Precision Farming Market Size, Share and Industry Growth

Updated on : October 22, 2024

Precision Farming Market Size & Growth

Precision farming market size is expected to grow from USD 9.7 billion in 2023 to USD 21.9 billion by 2031, growing at a CAGR of 10.7% between 2023 to 2031.

The primary drivers behind the expansion of the market include the swift uptake of cutting-edge technologies in precision agriculture aimed at lowering labor expenses, the growing embrace of Internet of Things (IoT) devices in farming domains, considerable monetary savings linked with precision farming, the impact of climate change and the imperative to meet escalating food requirements, as well as the mounting endorsement of precision farming methods by governments on a global scale.

Precision Farming Market Forecast to 2031

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Precision Farming Market Trends and Dynamics:

Driver: Integration of precision farming technologies with existing farm machinery

Integration with farm machinery is a pivotal driver propelling the widespread adoption of precision agriculture. With the rapid advancement of precision agriculture technologies, such as sensors, GPS, and data analytics, farmers can now seamlessly incorporate these innovations into their existing equipment, including tractors, drones, and harvesters. This integration streamlines data collection, enhances operational efficiency, and enables data-driven decision-making. Equipped with state-of-the-art sensors and monitoring systems, modern farm machinery can effortlessly gather real-time data on soil conditions, crop health, and weather patterns. GPS technology enables precise navigation and guidance, ensuring that machinery follows predetermined paths during planting, spraying, and harvesting operations, leading to optimized coverage and reduced overlap. Variable Rate Technology (VRT) allows farmers to adjust input application rates based on specific field requirements, resulting in resource optimization and improved crop yields. Moreover, the automation and remote monitoring capabilities facilitate increased operational efficiency and reduced labor costs. By leveraging data analytics and farm management software, farmers can make informed decisions about irrigation, fertilization, and pest control, resulting in enhanced productivity and sustainability. The integration of drones with farm machinery further extends precision agriculture's benefits, enabling aerial surveys and targeted responses to crop stress, pest infestations, and disease outbreaks. Ultimately, this integration empowers farmers to embrace precision practices seamlessly and efficiently, leading to more sustainable and productive agricultural operations.

Restraint: Lesser reliability of internet connectivity and infrastructure for precision farming

Rural Connectivity and Infrastructure significantly restrain the widespread adoption of precision farming technologies. In many agricultural regions, particularly in rural and remote areas where farming activities are prevalent, access to reliable and high-speed internet connectivity may be limited or unavailable. This lack of connectivity hinders the seamless integration and real-time transmission of crucial data required for precision agriculture. Farmers may encounter difficulties accessing data from sensors, drones, and other monitoring devices in the field without a stable internet connection. Transmitting this data to centralized systems or cloud-based platforms for analysis and decision-making becomes challenging. The absence of robust infrastructure may also limit the implementation of advanced precision farming practices that rely on constant connectivity and data exchange. As a result, farmers in these regions may face barriers in adopting precision farming solutions, potentially missing out on the optimization of inputs, efficient resource utilization, and improved crop management offered by these technologies. Efforts to expand rural internet coverage and improve infrastructure are vital to overcoming this restraint and empowering farmers in remote areas to benefit from the transformative potential of precision agriculture.

Opportunity: Rising usage of digital agricultural platforms along with rising demand for sustainable agriculture

