USD 8.85 billion
Global Precision Farming Market Size, Share, Growth Analysis, By Offering(Hardware, Software), By Technology(Guidance Technology, Remote Sensing Technology), By Application(Yield Monitoring, Field Mapping) - Industry Forecast 2024-2031
Report ID:
SQMIG45F2042 |
Region:
Global |
Published Date: April, 2024
Pages:
241
|
Tables:
98 |
Figures:
76
Global Precision Farming Market Insights
Global Precision Farming Market size was valued at USD 8.85 billion in 2019 and is poised to grow from USD 9.8 billion in 2023 to USD 22.09 billion by 2031, growing at a CAGR of 10.7% during the forecast period (2024-2031).
Precision farming, also known as precision agriculture, is a modern farming technique that utilizes technology to optimize crop yields, reduce waste, and enhance sustainability. It involves the use of advanced tools such as GPS, sensors, drones, and data analytics to monitor and manage crop production processes with precision. The main goal of precision agriculture on a global scale is to satisfy the market demand for the most productive and sustainable farming models. Not only has there been an increase in the world population, but also arable land is shrinking and thus there is more pressure on the agricultural sector to increase productivity without damaging nature. One of the biggest benefits of precision farming is the fact that it addresses those challenges through the process of helping farmers to make data-based decisions, optimizing resource usage and increasing the general performance of the farm. Several factors are found to as a cause of the increasing market of precision farming. It should be noted that the most significant challenge in this regard include: the emergence and progressive use of digital farming technologies, the growing demand for food production stimulated by population growth, and the need to respond to palpable effects of climate change, such as crop yield reduction. Moreover, the government programmes aimed at promoting eco-friendly agriculture and the emergence of innovative IoT and AI technologies are some of the factors behind the rise of the market.
Even though precision farming has great prospect, still, it is confronted with certain difficulties. High initial investment required for technology acquisition, particularly of small-scale farmers, can be a barrier or entry as well. However, the misgivings about data protection and security as well as the awareness and technical know-how gap among some farmers and areas are some of the concerns that market growth faces.
The problem of precision farming is the contact between different technologies and platforms. Integrating heterogeneous systems and handling interoperation between the hardware and software components can prove complex. Moreover, diversity in environmental factors, together with the need for customized solutions for various kinds of crops and areas, keep presenting a dilemma for precision farming to be adopted on a wide scale. Despite the challenges, the precision farming market presents significant opportunities for growth and innovation. Advancements in machine learning and AI algorithms offer the potential to further optimize farming operations and improve decision-making processes. Moreover, the increasing availability of satellite imagery and remote sensing data opens new possibilities for precision agriculture applications, such as real-time monitoring and predictive analytics.
US Precision Farming Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Hardware
Fastest Growth
Software
Growth Rate
10.7% CAGR
Global Precision Farming Market ($ Bn)
Country Share for North America Region (%)
Global Precision Farming Market By Offering ($ Bn)
Global Precision Farming Market By Offering (%)
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Global Precision Farming Market Segmental Analysis
Global Precision Farming Market is segmented by Offering, technology, Application, and region. Based on Offering, the market can be segmented into hardware, software and Service. Based on technology, the market is segmented into Guidance Technology, Remote Sensing Technology, and Variable Rate Technology. Based on Application, the market is segmented into Yield Monitoring, Crop Scouting, Field Mapping, Variable Rate Application, Weather Tracking and Forecasting, Inventory Management, Farm Labor Management, Financial Management, and Others (Demand Forecasting, Customer Management, Payables and Receivables). Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Precision Farming Market Analysis by Offerings
In the global Precision Farming market show that the hardware segment stands tall as the largest and most crucial component driving the industry forward. With a commanding share of the market, hardware offerings encompass a diverse array of technologies ranging from GPS systems and drones to sensors and automated machinery. These hardware solutions serve as the backbone of precision agriculture, empowering farmers with real-time data and actionable insights to optimize crop yields, reduce resource wastage, and enhance overall operational efficiency. In an era marked by escalating demands for sustainable food production amid evolving environmental challenges, the hardware segment's dominance is underscored by its indispensable role in revolutionizing traditional farming practices. Moreover, with advancements in sensor technology, robotics, and AI, the hardware segment is poised to witness exponential growth, projected to surge at an impressive CAGR of over 12% in the forecast period.
The software segment emerges as the fastest-growing frontier within the precision farming market. As modern agriculture becomes increasingly data-driven, software solutions are pivotal in transforming raw data into actionable insights, thereby enabling farmers to make informed decisions with unparalleled precision. From sophisticated analytics platforms to intuitive farm management software, this segment caters to the evolving needs of farmers by offering solutions for crop monitoring, predictive analytics, and inventory management, among others. Propelled by the convergence of cloud computing, IoT, and machine learning, the software segment is witnessing unprecedented growth, expected to outpace other segments with a staggering CAGR exceeding 15%. This surge reflects not only the escalating adoption of digital technologies in agriculture but also the inherent value that software solutions bring in streamlining farm operations and maximizing productivity in an increasingly complex agricultural landscape.
