Smart Agriculture Market in Japan: Key Research Findings 2022

Domestic Smart Agriculture Market Size in FY2022 Estimated as 30,302 Million Yen

Yano Research Institute (the President, Takashi Mizukoshi) carried out a research on the domestic smart agriculture market, and found the market size, trend of market players, and future perspectives.

Domestic Smart Agriculture Market Size Transition and Forecast
Domestic Smart Agriculture Market Size Transition and Forecast

Market Overview

FY2022 saw cultivation support solutions including cloud-based farming that expanded users, and smart water management systems that manage water for arable land from remote places drive the market, while drones that reduce fertilization amount due to soaring prices of chemical fertilizers, and remote sensing that uses satellite images have widespread furthermore. In addition, as the demonstrations for robotic farming machines that save energy have ended, the sales are likely to start hereafter.

Noteworthy Topics

Because of Soaring Prices for Chemical Fertilizers, Rice Planting Machines Available to Control Fertilizer Application, Fertilizer Applicators Controllable by Remote Sensing Widespread

Since 2022, in addition to increased demand for crops and rising energy prices worldwide, Russian invasion to Ukraine have caused the international prices of raw materials for chemical fertilizers to soar, which has skyrocketed the chemical fertilizer prices.

In such a situation, rice planting machines that enable fertilizer controlling, and fertilizer applicators controllable by remote sensing by means of drones and satellite images have widespread. A fertilizer-controlled application system enables to spray fertilizers only at the spot where the crop growth is slow, which can solve the issues of varying growth speed, while reducing labor and extra fertilizers.

Future Outlook

The domestic smart agriculture market is projected to reach 62,434 million yen by FY2028.

With commencement of the operations of “WAGRI (WA ["harmony" in Japanese] - AGRIculture)” and “Open API for Farming Machines”, both enable to share and utilize various data, all smart agricultural data has started being shared, propelling further data sharing and alignment.

In addition, progress of telecommunication technologies (5G, local 5G) is expected to expand the widespread use of smart agriculture solutions as a whole, including cultivation support solutions such as a smart water management system, precision farming that includes robotic farming machines as well as remote sensing, etc.

Research Outline

1.Research Period: May to December 2022
2.Research Object: Companies entered in smart agriculture business, agricultural corporations (paddy rice cultivation, agriculture & horticulture [vegetables, fruits, and flowers], related organizations, associations, and the concerned government agencies
3.Research Methogology: Face-to-face interviews (online included) by our expert researchers, surveys via telephone & email, and literature search

About Smart Agriculture

Smart agriculture in this research refers to the concept of connecting conventional agricultural technique with telecommunication technologies in order to pursue further production efficiency and add values to the produce. It aims to achieve high agricultural productivity, cost reduction, safe food and safe working environment by deploying telecommunication technologies in the process from production to harvesting/sales.

The target market ranges are as follows: 1) Cultivation Support Solutions, 2) Sales Support Solutions, 3) Business Management Solutions, 4) Precision Farming, 5) Agricultural Drones Solutions, and 6) Agricultural Robots.

Note that the research only includes domestic market and the market size is calculated based on the sales at businesses. The market size does not include hardware such as POS systems for agriculture, farm machinery, drones, etc.

<Products and Services in the Market>

1) Cultivation Support Solutions (Cloud-based farming, compound environmental control equipment, and smart water management systems for arable land), 2) Sales Support Solutions (ICT systems to alleviate the business workflow for client companies (Food service businesses, JA) of produce, sales support services utilizing weather data and other solutions), 3) Business Management Solutions (Accounting software for agriculture, accounting support services for agricultural corporations, business management services utilizing weather data, etc.) 4) Precision Farming (GPS guidance systems, autopilot, and robotic farm machines [smart rice planting systems, robot tractors], satellite-information-used systems, etc., 5) Agricultural Drones Solutions (Agrochemical spraying services using drones, sensing for arable lands, etc., but hardware for drones are not included), and 6) Agricultural Robots (Facility robots [grafting robots, etc.,] manipulator robots [harvesting robots, etc.,] assisting robots [powered suits/exoskeletons, etc.])

Published Report

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