Market analysis and insights:
The market for precision agriculture, which was valued at USD 5.50 billion in 2021, is expected to grow at a CAGR of 15.1% from 2022 to 2030 to reach USD 19.26 billion in 2030.
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"The Global Precision Agriculture Market 2020-2030 (USD Billion)")
Precision agriculture is becoming more common in agriculture as the demand for maximum crop output with limited resources develops. Furthermore, as global warming continues, the use of new farming technologies to boost farmer productivity and crop output has been encouraged by changing weather patterns.
Precision Agriculture Market Market Scope :
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2030 |
| Study Period | 2018-2030 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2030 | USD 19.26 Billion |
| Growth Rate | CAGR of 15.1% during 2022-2030 |
| Segment Covered | By Technology, By Application, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | AGCO Corporation, Deere & Company, Trimble, Topcon Positioning System, Raven Industries, CNH Industrial N.V., Yara International ASA, AG Leader Technology, and others |
Market Definition
Precision agriculture can help reduce the amount of fertilizer used and the environmental impact of fertilizer runoff by applying fertilizer only where it is needed.
Precision agriculture is a farming management concept that employs information technology and decision support systems to continuously monitor, measure, and analyze variables in agricultural production systems and make data-driven decisions to optimize input use, reduce environmental impact, and conserve natural resources.
It is a farming method that considers the variety of fields and crops in order to maximize productivity and efficiency. This is accomplished by collecting data about the field and its characteristics using a range of technologies such as GPS, remote sensing, and soil samples. This information is then used to develop a management plan that is specific to the demands of the field.
Key Market Segmentation:
Insights on Type:
The GNSS/GPS Systems is growing at the fastest rate.
The research states that because GNSS/GPS offer more accurate and comprehensive field mapping and geopositioning, they accounted for the greatest portion of the market. Furthermore, sophisticated GNSS/GPS systems support virtual fencing, variable rate application, soil condition monitoring, yield monitoring, autonomous steering, biomass monitoring, and farm machinery guidance.
Insights on Application:
The Field Mapping Segment is boosting
The worldwide precision agriculture market is divided into the following segments based on application: Weather tracking and forecasting, Irrigation management, Yield monitoring, field mapping, inventory management, farm labor management, financial management, and others. Because it helps farmers make judgments about their farms and resolve variances and soil degradation, the yield monitoring segment is anticipated to account for the biggest revenue share during the projected period. Revenue growth in the market is anticipated to be driven by compliance with on-farm yield monitoring and food safety testing records.
Insights on Region Analysis:
North America renders ample financing opportunities.
North America is home to some of the world's major agricultural producers, including the United States and Canada. These countries are deeply committed to sustainable agriculture and are heavily investing in precision agriculture technologies.
Growing need for sustainable agriculture: Farmers in North America are under increasing pressure to produce more food with fewer resources. Precision agriculture can assist farmers in accomplishing this goal by lowering input costs and boosting crop yields.
New technology innovation: precision agriculture technology has evolved tremendously in recent years. Precision agriculture has become more economical and user-friendly as a result of these advancements.
Government regulations: Government rules in the United States encourage the use of precision agriculture. These regulations include the Conservation Stewardship Programme (CSP) and the Environmental Quality Incentives Programme (EQIP).
Company Profiles:
To obtain a competitive edge in the market, these businesses have been heavily concentrating on techniques including new product development, mergers and acquisitions, collaborations, agreements, and alliances.
AGCO Corporation, Deere & Company, Trimble, Topcon Positioning System, Raven Industries, CNH Industrial N.V., Yara International ASA, AG Leader Technology, and others dominate the precision agriculture market.
COVID-19 Impact and Market Status
Negative impact on the market
The epidemic has created supply chain disruptions as well as a halt in research and development operations. One of the most serious consequences of the COVID-19 outbreak on the precision agricultural sector has been supply chain interruption. Because of the epidemic, there have been widespread delays in the shipment of commodities, making it difficult for precision agricultural companies to receive the ingredients they want. This has increased the cost of precision agriculture while also making meeting deadlines more challenging for enterprises.
The COVID-19 epidemic has also slowed research and development efforts. Many research laboratories have had to cease or operate at reduced capacity, slowing the development of new precision agriculture technologies. This is a significant setback for the precision agriculture sector, as new technologies are required for the market to continue growing.
Regardless of these obstacles, the precision agriculture business is likely to recover in the future. Precision agriculture is projected to expand in popularity as farmers seek ways to increase productivity and sustainability. Furthermore, the development of new technology is likely to help mitigate some of the issues brought on by the COVID-19 pandemic.
Latest Trends and Innovation:
AGCO Corporation has announced the release of its new Precision Planting Fuse technology. Fuse is a cloud-based platform that combines data from several sources, including GPS, yield maps, and weather information. This data can be used to produce individualized advice for farmers, such as when to sow, fertilize, and harvest.
