Precision Farming Market Size, Share & Trends Analysis Report By Offering (Hardware, Software, Services), By Application (Yield Monitoring, Weather Tracking, Field Mapping, Crop Scouting), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global precision farming market size was valued at USD 9,476.3 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 12.6% from 2023 to 2030. The growth of precision agriculture is attributed to the burgeoning proliferation of the Internet of Things (IoT) along with the use of advanced analytics by farmers. Advanced analytics is a part of data science that uses numerous tools and methods to forecast data and ensure that the crop and soil receive adequate nurturing. This helps farmers to plan their actions accordingly.

For a deep understanding of different farming aspects such as irrigation and plowing, numerous technologies such as IoT, GPS, and remote sensing application control are used. IoT helps farmers address various challenges involved in the proper monitoring of crops. It provides real-time data about environment temperature and water content in the soil through sensors placed on the farm, which assists farmers in making improved decisions about harvesting times, crop market rate, and soil management. This is one of the key factors contributing to the growth of the market for precision farming.

Other factors that facilitate the adoption of sustainable farming technologies include better education and training for farmers, easily accessible information, availability of financial resources, and high demand for organic food. The depletion of natural resources and deterioration of the environment are some of the factors responsible for limiting crop production. Growing environmental concerns are encouraging farmers to shift their focus toward sustainable agriculture practices, such as the preservation of natural resources. This has driven the need for improving crop nutrition and protection, in turn bolstering the market growth.

Technological innovations, such as vertical farming with smart designs to maximize yields and reduce waste, have unfolded numerous growth opportunities. Moreover, increasing investments in technologies such as driverless tractors, guidance systems, and GPS sensing systems are also expected to contribute to the growth of the precision agriculture market size during the period of study. For instance, numerous sensors such as soil sensors, climate sensors, and water sensors are placed around the fields to help farmers monitor their crops and gain real-time information. Additionally, these sensors also help farmers obtain a high yield with less crop wastage. These sensors are also highly adopted in different applications such as agriculture, pharmaceutical and healthcare, automotive, and sports.

The outbreak of COVID-19 has adversely affected the global market for precision farming with several manufacturing units across China, India, European countries, Japan, and the U.S. temporarily shutting down. This has consequently led to a significant slowdown in the production of precision farming equipment. Lockdowns imposed by the governments in the wake of the coronavirus pandemic affected manufacturing and pegged back the consumer demand for such high capital equipment.

However, the use of farm management software tools and remote sensing could lead to higher adoption post-COVID-19 period. Companies have already begun focusing more on wireless platforms to enable real-time decision-making for crop health monitoring, yield monitoring, irrigation scheduling, field mapping, and harvesting management.

The North America precision farming market emerged as a profitable revenue belt in 2022, owing to the higher adoption of the technologies and devices such as the guidance system, and Variable Rate Technology (VRT) for growing crops. On the other side, smart solutions involve high investments, which act as a drawback for farmers, especially in developing countries such as China, India, and Brazil. The investment in the precision agriculture market is high, however, in the later run, it offers a notable return on investment as it reduces the overall production cost and increases efficiency.

Offering Insights

The hardware segment accounted for the largest revenue share of 67.6% in 2022 and is expected to dominate the market during the forecast period. The hardware segment has been further segmented into automation and control systems, sensing devices, antennas, and access points. The hardware components such as automation and control systems, sensing devices, and drones play a major role in helping farmers. For instance, the GIS guidance system is very beneficial for growers as it is capable to visualize agricultural workflows and the environment. Furthermore, VRT technology helps farmers determine areas that need more pesticides and seeds thereby distributing them equally across the field.

The software segment is fragmented based on web-based and cloud-based precision farming. Cloud computing focuses on shared networks, servers, and storage devices, owing to which the high costs incurred in maintaining hardware and software infrastructure are eliminated. As a result, the software segment is anticipated to register a CAGR of over 15.3% during the forecast period. Predictive analytics software is used to guide farmers about crop rotation, soil management, optimal planting times, and harvesting times.

Application Insights

The yield monitoring segment accounted for the largest revenue share of 43.7% in 2022 and is expected to continue its dominance over the forecast period as it helps the farmers to make decisions about their fields. The segment is further segregated into on-farm yield monitoring and off-farm yield monitoring. On-farm yield monitoring allows farmers to obtain real-time information during harvest and create a historical spatial database. This segment is expected to account for the largest share of the market for precision farming as it offers equitable landlord negotiations, documentation of environmental compliance, and track records for food safety.

