Precision Farming Market Growth & Trends
The global precision farming market size is anticipated to reach USD 16.35 billion by 2028, according to a new report by Grand View Research, Inc. It is projected to expand at a CAGR of 13.1% over the forecast period. Precision farming, also known as site-specific crop management or satellite farming, is a farm management concept that uses information technology to ensure optimum health and productivity of crops. The precision farming technique largely depends on specialized equipment such as sensing devices, antennas and access points, and automation and control systems. It also involves maintenance services and managed services. Additionally, it incorporates a broad range of technologies such as bio-engineering, robotics and automation, imagery and sensors, and big data.
The growing number of applications for telematics in agriculture is anticipated to drive demand for precision farming over the projected period. Telematics services include tracking devices using the Global Navigation Satellite System (GNSS) to show the position of the equipment for management purposes. Major manufacturers of agriculture equipment are adopting telematics services for their equipment to improve farm efficiency, thereby reducing the cost of agricultural operations and maximizing profitability. Additionally, improved management can help reduce environmental impact. Telematics technology is used to capture and transfer data from the farm equipment through sensors installed on tractors and other field monitoring equipment. The increasing adoption of telematics systems by agricultural equipment companies is expected to drive market growth.
Furthermore, with advancements in GPS guidance and automation, drones are poised to transform the agriculture industry. The ability of drones to precisely analyze the soil at the beginning of the crop cycle and detect a plant infected with bacteria or fungus is anticipated to propel the growth of the drone segment.
However, the low rate of technology adoption among farmers is likely to hamper market growth over the forecast period. This may be due to factors such as the absence of stringent standards and limitations on the exchange of data. Furthermore, farmers lack independent consulting and advisory services owing to the absence of validated agronomic models for Variable Rate Technology (VRT) to make decisions on investments. Independent services are not linked to co-operatives, government bodies, and farmer associations where farmers can get additional information to make improved decisions.
Precision Farming Market Report Highlights
- Increasing government support for adopting modern agricultural techniques and the growing need for efficiently monitoring the health of crops are expected to drive market growth
- The cloud-based software model is anticipated to gain significant market share over the projected period as it reduces energy consumption and provides storage for a large amount of data while facilitating cost saving
- Innovations in GPS mapping and related farming applications are enabling farmers to operate more efficiently and increase their profit margins
- Demand for drones is expected to grow in the agriculture field as they are increasingly used in monitoring irrigation systems
- Yield monitoring finds wide applications in soil monitoring as it helps detect the properties of soil for increasing yields
- The digital revolution in the agricultural sector, along with government financial incentives to farms, is likely to drive demand for precision farming in Europe in the forthcoming years
- Asia Pacific is expected to witness the fastest growth owing to the availability of the largest agricultural land, which provides growth opportunities in countries such as China, India, Australia, and Japan
- Key players in the precision agriculture market include AgEagle Aerial Systems Inc. (Agribotix LLC); Deere and Company; Proagrica (SST Development Group, Inc.); Farmers Edge, Inc.; and Granular, Inc.