Precision Farming Market Size, Share, Market Research and Industry Forecast Report, 2027 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Precision Farming Market


The global precision farming market size was valued at USD 4.7 billion in 2019 and is expected to register a CAGR of 13.0% from 2020 to 2027. The growth of the market for precision agriculture is attributed to the increasing proliferation of the Internet of Things (IoT) and the use of advanced analytics by farmers. Advanced analytics is a part of data science that uses numerous tools and methods to forecast data and ensure that the crop and soil receive adequate nurturing. This helps farmers to plan their actions accordingly.

For a deep understanding of different farming aspects such as irrigation and plowing, numerous technologies such as IoT, GPS, and remote sensing application control are used. IoT helps farmers address various challenges involved in proper monitoring of crops. It provides real-time data about environment temperature and water content in the soil through sensors placed in the farm, which assists farmers in making improved decisions with regard to harvesting times, crop market rate, and soil management. This is one of the key factors contributing to the growth of the market for precision farming. Factors facilitating the adoption of sustainable precision farming technologies include better education and training to farmers, easily accessible information, availability of financial resources, and high demand for organic food.

Depletion of natural resources and deterioration of environment are some of the factors responsible for limiting crop production. Growing environmental concerns are encouraging farmers to shift their focus toward sustainable agriculture practices, such as preservation of natural resources. This has driven the need for improving crop nutrition and protection, in turn boosting the market for precision farming. Technological innovations, such as vertical farms with smart design to maximize yields and reduce waste, have unfolded numerous growth opportunities.

Moreover, increasing investments in technologies such as driverless tractors, guidance system, and GPS sensing systems are also expected to contribute to the growth of the precision agriculture market. For instance, numerous sensors such as soil sensors, climate sensors, and water sensors are placed around the fields to help farmers monitor their crops and gain real-time information. Additionally, the sensors also help farmers obtain a high yield production with less crop wastage. These sensors are highly adopted in different applications such as agriculture, pharmaceutical and healthcare, automotive, and sports.

North America held the largest share in the year 2019, owing to the higher adoption of the technologies and devices such as guidance system, and VRT (Variable Rate Technology) for growing crops. On the other side, smart solutions involve high investments, which acts as a drawback for farmers, especially in developing countries such as China, India, and Brazil. The investment in the precision agriculture market is high, however, with the later run, it offers a notable return on investment as it reduces the overall production cost and increases efficiency.

Offering Insights

Based on offering, the precision farmingmarket has been segmented into hardware, software, and services. The hardware segment led the market for precision farming in terms of revenue in 2019 and is expected to remain dominant over the forecast period. The hardware segment has been further bifurcated into automation and control systems, sensing devices, and antennas and access points. The hardware components such as automation and control system, sensing devices, and drones play a major role in helping farmers. For instance, the GIS guidance system is very beneficial for grower as it is capable to visualize agricultural workflows and environment. Furthermore, VRT technology helps farmers to determine areas that need more pesticides and seeds, and thereby distribute them equally across the field.

The software segment is fragmented on the basis of web-based and cloud-based precision farming. Cloud computing focuses on shared networks, servers, and storage devices, owing to which the high costs incurred in maintaining hardware and software infrastructure is eliminated. As a result, the software segment is anticipated to register a CAGR of over 15% during the forecast period. Predictive analytics software is used to provide guidance to farmers about crop rotation, soil management, optimal planting times, and harvesting times.

Application Insights of Precision Farming Market

Based on application, the market for precision farming has been segmented into field mapping, yield monitoring, crop scouting, irrigation management, inventory management, weather tracking and forecasting, and farm labor management. The weather tracking and forecasting segment is anticipated to expand over a CAGR of 18% during the forecast period. The use of sensors helps the weather forecasters to provide accurate weather reading and forecasting. In addition, the introduction of machine learning techniques and advanced data analytics services have increased the reliability and accuracy of weather forecasts.

