Precision Agriculture Global Market Report 2023: Sector to Reach $14.61 Billion by 2027 at a 13.1% CAGR
DUBLIN, May 25, 2023 /PRNewswire/ -- The "Precision Agriculture Market - A Global and Regional Analysis: Focus on Application, Product, and Country-Wise Analysis - Analysis and Forecast, 2022-2027" report has been added to ResearchAndMarkets.com's offering.
The global precision agriculture market was valued at $7.89 billion in 2022 and is expected to reach $14.61 billion in 2027, following a CAGR of 13.12% during 2022-2027.
The growth in the global precision agriculture market is expected to be driven by increase in requirement for higher crop yield and a boost in investments in climate-smart agriculture practices.
Market Lifecycle Stage
The precision agriculture market is in a growing phase owing to different advanced technologies in the market. As increase in adoption of automated machineries and equipment, sensors and navigation systems, artificial intelligence, IoT, smartphones, robots, autonomous vehicles, and others. Hardware systems is the most important product used in the modern agriculture operations.
- Precision agriculture is a modern approach to farm and farm management that uses information technology to ensure plants and soils receive exactly what they need for optimal health and productivity. The aim of precision agriculture is to ensure profitability, sustainability, and environmental protection. The precision agriculture industry is known as satellite farming, precision agriculture, demand farming and site-specific crop management (SSCM). Precision agriculture relies on specialized equipment, software, and IT services. The use of these precision agriculture technologies resulted in the increase in agriculture production with achieving sustainable goals.
- The use of precision agriculture technologies has positive impact of agriculture operations. These technologies offer benefits such as increased efficiency & productivity, water saving, reduced costs, pest detection and animal health, better sustainability, and others. In addition, precision agriculture helps farmers better understand the important factors such as water, topography, orientation, vegetation, and soil types.
Segmentation 1: by Application
- Field Monitoring
- Crop Forecasting
- Precision Planting
- Precision Spraying
- Precision Fertilization
- Precision Irrigation
- Farm Management
The global precision agriculture market in the application segment is expected to be dominated by precision irrigation applications. This is owing to the rise in awareness towards use of water efficiently and reduce the wastage of nutrients, water, and chemicals. In addition, rise in demand for advanced irrigation systems paired with soil and water sensors are expected to generate higher returns than traditional irrigation systems.
Segmentation 2: by Product Type
- Hardware Systems
The hardware systems segment is estimated to capture highest market share during the period 2022 to 2027. The hardware equipment is increasingly used in the various farming operations. In addition, Hardware solutions in precision agriculture include automation and control solutions, sensing and navigation solutions, and other hardware solutions such as probes and analysers. The rising demand for hardware solutions is because of the widespread use of yield monitors, handheld computers and mobiles, and agriculture cameras.
Segmentation 3: by Function
- Farm Management
- Field Management
- Fleet Management
The field management captures major market share due to the usage of hardware such as sensors, drones, nozzles, cameras, smartphones, and tasks such as planting, spraying, fertilizing, and irrigation, among other activities. In addition, the field management software integrates sensor data and imaging input with other data, allowing farmers to identify fields that require treatment and verify the optimum amount of water, fertilizers, and pesticides to apply.
Segmentation 4: by Farm Produce
- Field Crops
- Permanent Crops
Field crops capture a significant market share in the global precision agriculture market because these crops are grown for large-scale consumption. This is followed by permanent crops, which include fruits, vegetables, and nuts, among others.
Segmentation 5: by Technology
- Guidance Technology
- Sensing Technology
- Variable Rate Application Technology
- Data Analytics and Intelligence
Guidance technology is a majorly used technology in the global precision agriculture market and registered the highest market share in the year 2021. The guidance technology comprises the global positioning system (GPS) and global navigation satellite system (GNSS) technologies applied in the agriculture industry for avigation purposes. It is followed by sensing technology. Sensing technology solutions are integrated with data analysis software that helps the farmers process the extracted farm information.
Segmentation 6: by Region
- North America - U.S. and Canada
- Europe - Germany, France, Italy, Spain, Netherlands, Denmark, and Rest-of-Europe
- Asia-Pacific and Japan - India, Japan, Australia and New Zealand (ANZ), Indonesia, Vietnam, Malaysia, and Rest-of-Asia-Pacific and Japan
- Middle East & Africa - Israel, South Africa, Turkey, and Rest-of-Middle East & Africa
- South America - Brazil, Argentina, Chile, Peru, Mexico, and Rest-of-South America
North America generated the highest revenue of $2,860.3 million in 2021. The region is experiencing an increase in adoption of precision agriculture technologies such as autonomous vehicles, software systems, guidance & navigation systems, agriculture sensors, and other automation & control systems. In addition, increase adoption of digital technologies for modern farm machineries in efficient crop production in the region along with rise in popularity of indoor farming owing to urbanization are expected to drive the market growth during the forecast period.
