Latin America's connected agriculture market size is expected to reach USD 0.20 billion in 2024 and reach USD 0.49 billion by 2029, growing at a CAGR of 19.50% from 2024 to 2029.
The market in Latin America is going to multiply during the forecast period because many of the international companies are willing to expand their companies to the region as the manufacturing cost, cost of labor are more affordable in this region. The connected agriculture market contains critical applications like smart irrigation systems, precision fertilizer applications, heat monitoring, smart water monitoring, condition monitoring, navigational services and intelligent logging. All of these will helps the farmer to keep a real-life track of the farm.
The primary driver for this market is the increasing penetration of smartphones and the internet, which are linked to connected agriculture. Now the farmer can get most of the information about the farm in just one click and will always be able to keep track of the crops and livestock in real-time. Due to the demand for this market, many companies are promoting connected agriculture by creating advanced applications that could connect date through the smartphone.
The increasing demand to produce maximum yield to feed the growing population is also driving the market. Due to the increased pressure, the government is providing subsidies to the farmers and joining with the companies in the agriculture industry to train the farmers and educate them about the technology. The increasing demand for smart water management is also driving the connected agriculture market in the region as there are growing issues of global warming, and excessive use of energy resources, hence saving water has become one of the significant priorities for business and social activists. And they are looking for sustainable devices to reduce the consumption of water.
The major restrain of the connected agriculture market is the limited availability of arable land for farming. And most of the arable land is occupied by major industries leaving the small-sized farm owners aside, which is decreasing the growth of the market.
Most farmers lack the knowledge of how to use the technology to benefit from it by producing more yield, and this leads to a lack of end-user interest.
Most of the farmers are owners of small-sized farm and work for the day-to-day wages; they cannot afford the connected agriculture devices, which are driving them away.
This technology requires less labor, which could result in the loss of jobs for many, and farmers are unwilling to accept the benefits the advanced technology is providing.
The Latin America-connected agriculture market by component is divided into Solutions, Platforms, and Services.
In connected agriculture by platform, device management is estimated to be the market leader over the projection years. This helps the farmers and private sectors to manage, track and secure and sustain abundant devices. These devices also help connect the farmers to real-time data about the crop and livestock to give more careful attention to better growth of plants and better health of animals.
The regional market by services is segmented into Consulting Integration And Implementation, Support And Maintenance, Micro Leading Services, Micro Insurance Services, Mobile Payment Services, Mobile Information Services, Professional Services, And Management Services.
In farming, production planning and management applications are estimated to be the market leader during the forecast period. The Into farming keeps track of animal health, feeding behaviour of the crops, farm irrigation, location tracking of the livestock, crop production and insurance, all of these will helps the farmer to gain real-time information about the farm and crops. This method of farming is less time consuming and requires less labor to produce maximum yield.
The smart water solution is expected to gain the highest CAGR during the forecast years. This solution helps the farmers keep track of the amount of water required by a particular crop by calculating the moisture and heat conditions in the soil. This solution also helps the farmer measure the amount of water needed for a specific plant during different weather conditions caused due to greenhouse gases and global warming.
The market leader by the solution during the forecast period is the network management solution. This system helps minimize the risk of crop failure and loss of yield by predicting the weather conditions so that the farmers could act accordingly and plant the right crop. This solution also has a higher demand in the market because even today, regular farmers with no modern technology tend to predict the weather and plant the crops according to the seasons, expecting maximum yield.
The Latin American connected agriculture market is slowly gaining momentum since 2017 and will only be growing during the outlook period. The majority of the agriculture production in this region is in the hands of small farmers, so there is only a limited amount of production taking place in the area. With the increasing demand for producing as much food as possible or the growing population, the region is unable to keep up with the pressure. On the positive side, many of the international businesses are willing to expand their agriculture business to the different areas like Mexico, Chile and others, where the production of crops is cheaper, and the manufacturing of the devices and the cost of labor is low compared to other regions, driving the local market forward.
Trimble Navigation Limited (United States), IBM Corporation (United States), Microsoft Corporation (United States), AG Leader Technology (United States), Syspro Technologies (United States), Cisco Systems Inc. (United States), Epicor Software Corporation (United States), AT&T (United States), Raven Industries Inc. (United States), AGCO Corporation (United States), Deere And Company (United States), Oracle (United States), Iteris (United States), And Decisive Farming (Canada).
Related Reports
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1600
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region