Deere & Company has announced the release of its new See & Spray Exact application system. See & Spray Exact uses a camera and sensor combo to identify weeds and apply herbicides only where necessary. This can help reduce the number of herbicides required and enhance weed control efficiency. Trimble Inc. has announced the start of its new AgTech Accelerator program. The AgTech Accelerator is a program that funds and supports businesses working on precision agriculture technologies. The program's goal is to assist these firms in bringing their innovations to market and scaling their businesses.
• Topcon Positioning Systems, Inc.: Topcon Positioning Systems, Inc. has announced the availability of its new Field Genius software. Field Genius is a cloud-based software application that assists farmers in managing precision agriculture operations. The software can collect data, generate maps, and track progress.
Significant Growth Factors:
Precision agriculture can help reduce agriculture's environmental impact by reducing the quantity of fertilizer, water, and pesticides used. This is in keeping with the expanding global demand for environmentally friendly agriculture.
Growing need for sustainable agriculture: Precision agriculture can help reduce agriculture's environmental impact by reducing the number of inputs utilized, such as fertilizer, water, and pesticides. This is in keeping with the expanding global demand for environmentally friendly agriculture.
New technology development: There have been major developments in precision agriculture technology in recent years, making it more inexpensive and easier to use. These advancements have made precision agriculture more accessible to farmers and have contributed to the market's growth.
Government rules and regulations: Government rules in several nations support the use of precision agriculture. Growing farmer awareness: Farmers are becoming more aware of the benefits of precision agriculture. They are realizing that precision agriculture may help them increase production, lower input costs, and increase the sustainability of their operations. This rising knowledge among farmers has contributed to the expansion of the precision agriculture sector.
Restraining Factors:
Precision agriculture technology can be costly, making adoption difficult for small and medium-sized farmers.
Precision agriculture technology can be costly, making it difficult for small and medium-sized farmers to use it.
Lack of competent labor: There is a skilled labor shortage in the precision agricultural insurance. This can make it difficult for farmers to install and use precision agriculture devices properly.
Data security: The use of precision agriculture technologies might result in a great deal of data being generated. This data must be safe in order to preserve farmers' privacy and prevent it from being used maliciously.
Interoperability: Different precision agricultural technologies do not communicate with one another.
Frequently Asked Questions (FAQ) :
The market value of precision agriculture market in 2030 was USD 19.26 billion
The precision agriculture market is growing at a CAGR of 15.1 % during the forecast period.
The Technology of the precision agriculture market Guidance System, Remote Sensing, VRT
The expansion of the Internet of Things (IoT) and the application of advanced analytics by farmers are both contributing to the growth. Advanced analytics is a branch of data science that use a variety of tools and techniques to forecast data and guarantee that the crop and soil are properly cared for. Farmers can better plan their actions as a result of this information. Better education and training for farmers, easily accessible information, financial resources, and a high demand for organic food are all factors that help farmers implement sustainable precision farming methods.
Many technologies such as IoT, GPS, and remote sensing application control are employed to gain a thorough grasp of various farming features such as irrigation and plowing. The Internet of Things (IoT) assists farmers in overcoming different issues associated with crop monitoring. It uses sensors on the farm to offer real-time data on the temperature of the environment and the water content of the soil, allowing farmers to make better decisions regarding harvesting times, crop market rates, and soil management. This is one of the most important aspects driving the precision farming business forward.
Crop production is being hampered by a number of issues, including the loss of natural resources and the degradation of the environment. Farmers are shifting their focus to sustainable agriculture practices, such as natural resource preservation, as environmental concerns grow. This has increased the demand for improved crop nutrition and protection, which has boosted the precision farming business. Vertical farms with smart designs to increase harvests and prevent waste, for example, have opened up several potential opportunities.
Furthermore, rising investments in technology such as driverless tractors, guidance systems, and GPS sensing systems are likely to aid the precision agriculture market's expansion. Many sensors, including as soil sensors, climate sensors, and water sensors, are set across the fields to assist farmers in monitoring their crops and obtaining real-time data. Furthermore, the sensors assist farmers in achieving high yield output with less crop waste. These sensors are widely used in a variety of fields, including agriculture, pharmaceuticals and healthcare, automobiles, and sports.
Due to increasing use of technology and devices such as guidance systems and VRT (Variable Rate Technology) for growing crops, North America held the greatest market in the year 2020. Smart solutions, on the other hand, need large investments, which farmers, particularly in developing nations like China, India, and Brazil, find to be a disadvantage. Precision agriculture requires a significant investment, but in the long run, it provides a significant return on investment by lowering overall production costs and increasing efficiency.
On-farm yield monitoring and off-farm yield monitoring are two different types of yield monitoring. Farmers can get real-time information during harvest and construct a historical geographical database by using on-farm yield monitoring. This sector is predicted to have the highest part of the market since it provides fair landlord negotiations, evidence of environmental compliance, and food safety track records. Meanwhile, over the forecast period, the irrigation management segment is likely to increase significantly. 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.
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