Precision Agriculture Market Growth Analysis | 2021-2026

Market Insights

"The precision agriculture market was estimated at USD 6.6 billion in 2020 and is likely to grow at a CAGR of 11.2% during 2021-2026 to reach USD 11.8 billion in 2026."

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Market Dynamics

Introduction

Precision agriculture is a modern approach to farm and agriculture management that employs information technology to ensure that crops and soil receive precisely what they require for optimal health and productivity. Precision agriculture aims to ensure profitability, sustainability, and environmental protection. Satellite agriculture, precision farming, as-needed farming, and site-specific crop management are all terms used in the precision agriculture industry (SSCM). Precision agriculture relies on specialised equipment, software, and information technology services. Access to real-time data on crop, soil, and ambient air conditions, as well as other relevant information such as hyper-local weather forecasts, labour costs, and equipment availability, is part of the approach.

COVID-19 Impact

After going through the crisis caused by COVID-19, the precision agriculture market is foreseen to expand successfully during the coming years. Furthermore, various organisations throughout Asia have adopted advanced agricultural techniques to improve their business processes and operational efficiency. Furthermore, several countries have installed precision agriculture applications and adopted precision agriculture solutions for their farming operations without any transmission of data.

Market Drivers

This includes yield monitoring, field mapping, and weather forecasting, all of which improve farming productivity overall. A rise in the use of precision agriculture software in modern farming techniques this increases the demand for a variety of services, including system integration and managed services.

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Market Trends

• Precise monitoring of crop health, soil conditions, and weather patterns is made possible by real-time data collection that is being improved by the integration of IoT devices and sensors in farming operations.
• Unmanned aerial vehicles (UAVs) and drones are being used more frequently for mapping fields, spraying crops, and crop monitoring. These tools give farmers access to precise aerial imagery and current data on agricultural conditions.
• Large datasets are analyzed using AI and machine learning algorithms, providing predictive analytics for pest and disease detection, irrigation control, and crop production predictions.
• Utilizing Global Navigation Satellite Systems (GNSS) and GPS is boosting the precision of agricultural machinery tasks like planting, fertilizing, and harvesting, which reduces waste and boosts productivity.
• Globally, governments are encouraging the use of precision agriculture by providing grants, subsidies, and supportive laws that encourage environmentally friendly farming methods.

Precision agriculture is seeing a transition driven mostly by considerable technical improvements in the agricultural sector. Farming operations are being revolutionized by advances in sensors, GPS technology, drones, unmanned aerial vehicles (UAVs), and sophisticated data analytics. Farmers may now maximize their operations with a variety of technologies and data sources thanks to these developments. With the use of sophisticated sensors, farmers may get information on soil temperature, moisture content, and nutrient levels to inform their decisions about fertilization and irrigation. Precision planting and harvesting are made possible by GPS devices, which guarantee that crops are sown at the ideal depth and collected at their ripest. Farmers can identify crop stress, illnesses, or pests early on with the use of airborne imagery provided by drones fitted with cameras and multispectral sensors.

For instance, high-precision positioning systems retained a substantial proportion of over 28% of the precision farming market in 2022 as a result of the widespread use of GPS and GNSS systems. These technologies are frequently utilized for location-based data processing and identification. Furthermore, GPS is used by precision agricultural technology to increase process efficiency and save unnecessary spending on seeds, fuel, and agrochemicals. In addition to the spatial data offered by GPS, the technology can be used for automated record-keeping and inter-vehicle communication when combined with farm management software.

Segment Analysis

By Technology Type

"Remote sensing technology segment accounted for the largest market share."

Based on the technology type, the precision agriculture market has been bifurcated into guidance technology, remote sensing technology, and variable-rate technology. The remote sensing technology segment accounted for the largest market share in 2020.

Regional Insights

"North America accounted for the largest market share."

By region, the precision agriculture market is expected to be dominated by North America. This is attributed to an increase in farmers' willingness to use digital technology for yield management. Asia-Pacific is expected to grow the fastest during the forecast period, owing to strong economic growth and ongoing agricultural development, which drives organizations to invest heavily in the precision agriculture market to sustain growth and improve productivity.

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Key Players

Key players operating in the precision agriculture market are:

• Deere & Company (US)
• Trimble (US)
• AGCO Corporation (US)
• AgJunction (US)
• Raven Industries (US)
• AG Leader (US)
• Taranis (Israel)
• AgEagle (US)
• Teejet Technologies (US)
• The Climate Corporation (US)
• Topcon Positioning Systems (US)
• Descartes Labs (US)

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s precision agriculture market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The precision agriculture market is segmented into the following categories:

By Component Type

• Hardware
• Software
• Service

By Application Type

• Yield Monitoring
• Field Mapping Telematics
• Crop Scouting
• Weather Tracking & Forecasting
• Inventory Management
• Farm Labor Management
• Others

By Technology Type

• Guidance Technology
• Remote Sensing Technology
• Variable-Rate Technology

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

Recent Market Developments

Precision Agriculture in the Digital Era: Recent Adoption on U.S. Farms

In February 2023, According to the U.S. Department of Agriculture, digital agriculture which refers to the utilization of digital technology in farming processes is helping to overcome more challenges in U.S. agriculture such as increasing production costs, variability in climate, and a lack of human labor. A report shows trend data on the adoption of digital technologies from 1996 to 2019 with trends more pronounced after 2016 based on the USDA's Agricultural Resource Management Survey (ARMS) data. Some technologies include yield maps, soil maps, and variable rate technologies (VRT) which have been used mostly in corn and soybean farming, but not much in winter wheat, cotton, sorghum, or rice. Automated guidance has received vigorous acceptance with its average use standing at more than 50 percent in the important crops. This paper also looked into cost, soil type, USDA, time-saving, and consultants as the main drivers toward adoption.