Digital agriculture platforms and farm management software solutions are playing a pivotal role in the advancement of precision farming. These emerging technologies offer farmers comprehensive tools to seamlessly integrate and analyze data from various sources, including sensors, drones, and satellite imagery. By centralizing data on a user-friendly interface, these platforms simplify the adoption of precision farming practices, enabling farmers to make informed decisions based on real-time insights. Moreover, they provide a holistic view of farm operations, allowing farmers to efficiently monitor and manage their fields, crops, and equipment. With streamlined data collection and analysis, farmers can optimize resource allocation, adjust irrigation and fertilization schedules, and implement precision techniques, ultimately leading to enhanced crop yields and operational efficiency. In addition to increased productivity, precision farming aligns with the global trend towards sustainable and eco-friendly agriculture. Consumers are increasingly demanding food produced with minimal environmental impact, driving the need for more sustainable farming practices. Precision farming's ability to precisely target inputs, such as water and fertilizers, minimizes wastage and reduces the release of harmful chemicals into the environment. By promoting responsible resource management, precision farming addresses eco-conscious consumers' preferences, providing an opportunity for farmers to cater to this growing precision farming market segment. Embracing sustainable practices and highlighting eco-friendly production can also position precision farmers to access premium markets and secure a competitive edge in the agricultural industry. As the demand for sustainably produced food continues to rise, precision farming presents a promising opportunity for farmers to meet consumer expectations while also ensuring long-term environmental sustainability.

Challenge: Lacking data privacy and increased security concerns

Data privacy and security concerns present a significant challenge in the precision farming market share. As precision agriculture heavily relies on data collection from various sources, including sensors, drones, and satellites, there is a growing need to address the privacy and security of this data. Farmers and technology providers must ensure that the collected, shared, and stored data remain protected from unauthorized access and potential breaches. This sensitive information may include details about crop yields, soil conditions, farm operations, and even personal information about farmers. Building trust between farmers and technology providers is crucial to encourage data sharing and adoption of precision farming technologies. Implementing robust encryption, secure data storage, and access controls are essential steps to safeguarding sensitive information. Clear data usage policies and transparent communication about how the data will be utilized can help alleviate concerns and promote responsible data handling practices. By proactively addressing data privacy and security concerns, the precision farming industry can foster a climate of trust and collaboration, enabling farmers to leverage the full potential of precision agriculture without compromising their data's confidentiality and integrity.

Precision Farming Market Ecosystem

The precision farming companies includes key companies such as Deere & Company (US), Trimble Inc. (US), AGCO Corporation (US), AgJunction LLC (US), Raven Industries, Inc. (US), AG Leader Technology (US), Teejet Technologies (US), Topcon (US), Taranis (Israel), AgEagle Aerial Systems Inc (US), ec2ce (Spain), Descartes Labs, Inc. (US), Granular Inc. (US), Hexagon AB (Brazil), Climate LLC (US), and CropX Inc. (Israel). These companies have manufacturing facilities and corporate offices spread across various countries across Asia Pacific, Europe, Americas, and the Rest of the World. Several stakeholders purchase the precision farming products manufactured by these companies for various applications.

Precision Farming Market Segmentation

Hardware segment to hold the largest share of precision farming market during the forecast period

The categorization of the precision farming industry based on its offerings has resulted in the segmentation of hardware, software, and services. A further division has occurred within the hardware category, leading to automation and control systems, as well as monitoring and sensing devices. In particular, automation and control systems encompass GPS receivers, guidance and steering mechanisms, and variable-rate technology (VRT) devices. These elements are projected to hold a substantial portion of the hardware segment’s share in the precision agriculture market throughout the anticipated timeframe. This is primarily due to their widespread utilization within the precision farming sphere. The growth trajectory of this market sector can be ascribed to the significant adoption of automation and control devices, including drones/UAVs, GPS/GNSS systems, irrigation controllers, guidance and steering systems, yield monitors, and agricultural sensors, within the agricultural domain.

Variable rate technology is expected to witness higher CAGR during the forecast period

Variable rate technology is expected to demonstrate the highest CAGR compared to other technologies within the projected period. The accelerated adoption of variable rate technology can be attributed to its early uptake by farmers. This advancement is propelled by the integration of GPS-based auto-guidance technology, which empowers agricultural professionals to optimize equipment and tractor utilization, leading to reduced fuel and labor expenses, heightened operational efficiency, and minimized soil compaction.

