Guidehouse Insights Report Expects Global Spending on IoT for Agriculture to Grow from $8 Billion in 2021 to $26 Billion in 2030
BOULDER, Colo.--(BUSINESS WIRE)--A new report fromGuidehouse Insightsexamines the sensing and digital technologies that support IoT for smart agriculture, providing global market forecasts through 2030.
Smart farming and agriculture follow the Industry 4.0 trends of leveraging information and communications technology to improve operations, production, and efficiency. Applications that connect IoT devices with increasingly sophisticated data insights are creating new business models to grow crop and plant yields, optimize land usage, and promote agile resource allocation. According to a new report from Guidehouse Insights, global spending on IoT for agriculture is expected to grow from $8.5 billion in 2021 to $26.2 billion in 2030 at a compound annual growth rate (CAGR) of 13.4%.
“The market is ripe for simple IoT deployments that digitize processes to enhance efficiency, reduce costs, and drive profits,” says Danielle Jablanski, senior research analyst with Guidehouse Insights. “However, there are significant barriers to widespread IoT and advanced analytics adoption in farming and agriculture that can lead to a trust gap between technology vendors and the agriculture industry as a whole.”
A leading barrier is cost, including the cost of sensors and their connectivity and networking requirements. Some sensors, ranging from less than $10 to nearly $1,000 each, have additional reoccurring costs, depending on network coverage, added subscription fees, and software services. Customers paying for sensors are expected to also pay for insights derived from the data they provide. Beyond costs, technology literacy and access limitations are exacerbated by complex interfaces and a multitude of software applications and platforms.
The report, IoT Solutions for Farming and Agriculture Overview, covers the sensing and connectivity technologies that provide the foundations for IoT deployments across three main industries for smart agriculture: precision farming, smart greenhouses, and livestock tracking and monitoring. The market forecasts cover these technologies and network requirements to identify the price points for IoT deployments across the three verticals. The scope is intentionally broad in its coverage of IoT use cases, hardware, and software solutions for the agriculture industry. Technologies such as automated hardware and robotics, AI, and machine learning have the potential to catalyze technology adoption in the future as costs and technology literacy barriers are addressed. An executive summary of the report is available for free download on the Guidehouse Insights website.