Global Precision Farming Market Size, Share & Industry Trends Analysis Report By Technology (Guidance Technology, Remote Sensing Technology), By Offering, By Application, By Regional Outlook and Forecast, 2021 - 2027
Report Id: KBV-8452Publication Date: April-2022Number of Pages: 343
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The Global Precision Farming Market size is expected to reach $11.1 billion by 2027, rising at a market growth of 7.0% CAGR during the forecast period.
Precision farming is a modern approach to farm and agriculture management that employs information technology to ensure that crops and soil get exactly what they need to thrive and produce at their best. In addition, Precision farming aims to assure profitability, long-term viability, and environmental protection. Satellite agriculture, as-needed farming, precision farming, and site-specific crop management are all terms used to describe the precision farming industry.
Precision farming necessitates the use of specialized equipment, software, and information technology. The method entails retrieving real-time data on the crop, soil, and ambient air conditions, as well as other pertinent data such as hyper-local weather forecasts, labor prices, and equipment availability. The data is used by the predictive analytics software to give farmers advice on crop rotation, planting timings, harvesting periods, and soil management. Moreover, sensors in the field monitor the moisture content and temperature of the soil as well as the surrounding air. Farmers can see individual plants in real-time due to satellites and unmanned drones. Information from those photos can be processed and combined with sensors and other data to provide recommendations for immediate and future decisions, such as when and where to irrigate specific fields and when or where to sow a specific crop.
Precision agricultural software is farm management software that employs information technology to ensure that the soil, as well as the crop, receives the optimal amount of nutrients required to maximize production and hence increase crop yield. This method allows the user to get real-time information regarding plant health, soil requirements, weather forecasts, and labor costs associated with completing a certain task in the field. Several sensors in the field like satellites and robotic drones offer data and photos that enable farmers to make quick decisions on fertilizers, water, and crop protection agents that the crop requires to function normally.
Accelerated implementation of new-age technology in precision farming to decrease labor costs, greater adoption of Internet of Things (IoT) devices in agricultural fields, substantial cost savings associated with precision farming, climate change, and the requirement to fulfill increasing food demand, and greater promotion of precision farming techniques by governments worldwide are some of the growth catalysts for the precision farming market.
COVID-19 Impact Analysis
Manufacturing facilities and corporate offices of the major companies in this market are located throughout Asia Pacific, Europe, the Americas, and the Rest of the World. These companies' precision agricultural goods are acquired by a variety of stakeholders for a variety of purposes. COVID-19 had an impact on not just the operations of precision farming manufacturers, but also the operations of their suppliers and distributors. In the medium term, the drop in export shipments and slow domestic demand for precision farming, compared to pre-COVID-19 levels, is projected to have a negative impact on and slightly stagnant demand for precision farming. During the first half of 2020, the major players in this sector have seen the impact of the pandemic on their order intakes.
Market driving Factors:
Global Warming is set to fuel the market growth
Global warming has drastically altered climatic conditions around the globe. In addition, the climate is a significant factor that has a significant impact on agriculture. Global warming has significantly altered the environment around the world in recent decades, which has had a negative impact on traditional farmers and farming operations. This is where smart farming comes in since it aids in the management of changing climatic circumstances that could devastate crops or limit farmer production. Moreover, crop health monitoring, harvesting management, field mapping, and other farm management software functions assist farmers to boost their output and optimize their fields for maximum profitability. Since global warming has drastically altered the climate, traditional farming methods are no longer as productive as they once were. Droughts, floods, and other natural disasters that destroy agricultural output have become more common as a result of global climate change.
Increasing implementation of smartphones in agriculture
As the popularity of smartphones grows, so does the demand for smartphone integration in precision farming. In addition, advanced applications for all smartphones have been developed by companies. With the help of smartphone integration, farmers may watch the field from any location, and the data is stored in the cloud as a backup. Moreover, smartphones meet the needs of farmers because they offer connectivity via Bluetooth, USB, and Wi-Fi. As a result, the rapid usage of smartphones would help the market to flourish. Improvements in farming infrastructure are made possible by technological advancements.
Marketing Restraining Factor:
The massive cost of Precision agricultural equipment and lack of regulations
The high prices associated with precision farming equipment act as the major barriers to market growth. In addition, precision farming technology and equipment, such as smart sensors, drones, VRT, GPS, GNSS, guidance tools, and receivers, are extremely efficient but costly. Additionally, precision agricultural equipment requires competent staff to set up and operate. As a result, in developing nations like India, China, and Brazil, where agricultural resources are limited, farmers choose traditional farming over new technology-based farming due to the high investment requirements. Precision irrigation technology necessitates the purchase of some equipment as well as some basic technical expertise in order to fully utilize its capabilities.
