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The precision agriculture market size is estimated to grow by USD 6.09 billion at a CAGR of 13.63% between 2024 and 2028. Agricultural technology is experiencing a surge in investments due to the growing necessity to increase agricultural output and manage data on farming operations more efficiently. This trend is driven by the rising demand for food production to meet the needs of a growing global population. Technological advancements, such as precision farming, automation, and data analytics, are transforming the agricultural sector by improving crop yields, reducing waste, and enhancing resource management. Farmers are now able to monitor and optimize their crop growth in real-time, making informed decisions based on data-driven insights. This not only leads to higher productivity but also helps in sustainable farming practices. The integration of technology in agriculture is a game-changer, enabling farmers to adapt to the challenges of modern farming and contribute to food security.
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Precision Agriculture, also known as Precision Farming, is a modern farming management concept based on observing, measuring, and responding to inter-field variability in crops. This farming approach utilizes advanced technologies such as farm machinery equipped with sensors, GPS, data analytics, and IoT devices to monitor soil conditions, crop health, weather patterns, and other vital factors. Tractors, harvesters, and monitoring systems are integrated with navigation and guidance systems for real-time data collection and analysis. The market is growing significantly due to the increasing focus on environmental sustainability and the need for on-demand agriculture. Specialized systems, software, IT services, and real-time data play a crucial role in implementing site-specific crop management and data-driven decision-making. Variable rate application, field mapping, and real-time monitoring are some of the key techniques used in Precision Agriculture. Satellite agriculture and AI are also gaining popularity for large-scale farming operations. The use of drones for crop monitoring and analysis is another emerging trend in the market. Overall, Precision Agriculture is revolutionizing agricultural management theory by providing farmers with the tools to optimize crop yields, reduce costs, and minimize environmental impact. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rise in investments in agricultural technologies is notably driving market growth. The agricultural sector is undergoing a significant transformation through the adoption of advanced technologies, collectively referred to as Precision Agriculture or Precision Farming. This modern approach to food production incorporates field management techniques that leverage guidance technology, sensing technology, and specialized hardware systems. These technologies enable on-demand agriculture, site-specific crop management, and real-time data analysis for optimal planting times, harvesting times, moisture content, temperature, and other critical factors.
Furthermore, satellite agriculture and drone technology play a pivotal role in this revolution, providing hyperlocal weather forecasts, equipment availability monitoring, and satellite images for informed decision-making. Farmers can now access IT services, artificial intelligence, and smartphone integration for monitoring protocols and mobile device connectivity (Bluetooth, USB, Wi-Fi). Investments in precision agriculture have surged in recent years, with companies like Farmers Business Network (FBN) raising substantial funds for expanding their offerings. FBN, a California-based firm, recently secured USD250 million in Series F funding to expand its Farmers First FBN Direct program, which assists farmers in improving their financial performance by facilitating demand for their supplies. This technological shift not only optimizes resources like fuel, labor, and pesticides but also addresses challenges posed by climate change and variable costs. By adopting precision agriculture, farmers can make informed decisions based on real-time data, ensuring efficient and sustainable food production. Thus, such factors are driving the growth of the market during the forecast period.
Technological advances in precision agriculture is the key trend in the market. Precision Agriculture, also known as Precision Farming, is revolutionizing modern agricultural practices by integrating advanced technologies such as guidance systems, sensing technology, and IT services. These innovations facilitate on-demand agriculture and site-specific crop management, enabling farmers to optimize field management and enhance food production. Hardware systems, including satellite agriculture and fleet management, provide real-time data on ambient air, hyperlocal weather forecasts, equipment availability, and optimal planting and harvesting times. Sensing technology, like nanosensors, monitors soil conditions, crop growth, and detects animal and plant pathogens. Guidance technology, such as GPS and robotic drones, ensures accurate field management.
Furthermore, artificial intelligence and machine learning algorithms analyze satellite images and climate data to provide farmers with valuable insights. Farmers can access this data through mobile devices with Bluetooth, USB, and Wi-Fi connectivity. Precision Agriculture also helps in reducing fixed and variable costs, such as fuel and labor, by optimizing crop rotation and nutrient application. With the increasing adoption of smartphones and mobile devices, farmers can easily access monitoring protocols and make informed decisions in real-time. In summary, Luminous Technologies like telematics, robotics, and nanotechnology are transforming the agricultural sector by providing advanced solutions for soil management, site management, fertilizer application, crop protection, and pest management. These technologies enable farmers to make data-driven decisions, increase yields, and reduce costs, making agriculture more efficient and sustainable in the face of climate change. Thus, such trends will shape the growth of the market during the forecast period.
The requirement for high initial investment is the major challenge that affects the growth of the market. In the realm of modern agricultural practices, precision agriculture, also known as precision farming, has emerged as a game-changer. This advanced farming method employs field management techniques that leverage guidance technology, sensing technology, and specialized hardware systems to optimize food production. These technologies enable on-demand agriculture and site-specific crop management, making agricultural management theory more effective. Vendors in this sector are continuously innovating, integrating IT services, real-time data, ambient air sensing, hyperlocal weather forecasts, and equipment availability into their offerings.
Furthermore, satellite agriculture, drone technology, artificial intelligence, and pesticide management are some of the key components of precision ag. Farmers can access real-time data on crop rotation, optimal planting times, harvesting times, moisture content, temperature, and satellite images through mobile devices, ensuring efficient and productive farming. Monetary considerations, such as fixed and variable costs, labor cost, and climate change, are essential factors influencing the adoption of precision agriculture. Smartphone integration, Bluetooth, USB, and Wi-Fi connectivity are essential features that facilitate seamless integration and monitoring protocols. Despite the initial investment, precision agriculture offers significant long-term benefits, making it a worthwhile investment for large-scale farmers. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ag Leader Technology - The company offers InCommand and AgFiniti that helps to monitor harvest progress and yield during and after harvest.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the Hardware segment will be significant during the forecast period. The market is witnessing significant growth due to the adoption of advanced technologies such as auto-guidance, monitoring devices, and steering devices.
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The hardware segment was valued at USD 3.53 billion in 2018. Vendors are introducing managed and assisted professional services to help farmers make informed decisions based on real-time data. These services include soil analysis, crop health assessment, and yield prediction. Monitoring devices like drones, equipped with high-resolution cameras and sensors, play a crucial role in precision agriculture. Drones can be used for various tasks such as crop health assessment, irrigation management, and soil and field analysis. VRT devices enable farmers to apply inputs like fertilizers and pesticides with precision, reducing labor and time while minimizing soil compaction and optimizing food security. The implementation of these technologies results in improved agricultural decision-making and increased productivity.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Precision agriculture is revolutionizing the global agricultural landscape by promoting eco-friendly farming practices through responsible resource management. Satellites and IoT devices equipped with GPS receivers, yield monitoring applications, and climate service initiatives enable real-time monitoring and data-driven decision-making. Hardware and software solutions, including encryption, data storage, access controls, and usage policies, ensure data security. Precision farming industry solutions encompass precision planting, spraying, fertilization, irrigation, and farm management. These optimized farming solutions utilize AI and variable rate application for field mapping and crop monitoring. Water conservation is a significant focus, addressing water scarcity and climate conditions. Environmental sustainability is a priority, with small-scale farmers benefiting from these advanced technologies to enhance crop yield and farm productivity. Real-time monitoring of crops, soil, and climate conditions is crucial for optimizing farming practices. IoT devices, GPS receivers, and AI-driven analytics provide valuable insights, enabling farmers to make informed decisions and improve overall farm management. The integration of smart crop monitoring systems and precision techniques, such as precision irrigation and precision fertilization, contributes to improved farming outcomes and long-term sustainability.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Precision Farming Market: Precision Farming Market by Technology and Geography - Forecast and Analysis
Smart Agriculture Market: Smart Agriculture Market Analysis - North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, India, UK - Size and Forecast
Crop Production Software Market: Crop Production Software Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Australia, UK, Germany - Size and Forecast
Precision agriculture is revolutionizing modern farming by utilizing advanced technologies to optimize resource usage and enhance crop yields. Farm machinery, such as tractors and harvesters, are being integrated with sensors, GPS, and data analytics to improve efficiency and accuracy. Drones equipped with sensors and cameras provide real-time data on soil conditions, crop health, and weather patterns, enabling farmers to make informed decisions. Navigation and guidance systems help in automating input application rates, while remote monitoring and labor cost reduction are significant benefits.
Furthermore, farm management software, irrigation, fertilization, and pest control are essential farming practices that are being transformed through precision techniques. Aerial surveys using drones help identify crop stress, pest infestations, and disease outbreaks. Robust infrastructure, including rural connectivity and internet connectivity, is crucial for data transmission and digital agriculture platforms. Data integration from various sources, including satellite imagery, is essential for resource optimization and allocation. Precision agriculture practices promote sustainable farming by reducing water and chemical usage, leading to higher crop yields and profitability.
Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.63% |
Market growth 2024-2028 |
USD 6.09 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.14 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, China, Germany, UK, and Australia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AAA Taranis Visual Ltd., Abaco Spa, Ag Leader Technology, AGCO Corp., Agribotix, Carl Zeiss AG, CNH Industrial NV, CropX Technologies Ltd., Deere and Co., DICKEY john, Farmers Edge Inc., Hexagon AB, Iteris Inc., Kubota Corp., TeeJet Technologies, The Toro Co., Topcon Corp., Trimble Inc., and Yara International ASA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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