The global Precision Farming Market was valued at XX in 2020 and is expected to reach around XX by 2028, at a CAGR of about XX% between 2021 and 2028.
Precision Farming is a modern approach to agriculture management. Precision farming uses information technology to that soil and crops receive exactly what they need for optimum health and productivity. The main goal of precision farming is to ensure sustainability, profitability, and protection of the environment. It is also known as precision agriculture, as-needed farming, and satellite agriculture. Precision farming depends on the Internet of Things (IoT), specialized systems, software, and farmers’ advanced analytics.
The components of precision farming include access to real-time data about the conditions of the crops, soil, and ambient air, as well as other pertinent data such as hyperlocal weather forecasts, labor costs, and equipment availability. Because of satellites and robotic drones, farmers have access to real-time images of individual plants. Precision farming optimizes the use of farm inputs in order to reduce costs of production and increase productivity. Predictive analytics software uses the information to guide farmers on crop rotation, harvesting seasons, ideal planting, and soil management.
The primary factor boosting the growth of precision farming is the increasing need for optimum crop production within limited resources. Increasing government support for adopting modern agricultural techniques, the use of advanced analytics by the farmers, the rising adoption of IoT technology, and the growing need for proper crop health monitoring are other important factors that drive the market for precision farming.
Furthermore, advancements in technology, growing investment in technology such as driverless tractors, GPS sensing, and guidance systems, and a surge in the adoption of smartphones are contributing to the growth of the Precision Farming Market. The increasing adoption of telematics systems by agricultural equipment companies is driving the market as telematics technology is used to capture and transfer data from farm equipment through sensors installed on tractors and other field monitoring equipment.
However, the lack of awareness regarding Precision Farming among farmers, the non-availability of technology-based equipment and the lack of skilled people in developing countries, and the high costs associated with the installation of technology hamper the growth of the Precision Farming Market.
• Increasing awareness of precision farming
• Challenges involved in agricultural work
• Rising awareness of the benefits of agriculture drones
• Growing government support for the adoption of modern agricultural methods
• Increasing adoption of innovative precision farming technology stoked by rising population and increased demand for organic food.
• Proliferation of big data in precision farming
• Increasing investment in information and communication technology
• Adoption of IoT in agriculture
• Low rate of technology adoption among farmers
• Absence of stringent standards and limitations on the exchange of data
• High initial investment and lack of knowledge among farmers
• Growing application of telematics in agriculture
• Changing weather conditions due to global warming
• Rising use of AI-based solutions in precision farming.
The COVID-19 pandemic has impacted every aspect of life and business. It has emerged as a global pandemic that has affected almost all countries across the globe and disrupted various business functions around the world. The COVID-19 pandemic impacted the overall operations of various precision farming manufacturing companies. Moreover, it also affected the businesses of their suppliers and distributors.
The pandemic has consequently led to a significant slowdown in the production of precision farming equipment. Regulations imposed by the governments affected manufacturing and pegged back the consumer demand for such high-capital equipment. However, after the post-pandemic period, remote sensing and farm management software tools increase the adoption of precision farming.
The global Precision Farming Market is segmented based on Offering, Technology, Application, and Region.
The hardware segment accounted for the largest revenue share of 68% in 2021.
Based on Offering, the market is segmented into Hardware, Software, and Services. The hardware segment dominated the market with a revenue share of about 68% in 2021 and is expected to register the highest growth rate during the forecast period. The hardware segment is further categorized into Automation & control systems, sensing & monitoring devices, and Antennas & access points. The growth of this segment is attributed to the increase in the adoption of hardware components that are extremely useful to farmers.
The software segment is anticipated to register a significant CAGR of about 15% over the forecast period. The software segment is further categorized into web-based and cloud-based software. The cloud-based software is based on the usage of shared networks, servers, and storage devices, which eliminates the high expenses of maintaining hardware and software infrastructure.
The service segment is also expected to witness remarkable growth in the coming years owing to the increase in the adoption of precision farming software in modern farming technology which further increases the need for various services. The service segment is further classified into System Integration and Consulting Services, Managed Services, Connectivity Services, Assisted Professional Services, and Maintenance and Support Services.
The guidance technology segment accounted for the largest revenue share of the precision farming market.
Based on Technology, the market is segmented into Guidance Technology, Remote Sensing Technology, and Variable Rate Technology. The guidance technology segment is expected to register the largest revenue share during the forecast period as guidance is an integral part of precision farming which eases automatic and remote-control devices and helps agricultural vehicles using GPS. The guidance technology is further segmented into GPS/GNSS Based and GIS Based guidance technology.
The variable rate technology segment is expected to witness significant growth during the forecast period as VRT assists farmers in identifying areas where additional pesticides and seeds are needed, allowing them to be applied uniformly across the field. The variable rate technology is further segmented into map-based and sensor-based technology. Due to its numerous uses and high acceptance rate, variable rate technology (VRT) dominates the precision farming industry in the technology category.
The yield monitoring segment held the largest revenue share in 2021.
Based on Application, the market is segmented into Yield Monitoring, Crop Scouting, Field Mapping, Variable Rate Application, Weather Tracking & Forecasting, Inventory Management, Farm Labor Management, Financial Management, and Others. The yield monitoring segment accounted for the largest revenue share in 2021 and is anticipated to witness the highest growth rate during the forecast period as it assists farmers in making field decisions about their farms and showing differences and damage in the soil.
Farmers can use on-farm yield monitoring to get real-time data during harvest and develop a historical-geographical database. It also provides equitable landlord negotiations, proof of environmental compliance, and track records for food safety.
North America dominated the regional market in 2021 and the Asia Pacific is expected to register the fastest growth over the forecast period:
At the regional level, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East, and Africa. North America held the largest revenue share of about 45% in 2021 and is anticipated to be dominant over the forecast period. The shift of the farmers toward the use of digital technology for yield management along with cost reduction is the key factor that drives the growth of the precision farming market in this region. Another factor contributing to the high market share of the regional market is developed infrastructure and rising government initiatives that support the adoption of modern agriculture technologies.
The Asia Pacific is expected to account for a significant CAGR of about 15% during the forecast period owing to the availability of the largest agricultural land, rising modernization, and strong economic growth along with ongoing agricultural development which provides growth opportunities in countries such as China, India, Australia, and Japan.
Key Market Players:
• John Deere & Company
• Raven Industries
• AG Leader Technology
• SST Development Group
• Teejet Technologies
• Topcon Positioning Systems
• Dickey-John Corporation
Company overview, financial overview, product portfolio, business strategy, and recent developments for major market players operating in Precision Farming Market are included.
Precision Farming Market Report Scope:
Market Size in 2020
Market Size in 2028
XX% from 2021 to 2028
2017 – 2019
2021 – 2028
Offering, Technology, Application, and Region.
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Key Companies Profiled
John Deere & Company
AG Leader Technology
SST Development Group
Topcon Positioning Systems
The report segments of the global Precision Farming Market are as follows:
o Automation & control systems
Flow and Application Control Devices
Guidance and Steering
Handheld Mobile Devices/Handheld Computers
o Sensing and Monitoring Devices
1. Moisture Sensors
2. Temperature Sensors
3. Nutrient Sensors
o Antennas & Access Points
o System Integration and Consulting Services
o Managed Services
o Connectivity Services
o Assisted Professional Services
o Maintenance and Support Services
• Guidance Technology
o GPS/GNSS Based
o GIS Based
• Remote Sensing Technology
o Handheld or Ground-Based Sensing
o Satellite or Aerial Sensing
• Variable-Rate Technology
• Yield Monitoring
• Crop Scouting
• Field Mapping
• Variable Rate Application
• Weather Tracking & Forecasting
• Inventory Management
• Farm Labor Management
• Financial Management
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o Southeast Asia
o Rest of Asia Pacific
• Latin America
o Rest of Latin America
• Middle East and Africa
o Saudi Arabia
o South Africa
o Rest of Middle East and Africa