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Smart Forestry Market

Smart Forestry Market

The market for Smart Forestry was estimated at $5.3 billion in 2023; it is anticipated to increase to $12.0 billion by 2030, with projections indicating growth to around $21.5 billion by 2035.

Report ID:DS2105002
Author:Swarup Sahu - Senior Consultant
Published Date:November 2024
Datatree
Movable Heavy Machinery
Agriculture & forestry Machinery
Smart Forestry
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Report Summary
Table of Contents
Methodology
Market Data

Global Smart Forestry Market Outlook

Revenue, 2023

$5.3B

Forecast, 2033

$17.0B

CAGR, 2023 - 2033

12.3%
The Smart Forestry industry revenue is expected to be around $6.7 billion in 2024 and expected to showcase growth with 12.3% CAGR between 2025 and 2034.

In the field of smart forestry, technology like sensing and drones are being used to transform how forests are managed and preserved worldwide. The global market for smart forestry was worth approximately $5.3 billion in 2023 and industry predictions showing that it may rise to $12 billion by 2030 and $21.5 billion by 2035 achieving a CAGR of 12.3%. The demand for sustainable forest management practices to address deforestation wildfires and climate change is a key driver, behind this market expansion

The heart of forestry is its capability to offer up to the minute information and practical guidance that aids in the practice of sustainable forest management practices. These innovative tools enable the monitoring and response, to environmental shifts efficiently and aid in the conservation of biodiversity while fighting against the impacts of climate change.

Smart Forestry market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2023-2033

Market Key Insights

  • The Smart Forestry market is projected to grow from $5.3 billion in 2023 to $17.0 billion in 2033. This represents a CAGR of 12.3%, reflecting rising demand across Forest Monitoring and Wildfire Management.
  • The market leaders Trimble and Planet Labs and ESRI operate as major competitors that determine the competitive dynamics of this industry.
  • U.S. and Canada are the top markets within the Smart Forestry market and are expected to observe the growth CAGR of 11.1% to 14.8% between 2023 and 2030.
  • Emerging markets including India, Indonesia and Russia are expected to observe highest growth with CAGR ranging between 8.6% to 12.9%.
  • The Smart Forestry market will experience a $1.5 billion increase in growth through 2030 because of the transition toward carbon-neutral forestry practices.
  • The Smart Forestry market is set to add $11.7 billion between 2023 and 2033, with service providers targeting Reforestation & Wildfire Management Application projected to gain a larger market share.
  • With Demand for sustainable forest management, and Need for improved wildfire mitigation, Smart Forestry market to expand 219% between 2023 and 2033.
smart forestry market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032

Opportunities in the Smart Forestry

Harness the power of AI and drone innovations to drive automated reforestation initiatives effectively by deploying drones for seed planting, in areas that have been affected by deforestation.

Growth Opportunities in North America and Europe

North America Outlook

North America is at the forefront of embracing forestry practices thanks to its well developed technology infrastructure and vast forest reserves. A significant advantage for this region is the support from government funding and active participation of enterprises, in promoting sustainable forestry projects.

Europe Outlook

In Europe, smart forestry has gained traction thanks to environmental rules and goals for reducing carbon emissions with countries like Finland and Sweden leading the way in embracing advanced technology, for forest management solutions.

Market Dynamics and Supply Chain

01

Driver: Demand for Sustainable Forest Management, and Advancements in Remote Sensing and AI

There is also an increasing focus and regulatory push, towards forest management practices that are also leading to the widespread implementation of advanced forestry technologies. These innovative tools deliver data to assist in better managing resources and promoting conservation efforts. The progress in satellite imaging technology alongside drones and AI analytics has also significantly enhanced the precision of data. This has also made smart forestry a valuable resource, for forest managers globally.
Regular occurrences of wildfires highlight the need for forest surveillance systems to be in place. Incorporating intelligent forestry equipment can also lead to reaction times and accurate monitoring capabilities which are also instrumental in the efforts, towards preventing and managing wildfires effectively.
02