The yield monitoring segment dominated the market for precision farming in 2019 and is expected to continue its dominance over the forecast period as it helps the farmers to take decisions about their fields. The segment is further segregated into on-farm yield monitoring and off-farm yield monitoring. On-farm yield monitoring enables farmers to obtain real-time information during harvest and create a historical spatial database. This segment is expected to account for largest market share as it offers equitable landlord negotiations, documentation of environmental compliance, and track records for food safety. Meanwhile, the irrigation management segment is expected to witness considerable growth over the projected period. Smart irrigation involves the use of various technologies, such as rain sensors, weather-based controllers, sensor-based controllers, and water meters, to help estimate the right amount of irrigation water. Such benefits are likely to drive the adoption of irrigation drones.

Regional Insights of Precision Farming Market

North America dominated the market for precision farming in terms of revenue in 2019. The region is an early adopter of technologies. Factors such as increasing government initiatives for the adoption of modern agriculture technologies and developed infrastructure have contributed to the high revenue of the regional market. For instance, National Institute of Food and Agriculture (NIFA)part of the U.S. Department of Agricultureconducts geospatial, sensor, and precision technology programs to create awareness among farmers. In partnership with Land-Grand universities, NIFA helps farmers develop robust sensors, associated software, and instrumentation for modeling, observing, and analyzing a wide range of complex biological materials and processes. Furthermore, in November 2016, the Canadian government invested USD 425,000 in Clean Seed Capital Group to enhance and commercialize precision agriculture technology. The goal of this investment was to reduce the excessive use of fertilizers and pesticides. With the help of these funds, the company also developed CX-6 SMART Seeder for farmers.

Asia Pacific is expected to witness significant growth over the forecast period. The region is expected to witness a CAGR of over 15% from 2020 to 2027. Numerous government initiatives are being undertaken in developing countries such as India, Sri Lanka, and Nigeria to encourage implementation of modern precision farming technologies, thereby maximizing productivity. China and Israel signed a trade agreement in September 2017 worth USD 300 million to facilitate export of environment-friendly Israeli technology to China. Moreover, an effective administrative framework is also enabling farmers to gain adequate knowledge of the proper use and maintenance of precision farming equipment.

Market Share Insights of Precision Farming Market

Major players operating in the market for precision farminginclude Ag Leader Technology (U.S.); AgJunction, Inc. (U.S.); CropMetrics LLC (U.S.); Trimble, Inc. (U.S.); AGCO Corporation (U.S.); and Raven Industries Inc. (U.S.). Conventional farming methods such as the use of pesticides, herbicides, and other genetically modified organisms are becoming unsuitable to meet the growing requirements of precision farming. Hence, major players are continuously involved in technological innovations and strategic acquisitions. For instance, AGCO Corporation (U.S) focuses on connecting with agri-tech entrepreneurs and seeks partnerships through innovative and disruptive solutions. In addition, in December 2018, AgJunction Inc. entered into a partnership with Mahindra and Mahindra Ltd. With this agreement, both the companies will prepare a statement of work for the future development products for the farmers.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Precision Farming Market Research Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global precision farming market report based on offering, application, and region:

Offering Outlook (Revenue, USD Million, 2019 - 2030)

  
Hardware

Automation & Control Systems

  
Drones

Application Control Devices

  
Guidance System
  
GPS
  
GIS
  
Remote Sensing
  
Handheld
  
Satellite Sensing
  
Driverless Tractors
  
Mobile Devices
  
VRT
  
Map-based
  
Sensor-based
  
Wireless Modules
  
Bluetooth Technology
  
Wi-Fi Technology
  
Zigbee Technology
  
RF Technology
  
Sensing Devices
  
Soil sensor
  
Nutrient Sensor
  
Moisture Sensor
  
Temperature Sensor
  
Water Sensor
  
Climate Sensor
  
Others
  
Antennas & Access Points
  
Software
  
Web-based
  
Cloud-based
  
Services

System Integration & Consulting

  
Maintenance & Support
  
Managed Services
  
Data Services
  
Analytics Services
  
Farm Operation Services
  
Assisted Professional Services
  
Supply Chain Management Services
  
Climate Information Services

Application Outlook (Revenue, USD Million; 2016 - 2027)

  
Yield Monitoring
  
On-farm
  
Off-farm
  
Field Mapping
  
Crop Scouting
  
Weather Tracking & Forecasting
  
Irrigation Management
  
Inventory Management
  
Farm labor Management