Precision Farming Market Size By Component, By Technology, By Application, By Fram Size, Growth Forecast 2025 – 2034

Precision Farming Market Size

The global precision farming market was valued at USD 10.5 billion in 2024 and is estimated to register a CAGR of 11.5% between 2025 and 2034.
 

The increasing global population and the soaring need for food are boosting the precision farming market growth. Because of the projected exponential growth of the world’s population, there will be an urgent need to develop effective and sustainable agricultural technology that will respond to food demand. For example, a report published by the United Nations’ Department of Economic and Social Affairs estimates the world population in 2050 will be 9.8 billion and 11.2 billion by 2100. As the world’s population increases year on year by an estimated 83 million, this trend of global population growth is bound to persist.
 

To stimulate the shift to advanced agricultural technologies, Governments around the globe are providing assistance and paying subsidies to farmers. Some of these programs include offering grants for research and development, policy measures to improve agricultural productivity, and providing farmers with financial incentives.
 

For example, in September 2024, the Government of India declared plans to invest around USD 650 million for the adoption of precision farming. It will use technologies such as IoT, AI, drones, and data analytics organic farming to increase productivity, reduce the use of resources and cut down on impacts to the environment. In this way, by encouraging the adoption of technology that results in cleaner farming methods, governments are reducing the environmental footprint of agriculture while increasing the efficiency of food production.
 

Precision Farming Market Trends

Such kind of backing from the government is likely to bolster the development of the market, as a growing number of farmers get hands-on advanced tools.
 

The use of AI and ML applications in precision farming technologies is making the growth of this precision farming industry advancement ever more rapid. These AI systems designed for farmers analyze big data, make decisions automatically, and provide predictive information.
 

According to GMI, AI in agriculture market size was 2.1 billion USD as of 2023 and is predicted to post a compound annual growth rate (CAGR) of more than 24% during the 2024-2032 period primarily due to growing interest in precision agriculture. One can set real time adaptation regarding the environment, crop conditions and other relevant history that precision of farming operations is much better. As these technologies are increasingly embraced AI and machine learning are improving productivity, shrinking expenditure, and enhancing resource management efficiency.
 

In the precision farming market, there has been a shortage of agricultural specialists and professionals, which is a major bane in this sector. Agricultural specialists are required to operate advanced technologies such as drones, sensors and, mostly importantly, data analysis tools.
 

Farmers, especially those at the local level, are not equipped to handle these systems at the required levels which includes troubleshooting, maintaining or even the basic operational procedures. Specialists and experts are meant to bridge the gap but not efficiently utilizing these tools can also add to other layers of problems.
 

The organization for Economic Co-operation and Development periodical makes it clear, the agro-food is in need of skilled laborers at its various sub divisions, and this is the core bane in January 2023 report. Negativity surrounding the sector plays a role in amplifying the problem paired with agriculture being a significantly small contributor to the GDP.
 

To tackle this issue, training of the agricultural workers and upskilling them is the first step. Without expert guidance farmers would never want to invest in high levels of technological solutions which would only slow precision agriculture.
 

Precision Farming Market Analysis

Based on component, the market is divided into hardware, software, and service. In 2024, the hardware segment held a market share of over 55% and is expected to cross USD 16 billion by 2034.
 

• The growth in the hardware segment of this industry is associated with the rapid growth in the adoption of GPRS and advanced sensor technology for farm activities. As farmers attempt to enhance their procedures, hardware tools such as soil sensors, weather stations, and GPS receivers optimize farm conditions.
   
• To increase their market presence, companies are putting greater focus on strategic measures. For example, in October 2023, AGCO acquired BLUELAB, which offers insights and decision-support tools for farmers elevating AGCO’s precision farming portfolio. This acquisition enhanced AGCO's solutions set by embedding BLUELAB's technology and expertise to offer farmers a wider set of comprehensive tools.
   
• The trend for hardware solutions in precision farming is further underpinned by the use of automation where farmers utilize robotic systems and automatic machinery to perform planting, spraying and harvesting tasks.
   

Based on farm size, the precision farming market is categorized into small farm, medium farm, and large farm. The large farm segment held a market share of around 44% in 2024. Large farm segment growth is driven by their ability to invest in advanced technologies to optimize productivity and efficiency.
 

• For the most part these are large scale farms which bring avenues and challenges that can be tackled with precision farming tools. With GPS guided tractors, drones, and soil sensors, these large farms are able to track the condition of crops, control irrigation systems, and minimize excess resources.
   
• To respond to the increasing market demand, key players are introducing new solutions in the market. In September 2023, CLAAS and BASF formed a partnership to create smart agriculture solutions, working in agriculture machinery and digital farming. This partnership brought together CLAAS’ agricultural machinery with BASF’s digital farming platform, creating synergistic approaches for data-centric crop management.
   

