Global Precision Farming Market By Offering (Services, Hardware, and Software), By Application (Yield Monitoring, Inventory Management, Crop Scouting, Farm labor Management, and Other Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Precision Farming Market Overview:

The global precision farming market is estimated to reach USD 7,100 million by 2021. This growth rate will increase at a (CAGR) of 13.2% compound annual growth rate from 2022 to 2032.

The burgeoning use of advanced analytical tools by farmers and the Internet of Things (IoT), has contributed to the rise of precision agriculture. Advanced analytics is a component of data science. It uses multiple tools and methods that forecast data to ensure that crops and soil are well-nourished. This helps farmers plan their actions.

Global Precision Farming Market Analysis:

Offering Type Analysis

The largest revenue share, 69.12%, was held by the hardware segment in 2021. It is expected to continue dominating the market for the next few years. The hardware segment is further divided into automation and controls, sensing and antennas, and access points. Automation and control systems, sensing, and drones are all key components in helping farmers. GIS guidance systems, for example, are very useful to growers because they can see the agricultural workflow and the surrounding environment. VRT technology allows farmers to identify areas where they need more pesticides and seeds, and then distribute them equally throughout the field.

The software segment is split based on web and cloud-based precision agriculture. Cloud computing eliminates high maintenance costs and high operating costs by focusing on shared networks and servers. Accordingly, the software market is forecast to experience a CAGR exceeding 15.9% in the forecast period. Predictive analytics software guides farmers on crop rotation, soil management, and optimal planting times.

Application Analysis

In 2021, yield monitoring held a significant share in the market. This segment is expected to continue its dominance during the forecast period. It helps farmers make decisions about their farms. On-farm yield monitors and off-farm monitoring are further sub-categories of this segment. On-farm monitoring allows farmers access to real-time data during harvest, and can also create a historical spatial dataset. This segment is expected to be the largest in the precision farming market because it provides equitable landlord negotiations and documentation of environmental compliance.

The segment of irrigation management will see significant growth during the projection period. Smart irrigation is the application of multiple technologies such as rain sensors, weather controllers, sensor controllers, and water meters to determine the correct amount of irrigation water. These benefits will drive the adoption and use of irrigation drones. Weather forecasters are able to forecast accurately by using sensors. Machine learning techniques and advanced data analysis services have also helped to increase the accuracy and reliability of forecasts, which has accelerated the market’s growth.

Key Market Segments:

By Offering Type

• Services
  • Maintenance & Support
  • System Integration & Consulting
  • Managed Services
  • Assisted Professional Services
• Hardware
  • Automation & Control Systems
  • Application Control Devices
  • Drones
  • Guidance System
  • Remote Sensing
  • Other Automation & Control Systems
• Software
  • Web-based
  • Cloud-based

By Application

• Yield Monitoring
  • On-farm
  • Off-farm
• Inventory Management
• Crop Scouting
• Farm labor Management
• Other Applications

Market Dynamics:

Numerous technologies like IoT, remote sensing control, Geo-Tracking, and remote sensing are all used to provide a comprehensive understanding of various aspects of farming, including irrigation and plowing. IoT allows farmers to address many issues involved in proper crop monitoring. The sensors are placed on the farm and provide real-time data about soil temperature and water content. This allows farmers to make better decisions about harvesting time, crop market rate, and soil management. This is one reason why precision farming has grown in popularity.

The adoption of sustainable farming technologies is also made easier by better education and training, financial resources, readily available information, and high demand. Limiting crop production can be caused by deterioration in the environment. Farmers are being forced to adopt sustainable farming practices due to rising environmental concerns. This has resulted in the need to improve crop nutrition and protection, which will help boost the market’s growth.

There are many growth opportunities in technological innovations like vertical farming, which uses smart designs to increase yields and decrease waste. In addition, the market for precision agriculture is expected to grow as a result of increased investments in technology like driverless tractors, GPS sensing systems, and guidance systems. Ample sensors such as soil sensors and climate sensors are placed on the fields to provide real-time information and help farmers to monitor their crops. These sensors allow farmers to achieve high yields and reduce crop wastage. These sensors are highly used in many applications including automotive, agriculture, healthcare, pharmaceutical, and sports.

COVID-19 has affected the global precision farming market. Several manufacturing units in China, India, and Europe were temporarily shut down due to the outbreak. This has resulted in a significant slowdown in the production of precision agriculture equipment. In the aftermath of the coronavirus epidemic, governments placed lockdowns on manufacturing. This slowed down the demand for capital-intensive equipment and affected manufacturing.

But, remote sensing and farm management software tools could be more popular after the COVID-19 period. Already, companies are focusing on wireless platforms for real-time decision-making in order to improve crop health monitoring, yield monitoring as well as irrigation scheduling, and field mapping.
North America’s precision agriculture market is expected to grow in revenue, due to higher adoption of technology and devices such as the guidance system and Variable Rate Technology, (VRT), for growing crops. Contrary to popular belief, smart solutions require high investments. This is a disadvantage for farmers in countries like Brazil, India, and China. While the initial investment in precision farming is expensive, it provides a significant return on investment because it lowers overall production costs and increases efficiency.

Regional Analysis:

North America had a 46.4% revenue share, the largest in 2021. This region is an early adopter and benefactor of technology. High revenue has been achieved by factors like the increased support from the government for the adoption of modern agricultural technologies as well as the developed infrastructure. To increase awareness among farmers, the National Institute of Food and Agriculture conducts geospatial and sensor programs. NIFA works in partnership with Land Grand universities to help farmers develop robust sensors, software, and instrumentation that can be used for modeling, observing, and analyzing a variety of complex biological materials.

The Asia Pacific is expected to see significant growth in the forecasted duration. This region is projected to experience an increase in its GDP by more than 16.1% between 2023 and 2032. In order to increase productivity, there are many government initiatives in countries like India, Nigeria, and Sri Lanka. China and Israel reached a trade deal in September 2017 that was worth US$ 300 million to allow the export of eco-friendly Israeli technology. A solid administrative framework also allows farmers to learn the correct use and maintenance of precision farming equipment.

Кеу Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

Major players in this market include AgJunction Inc., Ag Leader Technology Inc. (U.S.), CropMetrics LLC (U.S.), and AGCO Corporation, among others. The growing demands of precision farming are making conventional farming methods unsuitable. It is no surprise that major players are involved in strategic acquisitions and technological innovations.

Key Market Players:

• AgJunction Inc.
• Ag Leader Technology Inc. (U.S.)
• CropMetrics LLC (U.S.)
• AGCO Corporation
• Trimble Inc.
• Raven Industries Inc. (U.S.)
• Omnistar
• Agribotix LLC
• Other Key Players

For the Precision Farming Market research study, the following years have been considered to estimate the market size: