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Precision farming market anticipated to grow at CAGR of 12.7% from 2020 to 2025. The precision farming market is expected to grow from USD 7.0 billion in 2020 to USD 12.8 billion by 2025, at a CAGR of 12.7%. Major drivers for the precision farming market include the high demand for agricultural products due to population growth, increased adoption of VRT, remote sensing and guidance technologies by worldwide farmers, substantial cost cutting achieved by the implementation of modern agricultural techniques, and strong government support for promoting the use of precision farming techniques. Major restraints for the precision farming market include the high upfront cost of modern agriculture equipment and the limited technical knowledge and skills of farmers or growers. Precision farming requires large initial investments, efficient farming tools, and skilled labor.
Market for variable-rate technology (VRT) estimated to grow at highest CAGR during forecast period
The wide adoption of VRT in precision farming is because of various benefits associated with it. VRT allows input application rates to be varied across fields for site-specific management of the field variability. This technology helps in reducing the input usage, thereby decreasing environmental impacts such as greenhouse gas emission, soil erosion and degradation, and genetic erosion. The market for VRT is expected to grow at a higher CAGR than that for other technologies as this technology helps in applying the right amount of input at the right place on the field, which minimizes the input waste and increases land and crop productivity. Other technologies such as remote sensing and variable rate technology are also expected to grow at a significant rate during the forecast period. Variable-rate technology (VRT) enables the variable application of inputs and allows farmers to control the amount of inputs they apply in a specific location. VRT mounted on equipment allows the input application rates to be varied across fields for site-specific management of field variability.
Market for weather tracking and forecasting application to grow at higher CAGR during forecast period
Increasing demand for climate information services owing to their benefits that enable farmers to deal with climate change and variability to improve decision-making in agriculture is the major reason behind the high growth of the market for weather tracking and forecasting between 2020 and 2025. Moreover, the increasing demand for the cloud platform for climate services is a major factor propelling the growth of the precision farming market for this application. A variable rate application is expected to witness an attractive rate of growth during the forecast period. Variable rate application involves the use of technologies such as weather-based controllers, rain sensors, temperature sensors, network elements, water meters, and sensor-based controllers. The increasing demand for water conservation and food production, and reduction in the wastage of resources are the major driving factors for the growing adoption of precision tools for variable rate applications.
Precision farming market in APAC to grow at highest CAGR during forecast period
The increasing adoption of precision farming technologies such as guidance system, remote sensing, and variable-rate technology by farmers in APAC is expected to propel the growth of the precision farming market during the forecast period. The adoption rate of precision farming techniques is expected to grow at a high rate in APAC as this region comprises emerging countries such as India and China, as well as other Southeast Asian countries. Rapidly increasing population, the availability of arable farms, and government support through subsidies are the factors driving the adoption of smart agriculture techniques in APAC.
The precision farming market in Europe is expected to witness an attractive growth rate during the forecast period. The precision farming market in Europe exhibits a high degree of professionalism and technological adoption similar to the US. Europe also relies on a well-established ecosystem, as well as public and private investment capacities.
The breakup of primaries conducted during the study is depicted below:
- By Company Type: Tier 1 – 35 %, Tier 2 – 40%, and Tier 3 –25%
- By Designation: C-level Executives – 57%, Directors – 29%, and Others – 14%
- By Region: Americas– 40%, Europe – 30%, APAC – 20%, and RoW – 10%
Key players operating in the precision farming market are Deere & Company (US), Trimble (US), AGCO Corporation (US), AgJunction (US), Raven Industries (US), AG Leader (US), The Climate Corporation (US), Descartes Labs (US), ec2ce (Spain), Teejet Technologies (US), Topcon Positioning Systems (US), Taranis (Israel), AgEagle (US), Descartes Labs (US), Granular (US), Prospera Technologies (Israel), Autonomous Tractor Corporation (US), Hexagon Agriculture (Brazil), CropX Technologies (Israel), and Autocopter Corp (US).
This report covers the precision farming market based on offering, technology, application, and region. The precision farming market based on offering has been segmented into hardware, software, and services. Based on application, the precision farming market has been segmented into yield monitoring, field mapping, crop scouting, weather tracking and forecasting, variable rate application, inventory management, farm labor management, financial management, and others. Based on technology, the precision farming market has been classified into the guidance system, remote sensing, and variable-rate technology (VRT). Based on region, the precision farming market has been segmented into the Americas, Europe, APAC, and RoW.
Key Benefits of Buying This Report
- This report includes the market statistics pertaining to offering, application, technology, and region, along with their respective market size.
- An in-depth analysis of the value chain has been done to provide in-depth insight into the precision farming market.
- Major drivers, restraints, challenges, and opportunities pertaining to the precision farming market have been detailed in this report.
- Illustrative segmentation, analysis, and forecast for the market based on offering, application, technology, and region have been conducted to provide an overall view of the precision farming market.
- The report includes an in-depth analysis and ranking of key players.