Precision Farming Market Analysis by Technology
Guidance Technology, the largest segment in the market, is revolutionizing agriculture by offering unparalleled precision and efficiency. By harnessing cutting-edge GPS and GIS technologies, Guidance Systems empower farmers to optimize their field operations with utmost accuracy. These systems ensure precise positioning of agricultural machinery, enabling farmers to reduce overlaps, minimize input wastage, and maximize crop yields. With an impressive market share bolstered by its proven track record in enhancing operational efficiency and resource utilization, Guidance Technology continues to be the cornerstone of modern precision farming practices, commanding the attention of farmers worldwide.
Meanwhile, Variable Rate Technology (VRT) emerges as the fastest-growing segment within the precision farming market. With agriculture increasingly embracing data-driven decision-making, VRT allows farmers to tailor inputs such as seed, fertilizer, and pesticides according to the specific needs of different areas within a field. This targeted approach not only optimizes resource allocation but also mitigates environmental impact, fostering sustainable agricultural practices. As farmers seek to maximize productivity while minimizing costs and ecological footprint, the adoption of VRT is experiencing exponential growth. Its ability to deliver precise, site-specific solutions resonates with the evolving needs of modern agriculture, making Variable Rate Technology the beacon of innovation and efficiency in the precision farming landscape.
Global Precision Farming Market By Offering, 2023 (%)
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Global Precision Farming Market Regional Insights
North America stands tall as the dominating region in this landscape, driven by advanced agricultural practices, robust technological infrastructure, and substantial investments in precision farming solutions. The market share belonging to North America exceeds 40% predominantly due to the rapid development of an advanced precision agriculture infrastructure that provides GPS-based equipment, drones and sensors used for the realization of agricultural objectives and monitoring purposes. However, the case of the North American region has become an example of how the government support schemes and subsidies along with economic incentives works in favor of the advances of precision farming and, hence, the innovations and progress of the whole industry.
Asia-Pacific region emerges as the fastest-growing market for precision farming. Witnessing a CAGR of over 15%, Asia-Pacific is experiencing a surge in demand fueled by burgeoning population growth, shrinking arable land, and the imperative to enhance agricultural productivity sustainably. Countries, such as China, India and Australia, with their rich agricultural sector, are among the fastest growing regions where precision farming relies extensively on modern technologies, such as enhancing resource utilization, reducing environmental impact as well as improving food security. Moreover, whilst supportive policies, the increased adoption of mechanization, and investments in agricultural research and development are at a strong level, the promise of a new center for precision farming innovation in the area cannot be ignored. The precision agriculture remains on a cutting edge of global farming space. North America firmly stays in front whereas the dynamics in the Asia-Pacific region becomes very interesting, promising in growth opportunities.
Global Precision Farming Market By Region, 2024-2031
- Largest
- Fastest
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Global Precision Farming Market Dynamics
Precision Farming Market Driver
- Integration of precision farming technologies with existing farm machinery: Integration with farm machinery with a pivotal driver powering wide-spread usage of precision agriculture is a milestone driver in the sector. The incredible development of precision farming technologies has made by the implementation of existing equipment, including tractors, drones, and balers, possible. It facilitates thorough data gathering, improves operational efficiency, and enhances transforming collected data into valuable information for informed decision-making.
- Technologically advanced sensors and systems allow for precision farming machines to collect information about soil conditions, crop condition, and weather data at the exact moment from the ground. Due to the development of GPS technology, the machinery can guide the navigation precisely and only perform operations on planned paths, resulting in perfect coverage and less overlap.
- VRT (Variable Rate Technology) makes it possible for farmers to apply fertilizer and other agricultural input at variable rates based on the exact requirements of a certain field. Such practice, therefore, underscores the notion of resource optimization and increased production. Furthermore, the robotization and distance monitoring capacities help in achieving an augmented level of operation efficiency and labor costs are reduced. Using data analysis, farmers now have the chance to improve their crop and farm management practices, resulting in more efficient water, fertilizer, and pest control methods and therefore improving crop productivity and efficiency.
Precision Farming Market Restraint
- Lesser reliability of internet connectivity and infrastructure for precision farming: Precision farming technologies is highly related to the rural connectivity and infrastructure, which in turn limited the full implementation of this technology. For example, in a large part of the agricultural areas, specifically in the rural and remote areas where many people engage in farming activities, there is a large number of regions where there is no reliable or high-speed internet connection. Those data gaps make it hard to realize the smooth dataflow and real time transfer of these details needed in precision agriculture.
