Precision Farming Market

Market Study on Precision Farming: Technological Proliferation to Remain Mainstay of Market Growth

Precision Farming Market Segmented By Automation and Control Systems and Sensing and Monitoring Devices Hardware with On-premise, Cloud-based Farm Management Software with Installation and Integrations Service, Maintenance Service, Consulting Service

Market Snapshot

Advanced farming technologies have gained momentum over the past decade due to changing climate conditions across the globe. Precision agriculture is one of the most prominent advanced farming techniques being resorted to globally. This revised report on the global precision farming market estimates the industry to surge at a CAGR of 11.6% over the decade.

This market held a net worth of US$ 6 Bn in 2020, and this is expected to expand 3X by the end of 2031. At present, precision farming technology accounts for 1/4 of the global agriculture technology market.

Global Market Size (2020)

US$ 6 Bn

Market Revenue Prediction (2031)

US$ 18 Bn

Market Growth Rate (2021-2031)

11.6% CAGR

North America Market Revenue Share (2020)

45%

Find Out More about the Report Coverage

Companies

Company Profiles

  • AgJunction Inc.
  • Raven Industries Inc.
  • CNH Industrial N.V.
  • Deere & Company
  • Trimble, Inc.
  • Iteris, Inc.
  • Topcon Corporation
  • PrecisionHawk
  • senseFly
  • DICKEY-john
  • SST Development Group, Inc.
  • Agribotix LLC
  • Ag Leader Technology
  • Others.

Demand Analysis of Precision Farming (2016 to 2020) Vs Market Estimates (2021 to 2031)

Agriculture is an essential and important part of the world economy, and it has changed drastically over the years. Especially in the past couple of decades, use of technology in agriculture has increased exponentially. Smart farming and advanced farming technologies have extensively seen an increase in adoption across multiple geographies as they have proven to increase yield.

Precision farming systems have gained popularity in recent years and is seeing an increase in adoption as the technology progresses. Precision agriculture optimizes farming through the use of yield monitors, soil sensors, water sensors, climate sensors, etc. The trend of precision farming is expected to drive demand for all the aforementioned sensors and equipment over the coming years.

Advanced farming technologies enable crop health monitoring, field mapping, and harvesting management to optimize farming practices to yield maximum profits from agricultural produce. The global market is predicted to rise at a CAGR of 11.6% through 2031.

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How is Global Warming Shaping the Precision Farming Technology Industry?

Global warming has completely changed climatic conditions across the world. Climate is an important aspect that governs agriculture with great influence. In the past couple of decades, global warming has substantially changed climate across the world, and this has affected conventional farmers and farming techniques adversely.

This is where smart farming comes in, which helps in dealing with the changing climatic conditions that could destroy the produce or reduce productivity for farmers. Farm management software aids in crop health monitoring, harvesting management, field mapping, etc., all of which help farmers increase their productivity and optimize their fields for maximum profits. Conventional farming methods are no longer as effective as they used to be since global warming has changed the climate to a drastic extent.

Unexpected droughts, floods, and other natural calamities that ruin agricultural produce have increased in incidence substantially due to global climate change. These problems can be predicted or even be managed to some extent by advanced farming technologies, which makes them a good choice for all farmers.

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What Could Hinder Adoption of Precision Farming Technologies?

Precision irrigation technology requires some equipment and basic technical knowledge to implement it and take advantage of its full potential. Adoption and implementation of precision farming technologies is substantially higher in developed regions such as North America and Europe, meanwhile, it is significantly lower in regions such as Asia and Africa. This can directly be linked to lack of awareness and underdeveloped nature of these regions.

Lack of industry-wide standards, especially for data management in smart farming, is a major factor that could restrain implementation and adoption of precision farming across the globe. The technology is still very expensive for small farmers to adopt and its high costs are majorly restraining demand for smart irrigation technologies from underdeveloped nations.

Government initiatives could promote smart farming adoption, but even these have limited potential. The precision farming industry will only flourish to its full potential once these factors are dealt with and a cost-effective standardized farming approach is introduced.

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What is the Outlook for Precision Farming across Regional Markets?

This research details the global precision farming landscape in regions such as North America, Latin America, Europe, Asia Pacific, the Middle East, and Africa.

The market for precision farming in North America held a dominant revenue share in 2020. Dominance of this region is expected to be followed through over the next ten years, and this can be attributed to increased adoption of precision farming technologies and yield monitors, soil sensors, water sensors, climate sensors, etc., across the region, which are integral to smart agriculture.

The market for precision farming equipment and technology in Asia Pacific is anticipated to witness the fastest growth over the next ten years. Demand in this region is expected to be driven by economies such as India and China who have a massively influential agricultural sector.

Demand for precision farming in the European region is also expected to be significant as the region caters to increasing demand for plant-based and vegan food from its population.

precision-farming-market

Country-wise Analysis

Is the Precision Farming Industry Expected to Flourish in India?

India has a massive agricultural market that has been untapped for years by agrotech companies. The nation is largely dependent on agriculture for major food exports and is one of the biggest names in the food export industry on a global scale. Farming is a primary occupation in India and that makes it a very lucrative market for adoption of any agricultural technology.

However, adoption of precision farming in this nation is very limited and the adoption rate is very low. This is due to lack of awareness, high cost of advanced technologies, lack of government initiatives to subsidize the adoption, etc. Precision farming technology providers can look to overcome these challenges and maximize their revenue potential from smart farming devices and technology in the Indian market.

