Global Precision Agriculture Market By Type (Hardware, Software, Services), By Application (Yield Monitoring, Crop Scouting, Field Mapping, Variable Rate Application), By Region, And Segment Forecasts...

The global precision agriculture market was estimated at nearly USD 5.49 billion in 2021, and it is expected to see a considerable increase with a forecasted compound annual growth rate (CAGR) of 14.95% from 2022 until 2030 to reach around USD 19.24 billion. The key drivers behind this surge are; better efficiency levels leading to increased yields per unit area managed with lower input expenses; rising penetration levels for mobile phones among farmers together with adoption rates for new innovations especially within developing nations.

Site-specific crop management known as precision agriculture, satellite agriculture, on-demand agriculture, or Precision farming involves monitoring, assessing, and mapping crop variability within fields and individual plants. It employs sophisticated methodologies and infrastructures that could revolutionize farming systems, notably in developing nations, with regard to environmental friendliness, conservation and economic attitude.

In order to practice precision agriculture, one must depend on IT services, software and specialized systems which help them get access to real-time information on issues to do with crop farming, soil and general climatic conditions. Such essential pieces of information normally encompass labor costs, availability of farm machinery as well as weather forecasts within small areas. Using this data, predictive analytics software offers suggestions about the planting time, harvesting time and crop rotation as well as land use to be given to farmers. Temperature, moisture content and air quality are measured by sensors in fields; real-time images of specific plants are taken by satellites and drones. Farmers benefit from the integration of these technologies with other data sources in the areas of watering and planting decisions.

Drivers:

Variable Cost Decreases with an Increase in Productivity:

Precision farming uses software, artificial intelligence, big data and more to use farm inputs better, reduce costs and increase output. A study by MDPI in Basel, Switzerland says precision farming reduces fuel and pesticide use. There are big fixed costs in the adoption phase but variable costs drop fast and long term productivity increases as labor costs drop 20%. Precision agriculture grows crop and profit while addressing climate change and population growth.

More Acceptance of the Latest Technologies and Smartphones in Agriculture:

With the rise in smartphone usage, there is a growing demand for its integration in precision agriculture. Apps compatible with all smartphones allow farmers to monitor their crops from anywhere in the world with data backed up in the cloud. Smartphones with Bluetooth, USB and Wi-Fi connectivity meets the needs of farmers and is driving the global precision agriculture market. Technology has improved the farm facilities and mobile devices are helping in better monitoring of farms and labor. A survey by “The Print” in Dec 2020 found that Indian farmers who adopted modern technology and smartphones saw their output and income almost double as compared to others.

Restraints: An Expensive Process

The cost of precision farming equipment like sensors, drones, VRT, GPS, GNSS and guidance tools is a hurdle to growth. Also it requires trained personnel to operate. In emerging countries like India, China and Brazil, limited resources and huge capital required for new technology based farming many farmers prefer traditional farming. Precision agriculture generates lot of data which requires advanced skills to analyze and make decisions, is a big challenge for many users.

Opportunities: AI-Based Solutions Will Shape the Future

AI tools give support to the farmers in the utilization of manure, irrigation management, crop rotations, pest control, choosing the appropriate crop according to soil requirements, and nutrients use. AI algorithms and satellite pictures assist in controlling pests as well as prediction of weather conditions helping out in determining soil quality and fertility level hence enabling farmers to produce high quality produce. AI powered precision agricultural systems also allow better monitoring of plant conditions.

 Market by System Type Insights:

Precision agriculture has many technologies to increase crop productivity and efficiency:

• Remote Sensing Systems: Satellites and drones to monitor crop and soil health.

• GPS/GNSS Guidance Systems: Precise fieldwork through mapping and navigation.

• Variable Rate Technology (VRT): Efficient application of inputs like fertilizers and seeds.

• Automated Irrigation Systems: Water conservation and optimal soil moisture.

• GIS: Field mapping and analysis.

• Yield Monitors: Real time data on crop performance.

• Climate and Weather Tracking: Localized information for planning.

Future will see more IoT, better analytics and data sharing and more AI and machine learning for deeper crop insights. Sustainability is becoming more important to reduce environmental impact and resource use. But high upfront costs, technology complexity and farmer education and training are the challenges.

Market by End Use Insights:

• Big Commercial Farms: The main users, who want to manage resources efficiently to use land better, produce more and save costs.

• Small and Medium Farms: Precision agriculture is getting popular because it’s affordable and scalable and customized.

