Precision Farming Market is Segmented By Technology (Guidance Technology, Remote Sensing Technology, Variable Rate Technology), By Offering (Hardware, Software, Services), By Application (Yield Monitoring, Crop Scouting, Field Mapping, Variable Rate Application, Weather Tracing & Forecasting, Inventory Management, Farm Labor Management, Financial Management, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Report Overview
The precision farming market report analyzes the market size, current trends, competitive landscape, and future market outlook. The demand for precision farming technology is increasing due to the growing need for maximizing crop yield and reducing wastage. The market is witnessing a surge in demand from the American and European regions due to the increasing adoption of precision farming techniques by farmers. The competitive rivalry intensifies with major players such as Deere & Company, Trimble Inc., AGCO Corporation, and others actively operating in the market. The report spans over 150 pages and provides comprehensive insights into the precision farming market.
Market Summary
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Metrics |
Details |
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Market CAGR |
7.50% |
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Segments Covered |
By Technology, By Offering, By Application, and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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Precision agriculture is a strategic approach that collects, processes, and analyses temporal, spatial, and personal data. It incorporates it with other information to back up management decisions based on estimated variability to improve resource efficiency, productivity, quality, profitability, and sustainability of agricultural production. It then combines the data with other information.
Precision farming is an agricultural management concept centered on seeing, measuring, and reacting to crop variability within and between fields. Plant production is focused on different parcels of land that are not only determined by property lines or the anticipated average crop yield of a particular field but also by regional and ecological factors.
Farmers can now manage their fields depending on the regional variability of nutrient availability and anticipated crop production. Plant protection is far more heavily influenced by the need to minimize harm and maximize profitability. Small-scale soil cultivation, seeding, fertilization, pesticide treatment, and other activities are part of the precision farming process.
Market Trends
The rapid adoption of AI-based solutions in agricultural fields and the increased adoption of advanced processes for precision farming are the most significant factors driving the precision farming market growth. However, the high costs of precision farming equipment may hamper the market growth.
The use of AI-based solutions is expanding
In all facets of the industry, AI has a significant impact. One of the world's oldest and most significant vocations is agriculture and farming. It has a significant impact on the economy. The industry is moving to Artificial Intelligence technologies to improve a wide range of agriculture-related tasks throughout the food supply chain. The technologies can help produce healthier crops, control pests, monitor soil & growing conditions, organize data for farmers, lessen workloads, and organize pests.
In addition to automating farming, artificial intelligence helps farmers shift to precise farming for increased crop output and better quality while using fewer resources. For instance, a German tech start-up called PEAT has created an AI-based program called Plantix that can detect nutrient deficits in the soil and plant pests and illnesses, giving farmers the option to use fertilizer to enhance the quality of their harvest.
Rising usage of advanced technologies in precision farming
Over the past 50 years, the agriculture industry has undergone a significant transformation. Farm equipment has become larger, faster, and more productive because of technological advancements, allowing for the more effective cultivation of larger areas. Additionally, substantially enhanced seed, irrigation, and fertilizers have helped farmers boost harvests. The IoT technologies currently available on 3G and 4G cellular networks are often sufficient to provide more straightforward use cases, like sophisticated agricultural and livestock monitoring.
The use of smart and autonomous farm machinery may advance with more precise GPS controls combined with sensors and computer vision. Farmers would save time and other resources by using multiple machines on their land simultaneously and without human involvement. Additionally, autonomous robots are more accurate and productive in a field than human-operated ones, which might result in fuel savings and increased yields.
Expensive precision farming equipment
The expense of the equipment required for precision farming is one of the main barriers to its implementation. Precision farming's technological component, which includes smart sensors, drones, and data & digital infrastructure, is effective but costly because farmers in developing countries like China, Brazil, and India prefer traditional farming methods to tech-driven ones.
COVID-19 Impact on Precision Farming Market Growth
The COVID-19 epidemic has harmed the precision agricultural sector, with numerous manufacturing plants temporarily shutting down. As a result, farmers are bound to make difficult decisions due to declining wages and food supply interruptions escalating extreme poverty and posing a threat to food security. Agribusinesses and cooperatives have experienced business disruptions due to COVID-19 eradication efforts in agricultural value chains.