Technology Outlook
Based on Technology, the market is segmented into Guidance Technology, Remote Sensing Technology, Variable Rate Technology. The Variable Rate Application segment garnered a significant revenue share of the Precision Farming Market in 2020. This is because VRT is widely used in precision farming due to its numerous advantages. VRT provides for variable input application rates across fields, allowing for site-specific field variability management. Variable-rate technology (VRT) enables farmers to control the number of inputs they apply in a single region by allowing them to apply them at different rates. A computer, software, a controller, and a differential global positioning system are all essential components of the VRT technology-based instrument (DGPS). VRT can be utilized independently or in conjunction with GPS/GNSS.
Offering Outlook
Based on Offering, the market is segmented into Hardware (Automation & Control Systems and Sensing & Monitoring Devices), Software (Local/Web-based and Cloud-based), and Services. In 2020, the Hardware segment acquired the highest revenue share of the Precision Farming Market. This is due to their widespread use in precision farming, automation and control systems like GPS receivers, guidance and steering devices, and variable-rate technology (VRT) devices. Automation and control systems, as well as monitoring and sensing equipment, fall under the hardware segment. The significant use of automation and control devices in the agriculture business, such as drones/UAVs, GPS/GNSS, guidance and steering systems, irrigation controllers, yield monitors, and sensors, can be attributed to the growth of this segment. Moreover, hardware components including automation and control systems, sensing devices, and drones are critical in assisting farmers.
Application Outlook
Based on Application, the market is segmented into Yield Monitoring, Field Mapping, Weather Tracking & Forecasting, Variable Rate Application, Crop Scouting, Inventory Management, Farm Labour Management, Financial Management and Others. In 2020, the Yield Monitoring segment acquired the biggest revenue share of the Precision Farming Market. This is because it assists farmers in making field decisions. On-farm yield monitoring and off-farm yield monitoring are two different types of yield monitoring. Farmers can get real-time information during harvest and construct a historical-geographical database by using on-farm yield monitoring. The advantages of climate service initiatives, which help farmers to better deal with climate-related calamities and improve food security and agricultural decision-making, can be credited to the market's expansion.
Precision Farming Market Report Coverage
Report Attribute
Details
Market size value in 2020
USD 7.2 Billion
Market size forecast in 2027
USD 11.1 Billion
Base Year
2020
Historical Period
2017 to 2019
Forecast Period
2021 to 2027
Revenue Growth Rate
CAGR of 7% from 2021 to 2027
Number of Pages
343
Number of Tables
573
Report coverage
Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling
Segments covered
Technology, Offering, Application, Region
Country scope
US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers
Global Warming is set to fuel the market growth
Increasing implementation of smartphones in agriculture
Restraints
The massive cost of Precision agricultural equipment and lack of regulations
Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, North America emerged as the leading region in overall Precision Farming Market by procuring the largest revenue share. The massive revenue of the regional market can be attributed to the huge shift in the agriculture industry across the country, the United States is likely to lead the precision farming software market in the American area. Certain variables, such as growing digitalization and automation, IoT deployment, the proliferation of linked devices, and others, are making their way into advanced and sustainable farming and agriculture.
The major strategies followed by the market participants are Partnership. Based on the Analysis presented in the Cardinal matrix; Deere & Company is the forerunners in the Precision Farming Market. Companies such as Hexagon AB, CNH Industrial, AGCO Corporation are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Trimble, Inc., CNH Industrial N.V., AgEagle Aerial Systems, Inc., Topcon Corporation (Topcon Positioning Systems, Inc.), Hexagon AB (Hexagon Agriculture), CropX, Inc., CropIn Technology Solutions Private Limited, Telus International, Inc., Deere & Company, and AGCO Corporation.
Recent Strategies Deployed in Precision Farming Market
» Partnerships, Collaborations and Agreements:
Feb-2022: TELUS Agriculture, a division of world-leading communications technology company TELUS, partnered with Solace, the leading enabler of event-driven architecture for real-time enterprises. Through this partnership, TELUS Agriculture preferred Solace PubSub+ Platform to become the data distribution backbone of a new solution they are developing to connect, digitize and exchange real-time data across the agriculture, food and consumer goods value chains.
Jan-2022: Cropin formed a partnership with Heaven Sprout Foods, a distributor and exporter of plant-based solutions. Through this partnership, Cropin aimed to continue its efforts towards fuelling agri-businesses in the Latin American region while embracing and boosting digitization across their operations.
Dec-2021: John Deere teamed up with xarvio Digital Farming Solutions, a brand from BASF Digital Farming. Following the collaboration, the two companies aimed to assist European farmers in enhancing crop production. Together, the two companies would support farmer's move from complete field application rates to zone specific dosing, allowing them to move ahead in precision and input optimization. This would assist farmers to improve the utilization of their sprayers.
