Precision Farming/Agriculture Market Size, Share & Trends Analysis Report By Offering (Hardware, Software, Services), By Application (Yield Monitoring, Irrigation Management) And Segment Forecasts, 2019 - 2025

Industry Insights

The global precision farming/agriculture market size was valued at USD 4.07 billion in 2018 and is expected to register a CAGR of 14.2% over the forecast period. The high growth can be attributed to the growing proliferation of Internet of Things (IoT) and use of advanced analytics by farmers. Advanced analytics is part of the 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 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 with regard to harvesting times, crop market rate, and soil management, among others. This is one of the key factors contributing to the growth of precision farming market. Factors facilitating the adoption of sustainable farming technologies include better education and training to farmers, easily accessible information, availability of financial resources, and high demand for organic food.

Depletion of natural resources and deterioration of 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 preservation of natural resources. This has driven the need for improving crop nutrition and protection, in turn boosting the market. Technological innovations, such as vertical farms with smart design to maximize yields and reduce waste, haveunfoldednumerousgrowthopportunities.

Moreover, increasing investments in technologies such as drones, driverless tractors, guidance system, and GPS sensing systems are also expected to contribute to market growth. 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.

However, smart solutions involve high investments, which acts as a drawback for farmers, especially in developing countries such as China, India, and Brazil. A number of companies are observed to establishing public and private partnerships to sustain competitive advantage.

Offering Insights

Based on offering, the market has been segmented into hardware, software, and services. The hardware segment led the market in terms of revenue in 2018 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 automation and control systems sub-segment has been further categorized into drones, application control devices, guidance systems, remote sensing, driverless tractors, mobile devices, Variable Rate Technology (VRT), and wireless modules. The sensing devices segment has been segmented into soil sensors, water sensors, and climate sensors.

The software segment is fragmented on the basis of web-based and cloud-based precision agriculture. Cloud computing focuses on shared networks, servers, and storage devices, owing to which the high costs incurred in maintaining hardware and software infrastructure is eliminated. As a result, the software segment is anticipated to register a high CAGR of 17% over the forecast period. Predictive analytics software is used to provide guidance to farmers about crop rotation, soil management, optimal planting times, and harvesting times.

Application Insights

Based on application, the market has been segmented into field mapping, yield monitoring, crop scouting, irrigation management, inventory management, weather tracking and forecasting, and farm labor management. The weather tracking and forecasting segment is anticipated to expand at a CAGR of 20.5% during the forecast period.

On-farm yield monitoring enables farmers to obtain real-time information during harvest and create a historical spatial database. This segment is expected to register the highest CAGR 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.

Regional Insights

North America led the market in terms of revenue in 2018. 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.

Numerous government initiatives are being undertaken in developing countries such as India, Sri Lanka, and Nigeria to encourage implementation of modern farming technologies, thereby maximizing productivity. Moreover, an effective administrative framework is also enabling farmers to gain adequate knowledge of the proper use and maintenance of farming equipment. For instance, 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.

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.

Precision Farming Market Share Insights

Major market players 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 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.

Report Scope

Segments Covered in the Report

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

• Offering Outlook (Revenue, USD Million, 2014 - 2025)

  • 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; 2014 - 2025)

  • 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; 2014 - 2025)

  • 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 and Africa (MEA)