Agritech businesses also deal with difficult operational problems and a more challenging climate for raising capital. However, using farm management software tools and remote sensing after COVID-19 could result in better uptake. Companies emphasize wireless platforms to provide real-time decision-making for crop health monitoring, yield monitoring, irrigation scheduling, field mapping, and harvesting management.
Market Segment and Shares
The precision farming market is segmented by guidance technology, remote sensing technology, and variable rate technology.
High use of agricultural automation and control technology
Using new advances in sensor technology, AI, automated environmental control, and aeroponics, vertical farms are today's answer to scalable agriculture. The following technologies are key to precision farming: Geographic information systems (GIS), Geographic positioning systems (GPS), remote sensing, variable rate technology, NDVI, nutrient expert systems, SSNM, bio-intensive farming, real-time nitrogen management, DRIS approach, soil testing, and yield monitoring.
The hardware component includes access points, antennas, automation & control systems, and sensing equipment. For example, the GIS guidance system can view agricultural workflows and the environment. VRT technology helps farmers locate areas that need extra seeds and pesticides to spread them equally across the field.
Market Geographical Analysis
Frequent adoption of innovative technologies in North America
The high income of the regional market is due to increased government initiatives that boost the implementation of advanced agriculture technologies and established infrastructure. Through program leadership and grants, the National Institute of Food and Agriculture (NIFA) emphasizes using information and precision technologies to deliver decision tools that improve management capabilities for agricultural, food, forestry, and community enterprises.
U.S. Department of Agriculture (USDA) identified the need for a system in 2018 to utilize technology in many other industries to assist the food supply chain and overcome these difficulties. The Agriculture Improvement Act, which permitted funding for research & education, listed high-priority topics, and provided money for developing technology, methods, and products through advanced research on long-term and high-risk concerns for food and agriculture, was the solution. In addition, the Canadian government provided Clean Seed Capital Group with US$425,000 in November 2016 to advance and market precision agriculture technology.
Companies and Competitive Landscape
Future technology advancements will enable companies that utilize machine learning or artificial intelligence to improve their goods and services, such as training data for drones, automated manufacturing, and agriculture—to offer more beneficial applications to this industry because big companies constantly seek technological improvements and tactical acquisitions.
Major precision farming companies include Ag Leader Technology, AgJunction, Inc., AGCO Corporation, AgEagle Aerial Systems Inc. (Agribotix LLC), Deere and Company, Farmers Edge Inc., CropMetrics LLC, Granular, Inc., Raven Industries, Inc., and Trimble, Inc.
Ag Leader Technology
Overview: Ag Leader Technology, Inc. was founded in 1992 to improve agriculture through high-tech innovation. Al Myers pioneered the agricultural data revolution with a single device, the Yield Monitor 2000. Ag Leader is now a well-known precision agriculture hardware and software technology innovator. Ag Leader, headquartered in Ames, Iowa, has four locations, 280+ employees, and a large domestic and international dealer network.
The company develops and sells industry-leading precision farming technology that enables growers to make more informed and successful business decisions. The company, founded over 25 years ago, has experienced constant growth and expansion by providing value-based goods that assist growers and agricultural professionals to achieve and maintain a successful, lucrative enterprise.
Product Portfolio: Ag Leader's precision farming technologies are the most comprehensive and user-friendly. It offers farm management, guidance & steering, planting, harvesting, and water management products.
Key Development: Ag Leader will expand its precision farming portfolio with the SureSpeedTM high-accuracy, high-speed planting technology. Ag Leader launched its high-speed planting technology SureSpeed on January 7, 2020, to provide row crop farmers with precise seed distribution speeds of up to 12 miles per hour. Kinze Manufacturing collaborated on developing the meter with the integrated delivery system. The introduction is scheduled for the 2021 planting season through the different dealer networks of each manufacturer.
