• US: +1-408-610-2300
  • Toll Free: +1-866-831-4085
  • Login / Register
Precision Farming Market Size & Share, 2020-2027 | Industry Report

Precision Farming Market Analysis Report By Offering, By Application, By Region And Segment Forecasts From 2020 To 2027

Report ID: MN17614557  |  Published: August 2020  |  No of Pages: 150
Format: Electronic (PDF)  |  Industry: Computing & Technology  |  Publisher: Grand View Research

Industry Insights

The global precision farming market size was accounted for USD 4.7 billion in 2019 and projected to grow with a CAGR of 13.0%, during the forecast period, 2020 to 2027. The rising adoption of advanced technologies like the Internet of Things (IoT) coupled with data analytics is expected to drive the market growth in the forthcoming years. The advanced data science or analytics uses various tools and statistical modelling techniques, which gather a huge amount of data and help in gaining insights about farms & crops. This is expected to help framers throughout the production cycle from planning, plantation, harvesting to till the time crops reaches to the market. Thus, these benefits are projected to create huge growth opportunity for the market in the next few years.

North America precision farming market

The precision agriculture market is witnessing high demand across the world, owing to the rising demand for agricultural products, growing population, increased adoption of remote sensing technology, VRT, and various other guidance technologies by the farmers. Furthermore, the government supportive initiativesacrossvarious countries such as India, U.K. and U.S., arehelping farmers to use enhanced agricultural and technological tools, in order to improve the production levels. Further, the fluctuationin the weather conditions, owing to rising global warming have prompt farmers to adopt the smart farming technologies, which, in turn, expected to enhance the farm productivity and crop yield.

Rising population, increasing urbanization and growing use of harmful pesticides are degrading the soil & crop quality, which, in turn, expected to fuel demand for precision farming.  Furthermore, technological advancements such as IoT, GPS, and remote sensing application control will help to gain more insights about the crops and allow farmersto frequently monitor the crops conditions. Additionally, the soil moisturesensors provide a real-time data regarding the humidity, moisture, environment temperature and water level in the soil, which helps farmers in taking the better decisions regarding the harvesting, soil enrichment and market pricing of crops. These factors are projected to accelerate market growth during the forecast period, 2020 to 2027. Furthermore, in order to encourage the farmers to adopt the advanced precision farming technologies, the governments need to provide the proper education & training facilities, financial support and easy accessibility to information.

The rising depletion of natural soil constituents and environmental degradation are some of the main reasons for the limitation of crop production. Therefore, the increasing number of environmental concerns are prompting farmers to move towards sustainable farming, such as precision farming. Furthermore, technology helps in improving the soil & crop nutrition level as well as protect them from various diseases, which, in turn, expected to augment the growth of precision farming market over the forecast period.

The growing investments by the players in the technology such as guidance systems, GPS sensing systems and driverless tractors are anticipated to substantially upsurge the demand for precision farming. For example, technically advanced sensors like climate sensors, water sensors and soil sensors are placed on the field, which continuously monitors the soil & crop conditions and provides real-time information to farmers. Additionally, it also increases the productivity, profitability, sustainability and reduces the wastage of crop. Thus, projected to accelerate the market growth in the upcoming years. Furthermore, these sensors are widely used in various applications such as pharmaceutical, healthcare, agriculture, sports, and automotive.

Offering Insights

The offering segment has been bifurcated into software, hardware, and services. The hardware segment held the largest market revenue share in 2019 and projected to dominate the precision agriculture marketin the forthcoming years. The hardware segment isfurther divided into sensing devices, antennas & access points and automation & control systems. The segment growth is attributed to high adoption of automation & control devices such as drones or unmanned aerial vehicles (UAV), irrigation controllers, GPS, guidance & steering systems, sensors and yield monitors. The GPS-based auto-guidance system is integrated with the agricultural vehicle, for reducing the overlapping of the field mapping process, as a result, saves the fuel, time and labor cost. Furthermore, VRT is an advanced technology which helps farmers in determining the prone area that requires more pesticides and helps in distributing the seeds equally across the field. Thus, projected to accelerate the segment growth over the forecast period.

The software segment has been segmented into cloud-based and web-based precision farming. The segment is expected to see substantial growth with a CAGR of more than 15.0%, during the forecast period, 2020 to 2027. The cloud technology is an automated, virtualized, centralized, and shared infrastructure, which eliminates the need for costly hardware and software infrastructure. The cloud storage enables users to store huge amount of crop-related information, which can be accessed by farmers with the help of smartphones. Furthermore, GPS is now available withthe agriculture equipment and can be integrated with the various cloud-based applications. Therefore, the incorporation of cloud technology in precision farming is expected to be a major driving factor for the market growth as well as segment growth. The rising adoption of predictive analytics tools, in order to provide proper guidance to growers regarding the soil management, crop rotation, harvesting times and optimal planting times are projected to upsurge the segment growth in the during the forecast period, 2020 to 2027.

Application Insights

The application segment has been divided into farm labor management, crop scouting, field mapping, irrigation management, weather tracking & forecasting, yield monitoring and inventory management. The weather tracking & forecasting segment is projected to see significant growth with a CAGR of18% during the forecast period, 2020 to 2027. The growing adoption of smart sensors in monitoring the climatic conditions of soils and forecasting the weather conditions and providing accurate information to farmers are expected to fuel the segment growth in the upcoming years. Furthermore, the rising adoption of artificial intelligence, machine learning and data analytics tools have increased the accuracy and reliability of the weather forecasting, which, in turn, expected to boost the segment growth in the forthcoming years.

