Precision Farming Market Forecasts to 2030 - Global Analysis By Offering, Technology, Application and by Geography

According to Stratistics MRC, the Global Precision Farming Market is accounted for $11.13 billion in 2023 and is expected to reach $25.71 billion by 2030 growing at a CAGR of 12.7% during the forecast period. Precision farming sometimes referred to as precision agriculture or smart farming is the use of cutting-edge technologies and data-driven approaches to optimize agricultural practices, boost output, and reduce resource loss and environmental harm. Its main objective is to empower farmers and other agricultural stakeholders to make knowledgeable decisions and conduct exact actions at the appropriate times and locations.

According to ETNO, the number of IoT active connections in agriculture was expected to increase in the European Union through the years. It was recorded at 46.92 million connections in 2022 and is expected to reach 70.26 million by 2025. Some uses for IoT devices in agriculture would be drone usage for surveillance or distributing seeds.

Market Dynamics:

Driver:

Rising demand in precision farming

The widespread use of precision farming is being fuelled in large part by integration with farm machinery. Farmers can now easily integrate these advances into their existing equipment, including tractors, drones, and harvesters, due to the rapid progress of precision farming technologies like sensors, GPS, and data analytics through this integration, data gathering is streamlined, operational efficiency is improved, and data-driven decision-making is made possible. Additionally, modern agricultural machinery can easily collect real-time data on soil conditions, crop health, and weather patterns since it is outfitted with cutting-edge sensors and monitoring systems. During planting, spraying, and harvesting operations, GPS technology ensures that machinery follows predefined paths, resulting in maximized coverage and less overlap. These factors therefore contribute to the market's rapid growth.

Restraint:

Low reliability of internet access

In many agricultural regions, particularly in rural and remote areas where farming activities are prevalent, access to reliable and high-speed internet connectivity may be limited or unavailable. The smooth integration and real-time transmission of vital data necessary for precision agriculture are hampered by this lack of connectivity. Moreover, without a reliable internet connection, farmers might have trouble getting information from sensors, drones, and other monitoring equipment in the field. Hence, it becomes difficult to transfer this data for analysis and decision-making to centralised systems or cloud-based platforms. These factors may hinder market growth.

Opportunity:

New government programs & Technological advancements

Through a variety of programs, subsidies, and incentives, numerous governments all around the world are actively encouraging precision farming. In order to support the expansion of the precision farming sector, these rules encourage farmers to adopt effective and sustainable farming methods. Furthermore, the accessibility of agricultural data has significantly increased with the spread of sensors, satellite photography, and other data collection technology. Therefore, farmers can optimize their farming methods and enhance decision-making by using the analysis and usage of this data to produce insightful findings. Hence, these aspects help in propelling the markets growth.

Threat:

Risks in data management

The absence of industry-wide standards and the incompatibility of data between various platforms and technologies for precision farming can be problematic. This may lead to data fragmentation, interoperability problems, and challenges with data sharing and exchange between various systems. Additionally, for some people, it may be difficult to change their mindsets and accept innovation when it comes to using new technologies and altering traditional farming practices therefore impacting the market's size.

COVID-19 Impact

The COVID-19 epidemic has negatively impacted the global market for precision farming, resulting in the temporary closure of multiple industrial facilities in China, India, Europe, Japan, and the United States. As a result, the manufacturing of precision farming equipment has significantly decreased. Government-enforced shutdowns following the corona virus pandemic had an impact on industry and slowed consumer demand for such expensive capital goods. However, larger adoption could result from the deployment of remote sensing and farm management software technologies after COVID-19.

The hardware segment is expected to be the largest during the forecast period

The hardware segment is predicted to hold the largest share because of the extra division that this segment goes through, which results in the production of monitoring and sensing equipment as well as automation and control systems. Automation and control systems, for instance, include GPS receivers, steering and guiding mechanisms, and variable-rate technology (VRT) devices and furthermore, the considerable adoption of automation and control technologies, such as drones and unmanned aerial vehicles (UAVs), GPS and GNSS systems, irrigation controllers, guidance and steering systems, yield monitors, and agricultural sensors, within the agricultural domain can be attributed to the market sector's growth trajectory.