• Research Institutes: Universities and research centers develop new technologies, test in the field and offer extension and training to farmers.

Market by Region Insights:

North America had the highest total revenue share of 44.07% in 2023 due to technological adoption, policy initiatives and established infrastructure. For instance, In May 2022 the Canadian government put $441,917.5 towards precision fruit tree cultivation integration programme meant to mitigate apple sector problems.

Predicted CAGR of over 15.3% is coming up in the Asia Pacific in 2024 – 2030 period. Nigeria, Sri Lanka as well as India are utilizing recent precision agriculture technology to step up their output rates and these governments have contributed Step change in the introduction of precision agricultural technology.’ During the month of September 2017, an agreement amounting to $300m between China and Israel created room for Israeli goods to be sold in China. Farmers in those areas are benefiting from well-developed administrative systems that are currently helping them in mastering how to make the most of precision farming machines.

Competitive Scenario:

The precision agriculture market is highly competitive because it has several major influential players that drive innovation in and adoption of more sophisticated farming technologies. Leading companies include Trimble Inc., AGCO Corporation, John Deere, and Raven Industries—companies that heavily populate the market with a vast amount of products and solutions, including VRT equipment, remote sensing technologies, and GPS/GNSS guidance systems. These companies are constantly making investments in R&D for enhanced technology to meet the needs of farmers who are evolving. Startups and small businesses are also entering the market with niche solutions and creative ideas for precision farming. Popular companies in this area are, for instance, Farmers Edge, Granular (acquired by Corteva), and CropX, to name just a few, which offer farm management software and data analytics. Enlarging their share through strategic alliances and co-opting of complementary technologies is typical. Meanwhile, it is often the larger companies that acquire smaller software startups to benefit their precision agriculture portfolios.

Scope of Work:

Market Segmentation:

By type:

Hardware

o   Guidance Systems

o   Sensing and Monitoring Devices

Software

o   Farm Management Software

o   Weather Forecasting Tools

o   Remote Sensing and GIS Software

Services

o   Consulting and Training

o   Farm Operation Services

o   Maintenance and Support

By geography:

• North America: U.S. and Canada

• Europe: Germany, France, Netherlands, Italy, Spain, and Rest-of-Europe

• Asia-Pacific: Japan, Australia, India, and Rest-of-Asia-Pacific

• Middle East and Africa: Israel, Turkey, South Africa, and Rest-of-Middle East Africa

• China

• U.K.

By system type:

•  Guidance Systems

•  Remote Sensing Systems

•  Variable Rate Technology (VRT)

•  Automated Irrigation Systems

•  Yield Monitoring Systems

•  Field Mapping Systems

•  Climate and Weather Monitoring Systems

• Farm Management Software

end use:

•  Large-Scale Commercial Farms

•  Small and Medium-Sized Farms

•  Research Institutions

•  Government Bodies

•  Government Bodies

•  Service Providers

• Agri-Tech Companies

Recent Developments:

In July 2021, Deere & Company released JDLINK, which is a tool for information management that provides connectivity services at no cost to enhance machinery connectivity for clients. Also in July 2021, AGCO Corporation introduced the Precision Ag Line (PAL) program, an effort geared towards offering assistance to farmers who utilize AGCO's multi-brand solutions like Massey Ferguson, Fendt, Gleaner, Challenger, and Precision Planting. Raven Industries has launched OMNI which is an autonomous product brand, aiming for independent solution provisions, in May 2021. In May 2021, AGCO collaborated with Raven and other firms evaluating spraying technology with a view of increasing efficiency in the application of crop protection products.

FAQs

Q1. What is the growth rate for the Precision Agriculture Market?

Precision Agriculture Market size will grow at approx. CAGR of 14.95% during the forecast period.

Q2. Who are the prominent players in the Precision Agriculture Market?

Some of the top industry players in Precision Agriculture Market are, Deere & Company, CropMetrics LLC, Trimble Navigation Limited, CropX, AgSmarts Inc, AgSense LLC, AGCO Corporation, DICKEY-john, Monsanto Company, Ag Leader Technology, etc.

Q3. Which is the region that holds the majority share of the Precision Agriculture Market?

In the Precision Agriculture Market, North America has established itself as the market leader with a significant market share.

Q4. Which region shows the most rapid expansion in the Precision Agriculture Market?

The Precision Agriculture Market has seen the most substantial growth rate in Asia Pacific.

Q5. Which segments are covered by the global Precision Agriculture Market report?

The global Precision Agriculture Market report is segmented as follows: By Application, By Offering, By Technology