Oct-2021: Topcon Corporation along with its subsidiary Topcon Positioning Systems, formed a research collaboration with Kubota Corporation, a Japanese multinational corporation based in Osaka. The collaboration woudl focus on the domain of smart agriculture. Moreover, the entities would focus on the innovation for future commercialization through collaborative research in the domain of smart agriculture, leveraging the technologies and know-how developed by each company.
Sep-2021: CropIn came into a partnership with Mucheki Consulting, a trusted provider of custom-designed, end-to-end enterprise resource planning solutions to businesses in South Africa and across the African continent. This partnership would bring digitization to the African agricultural ecosystem. Following the acquisition, the two companies aimed to bolster CropIn’s presence in Africa and allow the development of a digital ecosystem in the country. Under this partnership, agri stakeholders would obtain beneficial real-time insights to take informed decisions that would bring about consistency, dependability, sustainability, higher crop yield, and boosting the financial stability of the farmers.
Sep-2021: CNH Industrial teamed up with 5G Open Innovation Lab, a global applied innovation ecosystem for corporations, academia and government institutions working on designing 5G technologies. This partnership would further bolster the vision of CNH Industrial to improve precision farming offerings through the development of new connected digital technologies that enable its customers to discover the true potential of their farms.
Aug-2021: CropIn entered into a partnership with True Digital Solutions, a vendor of one-stop solutions for all your Digital & IT Telecom needs. Following the partnership, the two companies aimed to facilitate the digital transformation of the agriculture ecosystem in Southeast Asia.
Jul-2021: CropIn came into a partnership with Unyiha Associates, a food processing company headquartered in Tanzania. The partnership would allow the digital transformation of the agricultural ecosystem in Tanzania and East
May-2021: CropIn partnered with BETA Computers, the Nigerian-based IT solution provider. This partnership aimed to expand the CropIn’s presence in the African continent to assist farmers to completely take the advantage of their yields. Moreover, the partnership would offer access to cutting-edge IT solutions and smart farming solutions in the Nigerian and the West African market for agribusinesses to enhance their business potentials.
Apr-2021: CropIn formed a partnership with Enterprise Business Info Systems (EBIS), the Nigerian-based solution provider. The partnership would focus on enhancing CropIn’s technological capabilities in the African continent. The partnership would also offer streamlined access to several local businesses in the Nigerian and the African market overall.
Apr-2021: Trimble formed a partnership with HORSCH, one of the world’s leading manufacturers of modern agricultural technology. Through this partnership, the two comapnies would work towards creating innovative solutions, including autonomous machines and workflows.
Mar-2021: CropX partnered with rieggo, Grupo Rotoplas' new company dedicated to offering smart water services to farming operations in Mexico. Following the partnership, the two companies aimed to assist Mexican agribusinesses to decrease water consumption and enhance crop yields. In addition, this partnership would further work towards the water conservation and soil health.
Mar-2021: John Deere formed a partnership with Solorrow, German agri-tech start-up company Solorrow. This partnership would enable the streamlined communication between its variable rate application maps and the John Deere Operations Center.
Aug-2020: CropIn partnered with Agrizon, the US-based Agri FoodTech Solution. This partnership would facilitate the effective deployment of CropIn’s solutions in the Latin American region.
Aug-2020: CropIn entered into a partnership with Eco BCG, the US-based Engineering Tech Solution Provider. The partnership would further improve the technological capabilities in ensuring effective deployment of CropIn’s solutions in the Latin American geographies. Moreover, the partnership would facilitate access to smart farming solutions to a wide range of local agribusinesses in the Latin American market and expedite their business productivity.
» Product Launches and Product Expansions:
Feb-2022: TOPCON introduced the Inbound tracker to its precision feeding lineup. With Inbound Tracker, Topcon Position Group would enhance producers’ ability to monitor, track, and export feed deliveries.
Nov-2021: Trimble released enhancements in its Trimble CenterPoint RTX correction service. Through these enhancements, the company would provide farmers the dual advantage, the ease of usage of the satellite-delivered corrections, and RTK horizontal performance in less time.
Jun-2021: Hexagon's Agriculture division introduced HxGN AgrOn Ti10, a new generation of displays. The new product features a 10.1-inch high-definition (HD) screen, robust processors, and more features, the onboard controller adds even more innovation to the field. Moreover, Ti10 is developed for the upcoming technologies, which are feasible from the resources of these high-performance devices.
Nov-2020: TELUS rolled out TELUS Agriculture. Telus Agriculture would enhance the food value chain by harnessing data to drive up efficiency, production and yields, offering better food outcomes for businesses and the end-consumer. Moreover, TELUS Agriculture would make a substantial contribution to this fast-rising portfolio, boosting strong financial and operating performance as well as material shareholder value creation.
