5G Smart Farming Market to expand at a CAGR of 17.50% until 2032 to value USD 66.17 Billion

Increasing adoption of 5G technology in agriculture is expected to drive market expansion shortly at a CAGR of 17.50% during the forecast period 2023 to 2032.

Market Research Future (MRFR) has published a cooked research report on the “5G Smart Farming Market” that contains information from 2018 to 2032. The 5G Smart Farming Market is estimated to register a CAGR of 17.50% during the forecast period of 2023 to 2032.

MRFR recognizes the following companies as the key players in the global 5G Smart Farming Market— Huawei, Dronetech, Ericsson, John Deere, Indigo Ag, LumiGrow, Raven Industries, DroneDeploy, and Vodacom.

Market Highlights

The global 5G Smart Farming Market is accounted to register a CAGR of 17.50% during the forecast period and is estimated to reach USD 9.64 billion by 2032.

The driving forces behind the growth of the 5G Smart Farming Market include rising demand for contemporary agricultural equipment, enhanced capabilities for data collection and monitoring, and the adoption of 5G-enabled applications aimed at boosting productivity and efficiency in farming operations.

Segment Analysis

The global 5G Smart Farming Market has been segmented based on the component, application, and farm size.

Based on the component, the market is segmented into Hardware, Software, and Services. The services segment was attributed to holding the largest market share in 2022. Agricultural enterprises frequently demand specialized services for the seamless incorporation of 5G-enabled smart farming solutions into their operational frameworks. This entails tailoring the technology to align with the distinct requirements of the farm, guaranteeing smooth connectivity, and integrating it with other farm management systems.

Based on the application, the 5G Smart Farming Market has been segmented into Precision Farming, Irrigation and Water Management, Plant Health, Soil Moisture, Water Supply Control, and Smart Greenhouse. The irrigation and water management segment was expected to hold the largest market share in 2022. The deployment of 5G technology facilitates instantaneous data transmission and high-speed communication, empowering the implementation of precision irrigation systems in agriculture. Utilizing sensors and smart devices in the fields, farmers can conduct real-time monitoring of soil moisture levels, weather conditions, and crop health. This immediate data analysis enables precise and efficient irrigation scheduling.

Based on the farm size, the 5G Smart Farming Market has been segmented into Large Farms, and Small & Medium Farms. The small & medium farms segment was expected to hold the largest market share in 2022. The increasing accessibility and cost-effectiveness of 5G-enabled smart farming solutions are rendering them well-suited for adoption by small and medium-sized farms. These enterprises can implement scalable technologies that align with their operational scale, allowing for a gradual and financially feasible integration. Leveraging 5G's support for modular solutions, farmers have the flexibility to customize technologies based on crop types, geographical considerations, and operational needs. This tailored approach ensures that the technology is a pragmatic fit for the scale and characteristics of their farming operations.

Regional Analysis

The global 5G Smart Farming Market, based on region, has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America consists of the US and Canada. The Europe 5G Smart Farming Market comprises Germany, France, the UK, Italy, Spain, and the rest of Europe. The 5G Smart Farming Market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World's 5G Smart Farming Market comprises of Middle East, Africa, and Latin America.

The largest market share for the 5G Smart Farming Market was maintained by the North American regional sector. Precision agriculture stands as a primary catalyst for the widespread adoption of smart farming technologies. In the context of North American agriculture, the integration of 5G technology provides farmers with the ability to harness high-speed, low-latency communication. This, in turn, facilitates the implementation of precision agriculture practices, encompassing real-time monitoring, data analytics, and the precise application of resources. According to the United States Department of Agriculture (USDA), the domain of Digital Agriculture has witnessed notable growth in recent years. However, specific technologies such as yield maps, soil maps, and Variable Rate Technology (VRT) have been adopted on a relatively modest scale, ranging from 5 to 25 percent of total U.S. planted acreage for winter wheat, cotton, sorghum, and rice. Conversely, there has been a significant uptick in the adoption of automated guidance over the past two decades. This technology has seen application on well over 50 percent of the acreage dedicated to major crops such as corn, cotton, rice, sorghum, soybeans, and winter wheat. This trend underscores the increasing reliance on advanced technologies, including 5G, to enhance efficiency and precision in agricultural practices within the North American farming landscape.

Moreover, the Europe market has been persistently growing over the forecast period. Europe's commitment to sustainable agriculture is driving the adoption of 5G-enabled smart farming solutions, aligning with broader sustainability goals. These technologies play a pivotal role in optimizing resource utilization, mitigating environmental impact, and improving overall operational efficiency. According to a recent survey conducted by financial firm Propel among farmers in the UK, a notable 76% of respondents are actively embracing high-tech farming equipment, placing specific emphasis on advanced solutions for tractors, trailers, and renewable technologies. This underscores the business community's recognition of the value that cutting-edge agricultural technologies bring to both environmental stewardship and operational effectiveness.

The Asia-Pacific region is undergoing significant urbanization, marked by a substantial concentration of the population in densely populated urban areas. The Asia-Pacific region stands as the global epicenter for expansive and diverse agricultural economies. As of 2020, Asia commanded the largest share of the global cropland area at 38 percent, surpassing the Americas (24 percent), Europe (18 percent), Africa (18 percent), and Oceania (2 percent). This dominance of agriculture as a substantial economic sector establishes a fertile ground for the integration and adoption of cutting-edge technologies such as 5G Smart Farming.

Furthermore, the rest of the world's 5G Smart Farming Market is divided into the Middle East, Africa, and Latin America. Digital transformation initiatives in various sectors are influencing agriculture as well. The integration of 5G technology aligns with broader efforts to digitize and modernize different industries, including agriculture, in MEALA regions.

Key Findings of the Study

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  The global 5G Smart Farming Market is expected to reach USD 66.17 billion by 2032, at a CAGR of 17.50% during the forecast period.

  
  


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  The Asia-Pacific region accounted for the fastest-growing global market because, with a rapidly growing population in many countries within the Asia-Pacific region, there's an increasing demand for food production. 5G Smart Farming technologies can contribute to meeting this demand by optimizing agricultural processes, improving yields, and ensuring sustainable practices.

  
  


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  Based on components, the service segment was attributed to holding the largest market in 2022, with an approximate market share of 55–60%.

  
  


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  Huawei, Dronetech, Ericsson, John Deere, Indigo Ag, LumiGrow, Raven Industries, DroneDeploy, and Vodacom