Based on technology, the precision farming market is segmented into high precision positioning system, geo mapping, remote sensing, integrated electronic communication, variable rate technology (VRT). The Variable Rate Technology (VRT) segment dominated the market and is expected to hold around USD 6.5 billion revenue by 2034.
 

• Farmers have the potential to make best use of inputs such as fertilizers, seeds and pesticides in regard to specific needs of the field through VRT, which is Variable Rate Technology. It applies the data acquired by using sensors, GPS and software where the inputs are applied in different parts of the field so that input usage is cost effective and efficient.
   
• This type of technology when provided basing on demand minimizes wastage, enhances production yield and also lessens the ecological footprint. There is an increase in the acceptance of the technology in farming, as there is an emphasis on cost minimization as well as maintaining agronomic sustainability.
   
• Moreover, authorities and agricultural institutions are promoting VRT adoption by offering financial support and making it easier for farmers to receive teh technology Those supportive measures increase accessibility to these automated systems as farmers can use lowered upfront capital costs.
   

Based on application, the precision farming market is divided into weather monitoring, yield monitoring, field mapping, irrigation management, waste management, financial management, and others. The yield monitoring segment dominated the market with around 25% market share in 2024.
 

• Yield monitoring is highly effective as it allows farmers to measure the crops growth while in the field. Yield monitoring systems are being refined by ongoing sensor development and sophisticated data analyses making them bring timely management advice to the farmers regarding spatial yield patterns of the fields and performance of the crops.
   
• In addition, yield monitoring systems enable the generation of useful information that ensures better farming in future and increases productivity in the long term. Farmers' use of yield monitoring is growing as the world looks in even greater demand for food, to make sure that farming practices are efficient, environmentally friendly and profitable.
   
• To improve connectivity and access to important data necessary for farmers, key cloud technology providers are partnering with various industries. For example, in April 2024, CNH Industrial collaborated with Intelsat to provide satellite communication services aimed at improving internet connectivity for farmers located in rural areas. Such an alliance looks forward to provide high-quality internet which enhances precision agriculture and connects more farming equipment.
   

U.S. dominated the North America precision farming market with a major share of around 80% in 2024. One major growth driver for the U.S. market is the increasing adoption of advanced technologies such as drones, sensors, and data analytics.
 

• As more technology enters the market, farmers in the U.S. have been incorporating these changes into their daily operations for the purpose of improving yield, reducing cost, and increasing productivity. Drones, for example, are able to provide real time aerial images to farmers enabling them to view the state of their crops and look for the early signs of diseases and the condition of soils.
   
• For US farmers, government subsidies, good infrastructure and information on the advantages of precision farming are making all these technologies increase their productivity while helping to meet the food demand and gain more profit.
   
• For instance, in September 2023, the US Department of Agriculture allocated over USD 3 billion in aid towards agricultural producers or forestland owners. These programs go a step further in supporting the President’s Justice40 Initiative which ensures that 40 percent of the total benefits of certain investments in climate, clean energy, or other federally funded programs are directed. 
   

The precision farming market in the UK is expected to experience significant and promising growth from 2025 to 2034.
 

• The increasing inclination of consumers and government policies towards adopting sustainable farming methods is a vital factor stimulating the growth of the UK precision farming industry. In a bid to encourage sustainable farming practices, the UK government has implemented several policies such as the Environmental Land Management (ELM) scheme.
   
• Such policies encourage farmers to use precision farming technologies which maximize resources while minimizing wastage. Precision farming technologies such as GPS-guided equipment, sensors in the soil, and systems to monitor crops have made it easier for farmers to use resources such as water, fertilizers, and pesticides sparingly, hence reducing damage to the environment.
   
• The UK market is likely to forego rapid expansion because of the increasing need to produce food and the growing focus on environmental protection as farmers look for methods to enhance efficiency and increase profits without breaking the law.
   

The precision farming market in China is anticipated to witness lucrative growth between 2025 to 2034.
 

• The introduction of precision farming tools is boosting Chinese agricultural productivity. Furthermore, investing in advanced technology has become much easier thanks to increased interest from foreign investors and the government. All of these factors have played a significant role in deciding to move towards the introduction of precision farming. It has already attracted a large number of customers and farmers, and the market potential is vast. There is also an ongoing focus from the government to standardize these tools and technologies imparting their origins and fame to their developers.
   
• Restraining textile machinery market factors include limited per capita spending for farmers, lack of support by the government in developing nations for new technology integration, and people are not aware of precision farming technologies. But growing worries about the environment coupled with the need for efficient usage of resources, precision farming embroils advanced soil management practices and crop sustainability. This confluence of increasing demand from the market, and assistance from the government is propelling the market in China to incredible heights in terms of growth.
   