Restraint: High Cost of Technological Implementation, and High Cost of Technological Implementation

Adopting forestry technology comes with a hefty price tag that may pose a challenge for smaller forest management organizations due, to the expenses linked to acquiring equipment, software and training.
Adopting forestry technology comes with a hefty price tag that may pose a challenge for smaller forest management organizations due, to the expenses linked to acquiring equipment, software and training.
03

Opportunity: Enhanced Forest Fire Prediction Models and Growing Carbon Credit Market

With the rising concerns of climate change leading to heightened fire risks in forests the use of forestry tools has become crucial, for implementing predictive analytics to prevent forest fires proactively. Sophisticated algorithms can analyze high risk zones offering alerts and potentially safeguarding vast wooded areas from devastation.
Due to the rise in carbon offset initiatives strategic forestry practices are now key, in measuring carbon storage. Landowners can utilize technology to track carbon absorption levels allow them to engage in carbon trading markets
04

Challenge: Limited Infrastructure in Remote Areas

Cutting edge forestry technology depends on having access to connections and proper infrastructure. This can sometimes be a challenge in forest areas and can hinder the effective implementation of such solutions.

Supply Chain Landscape

1
Technology Providers

Trimble

Planet Labs

2
Data Analytics Providers

ESRI

IBM Watson

3
Forest Management Agencies

US Forest Service

Canadian Forest Service

Other Governments

4
Service Providers

DroneDeploy

*The illustration highlights the key stakeholders within the supply chain ecosystem.

Applications of Smart Forestry in Forest Monitoring & Wildfire Management

Forest Monitoring

By using technology in forestry management systems like IoT sensors and satellite imagery in real time monitoring of forest health and biodiversity companies such, as Planet Labs and Trimble offer remote sensing tools to monitor forest cover changes and efficiently manage resources.

Wildfire Management

Cutting edge GIS technology and drones used in forestry provide proactive wildfire monitoring and early warning systems to assist authorities in responding quickly and efficiently to wildfires outbreaks. This is bolstered by industry players, like DroneDeploy and GIS service providers working together to improve response times to wildfires and reduce the extent of damage caused.

Recent Developments

September 2023

Planet Labs introduced a satellite imaging technology specifically designed for use, in forestry applications.

May 2023

Trimble unveiled a platform powered by AI that focuses on improving the planning process for reforestation efforts.

February 2023

DroneDeploy collaborates with a forestry organization to conduct drone assisted forest surveillance and wildfire management.

In the realm of forest management today and the technology that supports it. Like what Planet Labs and Trimble offer. There is a focus towards data driven approaches that enhance decision making processes concerning forests. Collaborations such as DroneDeploys use of drones for monitoring wildfires underscore the strides being made in forestry practices. Moreover the rise of carbon neutrality initiatives is fuel ing a need for innovative smart forestry solutions, in the market.

Impact of Industry Transitions on the Smart Forestry Market

As a core segment of the Agriculture & forestry Machinery industry, the Smart Forestry market develops in line with broader industry shifts. Over recent years, transitions such as Transition to Carbon Neutrality in Forestry and Adoption of AI for Biodiversity Monitoring have redefined priorities across the Agriculture & forestry Machinery sector, influencing how the Smart Forestry market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Transition to Carbon Neutrality in Forestry

Forest conservation is now more directed towards achieving carbon neutrality by using technology to oversee and improve the absorption of carbon in forested areas. This plays a role, in addressing climate change challenges. This industry transition is expected to add $1.5 billion in the industry revenue between 2023 and 2030.
02

Adoption of AI for Biodiversity Monitoring

AI powered technologies are revolutionizing forestry practices by improving the tracking of biodiversity. This allows forest managers to better maintain ecosystems and tackle conservation issues related to species preservation, with greater efficiency.

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