The Guidance Technology segment is expected to have the highest CAGR during the forecast period

Guidance technology is a vital part of precision farming; it makes autonomous or remote-control devices possible and helps vehicles that use the Global Positioning System (GPS). As agricultural vehicles are the most frequent users of guidance systems, the guidance technology market is anticipated to grow profitably during the forecast period. Farmers may save money on labor, fuel, time, and soil compaction by avoiding overlapping tractor and equipment passes with GPS-based guiding devices. A GPS/GNSS receiver, antenna, controller, guidance and steering, portable devices, and display are essential components for a guiding technology-based system or device, as is the appropriate wiring harness.

Region with largest share:

Asia Pacific commanded the largest market share during the extrapolated period. The growth is attributed to various factors, including growing government initiatives, expanding demand for green agriculture, and the adoption of new technologies in farming. Due to reasons like high disposable income, a growing population, and heavy reliance on agriculture in this region, companies are also taking various initiatives to penetrate there as well. Furthermore, governments in the area are also launching programmes to support precision farming techniques, which are anticipated to accelerate market growth.

Region with highest CAGR:

North America is expected to witness profitable growth over the projection period, owing to the early adoption of precision farming in the Americas in nations like the United States and Canada. Precision farming will continue to grow in popularity over the coming years as increasing levels of technology are used in various aspects of agriculture to reduce labour costs. Furthermore, the use of advanced agricultural tools and systems by farmers in the North American area, such as displays, cameras, and software programmes for farm management, is expected to drive the market for precision farming.

Key players in the market:

Some of the key players in the Precision Farming Market include: Ag Leader Technology, AGCO Corporation, CropMetrics LLC, Dickey-john Corporation, Grownetics, Inc., Raven Industries, Inc., Trimble, Inc., Topcon Corporation, AgJunction, Inc., AgEagle Aerial Systems Inc., Deere and Company, Farmers Edge Inc., Granular, Inc., Proagrica, The Climate Corporation, TeeJet Technologies, Bayer CropScience AG, Agribotix, Case IH Agriculture and ClearAg Operations.

Key Developments:

In July 2023, Deere & Company acquired Smart Apply, Inc. (US), a precision spraying equipment company. The acquisition aims to strengthen the emphasis on high-value crop customers and dealers, while also broadening the range of solutions available to assist growers in tackling their primary concerns regarding labor, input costs, and regulatory compliance.

In April 2023, AGCO Corporation revealed its partnership with Bosch BASF Smart Farming to introduce and market Smart Spraying technology on Fendt Rogator sprayers. Furthermore, both companies will collaborate to develop additional innovative features.

In December 2022, IG International collaborated with Fyllo to use precision farming with AI, ML, and IoT to produce high-quality fruits. As part of the alliance, IG International's corporate farms would be connected to ""Nero,"" a device for managing irrigation and soil analysis.

In August 2022, Trimble Inc. entered into a definitive agreement to acquire Bilberry, a privately held French technology company known for its expertise in selective spraying systems for sustainable agriculture. Bilberry is at the forefront of using artificial intelligence (AI) technology to identify various weed species in real-time across a wide range of crops. This strategic acquisition will enhance Trimble's crop protection portfolio by incorporating green-on-green selective spraying capabilities and will further bolster their efforts in developing autonomous agricultural solutions

Offerings Covered:

• Hardware
• Sensing and Monitoring Devices
• Services
• Software

Technologies Covered:

• Guidance Technology
• Variable Rate Technology
• Remote Sensing Technology
• Telematics and Connectivity Solutions
• Wireless Modules
• Geomapping
• Big Data & Analytics
• Internet of Things (IoT)
• High Precision Positioning System
• Integrated Electronic Communication
• Other Technologies

Applications Covered:

• Yield Monitoring
• Field Mapping
• Weather Tracking and Forecasting
• Farm Labor Management
• Crop Scouting
• Variable Rate Application
• Inventory Management
• Financial Management
• Demand Forecasting
• Irrigation Management
• Customer Management
• Soil Monitoring
• Automotive Sector
• Healthcare
• Retail Sector and Advertising Variable Rate
• Consumer and Residential
• Waste Management
• Other Applications

End Users Covered:

• Oil & Gas
• Power Generation
• Water & Wastewater Management
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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All the customers of this report will be entitled to receive one of the following free customization options:

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  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
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