Global precision farming market

The yield monitoring segment held the largest market revenue share in 2019 and anticipated to dominate the market over the forecast period, owing to its ability to provide accurate information and enable growers to make efficient decisions regarding the crop fields. The segment is further bifurcated into off-farm and on-farm yield monitoring. The on-farm monitoring allows farmers to gather real-time information while harvesting and helps in creating the historical spatial database. The segment is anticipated to capture the largest market share, as it provides environmental compliance documentation, food safety track records and equitable landlord agreements. The irrigation management segment is projected to see substantial growth during the forecast period, 2020 to 2027. The smart irrigation is equipped with various advanced technologies, such as weather-based controllers, rain sensors, water meters, and sensor-based controllers, which helps in monitoring the climatic condition of soil, humidity and adequate irrigation water requirements. These advantages are expected to boost the segment growth in the forthcoming years.

Regional Insights

The North American market held the largest revenue share in 2019, owing to high penetration of advance technologies, high adoption of smart devices, developed infrastructure and rising number of government supportive initiatives to promote the farmers for adopting the modern agriculture technologies. For example, the U.S. Department of Agriculture is conducting a program, under which they are providing training & leaning to farmers regarding the sensor, precision technology and geospatial tools. Additionally, the NIFA and Land-Grand universities are helping farmers to develop the smart sensors, and instrumentation for modelling, analyzing and observing the complex biological processes and materials. Furthermore, the Canadian government has invested around USD 425,000 in Clean Seed Capital Group in November 2016, which is expected to commercialize and improve the precision farming technology. Additionally, with the help of this initiatives government is trying to reduce excessive pesticides and fertilizers. Moreover, the company will also develop a CX-6 SMART Seeder for the farmers.

Asia Pacific market is projected to see substantial growth with a CAGR of more than 15% during the forecast period, 2020 to 2027. Several government initiatives have been introduced in emerging economies such as Sri Lanka, Pakistan, and India, in order to prompt the deployment of advanced precision farming technologies. This will help farmers in increasing the productivity, profitability and reduce the usage of harmful chemicals in crops & fields. Furthermore, in September 2017, China and Israel have signed a trade agreement having a value of USD 300 million, in order to use the eco-friendly technology of Israel. Moreover, this will also allow countries to share adequate knowledge regarding the proper usage and maintenance of the advanced precision farming tools.

Impact of COVID-19

The COVID-19 pandemic has badly affected the agricultural sector, as governments across the globe have imposed lockdown. Furthermore, fruits, vegetables, oilseeds and other crops harvesting has been put on a standstill, due to which a lot of crops have damaged and productivity has declined significantly. However, the rising demand for agricultural food products, non-availability of labor and shifting preference of consumers towards food safety & quality amid COVID-19 are expected to fuel the demand for precision farming. Furthermore, a rise in farm automation and enhancing digital infrastructure across the agricultural sector are anticipated to upsurge the penetration of digital agriculture among the farmers, thereby driving the demand for precision farming.

Precision Farming Market Share Insights

Key companies in the market are AgJunction, Inc.; Trimble, Inc.; Agribotix LLC; AGCO Corporation; Granular, Inc.; Raven Industries Inc.; CropMetrics LLC; and others. The leading players are adopting various competitive strategies such as collaborations, partnerships, mergers & acquisitions, R&D investment and product development. For example, in April 2019, the Climate Corporation (Climate) and Lindsay Corporation, a leading producer and distributor of advanced irrigation technologies, have signed a platform contract. This will establish a two-way data connectivity among the FieldVie digital agriculture platform of Climate Corporation and FieldNET platform of Lindsay Corporation. Moreover, with the help of this collaborated platform, farmers will be able to make more informed and efficient irrigation management decisions. Furthermore, AgJunction Inc. has done a partnership with Mahindra & Mahindra Ltd, in December 2018. Under this agreement company will provide a detailed future outlook for the development of farming products. This will help companies in expanding the product portfolio and enables them to remain competitive in the market.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Revenue in USD million & CAGR from 2020 to 2027

Regional scope

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Country Scope

U.S, Canada, Mexico, U.K., Germany, France, Russia, Italy, China, India, Japan, Australia, Singapore, Brazil

Report coverage

Revenue forecast, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analysts working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the 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 2016 to 2027. For the purpose of this study, Million Insights, has segmented the global precision farming market report based on offering, application, and region:

• Offering Outlook (Revenue, USD Million, 2016 - 2027)
    • Hardware
        • Automation & Control Systems
            • Drones
            • Application Control Devices
            • Guidance Systems
                • 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 Sensors
            • Climate Sensors
            • Others
        • Antennas & Access Points
    • Software
        • Web-based
        • Cloud-based
    • Services
        • System Integration & Consulting
        • Maintenance & Support
        • Managed Services
            • Data Services
            • Analytic 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

• Regional Outlook (Revenue, USD Million; 2016 - 2027)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • The U.K.
        • France
        • Russia
        • Italy
    • Asia Pacific
        • China
        • India
        • Japan
        • Australia
        • Singapore
    • South America
        • Brazil
    • Middle East and Africa (MEA)

What questions do you have? Get quick response from our industry experts. Request More information
Key questions answered in the report include
key questions
We also offers customization on reports based on specific client requirement.
Request for Customization

Choose License Type

Research Assistance

Ryan Manuel
Ryan Manuel

Research Support Specialist, USA

  1. Phone: +1-408-610-2300
  2. Toll Free: +1-866-831-4085
  3. Email: [email protected]
  • World's largest premium report database
  • Transparent pre & post sale customer engagement model
  • Unparalleled flexibility in terms of rendering services
  • Safe & secure web experience
  • 24*5 Research support service
  • 100% Secure Payments
  • Our Promise
  • 100% Service Assurance
  • Market Monitoring
  • Service Flexibility
  • 24X5 Care available