- A farmer can face certain problem in trying to attain data from sensors, drones and other monitoring gadgets which may not be stable in the field without a steady internet connection. Sending this information over to those centralized systems or cloud-based platforms and doing the analysis and making the decisions can be difficult. The lack of supportive infrastructure may also stand for the inability to install cutting-edge precision farming practices which are based on continuous connectivity and data exchange.
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Global Precision Farming Market Competitive Landscape
The precision agriculture market is characterized by a dynamic and competitive landscape, with several key players vying for market share and innovation supremacy. Companies maintain significant market presence, leveraging their extensive experience and robust product portfolios. Moreover, emerging startups and technology firms like Farmers Edge, AgJunction, and PrecisionHawk are rapidly gaining traction with their innovative solutions in areas such as precision planting, crop monitoring, and data analytics. Furthermore, the two big data and software companies IBM and Microsoft are starting to take place in this sector by providing the advanced platform for analytics and cloud solutions that are customized for agriculture. With this competitive environment, technology keeps developing and gives a push for precision agriculture adoption among farmers worldwide as companies daily come up with solutions to meet the changing farmer needs and address sustainability challenges.
Precision Farming Market Top Player's Company Profiles
- Deere & Company
- Trimble Inc.
- AGCO Corporation
- Raven Industries, Inc.
- AgJunction Inc.
- Topcon Corporation
- The Climate Corporation
- AG Leader Technology
- Hexagon AB
- Precision Planting LLC
- CropMetrics LLC
- Farmers Edge Inc.
- SST Software
- AgriSight, Inc.
- Agribotix LLC
- Granular, Inc.
- Iteris, Inc.
- Gamaya SA
- Taranis-Visual Ltd.
- TeeJet Technologies
Precision Farming Market Recent Developments
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In July 2023, Deere & Company obtained Smart Apply, Inc. (USA), an innovative precision spraying equipment supplier. The goal of the acquisition is to further enhance the emphasis on strategically designed crops which target high-value clients and dealers and to enrich the range of solutions available to address the growers' key issues which include labour, input costs and regulatory compliance.
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In April 2023, AGCO Corporation announced its collaboration with Bosch BASF Smart Farming aiming at the introduction and marketing of Smart Spraying technologies on Fendt Rogator sprayers.
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In August 2022, Trimble and CLAAS came to an agreement to carry out a joint project aimed at the creation of a high-precision farming system for tractors and CLAAS vehicles, harvesters, and other agricultural machinery. The precise farming system includes the latest CLAAS CEMIS 1200 smart screen, GPS PILOTE steering system and the SAT 900 GNSS receiver. The CEMIS display utilizes the strengthened embedded modular software framework of Trimble to ensure accurate placement, steering, and an easy connection to implement control mechanisms within the field using the ISOBUS technology.
Global Precision Farming Key Market Trends
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Adoption of IoT and Remote Monitoring: Another notable trend in the precision agriculture market is the widespread adoption of Internet of Things (IoT) devices and remote monitoring systems. IoT sensor devices are being mounted on agricultural fields and they supply information in real-time about soil moisture, temperature, humidity, and crop growth status. Such sensors are transmitting data to centralized platforms that are accessible to farmers from their mobile phones or through web interfaces. Remote monitoring systems help farmers to check field conditions, follow the development of crops, and receive alerts when problems may occur such as water stress, lack of nutrients, or pest outbreaks. Such shift in the farming systems is enabling farmers to manage their farm more efficiently, optimize inputs, and gain high yields with low input costs and limited ecological footprint.
Global Precision Farming Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global Precision Farming Market analysis, The Precision Agriculture market is experiencing robust growth driven by increasing adoption of advanced technologies in farming practices worldwide. With a growing global population and the need to enhance agricultural productivity while minimizing environmental impact, precision agriculture solutions have emerged as a critical tool for farmers. Key factors fueling market growth include the integration of technologies such as GPS, sensors, drones, and data analytics to optimize crop management, irrigation, and livestock monitoring. Additionally, supportive government policies promoting sustainable agriculture practices and the rising demand for food security further propel market expansion. Moreover, advancements in artificial intelligence and machine learning algorithms are revolutionizing the industry by providing actionable insights for farmers to make informed decisions and maximize yields. As a result, the precision agriculture market is poised for significant growth in the coming years, presenting lucrative opportunities for industry players and investors alike.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 8.85 billion |
| Market size value in 2031 | USD 22.09 billion |
| Growth Rate | 10.7% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
| Historical Year | 2019 |
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Precision Farming Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Precision Farming Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Precision Farming Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Precision Farming Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Precision Farming Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Precision Farming Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Precision Farming Market Report Snapshots
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