No.2629
01/18/2021

Smart Agriculture Market in Japan: Key Research Findings 2020

Yano Research Institute (the President, Takashi Mizukoshi) has carried out a survey on the smart agriculture market in Japan, and found out the market size, the trends by market players, and the future outlook.


Size Transition and Forecast of Smart Agriculture Market in Japan
Size Transition and Forecast of Smart Agriculture Market in Japan

Market Overview

The smart agriculture market in Japan was valued at 18,007 million yen for FY2019, and is projected to reach 20,328 million yen for FY2020. Between FY2017 and FY2019, the market growth was led by the cultivation support solution such as cloud service for agriculture, complex environmental control system, and production support solution for dairy farming/animal husbandry. From FY2019, agrochemical spraying using drones and agricultural robotic vehicles are becoming increasingly popular.

Noteworthy Topics

Pervasion of Agrochemical Spraying Using Drones

Driven by the development of agrochemicals suited to spray using drones, use of agricultural drones for agrochemical spraying has been widely adopted by large-scale paddy rice farmers from FY2019, and it is assumed to vegetable farmers and fruit tree farmers will follow hereafter. The use of drones is also expected to extend to other process like fertilizing and seeding. As to the use of drones for remote sensing, since proving tests by the market players are still ongoing, implementation in full-scale is likely to be after 2022.

Future Outlook

The market of smart agriculture in Japan is projected to grow to 50,100 million yen by FY2026.
As the agricultural data collaboration platform (WAGRI) was launched in April 2019, all kinds of data sharing regarding smart agriculture have begun. Further commoditization and alliance of data is likely to go forward as an implementation of open API for agriculture starts in FY2021. Moreover, it is expected that the advancements in telecommunication technology (5G, private 5G) will drive expansion of agricultural robotic vehicles. 

Research Outline

1.Research Period: July to December 2020
2.Research Object: Business players entering smart agriculture, agricultural corporations (paddy rice, farm horticulture [vegetables, fruits, and flowers], dairy farming/animal husbandry), related organizations/associations, governmental agencies
3.Research Methogology: Face-to-face interviews by the expert researchers, survey by telephone/email, and literature research

What is the Smart Agriculture?

Smart agriculture in this research refers to the concept that connects conventional farming technologies to information and communication technologies for the purpose of improving production efficiency and adding higher value to the farm produce. By utilizing ICT from production to sales, the smart agriculture enables high productivity, cost reduction, food safety and work safety. Target fields are (1) cultivation support solution, (2) sales support solution, (3) management support solution, (4) precision farming, (5) agricultural drone solution, and (6) agricultural robots.
The market in this report refers to domestic market only, and the market size is calculated based on the sales at businesses. POS system for farming and hardware such as agricultural machinery and drones are excluded.

<Products and Services in the Market>

(1) Cultivation support solution (cloud service for agriculture, complex environmental control devices, production support solution for dairy farming/animal husbandry), (2) sales support solution (system using ICT to mitigate operations in sales of farm produce [food related business, JA], sales support service using climate data, etc.), (3) management support solution (accounting software for agriculture, accounting support service for agricultural corporations, management support system using climate data, etc.), (4) precision farming(GPS guidance system, automatic steering, agricultural robotic vehicles [smart rice-planting system, robot tractor, combine harvester system], system using satellite information, etc.), (5) agricultural drone solution(agrochemical spraying using drones, monitoring services, etc. [excluding drone as hardware]), and (6) agricultural robots (facility robots [grafting robots, etc.], manipulator robots [harvesting robots, etc.], assisting robots [powered suits/exoskeleton etc.]).

Published Report

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