The irrigation management segment is expected to witness considerable growth over the projected period. Smart irrigation involves the use of various technologies, such as rain sensors, weather-based controllers, sensor-based controllers, and water meters, to help estimate the right amount of irrigation water. Such benefits are likely to drive the adoption of irrigation drones. The weather tracking and forecasting segment is anticipated to expand at a CAGR of 17.3% during the forecast period. The use of sensors helps weather forecasters to provide accurate weather reading and forecasting. In addition, the introduction of machine learning techniques and advanced data analytics services have increased the reliability and accuracy of weather forecasts thus propelling the growth of the market

Regional Insights

North America accounted for the largest revenue share of 44.4% in 2022. The region is an early adopter of technologies. Factors such as increasing government initiatives that support the adoption of modern agriculture technologies and developed infrastructure have contributed to the high revenue of the regional market. For instance, the National Institute of Food and Agriculture (NIFA)-part of the U.S. Department of Agriculture-conducts geospatial, sensor, and precision technology programs to create awareness among farmers. In partnership with Land-Grand universities, NIFA helps farmers develop robust sensors, associated software, and instrumentation for modeling, observing, and analyzing a wide range of complex biological materials and processes. Furthermore, in May 2022, Government of Canada announced an investment of USD 4,41,917.5 in order to develop an integrated system for precision fruit tree farming. The investment also aimed to achieve sustainable solutions to tackle the uprising challenges in Canada’s apple industry.

Asia Pacific is expected to witness significant growth over the forecasted period. The region is expected to witness a CAGR of over 15.1% from 2023 to 2030. Numerous government initiatives are being undertaken in developing countries such as India, Sri Lanka, and Nigeria to encourage the implementation of modern precision farming technologies, thereby maximizing productivity. China and Israel signed a trade agreement in September 2017 worth USD 300 million to facilitate the export of environment-friendly Israeli technology to China. Moreover, an effective administrative framework is also enabling farmers to gain adequate knowledge of the proper use and maintenance of precision farming equipment.

Key Companies & Market Share Insights

Major players operating in the market include Ag Leader Technology (U.S.); AgJunction, Inc. (U.S.); CropMetrics LLC (U.S.); Trimble, Inc. (U.S.); AGCO Corporation (U.S.); and Raven Industries Inc. (U.S.) among various others. Conventional farming methods such as the use of pesticides, herbicides, and other genetically modified organisms are becoming unsuitable to meet the growing requirements of precision farming. Hence, major players are continuously involved in technological innovations and strategic acquisitions.

For instance, AGCO Corporation (U.S.) focuses on connecting with agri-tech entrepreneurs and seeks partnerships through innovative and disruptive solutions. In addition, in August 2022, Trimble, Inc., announced entering into strategic partnership with CLAAS KGaA mbH, an agricultural engineering equipment manufacturer. The partnership aimed to develop a precision farming system: SAT 900 GNSS receiver, CLAAS CEMIS 1200,  and GPS PILOT steering system. Some prominent players in the global precision farming market include:

• Ag Leader Technology

• AgJunction, Inc.

• CropMetrics LLC

• Trimble, Inc., AGCO Corporation

• Raven Industries Inc.

• Deere and Company

• Topcon Corporation

• AgEagle Aerial Systems Inc. (Agribotix LLC)

• DICKEY-john Corporation

• Farmers Edge Inc.

• Grownetics, Inc.

• Proagrica (SST Development Group, Inc.)

• The Climate Corporation

Precision Farming Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global precision farming market report based on offering, application, and region:

• Offering Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

    • Automation & Control Systems

      • Drones

      • Application Control Devices

      • Guidance System

        • 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 Sensor

        • Climate Sensor

        • Others

      • Antennas & Access Points

  • Software

    • Web-based

    • Cloud-based

  • Services

    • System Integration & Consulting

    • Maintenance & Support

    • Managed Services

      • Data Services

      • Analytics Services

      • Farm Operation Services

    • Assisted Professional Services

      • Climate Information Services

      • Supply Chain Management Services

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • 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, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Russia

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • Singapore

  • South America

    • Brazil

  • Middle East & Africa