Precision Farming Market Size, Share, and COVID-19 Impact Analysis, By Technology (Guidance System, Remote Sensing, Variable-rate Technology, Drones and UAVs & Others), By Component (Hardware, Software, Services), By Application (Yield Monitoring, Field Mapping, Weather Tracking & Forecasting, Soil Monitoring, Irrigation Management, Crop Scouting & Others) and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa) Analysis and Forecast 2022-2028

Market Perspective

The global Precision Farming Market was valued at USD 8.81 billion in 2021. The market is projected to grow USD 17.67 billion by 2028, at a CAGR of 12.3%. Precision agriculture is a livestock and crop production management system to monitor the position of the field, gather data, and apply inputs.

Equipment guidance and automated steering, yield tracking, variable rate input application, remote sensing, in-field electronic sensors, section and row control on planters, sprayers, and fertilizer applicators, and spatial data management systems are just a few examples of the technologies used in precision agriculture. Additionally, precision farming uses IT to identify, evaluate, and manage variability on a farm in order to increase crop output while requiring less labor from humans. Through the retrieval of actual data about the conditions of the soil, crops, and weather, precision agriculture allows farmers to analyze the precise amount of nutrition crops need to maximize output.

Farmers are using advanced automation methods to cut labor and material costs thanks to precision farming solutions. Precision farming techniques help farmers make better choices about when to harvest their crops, how to manage their soil and inventory, and how to manage their water resources. This is done through the use of sensors and monitoring equipment. Additionally, a few of the main reasons driving the adoption of precision farming are the changing climate, rising food demand, increased adoption of smart technologies in the global agriculture sector, and government initiatives to increase farmers' productivity through new technologies.

Rising Integration with Advanced Technologies and Analytics

The increased use of the Internet of Things (IoT) and advanced analytics is propelling market growth. Information science's advanced analytics uses a variety of tools and techniques to gather data and ensure that the output and soil are properly prioritized. These statistics enable farmers to plan their operations more conveniently.

DRIVING FACTORS

Increased Investment in Organic Farming Will Aid the Market Growth

Rising organic farming techniques has advanced in developing countries and are aiding market growth. Therefore, governments throughout the globe are supporting organic farming owing to decrease the use of dangerous chemicals in agriculture. For instance, in 2021, The Food and Agriculture Organization estimated that 187 nations practiced organic agriculture, covering nearly 72.3 million hectares of agricultural land, an increase of nearly 1.1 million hectares from the previous year. The availability and cost of the product rise due to the global trend toward organic farming. This is one of the main market-influencing variables as well. Due to their high nutritional value, including the abundance of vitamins, minerals, fiber, carbohydrates, and calcium in fruits and vegetables, organic foods are in high demand in both domestic and foreign markets.

RESTRAINTS

Concerns Pertaining to Lack of Consumer Awareness Regarding Advanced Technologies Among Farmers is Hampering the Market Growth

Slow adoption of new technology among farmers is expected to impede market expansion during the study period. Furthermore, because there are no validated agronomic models for Variable Rate Technology (VRT) to make investment choices, farmers lack independent consulting and advisory services.

SEGMENTATION

The global precision farming market is segmented by technology, component, application, and region. Based on the technology, the market is categorized into guidance systems, remote sensing, variable-rate technology, drones, and UAVs & others. Based on components, the market is categorized into hardware, software, and services. Based on application, the market is categorized into yield monitoring, field mapping, weather tracking & forecasting, soil monitoring, irrigation management, crop scouting & others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa.

By Technology

Based on the technology, the market is categorized into guidance systems, remote sensing, variable-rate technology, drones, and UAVs & others. The variable-rate technology segment dominating the global precision farming market share is expected to continue during the forecast period owing to the early adoption of the technology among farmers. Enabling farmers to conserve the environment, automate processes, and reduce costs is propelling the market growth.

By Component

Based on the component, the market is categorized into hardware, software, and services. The hardware segment is dominating the market share owing to the rising adoption of hardware in developing countries to ensure the smooth operation of the equipment that powers the growth of the precision agriculture market.

By Application

Based on application, the market is categorized into yield monitoring, field mapping, weather tracking & forecasting, soil monitoring, irrigation management, crop scouting & others. The soil monitoring segment is dominating the market share owing to an increased tendency to use digital technology for yield management. Soil sensors are used in combination with GPS, variable rate applications, or both to create field maps that are categorized based on the characteristics of the soil. To track whether crop growth during the harvesting season is feasible, soil sensors are absolutely essential.

Regional Insights

The global precision farming market report is categorized into North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa. Asia Pacific region is expected to dominate the market share owing to the rapidly increasing population and surge in the adoption of modern farming techniques. The high revenue of the regional market has also been attributed to growing awareness of the quality of the food in the region, supported by a constantly changing infrastructure. Additionally, a number of regional government initiatives have opened up numerous chances for important regional players to adopt cutting-edge farming technologies, which will further support regional growth.

However, the Europe region is expected to witness the highest growth rate during the forecast period of the global precision farming market due to the increasing implementation of nanotechnology and robotics in farming. Nanotechnology aids in the improvement of food packaging as well as disease and insect control. The European Environment Agency has undertaken many attempts to construct vertical farms in order to address the difficulties of population expansion and climate change, as well as the production of food in an environmentally unfavorable manner. As a result, market demand in the region has increased.

Key Industry Players

• Ag Leader Technology
• AGCO Corporation
• AgJunction LLC
• CROPMETRICS
• Deere & Company
• DICKEY-john
• Grownetics, Inc.
• Lindsay Corporation
• Raven Industries, Inc.
• RELX Group plc (Proagrica)
• Topcon
• Trimble, Inc.
• Others

Key Industry Developments

August 2022- Trimble collaborated with CLAAS to develop a precision farming system: SAT 900 GNSS receiver, CLAAS CEMIS 1200, and GPS PILOT steering system.

The global precision farming market is segmented as follows:

By Technology

• Guidance System
• Remote Sensing
• Variable-rate Technology
• Drones and UAVs
• Others

By Component

• Hardware
• Software
• Services

By Application

• Yield Monitoring
• Field Mapping
• Weather Tracking & Forecasting
• Soil Monitoring
• Irrigation Management
• Crop Scouting
• Others

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy
• Asia-Pacific- China, Japan, India
• Latin America- Brazil, Argentina, Colombia
• The Middle East and Africa- United Arab Emirates, Saudi Arabia