Smart Agriculture Market in Japan: Key Research Findings 2023

Smart Agriculture Market in Japan Estimated to Grow to 32,200 Million Yen for FY2023

Yano Research Institute (the President, Takashi Mizukoshi) surveyed the smart agriculture market in Japan, 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

The smart agriculture market in Japan for FY2023 based on the sales at businesses is estimated to reach 32,299 million yen, 106.7% on YoY.

Continuing to widespread in FY2023 are smart water management systems that manage water for arable land from remote places, smart rice planting systems available for variable fertilization that enable to reduce fertilizer application in the situation of soaring chemical fertilizer prices, and remote sensing systems that can create a crop growth map to grasp any changes in the cultivation environments. By connecting a crop growth map to the variable fertilizer application system, fertilizers are sprayed only at the spots where the crop growth are slow, which can solve the issue of varying growth speed, while reducing labor and extra fertilizers.

Noteworthy Topics

Expectations for Smart Agriculture Technology to Quantify Greenhouse Gas Reductions

J-Credit Scheme is a carbon-credit system in which the government certifies the amounts of CO2 and other greenhouse gas emissions that are reduced or removed through efforts to save energy, introduce renewable energy facilities, manage forests, etc. The “Rice-Paddy Methane Reduction Project” has been approved by J-Credit Scheme as a new methodology of reducing methane emissions from rice paddy by prolonging mid-season drainage periods. Hereafter, the utilization of the credit for activating greenhouse gas reductions is expected.

In addition, smart agriculture that quantifies greenhouse gas emissions is expected to spread under J-Credit Scheme. Conventional measuring methods have had difficulties in deriving the values that can be used as the basis for CO2 reductions and in less real-time.

Future Outlook

The domestic smart agriculture market size is projected to expand to 70,880 million yen by FY2029.

In addition to the "Agricultural Data Linkage Infrastructure (WAGRI)" and "Agricultural Machinery Open API," which enable ICT manufacturers and manufacturers of agricultural machinery and materials to collaborate, share, and utilize various data, the operation of a smart food chain platform called “ukabis”, linked from production to midstream (distribution and processing) and downstream (retail and sales) has started, which is expected to secure safety of food through tracability, match supply and demand, and reduce food losses. Further data sharing and linkage is expected to progress in the future.

Furthermore, upgrading of 5G telecommunication environment and expansion of the Quasi-Zenith Satellite System (QZSS) to eleven satellites are projected to make high-precision images and positioning information to be available, facilitating smart farming as a whole to further expand and widespread, including cultivation support as well as precision farming such as robotic farm machines and remote sensing systems.

Research Outline

1.Research Period: May to October 2023
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 techniques with telecommunication technologies thereby to pursue further production efficiency and add values to the produce. It aims to achieve high agricultural productivity, cost reduction, food safety and safe working environment by deploying telecommunication technologies throughout the production to harvesting/sales.
The target market ranges are as follows: 1) Cultivation Support Solution, 2) Sales Support Solution, 3) Business Management Solution, 4) Precision Farming, 5) Agricultural Drones Solution, 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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