Market Trends of Smart Farm Industry
Precision Farming is Expected to Hold Major Market Share
- Precision agriculture fundamentally depends on technologies, including GPS navigation, sensors, and data analysis. Its main role is to enhance accuracy in crop production. It significantly utilizes data analysis to facilitate informed decision-making regarding crops. This approach mainly applies to activities associated with crop management, such as planting, irrigation, and harvesting, emphasizing the efficient use of resources in specific regions.
- This methodology enables tailoring agricultural practices, ensuring each plant receives the specific attention it requires. As a result, precision agriculture is poised to remain a fundamental contributor to high-yield and resource-efficient farming techniques.
- Moreover, precision farming is set to surpass other agricultural advancements by the close of 2030, marking it as a pivotal trend. Farmers can access real-time equipment information via remote sensing and ground communication using a mobile app. Variable Rate Technologies (VRTs) empower farmers to make precise land management choices, ensuring that inputs such as seeds, fertilizers, and pesticides are utilized more efficiently, especially in light of shifting weather patterns.
- The amalgamation of precision agriculture is set to usher in a new age of farming methodologies characterized by efficiency, productivity, and environmental sustainability. This digital evolution in agriculture will enable farmers to bolster food security and play a significant role in fostering a more resilient and adaptable global food system.
- Furthermore, the increasing global investment in the agriculture industry is expected to propel the market’s growth during the projected timeline. According to the Thailand Board of Investment, in 2023, the total investment in foreign direct investment (FDI) projects within Thailand's agriculture sector exceeded USD 0.87 billion. Additionally, the year witnessed the approval of 87 FDI projects associated with this sector.
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Asia-Pacific is Expected to Witness Significant Growth
- Asia-Pacific region is anticipated to hold a substantial share of the market studied. Since it acceded to the World Trade Organization, China has ramped up its agricultural imports, exports, and production. This surge has positioned China as the foremost market for US agricultural exports, bolstering the growth of the agricultural market.
- As China enhances its commitment to modernizing the agricultural sector, the incorporation of advanced technologies and the implementation of the 5G network will increasingly influence the future landscape of agriculture in the nation.
- Reports from China Central Television indicate that the central authorities have significantly emphasized agriculture and rural development. During the 14th Five-Year Plan period (2021-2025), the government has identified initiatives concerning agriculture, rural regions, and the welfare of farmers as its top priority. In pursuit of agricultural modernization, China has introduced various measures and has actively pursued comprehensive rural reforms in recent years, achieving notable progress in several critical areas.
- India is among the largest producers of vegetables, fruits, and other agricultural commodities. In India, vertical farming has been introduced, and the Indian Council of Agricultural Research experts are developing the concept of 'vertical farming' in soil-less conditions, where food crops can be grown even on multistoried buildings in metro cities like New Delhi, Mumbai, Kolkata, and Chennai, primarily without using soil or pesticides. Scientists at the Bidhan Chandra Krishi Viswavidyalaya in Nadia witnessed initial success while working on a small scale with the help of vertical hydroponic farming.
- Furthermore, several governments are taking the initiative to support smart farming in the region, thus fueling the market’s growth. For instance, in March 2024, the Chinese government declared its intention to accelerate innovation in science and technology within the agricultural sector, aiming to enhance self-sufficiency in agrarian technology in response to food security challenges. The nation plans to intensify initiatives focused on cultivating "new productive forces" through agricultural science and technology advancements. Additionally, China is anticipated to work to "refine the framework for the comprehensive integration of scientific and technological advancements with the agricultural industry" while expediting the development of smart agriculture and the processing of agricultural products.
- Moreover, the market is witnessing several expansions by the market players, which will further support the market. For instance, in January 2024, Farmers Edge Inc. and LTIMindtree jointly announced the establishment of the Farmers Edge Innovation Lab (FEIL) in Mumbai. This innovation center, supported by Fairfax Digital Services, aims to transform India's agricultural landscape. By merging advanced AgTech with global digital solutions expertise, FEIL is poised to achieve early successes and deliver measurable outcomes, creating a robust foundation for expanding generative AI initiatives.
- Farmers Edge contributes its sophisticated remote sensing and agronomic modeling capabilities, equipping farmers and enterprise clients with exceptional insights. The inauguration of this innovation lab represents a pivotal moment in advancing agriculture in India, paving the way for a future where technology and traditional practices coexist to enhance productivity in the fields.
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