What is the Outlook for Precision Farming in China?

China makes up for a very lucrative setting for precision agriculture due to its sheer size of landmass. The nation has a significant agricultural sector that has been seeing some major shifts in the past decades. The Chinese government has been planning new initiatives to promote various technologies and enhance its production capability across multiple industry verticals.

Similarly, precision agriculture technology has also seen major increase in the nation. Farmers in China are being provided with subsidies and other help to use advanced farming techniques and technologies. Prime precision farming technology providers can target China to gain subsidies from government initiatives and improve their stance in the global market by gaining influence on one of the biggest agricultural nations in the world.

Category-wise Insights

How is Demand for Precision Farming Hardware Anticipated to Progress?

Demand for precision farming hardware is expected to be substantially higher than all the other segments, as this segment is crucial to all aspects of precision farming. All the essentials for precision agriculture, such as yield monitors, soil sensors, water sensors, and climate sensors come under the hardware segment, and demand for these sensors is high as these technologies are being researched & developed with advanced capabilities.

Demand smart farming hardware is expected to be driven majorly by rising adoption of precision farming in developing economies where the trend for smart agriculture is not as popular or generalized. Farm management software is also gaining popularity as they have proven their efficiency in crop health monitoring and harvesting management to give optimal produce from farms.

COVID-19 Pandemic Effect

The pandemic that hit the world in 2020 completely disrupted the functioning of the world economy. Manufacturing and supply chains all over the globe were disrupted and were functional only to the minimal capacity that was essential.

Agricultural commodities are major exports and imports across the world, and this makes their distribution and production a very important aspect, which was also affected by the COVID-19 pandemic.

The smart farming industry was adversely affected by the pandemic as research & development was hampered to a very large extent. Supply of precision and smart agriculture technologies was also hampered and this caused precision farming demand to see a drop in revenue in 2020. However, this trend is expected to change as the world returns to normalcy in the post-pandemic era.

Competitive Landscape

Key precision farming technology vendors are focusing on mergers and collaborations to increase their geographical presence and creating more awareness in less developed regions with high agricultural activity.

  • In November 2021, Fasal, a precision agriculture startup based in India, raised US$ 4 million in its pre-Series A round funding. The funding came from investors such as 3one4 Capital, Omnivore and Wavemaker Partners, etc. The funds will be used to expand its business in India and Southeast Asia by increasing hiring and bolstering all related precision farming services.
  • XAG, a renowned manufacturer of agricultural drones, on 10th November 2021, announced that it would be launching its V40 and P40 agricultural drones across the world. The aim is to bring digital agriculture to rural and underdeveloped areas as well. The V40 and P40, both, are fully autonomous drones capable of mapping, spraying, and broadcasting on farms.
  • In October 2021, MicaSense, an expert in drone sensor technology, announced the launch of its RedEdge-P. This is the next generation of the flagship multispectral drone sensors that offer 3X speed and 2X spatial resolution than that of RedEdge-MX.

More recent developments related to key providers of precision farming technology have been tracked by analysts at Persistence Market Research, which are accessible in the full market report.

Precision Farming Industry Report Scope

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

US$ Mn for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • Asia-Pacific
  • Middle East and Africa

Key Countries Covered

  • United States
  • Canada
  • Brazil
  • Mexico
  • Germany
  • U.K.
  • France
  • Spain
  • Italy
  • China
  • Japan
  • South Korea
  • India
  • Indonesia
  • Malaysia
  • Singapore
  • Australia
  • New Zealand
  • Turkey
  • South Africa
  • and GCC Countries

Key Market Segments Covered

  • Application
  • Component
  • Region

Key Companies Profiled

Pricing

Available upon Request

Key Segments Covered in Precision Farming Industry Research

By Component

  • Precision Farming Hardware
    • Automation & Control Systems
      • Displays
      • Guidance and Steering
      • GPS/GNSS
      • Mobile Devices
    • Precision Farming Sensing and Monitoring Devices
      • Yield Monitors
      • Drones with Multispectral Cameras
      • Soil Sensors
      • Water Sensors
      • Climate Sensors
  • Farm Management Software (FMS)
    • On-premise Precision Farming
    • Cloud-based Precision Farming
  • Services
    • Installation and Integrations Services
    • Maintenance Services
    • Consulting Services

By Application

  • Variable Rate
  • Application (VRA)
  • Field Mapping
  • Yield Monitoring
  • Crop Scouting
  • Soil Monitoring
  • Farm Labour
  • Management Systems
  • Weather Tracking and Forecasting

Media Release

- FAQs -

As per this precision farming industry analysis, the market held a net worth of US$ 6 Bn in 2020.

Guidance farming systems are anticipated to see a rise in demand over the decade.

The precision farming industry is predicted to attain a net worth of US$ 18 Bn by the end of the decade.

India, China, and Brazil are expected to be at the forefront in terms of adoption of precision farming devices and technology over the next ten years.

The North American precision farming industry held a revenue share of 45% in the global landscape.

Climate change, rising proliferation of technology, high yield potential for agricultural produce, and rising demand for food from the growing population of the world are some of the major factors driving precision farming technology demand.

The market for precision farming systems is anticipated to surge at an impressive CAGR of 11.6% through 2031.

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