• Southeast Asia accounts for a large share of the progressive seeder and nozzle markets and the tractors using the hydrostatic drive are gaining immense popularity in Australia. Latest trends combined with the demand from local markets help in strategizing new product developments.
   

Precision Farming Market Share

John Deere and Trimble hold a market share of around 15% in the market. For more effective farming, integrated self-contained units incorporating forward looking technologies such as GPS, AI, machine learning, among others have seen a rising usage by Pepsico. In engineering sectors, the JDLink telematics system and automatic steering systems are also gaining traction owing to their aid in enhancing farm management.
 

Trimble strengthens its presence through the provision of advanced software, hardware and services such as: Gps systems, automated guidance and field mapping services. The company continues to enhance its strategic alliances as springing with CNH Industries to ensure better connectivity and customized data services. Both firms actively seek to develop their portfolios by making considerable investments into research and development in order to serve wider markets guaranteeing their place among leading companies in the expanding precise farming industry. Their first strategy towards growth is their innovative approach and sustainable development.
 

The competition for precise farming farmers is twofold in that it has both international and local companies with distinct regional divisions enabling providers to meet the various specific demands of large-scale agricultural companies, small scale farmers and agricultural businesses. International competitors take the lead in the industry by acquiring local businesses and providing products covering a wide array of advanced offerings that take include gps tools, satellite images, iot monitoring systems and analysis frameworks. They have gained significant competitive advantage and market penetration in areas where agriculture is more advanced and automated due to their emphasis on creativity, decentralization and implementation of various technological capabilities like artificial intelligence and machine learning.
 

Regional vendors, on the other hand, continue to be active in the precision farming market by drawing on their intimate knowledge of the local market and offering low-cost and effective solutions for specific agricultural services such as soil monitoring, water management, and crop certification. That said, the increasing need for sustainable agricultural technologies, real-time decision-making devices and productivity improvement pushes the regional actors to invent or partner with larger global players.
 

The precision farming industry is projected to undergo significant consolidation due to an increase in mergers and acquisitions among players wishing to fill in technological gaps while enhancing their competitive edge. This merger is perceived to realign the competitive structure of precision farming technology and promote invention and further penetration of smart agricultural technologies globally.
 

Precision Farming Market Companies

Major players operating in the precision farming industry include:

• AG Leader
• AGCO 
• Agribotix
• AgSense 
• CNH
• John Deere
• Raven
• Topcon
• Trimble
• Yara
   

Precision Farming Industry News

• For example, SIZA Robotics, launched its autonomous robot TOOGO especially designed to work with vegetable and beet crops in March adding Agriculture to Automation in March 2024. This new machine is expected to bring an end to agricultural practice with its fully autonomous functionality that requires no manual supervision.
   
• Agtonomy started getting international coverage in February 2024 when it launched the Smart Farm Task Ecosystem. This system was a groundbreaking achievement in farm automation as it self-driving tractors and other tools and implements were digitally and automatically coupled with each other and controlled only by the one machine. This new ecosystem was aimed at increasing the sustainability and efficiency of farming practices.
   
• In March 2023, DroneDeploy received USD 42 million in funding, which they will use to expand their drone-based software platform. This platform captures live data that assists farmers in predicting the health and yield of crops. Such investments are facilitating the transition to smart farming, thus empowering farmers with precise data and improving resource efficiency.
   
• In September 2023, Indigo Ag which is an AgriTech startup that promotes the use of sustainable agriculture raised USD 250 million. The funding was acquired in a series E round, and the funds will be used to enhance the digital platform that uses a blend of AI and data analysis to ensure optimized crop yields. Such a platform harnesses the capability found in AI, as it assists farmers with knowledge based on soil fertility, climatic changes, and current and prior yields making farmers more proficient in managing their resources.
   

The precision farming market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and from 2021 to 2034, for the following segments:

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Market, By Component

• Hardware     
  • Sensor
  • Automated steering system
  • Drone, UAV, and camera
  • Mobile device
  • GPS and GNSS
  • Others 
• Software      
  • Farm management software (FMS)
  • Data analytics and big data solution
  • Geographic information system (GIS) software
  • Cloud-based software solution
  • Artificial intelligence and machine learning software
• Services       
  • Professional services
  • Managed services

Market, By Technology

• High precision positioning system
• Geo mapping
• Remote sensing
• Integrated electronic communication
• Variable Rate Technology (VRT)

Market, By Application

• Weather monitoring
• Yield monitoring
• Field mapping
• Irrigation management
• Waste management
• Financial management
• Others

Market, By Farm Size

• Small farm
• Medium farm
• Large farm

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia