Agriculture Gateway Market Analysis

Agriculture Gateway Market Analysis

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Based on connectivity, the market is divided into wired and wireless. In 2023, the wireless segment held approximately USD 1.6 billion. Wireless technologies such as Wi-Fi, LoRaWAN, and ZigBee offer advantages such as ease of installation, flexibility, and scalability. These technologies support a wide range of applications including remote monitoring of soil moisture, weather conditions, and crop health, which are critical for precision agriculture?. Many governments are recognizing the potential of smart agriculture and investing in programs that promote the adoption of wireless connectivity solutions in farms. This includes subsidies and grants for farmers to implement these technologies.
 

Innovations in wireless communication protocols and the development of robust IoT platforms have made it easier to deploy and manage large networks of connected devices in agricultural settings. For instance, in January 2024, Deere & Co. announced a strategic partnership with SpaceX's Starlink to provide satellite-based internet connectivity to its machines. This initiative aims to enhance connectivity in rural areas, allowing farmers to fully utilize precision agriculture technologies and improve overall operational efficiency?.
 

Based on the deployment model, the agriculture gateway market is categorized into cloud-based, and on-premises. The cloud-based segment is expected to hold over USD 4.7 billion by 2032. The growth is driven by factors such as data integration and analysis, scalability, accessibility, cost, and environmental benefits. Cloud computing enables the integration and analysis of vast amounts of data from various sources, including sensors, weather stations, and satellite imagery. This allows for real-time monitoring and decision-making, which is critical for precision agriculture.
 

By leveraging cloud-based systems, farmers can reduce the need for physical infrastructure and on-site IT support, eventually reducing overhead costs. Cloud-based agriculture solutions contribute to sustainable farming practices by minimizing waste and optimizing resource use. This technology helps in reducing the environmental footprint and also aligns with increasing regulatory and consumer demands for sustainable agriculture. These solutions offer scalability, allowing farmers to adjust their usage based on the size and needs of their operations.  For instance, in May 2024, Fiware Foundation partnered with multiple agri-tech startups to develop open-source platforms for agricultural data interoperability and scalability. The partnerships were aimed at the growth of operational efficiency for SME in the market. Owing to the partnerships, the Fiware Foundation is expected to reach out to wider companies.
 

In 2023, North America dominates the agriculture gateway market with around 31% of the market share. Countries such as the U.S., and Canada boast well-established agricultural sectors with large-scale farms that have the capital and resources to invest in new technologies such as agriculture gateways. In addition, the farmers in North America are generally more receptive to adopting new technologies compared to their counterparts in other regions. This openness to innovation fuels the growth of the market. Further, the concept of precision agriculture, which uses technology for targeted interventions in farming, is gaining traction in the region. Consumers in the region are increasingly demanding safe and high-quality food products. For instance, in April 2024, Digi International unveiled a new line of IoT gateways for agriculture, supporting remote monitoring and data collection for precision farming.
 

The CAP (Common Agricultural Policy) prioritizes sustainability and innovation in European agriculture. This includes funding initiatives that promote the use of digital technologies such as agriculture gateways, encouraging farmers to adopt these solutions. consumers increasingly demand transparency in their food supply chain. Agriculture gateways can help in achieving these goals and attain significant growth in the region.
 

Asia-Pacific is home to a vast and growing population of farmers. Agriculture gateways offer solutions to help these farmers optimize resource usage and improve yields, even with limited land and resources. Governments in the region are increasingly focused on recognizing the potential of smart agriculture. They are constantly investing in programs that promote the adoption of digital technologies in farming. Further, water scarcity is a major concern in many parts of Asia-Pacific. The agriculture gateways help farmers use water more efficiently through data-driven irrigation systems which drives the growth of these solutions in the region.