Precision Farming Market Size, Share & Trends Report

Precision Farming Market Size, Share & Trends Analysis Report By Offering, By Application (Yield Monitoring, Weather Tracking, Field Mapping, Crop Scouting), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Mar, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-1-68038-376-8
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 150

Report Overview

The global precision farming market size was valued at USD 6.00 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 13.1% from 2021 to 2028. The growth is attributed to the increasing proliferation of the Internet of Things (IoT) and 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. Factors facilitating the adoption of sustainable precision farming technologies include better education and training to farmers, easily accessible information, availability of financial resources, and high demand for organic food.

North America precision farming market size, by offering, 2016 - 2028 (USD Billion)

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 in 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.

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 boosting the market for precision farming. Technological innovations, such as vertical farms 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. 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, the sensors also help farmers obtain a high yield production with less crop wastage. These sensors are highly adopted in different applications such as agriculture, pharmaceutical and healthcare, automotive, and sports.

The outbreak of COVID-19 has adversely affected the precision farming market 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 COVID-19 outbreak have 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 started focusing more on wireless platforms to enable real-time decision-making for crop health monitoring, yield monitoring, irrigation scheduling, field mapping, and harvesting management.

North America held the largest share in the year 2020, owing to the higher adoption of the technologies and devices such as the guidance system, and VRT (Variable Rate Technology) 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, the later run 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 69.13% in 2020 and is expected to remain dominant over the forecast period. The hardware segment has been further bifurcated into automation and control systems, sensing devices, and 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 to determine areas that need more pesticides and seeds, and thereby distribute 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 16% 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 44.55% in 2020 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 enables farmers to obtain real-time information during harvest and create a historical spatial database. This segment is expected to account for the largest market share as it offers equitable landlord negotiations, documentation of environmental compliance, and track records for food safety. Meanwhile, 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.

Global precision farming market share, by application, 2020 (%)

The weather tracking and forecasting segment is anticipated to expand at a CAGR of 18% during the forecast period. The use of sensors helps weather forecasters to provide accurate weather reading and forecasting. Also, the introduction of machine learning techniques and advanced data analytics services has increased the reliability and accuracy of weather forecasts.

Regional Insights

North America accounted for the largest revenue share of 45.61% in 2020. The region is an early adopter of technologies. Factors such as increasing government initiatives for 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 November 2016, the Canadian government invested USD 425,000 in Clean Seed Capital Group to enhance and commercialize precision agriculture technology. The goal of this investment was to reduce the excessive use of fertilizers and pesticides. With the help of these funds, the company also developed CX-6 SMART Seeder for farmers.

Asia Pacific is expected to witness significant growth over the forecast period. The region is expected to witness a CAGR of over 15% from 2021 to 2028. 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 for precision farming 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.). 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 December 2018, AgJunction Inc. entered into a partnership with Mahindra and Mahindra Ltd. With this agreement, both the companies will prepare a statement of work for the future development of products for the farmers. Some prominent players operating in the precision farming market include:

  • Ag Leader Technology

  • AgJunction, Inc.

  • CropMetrics LLC

  • Trimble, Inc.

  • AGCO Corporation

  • Raven Industries Inc.

  • Deere and Company

  • Topcon Corporation

Precision Farming Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 6.89 billion

Revenue forecast in 2028

USD 16.35 billion

Growth Rate

CAGR of 13.1% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD Million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments Covered

Offering, application, region

Regional scope

North America; Europe; Asia Pacific; South America; Middle East & Africa

Country scope

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

Key companies profiled

Ag Leader Technology; AgJunction, Inc.; CropMetrics LLC; Trimble, Inc.; AGCO Corporation; Raven Industries Inc.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


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 and opportunities in each of the sub-segments from 2016 to 2028. 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, 2016 - 2028)

    • 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

        • Supply Chain Management Services

        • Climate Information Services

  • Application Outlook (Revenue, USD Million, 2016 - 2028)

    • 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 - 2028)

    • 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

Frequently Asked Questions About This Report

gvr icn

GET A FREE SAMPLE

gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself...

gvr icn

NEED A CUSTOM REPORT?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.

Contact us now to get our best pricing.

BBB icon D&B icon

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure.