Precision Agriculture Market

Precision Agriculture Market Size:

The precision agriculture market size reached US$ 8.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 20.2 Billion by 2032, exhibiting a growth rate (CAGR) of 9.9% during 2024-2032. There are various factors that are driving the market, which include rising food demand among individuals, fluctuations in climate conditions, and increasing need for advanced technologies for improved productivity and superior efficiency in agriculture applications. 

Precision Agriculture Market Analysis:

• Major Market Drivers: One of the major market drivers include the escalating demand for food products among individuals. In addition, there is an increase in the need for advanced agriculture technologies, which contributes to the market growth.      
• Key Market Trends: The market demand is propelled owing to numerous key trends such as the rising demand for data-driven decision making, along with the increasing focus on farm mechanization.   
• Geographical Trends: As per the report, North America exhibits a clear dominance, accounting for the biggest market share due to the presence of well-established agricultural machinery manufacturers.
• Competitive Landscape: Major key players in the precision agriculture industry are Agribotix, Bayer CropScience AG, Case IH Agriculture, ClearAg Operations, Conservis Corporation, Deere & Company, Farmers Edge Inc, Fairport Farm Software., Fuse Technologies, Granular AG, Grownetics Inc., IBM, MapShots Inc., Raven Industries, SST Software., among many others.
• Challenges and Opportunities: One of the challenges deterring the market growth includes high initial investment costs. Nonetheless, the expansion of sensor technologies represents key market opportunities.            

Precision Agriculture Market Drivers:

Growing Food Demand and Agricultural Activities

The Food and Agriculture Organization (FAO) of the United Nations stated that the world’s cereal production in 2023 to 2024 increased by 5 million tons as compared to the previous years. There is a rise in the demand for food products to cater to the needs and preferences of consumers around the world. Rising preferences for protein-rich diets like fruits and vegetables among individuals are catalyzing the demand for precision agriculture activities. Moreover, farmers are concentrating on developing an enhanced variety of food products to cater to changing dietary tastes of individuals worldwide.

Fluctuation in Climate Conditions

Droughts, floods, heat waves, and storms are various extreme weather events that are becoming more often and intense due to climate change. These events can harm infrastructure and crops, resulting in lower yields and difficult financial times for farmers. Farmers are employing resilient farming practices like crop diversification and water management strategies to endure extreme weather events. They are adopting precision agriculture technologies to lower wastage and improve crop productivity while catering to the food demand of the increasing population across the globe. According to the World Bank, the global food demand is estimated to increase to feed a projected global population of 9.7 Billion people by 2050.  

Increasing Demand for Advanced Technologies

Farming operations are revolutionized by advances in sensors, global positioning system (GPS) technology, drones, unmanned aerial vehicles (UAVs), and sophisticated data analytics. Farmers are expanding their operations with a variety of technologies and data sources to get information on soil temperature, moisture content, and nutrient levels for enhanced decision making about fertilization and irrigation. These advancements allow them to use historical data, weather trends, and real time information to decide when and how to plant, water, and apply fertilizers or pesticides. This degree of accuracy improves agricultural yields and improves the sustainability of agriculture. On 9 November 2023, Bayer presented a comprehensive set of innovative solutions leveraging precision farming through data and artificial intelligence (AI). The company showcased how machine learning (ML), AI, and data science deliver a new level of precision through Climate FieldView™ and range of “Magic” digital products.

Precision Agriculture Market Opportunities:

Increasing Sustainable Practices

Farmers are becoming concerned about the environmental impact and seeking sustainable farming practices. Conventional farming practices are frequently linked to excessive use of pesticides and fertilizers, high water use, and degraded soil. These problems are addressed by precision agriculture, which fosters an effective farming environment. In addition, precision agriculture benefits in maintaining biodiversity and natural environments. Furthermore, companies are working together to offer solutions for sustainable farming. For instance, Deere & Company purchased Smart Apply, Inc., a precision spraying equipment company on 14 July 2023. The company developed the Smart Apply Intelligent Spray Control System™. The product is beneficial in improving the precision and performance of virtually any air-blast sprayer used in various spraying applications. It will also help growers lower chemical use, airborne drift, and run off, while optimizing high-value crop yields and meeting sustainability goals.       

Government Support and Schemes

Governing agencies of various countries are encouraging the adoption of precision agriculture to minimize food wastage, enhance crop productivity, and streamline agriculture operations. For example, on 7 September 2023, the International Center for Agricultural Research in the Dry Areas (ICARDA), supported by the Directorate of Farmer Welfare and Agriculture Development of Madhya Pradesh State Government, India, settled a network of hi-tech the Internet of Things (IoT) precision farming devices in the Khargone and Sehore districts of the State. With this intelligent network and the GeoAgro-iKrishi system, farmers can receive real time advice on farming. This progressive farming approach empowers farmers to make informed decisions for precise resource management.

