|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD 8.56 Billion
|
|
CAGR
(2023-2028)
|
9.55%
|
|
Fastest
Growing Segment
|
Field Mapping
|
|
Largest
Market
|
Asia-p
|
Market Overview
Global
Precision Agriculture Market has valued at USD 8.56 Billion in 2022 and is anticipated to project
impressive growth in the forecast period with a CAGR of 9.55%
through 2028. Precision agriculture, also known as site-specific crop
management (SSCM), is an approach to farm management that enables farmers to
increase food production in a cost-effective manner. It encompasses various
technologies, including global positioning system (GPS), geographical
information system (GIS), remote sensing (RS), and variable rate technology
(VRT). By leveraging specialized equipment, software, and information
technology (IT) services, precision agriculture provides real-time data on soil
conditions, ambient air quality, crop health, labor costs, equipment
availability, and local weather forecasts. This data facilitates precise decision-making
regarding planting, crop rotation, and harvesting. Furthermore, precision
agriculture helps reduce water usage, as well as the application of pesticides,
herbicides, and fertilizers. It plays a crucial role in enhancing the
profitability, productivity, quality, and sustainability of crops. Given its
ability to lower production costs and labor requirements, the demand for
precision agriculture continues to grow worldwide.
Key Market Drivers
Technological Advancements in
IoT & AI
Advancements
in Internet of Things (IoT) and Artificial Intelligence (AI) technologies are
set to significantly increase the global demand for precision agriculture. The
convergence of these technologies enables farmers and agribusinesses to make
more informed decisions through increased accuracy and control in their farming
operations. IoT devices, such as sensors and drones, are able to collect vast
amounts of data on soil, weather, crops, and livestock. When this data is
processed and analyzed by sophisticated AI algorithms, actionable insights can
be drawn to optimize farming practices. This might involve determining the
optimal time for planting seeds, identifying potential pest outbreaks, or
understanding the precise irrigation needs of a field. The result is not only
an increase in crop yields and quality, but also a reduction in waste, energy
use, and environmental impact - a sustainable model that is becoming
increasingly important in the face of climate change and global food security
challenges. Such benefits are driving the uptake of precision agriculture
globally, with farmers and agribusinesses in both developed and developing
countries recognizing the transformative potential of IoT and AI technologies.
Increased Use of Cloud
Computing in Farming Practices
The
escalation of Cloud Computing in farming practices is expected to amplify the
global demand for Precision Agriculture significantly. This technology-driven
approach to farming uses real-time data and cloud-based applications for more
accurate and controlled agricultural operations. Farmers can now monitor their
crops and livestock with unprecedented detail and accuracy, allowing
optimization of water and fertilizer usage, yield predictions, and early
disease detection. These capabilities are not just reducing costs and
increasing efficiency, they are also contributing to environmental
sustainability by minimizing waste and overuse of resources. Cloud computing's
scalability and accessibility make precision agriculture a viable option for
even small-scale farmers, effectively democratizing high-tech farming. This
increased usage and accessibility of cloud computing are expected to drive a
surge in demand for precision agriculture worldwide, as farmers seek to
leverage technology to increase yield, efficiency, and profitability, while
simultaneously reducing their environmental footprint. Over time, it's
anticipated that the global agriculture industry's reliance on precision and
technology will only continue to grow.
Rise in the Usage of
Smartphone Applications Tailored for Precision Agriculture
The
global rise in the adoption of smartphones has significantly contributed to the
increased demand for Precision Agriculture. Precision Agriculture is an
innovative approach to agricultural management that utilizes information and
technology to ensure crops and soil receive precisely what they need for
optimal health and productivity. The advent of smartphone applications tailored
specifically for Precision Agriculture has made this method even more
accessible and efficient for farmers worldwide. These applications use a
variety of technologies, including GPS, satellite imagery, and on-site sensors
to deliver real-time data about the condition of the fields, making precision
agriculture a more streamlined and informed process. This data-driven approach
enables farmers to monitor and manage their crops at the granular level,
reducing the use of resources such as water, fertilizer, and pesticides,
thereby decreasing environmental impact and increasing sustainability. It also
allows for more accurate prediction of crop yields, leading to better planning
and profitability. In essence, the rise in the usage of such smartphone
applications is set to expedite the global demand for Precision Agriculture,
marking a significant stride towards a more sustainable and efficient future in
agriculture.
Increasing Acceptance of
Automated Farming Solutions
The
increasing acceptance of automated farming solutions is expected to
significantly boost the global demand for precision agriculture. Farmers are
progressively recognizing the benefits of automated and Precision Agriculture,
as these technologies offer solutions for managing the variability of crops,
thereby optimizing yield and profitability. By utilizing Precision Agriculture
techniques such as GPS soil sampling, remote sensing, variable rate technology
(VRT), and Geographic Information Systems (GIS), farmers can make more informed
decisions about when and where to plant, fertilize, and irrigate. These
advanced technologies are capable of reducing waste, conserving resources, and
minimizing the environmental impact of farming, thus contributing to sustainable
agriculture. Additionally, with the advent of smart devices and Internet of
Things (IoT) in agriculture, real-time monitoring of crop and soil health has
become possible, leading to improved crop management and forecasting. As a
result, the increasing efficiency, cost-effectiveness, and environmental
sustainability offered by automated farming and precision agriculture are
anticipated to drive their acceptance and demand worldwide, revolutionizing the
agricultural industry on a global scale.