Jul-2020: Hexagon's Agriculture division launched HxGN AgrOn ISOBUS Display, a new solution that would bring this international protocol through embedded technology closer to the agricultural and forestry sectors, and machinery manufacturers. The product aims to set up streamlined communication standards between displays, tractors and implements, simlifying the information exchange, irrespective of the machinery brands.
» Acquisitions and Mergers:
Dec-2021: Deere & Co. took over AgriSync, the customer service platform for agriculture business and equipment dealers. Through this acquisition, AgriSync would expanding ExpertConnect, the Deere-branded version of its ticketing and remote support service.
Dec-2021: CNH Industrial took over Raven Industries, an American company that manufactures precision agriculture products, high-altitude balloons, plastic film and sheeting, and radar systems. This acquisition aimed to strengthen the company's vision to improve its precision farming offerings and align with its digital transformation strategy. Moreover, this partnership would integrate Raven’s technologies with CNH Industrial’s robust and new product portfolio that would offer its customers with innovative, connected technologies, enabling them to be more productive and efficient than before.
Dec-2021: CNH Industrial completed the acquisition of NX9, a software suite specialized in offering ISOBUS core technologies and applications for agricultural equipment. This acquisition would enhance the company's in-house digital agriculture competencies that enrich product, brand, distribution and supply chain strength. Moreover, it would seamlessly integrate ISOBUS capabilities across the electrical vehicle architecture of CNH Industrial’s core agriculture product offerings, predominantly tractors and implements. This would enable the streamlined connection and command and control, including for mixed fleets; expedite in-development projects; and bring in-machine solutions to market faster.
Dec-2021: AGCO took over Appareo Systems, a leader in software engineering, hardware development and electronic manufacturing. This acquisition would improve the company's offerings and talent as it implements its strategy to offer next-generation technology solutions to farmers across the globe.
Dec-2021: Precision Planting, a subsidiary of AGCO Corporation, signed an agreement to acquire the business and assets of Creative Sites Media, a leading software and app development company in Bloomington. This agreement would further stregthen AGCO’s objective of being the trusted partner for industry-leading smart farming solutions and allowing precision agriculture.
Aug-2021: John Deere completed the acquisition of Bear Flag Robotics, an agriculture technology startup based in Silicon Valley. This acquisition would expedite the development and delivery of automation and autonomy on the farm and streghthen John Deere's long-term vision to develop intelligent machines with next-generation technology to support individual customer requirements.
Aug-2021: Precision Planting, a subsidiary of AGCO Corporation announced an agreement to acquire the business and assets of Headsight, Inc. (Headsight), a leading precision agriculture harvesting solution company. As Headsight provides an innovative set of capabilities which would be highly complementary to AGCO's objective of being the reliable partner for industry leading, smart farming solutions and allowing precision agriculture growth.
Aug-2021: CropX took over Dacom Farm Intelligence, a company that assists agribusiness to improve crop quality through advisory services, data-driven software, & sensor equipment. This acquisition would help CropX to expand its footprints in Europe.
Jul-2021: Rabobank took over Conservis, a company that combines different farm technologies into one streamlined interface to manage the business of farming. Following the acquisition, the two companies would leverage the joint expertise, experience, and global presence to further create the Conservis farm management platform, assisting resolve farmers’ data issues, support their decision-making, and develop sustainable, profitable opportunities with other contributors in the food value chain.
Sep-2020: CropX took over Regen, a cloud-based, precision effluent and irrigation decision support tool company based out of New Zealand. Following the acquisition, the company would enter into the New Zealand market. Moreover, the acquisition aimed to add effluent irrigation, a new service to CropX’s portfolio.
Jan-2020: CropX completed the acquisition of CropMetrics, a major vendor of cloud-based, precision-irrigation tools. This acquisition would integrate the expertise of CropX and CropMetrics that would assist the two companies to provide the most sophisticated in-soil data analytics, decision-support tools and data-driven irrigation prescriptions to growers around the globe.
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Frequently Asked Questions About This Report
The global precision farming market size is expected to reach $11.1 billion by 2027.
Increasing implementation of smartphones in agriculture are driving the market in coming years, however, the massive cost of Precision agricultural equipment and lack of regulations limited the growth of the market.
The expected CAGR of the precision farming market is 7% from 2021 to 2027.
The Guidance Technology segment acquired the maximum revenue share in the Global Precision Farming Market by Technology in 2020, thereby, achieving a market value of $6.0 billion by 2027.
The North America is the leading region in the Global Precision Farming Market by Region in 2020, and would continue to be a dominant market till 2027.
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