones are quickly shifting from other fields to agricultural farms, capturing highly correct raised images to hundreds of acres in a single flight, thereby saving maximum money in the process. Agricultural drones are more reasonable than observative drones, and they come with modern sensors and picture capabilities that supply farmers with new processes for increasing crop farms and decreasing resource wastage. Usually, farmers use satellite images and planes to examine the crops. However, these processes are time-consuming, and the information collected through these methods takes a maximum amount of time to process and study. Owning Drones is considered to provide opportunities for the growth of the Internet of Things (IoT) in agriculture market.

Recent Developments

  • In February 2024, Software Technology Parks of India (STPI) and OctaNe launched their flagship agriculture technology program called Assam in collaboration with ARIS society. Topmost officials from state governments, along with presentations from company leaders and students, participated in the event. Govt. India inaugurated the development facility and laborites of IoT in agriculture. This initiative can drive the Internet of Things (IoT) in agriculture market in the coming years.
  • In February 2024, in the UK, BT announced the launch of a new Narrowband IoT network. This network is to support the development of smart cities. The Narrowband network covers 97% of the population. This innovative network allows the use of the Internet of Things across the manufacturing and agriculture industries.

Market Segmentation

By Component

  • Hardware
    • Irrigation Controllers
    • Flow and Application Control Devices
    • Variable Rate Controllers
    • Soil Sensors
    • Water Sensors
    • Climate Sensors
    • Sensors for Livestock
    • Automation and Control Systems
    • Sensing and Monitoring Devices
    • Guidance and Navigation
    • Drones
    • Handheld Computers
    • Displays
    • Smart Harvesters & Forwarders
    • RFID Tags and Readers
    • LED Grow Lights
  • Software
    • On-premise
    • Cloud-based
  • Connectivity & Services 

By Type

  • Small Farms
  • Mid-Sized
  • Large

By Application

  • Precision Aquaculture
  • Precision Farming
  • Smart Greenhouses 
  • Precision Livestock 
  • Precision Forestry
  • Others

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