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Key Market Challenges
High Initial Investment
Precision
agriculture, one of the megatrends in the global agricultural landscape,
represents a new approach to plant cultivation. Utilizing advanced technologies
such as drones, remote sensing, and GPS, it seeks to optimize resource use,
increasing crop yields, and diminishing environmental impact. However, the high
initial investment required can serve as a significant barrier to its global
adoption. The cost of Precision Agriculture technologies, along with the
necessary infrastructural changes, can be prohibitive, especially for small to
medium-scale farmers who constitute a large segment of the global agricultural
sector. This financial constraint is even more pronounced in developing
countries, where farmers often lack access to credit or other funding
resources. Additionally, the return on investment (ROI) from Precision
Agriculture is not immediate and requires a longer-term perspective. This
aspect can discourage those seeking quick financial gains or those operating on
tight margins. Consequently, while the benefits of precision agriculture are
apparent, the high initial investment and long-term ROI may decrease its demand
globally, particularly amongst small-scale farmers and in resource-limited
regions.
Lack of Necessary
Infrastructure
Precision
Agriculture (PA) is a farming management approach that leverages advanced
technology to enhance crop yield and profitability while lowering the overall
level of inputs necessary. However, the lack of necessary infrastructure,
particularly in developing economies, is expected to reduce the global demand
for precision agriculture. Many rural areas still lack the fundamental
infrastructure needed to use precision agriculture technologies effectively,
such as reliable electricity supply, high-speed internet, and access to modern
farming equipment. Without these foundations, the successful implementation of
PA becomes extremely challenging. Additionally, the high costs associated with
establishing this infrastructure can be prohibitive, particularly in regions
where agriculture operates on very slim margins. The lack of skilled workforce
to operate and maintain these sophisticated technologies is another significant
hurdle. Furthermore, the absence of specific regulatory policies supporting the
adoption of such technologies can also deter farmers from making these
investments. Thus, until these infrastructural and policy issues are
effectively addressed, the adoption of Precision Agriculture is likely to be
restrained, reducing its demand on a global scale.
Key Market Trends
Growing
Popularity of Unmanned Aerial Vehicles (UAVs) Or
Drones In Agricultural Operations
The
growing popularity of Unmanned Aerial Vehicles (UAVs), or drones, in
agricultural operations is poised to propel the global demand for precision
agriculture. This technology-centric approach to farming, which leverages data
and analytics, is being transformed by the introduction of UAVs. These drones,
equipped with advanced sensors and imaging capabilities, can provide detailed
and accurate real-time data about the condition of crops, soil, and weather.
They help farmers to monitor crop health, detect diseases or pests, assess soil
moisture levels, and even assist in the precise application of fertilizers or
pesticides, thereby reducing wastage and enhancing crop yield. The ability to
make informed decisions based on accurate, real-time data significantly
increases efficiency, productivity, and sustainability in agriculture, making
it an attractive proposition for farmers globally. Furthermore, as
environmental sustainability becomes a pressing concern, the need for efficient
resource management in agriculture intensifies, reinforcing the demand for Precision
Agriculture tools like drones. With the continual advancements in drone
technology and a growing acknowledgment of its benefits, the role of drones in
global precision agriculture is expected to increase substantially.
Emergence
of Precision Livestock Farming
Precision
Livestock Farming (PLF) is an emerging technological innovation that is
projected to lead to a surge in global demand for Precision Agriculture (PA).
PLF harnesses the power of cutting-edge technologies such as Artificial
Intelligence (AI), the Internet of Things (IoT), and Big Data analytics to
manage and monitor livestock health and productivity. This methodical,
data-driven approach allows farmers to make precise, timely decisions that
enhance livestock productivity, welfare, and sustainability. Moreover,
implementing PLF leads to increased demand for PA, because the principles and
technologies used in precision livestock are deeply intertwined with those in
PA. Both methodologies share a common goal of optimizing productivity while
minimizing environmental impact through precise monitoring and management.
Additionally, the adoption of PLF encourages the use of PA technologies such as
Geographic Information Systems (GIS) and Remote Sensing (RS), which are crucial
tools for monitoring and managing crops. Thus, the rise of PLF directly fuels
the growth of PA, with both sectors mutually benefiting from advancements in
technology and data science. The global trend toward sustainable farming
practices is only expected to accelerate this growth, cementing the role of
precision agriculture in the future of farming.
Segmental Insights
Component Insights
Based on the Component, the hardware segment accounted for the
largest revenue share in 2022 and is projected to maintain market dominance
throughout the forecast period. Within the hardware segment, there are several
subcategories, including automation and control systems, sensing devices,
antennas, and access points. These hardware components, such as automation and
control systems, sensing devices, and drones, play a crucial role in supporting
farmers. For example, the GIS guidance system provides growers with valuable
visualization of agricultural workflows and the environment. Additionally, VRT
technology aids farmers in identifying areas that require targeted pesticide
and seed application, ensuring equitable distribution across the field.
