Key Market Overview:
Precision farming market size is expected to reach USD 20.66 Billion by 2030 from the value of USD 7.1 Billion in 2022, register a CAGR of 12.6% during the forecast period (2023-2030)
Precision farming, also known as precision agriculture, is a modern farming technique that integrates and uses advanced technology and data analytics to optimize crop production while minimizing environmental impact and resource wastage. Precision farming integrates various technologies, such as GPS, remote sensing, and drones, to gather data on soil characteristics, weather patterns, and crop growth patterns. The collected data is further analyzed using advance software algorithms to provide farmers with specific insight about crop needs such as optimal planting time, irrigation levels, and fertilizer application rates. By using precision farming techniques, farmers can reduce costs, increase yields, and improve the overall sustainability of their operations. For instance, according to a study conducted by Association of Equipment Manufacturers in the year 2021 it was concluded that the use of precision technologies into farming increased the crop production by 4% and reduced herbicide applications by 9%. Additionally, 6% decline in fossil fuel consumption and 4% reduction in water utilization was also witnessed. Therefore, deployment of precision technology is beneficial in cost and water usage reduction.
Integration of precision technologies with micro-irrigation systems is one the major driver for precision farming market. Precision agriculture provides farmers with the ability to optimize field irrigation by utilizing micro-irrigation systems to detect areas of high or low soil moisture. Through variable rate irrigation (VRI), precise amounts of water can be administered to different regions of the field, resulting in greater irrigation efficiency and water conservation. By monitoring crop water stress levels, precision irrigation systems identify areas that require additional watering or areas experiencing issues such as flooding or excess moisture. The implementation of precision farming technologies helps farmers to quickly identify and address irrigation issues in specific areas of the field. Precision farming enhances the overall production and cost effectiveness.
Lack of IT infrastructure is one of the major restraint in large scale deployment of precision farming technology in agriculture sector. Generally farms are located in remote rural locations that lack basic IT infrastructure such as 5G networks and Wi-Fi. Moreover, lack of technological expertise is also a restraint, deploying precision framing systems requires technical expertise in areas such as programming and data analytics. Limited access to education and training in these areas, results into getting skilled workers relatively difficult. High upfront cost requirement in precision farming equipment deployment is another restraint hindering the market growth.
Government’s assistance to promote sustainable farming practices is one of the most lucrative opportunity for precision farming market in forthcoming years. Agriculture sector is biggest consumer of water therefore, governments across the globe are taking positives steps to control water wastage by promote ecofriendly and sustainable farming practices. Precision farming allows efficient resource utilization as technologies including precision irrigation and variable rate irrigation are highly effective in reducing water wastage. For instance, in year 2021 Minister of Agriculture and Agri-Food (CANADA), announced up to USD 875,000 to Ukko Agro Inc. to support the development of analytics platform to enhance diseases controlling and insects in various crops.
Precision farming Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||20.66 Billion|
|By Component||Hardware, Software, and Services|
|By Technology||Guidance Technology, Connectivity & Logistics, Remote Sensing, and Variable Rate Control Technology|
|By Application||Yield Monitoring, Field Mapping, Crop Scouting, Weather Tracking & Forecasting, Irrigation Management, Spraying Management, and Inventory Management|
|By Geography||North America, Europe, Asia Pacific,
Latin America, Middle East and Africa
|Key Players||John Deere, Trimble, Raven Industries, Precision Planting, Topcon Positioning Systems, Climate Corporation, TeeJet Technologies, Case IH, AGCO Corporation, CNH Industrial, Kubota Corporation, Bushel Inc, DICKEY-john Corporation, Grainbridge Lindsay Corporation, and Valmont Industries|
By component the precision farming market is divided into hardware, software, and services. The hardware segment held dominating market share in the year 2022. Various sensors are used for functions including crop monitoring, soil quality analysis and weather forecasting. Moreover, drones are actively deployed for mapping and monitoring applications therefore, the hardware segment account for dominating market share. For instance, AgEagle Aerial Systems Inc. offers a range of drones by the name eBee Ag. These drones are equipped with multiple sensors allowing drone to collect crucial data and insights.
Furthermore, the software segment is expected to showcase substantial market growth CAGR over the forecasted period. Rising adoption of precision tools and equipment in complex agricultural tasks including weather forecasting, real-time soil nutrient monitoring among others are fueling the demand for precision softwares. Moreover, with integration of cutting edge technologies such as M.L and A.I into precision farming is further expected to propel the demand for precision softwares in forthcoming years. For instance, John Deere (Deere & Company) offers various precision farming softwares for data management, remote monitoring and guidance applications.
By technology the precision technology market is divided into guidance technology, connectivity & logistics, remote sensing, and variable rate control technology. Currently the remote sensing technology held dominating market share in the year 2022. Generally farms deploy multiple sensors to gather physical attributes such as moisture level, temperature, soil acidity level, and salinity levels remotely. Moreover, the collected data is used by farmers to take insightful and data driven scientific decisions.
Furthermore, the variable rate control technology (VRT) is expected to showcase considerable market growth CAGR over the forecasted period. Variable rate control technology is integrated with smart micro irrigation systems for efficient water distribution for sustainable irrigation. Moreover, the VRT technologies are also integrated with fertilizer distribution systems to achieve efficient chemical distribution leading to reduced operation cost.
By applications the market is segmented into yield monitoring, field mapping, crop scouting, weather tracking & forecasting, irrigation management, spraying management, and inventory management. The yield monitoring segment held dominating market share in the year 2022. In yield monitoring data on grain yield, grain moisture levels, and soil properties is collected. The data collected for yield monitoring is also geo-referenced. Therefore, it is used for mapping and analysis. Collected data assists farmers in making informed decisions about harvesting time, fertilizer and pesticides use, and in understanding the impact of weather on crops. Furthermore, the irrigation management segment is expected to showcase considerable market growth CAGR over the forecasted period. Positive steps taken by government to promote sustainable water management and rising awareness about water conservation is expected to positively impact the demand for precision tools for irrigation management application.
The regional segment is divided into Asia-pacific, Europe, North America, South America, and Middle East & Africa. The North America region held dominating market share. In U.S. most of the farms are large scale generally managed by professionals therefore, the applications of high-tech technologies is higher in this region. Majority of farms in U.S. are large scale with good financial capabilities. For instance, according to SAGE Publications, the average farm size in U.S. was 221.6 hectare on the other hand the global average is only 7.3 hectare.
Furthermore, the Asia pacific region is expected to showcase considerable market growth over the forecasted period. Assistance from governments in countries such as India, South Korea and japan to strengthen agriculture sector is estimated to fuel the demand for precision technologies in forthcoming years. For instance, in December 2022 government of India announced financial equal to 40% of the cost of the drone, with a maximum limit of USD 5000. Aim of this scheme is to increase the drones reach to small scale farmers. Such various schemes are launched by governments all over the world to promote precision farming as it is more sustainable and ecofriendly.
Precision farming Market Competitive Landscape:
The competitive landscape of the Precision Farming industry comprises detailed profiling of key market players operating in this market. Major companies been analyzed. It was found that Key players are leading the market through their investments in R&D with product innovation. Furthermore, this report contains company overviews, production capacity, SWOT analysis, financial data, revenues, market potential, global presence, production sites, with product application.
Following are some of the major players in this market:-
Raven Industries ( CNH Industrial N.V. )
CNH Industrial N.V.
Topcon Positioning Systems
- In 2021 the Bushel Inc. (software developer for the agriculture industry) completed its Acquisition of Grainbridge (grain management platform developer)
- November 2021 CNH Industrial N.V. completes the acquisition of Raven Industries.
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