Precision Farming Market Size By Component (Hardware [Automated Steering System, Drones, UAVs & Camera, Mobile Device, Global Positioning System (GPS) & Global Navigation Satellite System (GNSS)], Software, Services [Consulting & Training, Maintenance & Updates, Managed Services, Integration]), By Technology (High Precision Positioning System, Geomapping, Remote Sensing, Integrated Electronic Communication, Variable Rate Technology (VRT)), By Application (Weather Monitoring, Yield Monitoring, Field Monitoring, Irrigation Management, Waste Management, Financial Management), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Spain, Netherlands, Turkey, Poland, Russia, Australia & New Zealand, China, India, Japan, South Korea, South East Asia, Brazil, Mexico, Argentina, Colombia, Peru, South Africa, Saudi Arabia, Egypt), Growth Potential, Competitive Market Share & Forecast, 2017 - 2024
Published Date: February 2018 | 400 Pages | Report ID: GMI227 Report Format: PDF
Precision Farming Market size in 2016 was over USD 3.4 billion and is estimated to grow at around 14% CAGR over the forecast timespan.
U.S. Precision Farming Market Size, By Component, 2016 & 2024 ($Mn)
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The global agriculture and food ecosystem faces formidable challenges today due to the increasing population and rapid urbanization. The decline in the total productivity, diminishing and degrading natural resources, fragmented and declining land holdings, stagnating farm resources, and limited employment opportunities in farm in non-farm sector, are the major factors that are impacting the agriculture growth and development. This encourages the farmers and agriculture OEMs to adopt new technologies to increase the agriculture productivity. Precision farming technology have the potential to increase the crop yield and reduce the cost of production by changing the tradition agriculture methods with the advanced IT based agriculture method powered by the capabilities of the Big Data analysis and artificial intelligence. It identifies site specific differences within the field and adjust the management action, instead of managing entire field based on hypothetical average conditions. Moreover, precision agriculture provides the potential to simplify and automate the data collection and analysis of information. It assists in the decision-making process and optimize the production capacity.
The proliferation of the Big Data and increasing adoption of IoT in the agriculture also plays a vital role in the growth of the precision agriculture market. The stakeholders of the precision farming market are leveraging the capabilities of these advanced technologies to get accurate insights of farming conditions and make better predictions about the future outcomes. Furthermore, these technologies also assist in enhancing the crop yield and reducing the production cost. However, the lack of technology adoption in the developing regions of South East Asia, Africa and South America is holding back the growth of the market. Moreover, management of data is also one of the major constraints to the industry.
Precision Farming Market, By Component
Hardware is dominating the precision agriculture market space owing to large scale installation of precision farming devices such as sensors, mobile devices, drones, cameras and UAVs. These devices are installed on different types of farming equipment such as tractors and harvesters. As the technology is rapidly evolving, further developments are expected to result in the introduction of new devices with better location and data processing capabilities.
The hardware consists of sensors, automated steering system, drone, UAVs & camera, mobile device, GPS & GNSS and others. The growing sensor demand is attributed to the increasing functionality, low cost, and advancement in the design & features. Furthermore, the increasing demand for smart and wireless sensors along with declining price of the sensors will foster the precision farming market growth.
Drones, UAVs and cameras are estimated to gain significant growth during the forecast period. The increasing adoption of drones and other UAVs for monitoring and surveillance farm field is one of the primary factor driving the growth of the precision farming market. Furthermore, the increasing applications of the drones, UAVs and cameras in the agriculture is for irrigation inspection, crop scouting, precision spraying and mapping individual fields. In addition, easy availability of the drones and UAVs in the developing countries, declining price and advanced imaging capabilities are fueling the precision agriculture market growth.
Precision Farming Market, By Technology
The high precision positioning systems led the precision farming market in 2016 due to the primary application of GPS and GNSS systems in precision farming solutions. These technologies serve as a basis for the functioning of precision farm systems and devices to determine and process location-based data. Moreover, increasing adoption of the technology for providing auto-guidance for harvesters and tractors to efficiently maintain distance for adjacent passes and to improve machine control is also driving the precision agriculture market growth.
The adoption of the remote sensing technology is estimated to grow during the forecast period due to growing use of remote sensing images acquired by sensors mounted on agricultural machinery and vehicles to measure the light, radiation, and heat condition in the field. Furthermore, increasing adoption of drones and miniature electronic devices also plays a vital role in the growth of the precision farming market.
Precision Farming Market, By Application
Yield monitoring is estimated to account for major share in the digital farming market owing to widespread adoption of precision farming solutions by producers for optimal planning and management of crop. These solutions enable producers to plan input requirements to achieve optimal yield. Furthermore, the requirement of real time data information during the harvesting and requirement of historical spatial database is augmenting the demand for the yield monitoring technology.
The demand for weather monitoring is estimated to increase during the forecast period. The ability of weather monitoring technology to provide real time rainfall information is driving the revenue. In addition, technological advancement in the machine learning algorithms and development of advanced data analytics solutions that can accurately forecast weather information will also foster the digital farming market growth.
Precision Farming Market, By Region
North America is the leading country in the precision farming market owing to the widespread adoption of the advanced information and communication in the agriculture sector. The presence of supportive government policies and well-developed infrastructure also supports the demand. Furthermore, increasing government efforts and initiatives to drive the adoption of technology in the region also foster the precision agriculture market growth. For instance, U.S. National Institute of Food and Agriculture (NIFA), has developed a geospatial, sensor and precision agriculture technology program to spread the awareness of the precision farming among the farmers.
Competitive Market Share
The major vendors of the precision agriculture market are AGCO Corporation, Agribotix, LLC, AgSense LLC, AgSmarts Inc, Boumatic LLC., CropMetrics LLC, CropX Inc., Deere & Company, Delaval Corporation, Dickey-John Corporation, Farmers Edge Inc., GEA Group AG, Monsanto Company, Precision Planting, Raven Industries Inc., Trimble Navigation Limited, and Topcon Positioning Systems Inc. Merger & acquisition is the most common strategy used by these players to increase their product portfolio and gain market share. For instance, Trimble acquired Müller-Elektronik, a precision farming solution provider, in 2017, with the sole purpose of strengthening position in the digital farming market.
Precision Farming Industry Background
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Precision agriculture is an IT based farm management system that detects, analyzes, and manages temporal and spatial feasibility within the field for maximizing the profitability and productivity, sustainability and protection of resources by reducing the cost of production. It is a modern approach where the field data is used to increase the average crop yield. As the demand of the agriculture product is increasing very rapidly, conventional farming methods are unsuitable to meet these growing requirements. Therefore, to address these challenges of the traditional farming methods, the concept of the precision farming is introduced to increase the crop yield reduce the production cost.
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