Smart Farms Market size was valued at USD 17.11 Billion in 2023 and is poised to cross USD 80.95 Billion by the end of 2036, registering more than 12.7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of smart farms is estimated at USD 19.07 Billion. The demand for smart farms is attributed to the rising use of technologies in agriculture. For instance, according to the National Institute of Food and Agriculture, modern farms and agricultural operations work far differently than those available in earlier times, primarily due to the advancements in technology, including devices, machines, sensors, and information technology.
Besides this, the smart farms market is also expected to grow on account of the rise in the initiatives taken by the government to support smart farming. Indian government collaborated with Microsoft to support India’s small-holder farmers to boost farmers’ income through improved price management and increased agriculture yield using AI sensors.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
12.7% |
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Base Year Market Size (2023) |
USD 17.11 Billion |
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Forecast Year Market Size (2036) |
USD 80.95 Billion |
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Regional Scope |
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Technology (Indoor Vertical Farming, Automated Farming, Livestock Farming, Modern Greenhouses, Precision Farming)
By the end of 2036, the precision farming segment in the smart farms market is anticipated to garner the largest revenue of USD 35.57 billion. The segment is further expected to grow at a CAGR of 13.91% during the forecast period. Precision farming entails extremely precise, accurate, and optimum agricultural production. It enables improved productivity, more effective resource use, and minimal environmental impact all at once. For instance, according to the U.S. Wheat Associates, farmers using precision technology experienced an increase of 4% in crop production, an increase of 7% in fertilizer placement efficiency, a reduction of 9% in herbicide and pesticide use, and a reduction of 6% in fossil fuel use. A focused pesticide application with AI-assisted analysis, targeting only areas that need attention instead of a blanket application, is the best illustration of a precision farming approach. These technologies allow farmers to collect and analyze data on a plethora of factors including weather, soil conditions, and crop growth to make more informed decisions about planting, irrigation, and fertilizer use.
Application (Livestock Monitoring & Management, Indoor Farming, Aquaculture)
Smart farms market from the livestock monitoring and management segment is expected to grow at the fastest CAGR of 14% during the upcoming years. Smart farming technologies can be used to monitor and manage livestock in a variety of ways. Smart farming technologies, such as farm management software, and digital farming can also be used to control and automate the delivery of feed, water, and veterinary care to animals. By using IoT technologies like geofencing, RFID, and sensors, farmers can collect and analyze a wide range of data that can be used to improve efficiency, reduce costs, and optimize animal health and welfare. Furthermore, the livestock monitoring and management segment is predicted to grow in the context of preventing disease outbreaks by early detection. This leads to a more sustainable way of farming that also considers animal well-being. For instance, Telit, a Cinterion brand, provides IoT-enabled management apps to monitor livestock health, reproductive cycle, and location.
Our in-depth analysis of the global market includes the following segments:
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Technology |
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Application |
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North American Market Forecast
The North America smart farms market is projected to hold a significant market share and account for USD 29.41 Billion by the end of 2036. Factors such as the growing number of US-based market vendors and the high investment in technology by domestic farmers have contributed to this growth. In addition, key market players are aggressively establishing collaborations to support their market presence and consumer base across the globe. For instance, in February 2023, Public Investment Fund (PIF) and US-based AeroFarms signed a joint venture agreement to build and operate the largest indoor vertical farm in Saudi Arabia by utilizing the latest technologies with an annual production capacity of up to 1.1 million kgs of crops. The agreement will enable the growth of the agriculture sector by supporting Saudi Arabia’s positioning in vertical farming regionally.
APAC Market Statistics
The growing number of educated farmers in the Asia-Pacific region is a significant factor propelling smart farms market expansion. The regional market is growing due to the growing adoption of smart irrigation controllers, AI-based land analytics services, and rising agritech-startups in countries like China and India. For instance, according to the India Brand Equity Foundation, Indian agritech companies are predicted to witness investments worth USD 30-35 billion by 2025. Besides, companies are establishing partnerships to expand their presence. For instance, in February 2023, a Korean startup named Croft attracted seed investment from Future Play. The former company offers AI-based smart farm solutions to monitor crops in greenhouses and provides farmers with cutting-edge and optimal automatic greenhouse control solutions.
Author Credits: Nilanjana Ray
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