Recent Developments in the Global Precision Agriculture Market
- In September 2022, Trimble Inc. acquired Bilberry, a France-based company specializing in selective spraying technology systems for sustainable farming. By this acquisition Trimble Inc. get access to Bilberry's artificial intelligence (AI) technology that identifies a wide variety of weed species in real time for a broad range of crop types.
- In February 2022, Trimble Inc. launched its Virtual Farm, an interactive online experience for farmers across the world to immerse themselves in precision agriculture. In this new online tool, users walk through a digital farm and identify common challenges they encounter daily.
- In February 2022, Deere & Company opened a development facility in Austin, the U.S. that focus on developing software used in autonomous tractors that helps tractors use data from the cloud and GPS signals to take a precise and specific path.
- In June 2022, Kubota Corporation partnered with the National Electronics and Computer Technology Center (NECTEC-NSTDA) to develop Thailand's KAS Crop Calendar application, a rice crop calendar application powered by KUBOTA Agri Solution.
Demand - Drivers and Limitations
Following are the demand drivers for the Precision Agriculture Market:
- Increasing Demand for Global Food Production
- Need for Automation of Workforce in Agriculture
- Surging Investment and Support in Climate-Smart Agriculture Practices
- Need for Input Optimization in Agriculture
The market is expected to face some following challenges:
- High Initial Investment
- Threat to Data Security and Privacy
- Lack of Awareness and IT Infrastructure in Developing Regions
How This Report Can Add Value to End-users
- Product/Innovation Strategy: The product segment helps the reader understand the different types of hardware systems, software, and services available in the precision agriculture applications. Moreover, the study provides the reader a detailed understanding of the different product types by applications (field monitoring, crop forecasting, precision planting, precision spraying, precision fertilization, precision irrigation, farm management, and others). Hardware solutions such as automation & control systems, sensing & navigation systems, and indoor farming equipment are most widely used in modern agriculture practices. Therefore, the precision agriculture market is a moderate investment and high revenue generating product in the coming years owing to the rise in investment towards climate smart agriculture practices across the globe.
- Growth/Marketing Strategy: The global precision agriculture market has seen major development by key players operating in the market, such as partnership, joint ventures, collaborations, and product developments. The favoured strategy for the companies has been partnership, joint venture, collaborations, and alliances to strengthen their positions in the precision agriculture market.
- For instance, in June 2022, Kubota Corporation partnered up with the National Electronics and Computer Technology Center (NECTEC-NSTDA) to develop Thailand's KAS Crop Calendar application, a rice crop calendar application powered by KUBOTA Agri Solution.
- Competitive Strategy: Key players in the global precision agriculture market analysed and profiled in the study involve hardware systems and software manufacturers that are engaged in providing advanced precision agriculture solutions to farmers and other agriculture service companies. Moreover, a detailed competitive benchmarking of the players operating in the global precision agriculture market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, acquisitions, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts and analysing the company's coverage, product portfolio, its market penetration.
The top segment players who are leading include key precision agriculture technologies manufacturers in the market and the ones which are engaged in providing modern precision technologies across the globe.
Key Companies Profiled
Company Type 1: Precision Agriculture Equipment Manufacturers
- AGCO Corporation
- CLAAS Group
- CNH Industrial N.V.
- Deere & Company
- Hexagon Agriculture
- Kubota Corporation
- TeeJet Technologies
- The Toro Company
- Topcon Corporation
- Yanmar Co. Ltd.
Company Type 2: Precision Agriculture Software and Service Providers
- Amazon Web Services, Inc.
- BASF SE
- Climate LLC
- Granular Inc.
- IBM Corporation
- Microsoft Corporation
- X Development LLC (Alphabet Inc.)
Key Questions Answered in the Report
- What is the expected global precision agriculture market size in terms of value during 2022-2027?
- What is the expected future scenario and revenue generated by different solutions, including software and platform, hardware, and support services?
- What is the expected future scenario and revenue to be generated by the technology segment, including guidance technology, sensing technology, variable rate application technology, and data analytics and intelligence?
- What is the expected future scenario and revenue generated by different applications for precision agriculture solutions, including precision irrigation, field monitoring, spraying, fertilization, precision planting, and data management?
- Which region is the largest market for the global precision agriculture market?
- What is the expected future scenario and revenue generated by different regions and countries in the global precision agriculture market, such as North America, South America, Europe, the U.K., China, Asia-Pacific and Japan, and Middle East and Africa?
- What is the competitive strength of the key players in the global precision agriculture market based on the analysis of their recent developments, product offerings, and regional presence?
- Which are the different consortiums and associations present in the global precision agriculture market, and what are their roles, focus areas, and key functions in this market?
- Where do the key precision agriculture companies lie in their competitive benchmarking based on market coverage and market potential?
- What does the technology ecosystem of precision agriculture solutions constitute?
Key Topics Covered:
5. Markets - Competitive Benchmarking & Company Profiles
6. Research Methodology
For more information about this report visit https://www.researchandmarkets.com/r/sqympw
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