Smart Plantation Management Systems Market Size, Share | 2031

Report Description

Smart Plantation Management Systems Market Outlook 2031

The global smart plantation management systems market size was USD 1.32 Billion in 2022 and is likely to reach USD 2.30 Billion by 2031, expanding at a CAGR of 6.3% during 2023–2031. The market is driven by the growing adoption of smart agriculture practices for precision farming and boosting crop yield.

Rising commercialization of farming has propelled the adoption of smart agriculture technologies. The need to reduce the wastage of agricultural resources, enhance remote management, and improve crop yield is fueling the market. Rise in awareness regarding the benefits facilitated by smart farming systems over traditional methods is creating opportunities in the market.

Globally, farmers are focusing on getting high yields in limited areas, which is expected to generate demand for smart planet management systems in the coming years. Rising research and development towards climate-smart agriculture (CSA) from various government and global organizations is anticipated to support the market growth during the assessment period.

• According to a study published by the World Bank Group (WBG) in April 2021, the organization is focused on advancing climate-smart agriculture. During 2021-2025, the World Bank is committed to working alongside various countries to implement CSA to increase productivity, improve resilience, and reduce greenhouse gas emissions. In 2020, the group’s 52% financing in agriculture was directed towards climate change mitigation.

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The research report finds that the COVID-19 pandemic fueled the smart plantation management systems market. The virus spread and lockdowns worldwide created several challenges for the agriculture sector, including labor shortages, supply chain hindrances, and inadequate availability of essential materials, among others.

However, digital agriculture (DA) escalated during this period, which boosted the adoption of smart agriculture solutions. Various technology players have increased investment and focused on developing smart gadgets and software for various agriculture needs, which is likely to benefit the market in the coming years.

Impact of Artificial Intelligence (AI) on Smart Plantation Management Systems Market

Advances in AI are set to be advantageous for the market in the coming years. Many operations in agriculture are managed manually, thus, they end up causing significant wastage of resources. Bringing automation tools powered by AI reduces unnecessary losses and improves the yield.

Farming operations such as planting, irrigation, weeding, inspection, spraying, and harvesting, among others, are likely to be improved with AI-based smart plantation management systems. Rising focus from various governments and market players in developing and promoting smart agriculture technology is expected to widen the scope of AI in the market.

• In September 2023, Meraque Group, a Malaysia-based robotics company, launched the nation’s first Autonomous Ground Vehicle, RACE (Robotic Agro in Complex Environment). It is designed for navigating through complex environments of agricultural terrain. The company has integrated AI-powered mobile control, among other smart features, in this vehicle.

Smart Plantation Management Systems Market Dynamics

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Major Drivers

Rising focus on improving agriculture yield and reducing resource wastage is expected to propel the market during the forecast period. Food demands are climbing sharply all over the world, due to the rising population.

Consumer demand for various products is increasing at an exponential pace across various sectors. This, in turn, boosts the demand for different agricultural crops. Farmers are adopting commercial farming to make profits from agribusiness. This is boosting the implementation of smart plantation management systems to improve farming practices and gain maximum output from limited land and resource use.

• According to the estimations published by Forbes in June 2022, food production needs to be increased by 68% by 2050 to meet the food needs of the rising global population. Thus, the use of precision farming and digital farming tools is expected to increase in the coming years.

Increasing awareness about digital agriculture solutions is expected to boost the market in the coming years. Farmers are being educated and encouraged by governments and private organizations about the implementation of plantation intelligence (PI) technologies.

Such smart agricultural tools are enabling farmers to integrate data-driven farming practices, thereby allowing precision farming. The limited agricultural land and other resources have elevated the need for farming technology and smart plantation management systems.

Existing Restraints

High capital investment required for the adoption of smart plantation management tools is expected to hamper the market. Smart farming tools are costly for farmers belonging to lower-to-middle-class. Another aspect that affects the market is a lack of willingness to move away from traditional agriculture practices. This is attributed to reliability concerns, lack of internet connectivity, and absence of supporting infrastructure for smart farming.

Emerging Opportunities

Advances in farming technology and the widespread of digital agriculture tools are expected to create opportunities in the market. Technology such as AI, machine learning, computer vision, Internet of Things (IoT), drones, and robotics are anticipated to have a significant impact on improving agriculture and scaling up crop yield.

Awareness of smart agriculture is widening among the farmers, due to supportive initiatives by various governments. The availability and use of these technologies is growing at a significant pace in various parts of the world. These factors are expected to generate lucrative growth prospects for the market players over the forecast period.

Scope of the Smart Plantation Management Systems Market Report

The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Smart Plantation Management Systems Market Segment Insights

Component Analysis

Based on component, the smart plantation management systems market is bifurcated into software and hardware. The hardware segment is expected to lead the market in terms of revenue during the projection period. This growth is driven by the increasing adoption of smart farming gadgets and equipment by farmers for efficient farm management and high crop yield.

The most commonly adopted hardware in modern plantation management are global positioning systems (GPS), smart farming drones, display monitors, sensors, meters & controllers, and valves & switches, among others. These tools enable remote farming and allow farmers to gain real-time information related to their plantation.

• In November 2022, Deere & Company, one of the key market players, reported a 40% increase in net sales in its Fy2022 fourth-quarter earnings statement. The company reported that this growth was driven by the high demand for farm and construction equipment.

The software segment is anticipated to register rapid growth in demand in the coming years, due to the growing demand for farming applications that enable agriculturists to make data-driven decisions. Software is a key component in storing large data about various farming operations. This data is analyzed using AI to gain predictive analysis on future needs and estimations of likely overall yield from a particular plantation.

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System Type Analysis

On the basis of system type, the global market is segregated into plant growth monitoring systems, irrigation systems, harvesting systems, and others. The irrigation systems segment is projected to expand at a considerable CAGR during the forecast period, owing to the demand for smartly managing water resources for agricultural use.

Availability of water for agricultural land varies in different regions. In most cases, it is limited, which necessitates the use of sensors-based automatic irrigation systems. These systems take predetermined input about the water use, and automatically turn on and off, based on requirements.

Smart irrigation systems are capable of analyzing moisture present in the soil and understanding & analyzing climate data to determine the need for watering plantations.

Crop Analysis

On the basis of crop, the smart plantation management systems market is segmented into oilseeds, coffee, cotton, fruits, sugarcane, and others. The fruits segment is expected to register robust growth during the forecast period, owing to the increasing availability of plantation tools for fruit cultivation.

Rising awareness about health is boosting the consumption of fruits and vegetables among consumers. Farmers are increasing the land under horticulture produce to benefit from the rising demand. Smart plantation tools are enabling farmers to have efficient control over the farms and manage the fruit trees remotely. A variety of tools with automation and inspection features are emerging in the market to manage the plantation of grapes, apples, bananas, citrus, and other fruits.

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Regional Outlook

In terms of region, the global smart plantation management systems market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period, as a majority of land is under agriculture and demand for various agricultural produce is increasing.

The large-scale farming of oilseeds, fruits, cotton, tea, and sugarcane is increasing the adoption of plantation management systems in the region.

Increasing support from governments of emerging economies such as India, China, and Japan for the implementation of smart agricultural tools is expected to create opportunities in the market. Various technology and hardware solutions aimed at enhancing plantation management are emerging in this region.

• According to an Arable Land by Country 2023 survey published by the World Population Review, overall arable land (land that is used for farming) in India was approximately 156.1 million hectares, whereas China has 119.5 million hectares of arable land. Consumer demand for different agricultural products is rising in these countries, which is resulting in the surging adoption of plantation technologies.

 The market in North America is expected to grow at a rapid pace during the assessment period, owing to the rising adoption of smart farming equipment and technology solutions. Growing organic farming, due to high demand for organic fruits and vegetables, has boosted reliance on plantation intelligence technology.

Farming tools are beneficial for administering efficient farming practices in organic farming in a controlled environment. Rise in investment towards research and development for creating agricultural innovations is creating opportunities in the regional market.

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