Innovations in Products

Major industry players in the market are concentrating on introducing products that offer automated solutions to farmers, thereby benefiting in improving agriculture productivity and efficiency. For instance, on 6 April 2023, AGCO Corporation partnered with Bosch BASF Smart Farming to commercialize smart spraying technology on Fendt Rogator sprayers, and jointly develop additional and new features. Herbicide savings are delivered through sophisticated sensors, automated sensitivity thresholds, access to Bosch BASF Smart Farming’s weed identification technology, and the use of Fendt Rogator’s robust application platform. 

Key Technological Trends & Development:

Yield Monitors

The rising focus on yield monitoring to detect variations in crop yield across the field and transmit data to a central display unit or data logger is supporting the market growth. In addition, yield monitoring assists in analyzing spatial variability in crop yields across the field. Furthermore, the US-based FMC Corporation subsidiary FMC India debuted the Arc farm intelligence precision agriculture technology in India on 5 March 2024. This tool helps farmers monitor field conditions and efficiently manage pest pressure by utilizing real time data and predictive modeling. Farmers make use of this platform to guarantee that crop care products are applied precisely.  

Remote Sensors for Precise Data Capture

The increasing focus on precise data capture solutions for improving crop efficiency is contributing to the market growth. Moreover, companies are engaging in collaborations and partnerships to provide superior products with advanced technologies. For example, NIK, a Bulgarian company specializing in precision farming technologies and robotics, collaborated with Bayer on 10 December 2023, to bring the FieldView Spray Kit. The resulting IoT solution builds on Bayer’s flagship FieldView product to advance the digital transformation of farming operations, enhancing their efficiency, and equipping farmers with tools for more sustainable practices. The product enables real time monitoring of amounts sprayed and unlocks precise calibration to minimize waste.   

Auto-Guidance Systems

Auto-guidance systems, also known as automatic steering systems, are advanced technologies used in agriculture to automate the steering of agricultural machinery like tractors, combines, and sprayers. On 24 April 2023, AGCO, a worldwide manufacturer and distributor of agricultural equipment, infrastructure and precision ag technology, signed an agreement with Hexagon, to expand its factory-fit and aftermarket guidance offering. The new guidance system will be sold as Fuse Guide on Massey Ferguson and Valtra tractors. Guidance and auto-steering technology is the first step in implementing precision agriculture for greater input efficiency and higher crop yields. This will help to increase precision agriculture technology adoption by providing an easy to use and price competitive guidance solution for farmers in more regions.

Precision Agriculture Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on technology, type, component, and application. 

Breakup by Technology:

• GNSS/GPS Systems
• GIS
• Remote Sensing
• Variable Rate Technology (VRT)
• Others
   

GNSS/GPS systems account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the technology. This includes GNSS/GPS systems, GIS, remote sensing, variable rate technology (VRT), and others. According to the report, GNSS/GPS systems represented the largest segment.

GNSS/GPS systems enable accurate mapping and tracking of farm equipment, allowing farmers to precisely determine their position within a field. GPS-guided tractors and equipment ensure straight and uniform rows, efficient use of inputs, and reduced overlap, resulting in cost savings and increased productivity. With the widespread adoption of GPS systems, farmers can create detailed field maps, manage variable rate applications, and monitor the performance of machinery in real time, all of which contribute to improved farm management and higher yields. On 30 March 2023, CNH Industrial announced that it acquired Hemisphere GNSS, a satellite positioning technology company. This acquisition is intended to advance CNH Industrial's automated and autonomous solutions for agriculture equipment. 

Breakup by Type:

• Automation and Control Systems
• Sensing and Monitoring Devices
• Farm Management System
   

Automation and control systems hold the largest share of the industry

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes automation and control systems, sensing and monitoring devices, and farm management system. According to the report, automation and control systems accounted for the largest market share.

Automation and control systems offer farmers advanced tools to streamline their operations. These systems encompass a range of technologies including automated machinery, robotic equipment, and control software. Automated tractors can navigate fields autonomously, optimizing planting, harvesting, and cultivation processes. Apart from this, robotics is used for tasks like precision weeding and harvesting, reducing labor costs while increasing efficiency. With the integration of these technologies, farmers can achieve higher levels of precision, reduce human error, and ultimately enhance their overall productivity.

Breakup by Component:

• Hardware
• Software
   

Hardware represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the component. This includes hardware and software. According to the report, hardware represented the largest segment.

Hardware components are fundamental to the infrastructure of precision agriculture. It encompasses a wide range of physical devices and equipment including global positioning system (GPS) receivers, sensors, drones, automated machinery, and other tangible tools used on the farm. On 10 October 2023, Zuari FarmHub, a leading agritech company in India, announced its partnership with CropX Technologies, a global agri-tech company specializing in digital agronomic solutions. The collaboration aims to revolutionize farming practices by introducing real time monitoring technology that empowers farmers with data-driven insights for enhanced productivity and sustainability. Zuari FarmHub initiated trials of the CropX system at Zuari Agri Innovation Centre in Solapur and selected farmer fields across Karnataka and Maharashtra. CropX offers a state-of-the-art hardware-enabled system that monitors critical agronomic parameters in real time.  