Yield monitoring applications held the largest share  of the precision farming market in 2022

Within the precision farming market, the application segment of yield monitoring emerged as the largest application in terms of market share. This dominance is underscored by the substantial advantages offered by climate service initiatives, empowering farmers to adeptly navigate climate-induced adversities and concurrently enhance food security while bolstering the quality of decision-making processes within the agricultural realm. Moreover, looking at the geographical landscape, the Asia-Pacific (APAC) region is poised to display the most noteworthy CAGR in the global precision agriculture market. This projection underscores the region's escalating interest and investment in precision farming technologies and practices, which are evidently contributing to the market's overall expansion and potential.

Precision Farming Industry Regional Analysis

The precision farming market in Asia Pacific is expected to witness the highest growth from 2023 to 2031.

The burgeoning wave of modernization sweeping through the agricultural sector, particularly evident in nations like China, India, and Indonesia, stands as a pivotal catalyst propelling the expansion of the precision farming industry within the region. With the populace in these developing countries experiencing substantial growth, an escalating demand for enhanced agricultural productivity exists. Consequently, this demographic pressure is serving as a compelling impetus for the agriculture industry to embrace precision farming equipment and practices, ultimately fostering the heightened adoption and implementation of precision farming technologies across the region.

Precision Farming Market Statistics by Region

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Top Precision Farming Companies - Key Market Players

• Deere & Company (US), 
• AGCO Corporation (US), 
• Raven Industries, Inc. (US), 
• AgJunction LLC (US),
• Trimble Inc. (US) are some of the key players in the global precision farming companies.

These players increasingly undertake product launches and development strategies, expansions, partnerships, contracts, and acquisitions to increase their market share.

Precision Farming Market Report Scope

Precision Farming Market Highlights

This report categorizes the precision farming market share based on offering, technology, application, and geography available at the regional and global level

Recent Developments in Precision Farming Industry

• In July 2023, Deere & Company acquired Smart Apply, Inc. (US), a precision spraying equipment company. The acquisition aims to strengthen the emphasis on high-value crop customers and dealers, while also broadening the range of solutions available to assist growers in tackling their primary concerns regarding labor, input costs, and regulatory compliance.
• In April 2023, AGCO Corporation revealed its partnership with Bosch BASF Smart Farming to introduce and market Smart Spraying technology on Fendt Rogator sprayers. Furthermore, both companies will collaborate to develop additional innovative features.
• In August 2022, Trimble Inc. and CLAAS entered a strategic alliance to develop an advanced precision farming system for CLAAS tractors collaboratively, combines, and forage harvesters. The precision farming system comprises the cutting-edge CLAAS CEMIS 1200 smart display, GPS PILOT steering system, and the SAT 900 GNSS receiver. Within this system, the CEMIS display leverages Trimble's latest embedded modular software architecture, facilitating precise positioning, steering, and seamless connectivity to control and monitor implements in the field using ISOBUS technology.
• In August 2022, Trimble Inc. entered into a definitive agreement to acquire Bilberry, a privately held French technology company known for its expertise in selective spraying systems for sustainable agriculture. Bilberry is at the forefront of using artificial intelligence (AI) technology to identify various weed species in real-time across a wide range of crops. This strategic acquisition will enhance Trimble's crop protection portfolio by incorporating green-on-green selective spraying capabilities and will further bolster their efforts in developing autonomous agricultural solutions.
• In April 2022, Topcon and MyAgData have joined forces to enhance access and data sharing involving electronic grain cart load data, offering a more streamlined workflow for farmers and a more efficient remittance process for crop insurance adjusters.
• In May 2021, and Class Telematics signed a partnership agreement wherein the Climate FieldView, and Class Telematics could connect through the Class API to exchange data for field and site-specific documentation easily. In January 2021, AGCO Corporation partnered with NEVONEX to help farmers use digital services and functions based on NEVONEX on its AGCO equipment.
• In May 2021, Raven Industries announced the launch of its new autonomous product brand “OMNI.” This brand highlights the company’s capabilities in autonomous solutions

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