The software segment is segmented into web-based and cloud-based Precision
Agriculture solutions. Cloud computing offers shared networks, servers, and
storage devices, effectively eliminating the high costs associated with
hardware and software infrastructure maintenance. Consequently, the software
segment is expected to exhibit a robust CAGR during the forecast period.
Predictive analytics software is employed to provide farmers with guidance on
crop rotation, soil management, optimal planting times, and harvesting times.
Application Insights
Based on the Application, the yield monitoring segment, which
accounted for the largest revenue share in 2022, is projected to maintain its
dominant position throughout the forecast period. This segment plays a crucial
role in assisting farmers in making informed decisions about their fields. It
is further divided into two categories: on-farm yield monitoring and off-farm
yield monitoring. On-farm yield monitoring enables farmers to access real-time
information during harvest and create a comprehensive historical spatial
database. This not only facilitates equitable negotiations with landlords but
also ensures documentation of environmental compliance and establishes track
records for food safety. The on-farm yield monitoring segment is anticipated to
hold the largest share of the Precision Agriculture market due to its numerous
benefits and practical applications in the agricultural industry.
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Regional Insights
North America accounted for the largest revenue
share in 2022. The region has established itself as an early adopter of
cutting-edge technologies, paving the way for advancements across various
industries. The success can be attributed to a combination of factors,
including increasing government initiatives that support the adoption of modern
agriculture technologies and a well-developed infrastructure that facilitates
seamless integration.
For instance, the National Institute of Food
and Agriculture (NIFA), a key division of the U.S. Department of Agriculture,
plays a crucial role in promoting awareness among farmers. Through their
geospatial, sensor, and precision technology programs, NIFA collaborates with
Land-Grant universities to empower farmers with robust sensors, software, and
instrumentation. This enables them to effectively model, observe, and analyze a
wide range of complex biological materials and processes, ultimately optimizing
their agricultural practices.
Moreover, in May 2022, the Government of Canada
made a significant investment of USD 4,41,917.5 to develop an integrated system
specifically tailored for precision fruit tree farming. This forward-thinking
initiative not only aims to address the emerging challenges in Canada's apple
industry but also seeks to foster sustainable solutions for long-term growth
and prosperity. The continuous commitment to technological advancements and
sustainable practices positions North America as a frontrunner in the global
market, setting the stage for further growth and innovation in the years to
come.
Recent Developments
- February 2022: Ag Leader expanded their comprehensive full-farm
solution offering with the latest addition to the trusted DirectCommand
application product line. The newly launched RightSpot device delivers
nozzle-by-nozzle sprayer control, ensuring reliable and efficient coverage. It
also provides increased flexibility, a wider speed range, enhanced
productivity, and improved precision, further empowering farmers who have
relied on Ag Leader for over two decades.
- February 2022: Sway AI, a developer of AI technology and services,
announced collaboration with Trilogy Networks to join the Rural Cloud
Initiative (RCI). This unique coalition of network and edge innovation partners
is dedicated to driving and accelerating the digital transformation of rural America.
Through this strategic partnership, Sway AI and Trilogy Networks aim to provide
farmers with a comprehensive AI-enabled precision agricultural solution,
catering to their diverse needs.
- August
2022: Trimble, Inc. announced a strategic partnership with CLAAS KGaA mbH, a
renowned agricultural engineering equipment manufacturer. This collaboration
aims to develop a cutting-edge precision farming system, combining the SAT 900
GNSS receiver, CLAAS CEMIS 1200, and the GPS PILOT steering system. The joint
efforts of Trimble and CLAAS seek to revolutionize agriculture by offering
advanced technologies for improved efficiency and productivity.
Key Market Players
- Ag Leader Technology
- AgJunction, Inc.
- CropMetrics LLC
- Trimble, Inc.
- Raven Industries Inc.
- Deere and Company
- Topcon Corporation
- AgEagle Aerial Systems Inc.
- Farmers Edge Inc.
- Grownetics, Inc.
|
By
Technology
|
By
Component
|
By
Application
|
By
Region
|
- Guidance
Systems
- Remote
Sensing
- Variable
Rate Technologies
|
|
- Yield
Monitoring
- Field
Mapping
- Others
|
- North
America
- Europe
- Asia
Pacific
- South
America
- Middle
East & Africa
|
Report Scope:In this report, the
Global Precision Agriculture Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
·
Precision Agriculture Market, By Technology:
o
Guidance Systems
o
Remote Sensing
o
Variable Rate Technologies
·
Precision Agriculture Market, By Component:
o
Software
o
Hardware
·
Precision Agriculture Market, By Application:
o
Yield Monitoring
o
Field Mapping
o
Others
·
Precision Agriculture Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
§ Egypt
Competitive Landscape
Company
Profiles: Detailed analysis
of the major companies present in the Global Precision Agriculture Market.
Available Customizations:
Global
Precision Agriculture market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
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