Breakup by Application:

• Mapping
• Crop Scouting
• Yield Monitoring
• Soil Monitoring
• Precision Irrigation
• Others
   

Yield monitoring exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes mapping, crop scouting, yield monitoring, soil monitoring, precision irrigation, and others. According to the report, yield monitoring accounted for the largest market share.

Yield monitoring is crucial for assessing crop performance and optimizing productivity. This application involves the collection of data during the harvest process to measure the actual yield of crops in different parts of the field. Yield monitoring systems are integrated with GPS and sensors to provide real time data on crop yields, moisture content, and grain quality.

Regional Insights:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East
• Africa
   

North America leads the market, accounting for the largest precision agriculture market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Latin America (Brazil, Mexico, and others); Middle East; and Africa. According to the report, North America represents the largest regional market for precision agriculture.

The presence of well-established agricultural machinery manufacturers and technology providers in the North America region is impelling the market growth. Additionally, favorable government initiatives are propelling the market growth. Apart from this, companies are introducing solutions that are beneficial in lowering downtime in agriculture applications. For instance, Case IH unveiled the FieldOps app, a new all-in-one mobile and web solution purposefully designed for farmers to connect, view, and manage their operation on 29 April 2024. FieldOps provides real time access to agronomic, machine, and operational data, connecting farmers to their machines, fields, teams and partners and empowering them with actionable insights. The new FieldOps app comes at a critical time with the exponential growth of connected machines. Driven by the digitization of agriculture, connected machines allow farmers to access vehicles through the cloud to drive more profitable and productive operations.

Analysis Covered Across Each Country:

• Historical, current, and future market performance
• Historical, current, and future performance of the market based on technology, type, component, and application.
• Competitive landscape
• Government regulations

Competitive Landscape:

• The market research report has provided a comprehensive analysis of the competitive landscape covering market structure, market share by key players, market player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant, among others. Detailed profiles of all major companies have also been provided. This includes business overview, product offerings, business strategies, SWOT analysis, financials, and major news and events. Some of the major market players in the precision agriculture industry include Agribotix, Bayer CropScience AG, Case IH Agriculture, ClearAg Operations, Conservis Corporation, Deere & Company, Farmers Edge Inc, Fairport Farm Software., Fuse Technologies, Granular AG, Grownetics Inc., IBM, MapShots Inc., Raven Industries, and SST Software.
• Top players in the market are actively investing in research and development (R&D) to improve technological solutions and expand their product portfolios. They are focusing on integrating AI, ML, and big data analytics into their offerings to provide farmers with more sophisticated decision support tools. Additionally, many companies are working on enhancing connectivity and data-sharing capabilities to enable seamless communication between farm equipment and software platforms. Sustainability and environmental considerations are also at the forefront, with a focus on developing precision agriculture solutions that minimize resource usage and reduce environmental impact. On 31 March 2023, Case IH and Agri Technovation entered in a collaboration to provide an all-inclusive service to producers. This collaboration empowers producers to farm even more accurately because Case IH's AFS system enables farmers to plant, spray, and harvest with remarkable precision, and Agri Technovation assists with comprehensive data analyses from planting to after harvesting. 

Analysis Covered for Each Player:

• Market Share
• Business Overview
• Products Offered
• Business Strategies
• SWOT Analysis
• Major News and Events

Precision Agriculture Market News:

• 5 October 2023: Deere teamed up with 2 companies ‘Sweden-based Delaval’ and ‘Norway-based Yara’ on digital precision agriculture tools for sustainability. The partnerships aim to help farmers track livestock and fertilizer data so they can make smarter business decisions that are better for the environment.
• 21 May 2024: Planet extended its digital farming contract with Germany’s BASF. This contract will allow the companies to look forward to powering novel and effective tools to enable growers to get the best crop yields in the most sustainable and efficient ways.
• 23 May 2024: AGCO announced its recent investment in the Innova Ag Innovation Fund VI of venture capital firm, Innova Memphis. The deal aligns with AGCO's approach to support the next generation of farming through advanced solutions that promise a more automated, digitized, and sustainable future for agriculture.

Precision Agriculture Market Report Scope:

Key Questions Answered in This Report:

• How has the global precision agriculture market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global precision agriculture market?
• What is the impact of each driver, restraint, and opportunity on the global precision agriculture market?
• What are the key regional markets?
• Which countries represent the most attractive precision agriculture market?
• What is the breakup of the market based on the technology?
• Which is the most attractive technology in the precision agriculture market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the precision agriculture market?
• What is the breakup of the market based on the component?
• Which is the most attractive component in the precision agriculture market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the precision agriculture market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global precision agriculture market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the precision agriculture market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global precision agriculture market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the precision agriculture industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.