Global Precision Farming Market

Global Precision Farming Market

Introduction

Precision farming or precision agriculture is an approach to farm management concept that revolves around the process of observing, measuring, and responding to the various field and field variability inputs of modern agriculture. In other words, precision farming uses information technology (IT) to ensure crops and soils receive the exact number of components what they need for optimal health and productivity. The goal of precision farming is to ensure profitability, sustainability and environmental protection. It is also known as satellite farming, on-demand/ as-needed farming, and site-specific crop management (SSCM). This farming relies on specialized equipment, software, and IT services. The approach includes accessing real-time data on crop, soil, and ambient air conditions, as well as other relevant information such as hyperlocal weather forecasts, labor costs, and equipment availability. Predictive analytics software uses this data to provide farmers with guidance on crop rotations, optimal

planting times, harvest times, and soil management. Sensors in the field measure the moisture content and temperature of the soil and surrounding air. Satellites and robotic drone provide farmers with real-time images of individual plants. Information from these images can be processed and integrated with sensors and other data to control current and future decisions, such as precisely which fields to water, when and where to plant specific crops. By the combination of sensor data and imaging inputs with other data, the agricultural control center enables farmers to identify fields that need treatment and determine optimal water, fertilizer, and pesticide usage. This helps farmers avoid wasting resources and prevent runoff, ensuring that the soil contains right number of additives for optimal health, while reducing costs and controlling the farm's

environmental impact. In the past, precision farming was limited to large operations that could support IT infrastructure and other technical resources to fully implement and benefit from precision farming. Now-a-days, mobile apps, smart sensors, drones, and cloud computing enables precision farming for agricultural cooperatives and even small family farms. The global precision farming market is segmented on the basis of offering, technology, application, and regions and countries. On the basis of offering, the target market is segregated into hardware, software, and services. The hardware segment is further categorized into drones, UAVs & cameras, mobile device, GPS/GNSS devices, automated steering systems, and sensors & other devices Among the offering segments, the hardware segment is projected to register rapid growth rate in the global precision farming market owing to increasing demand for automation and control systems, such as drones/UAVs, GPS receivers, guidance and steering devices, and variable-rate technology (VRT) devices in agriculture industry. Based on technology, the target market is bifurcated into guidance technology, remote sensing technology, and variable rate application. Among the technology segments, the variable rate technology segment is expected to hold major revenue share in the target market owing to the early adoption of this technology by farmers. With regards to application, the target market is segmented into yield monitoring, crop scouting, field mapping, irrigation management, weather tracking and forecasting, inventory management, farm labor management, and other applications. Among the application segments, the yield monitoring segment is expected to account for highest share in the global precision farming market in terms of revenue owing to the benefits of initiatives related to climate services that enable farmers to effectively respond to climate-related disasters and improve food security and agricultural decision-making. Based on region, Asia Pacific market accounts for major revenue share in the global precision farming market and is projected to maintain its dominance over the forecast period. Growing population and rapid urbanization, coupled with high spending capacity of individuals, changing life style patterns, and rising adoption of precision farming in countries such as China, India, and Indonesia in the region are factors expected to proliferate growth of the target market.

1.2 Segmentation of Global Precision Farming Market based on Offering, Technology, Application, and Region

Based on Offering

• Hardware
• Drones, UAVs & Cameras
• Mobile Device
• GPS/GNSS Devices
• Automated Steering Systems
• Sensors & Other Devices
• Software
• Services

Based on Technology

• Guidance Technology
• Remote Sensing Technology
• Variable Rate Application

Global Precision Farming Market (2015-2031)

Based on Application

• Yield Monitoring
• Crop Scouting
• Field Mapping
• Irrigation Management
• Weather Tracking and Forecasting
• Farm Labor Management
• Other Applications

Based on Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

1.3 Drivers in Global Precision Farming Market

• The digitization of the economy has broken down barriers and succeeded in dispelling fears of

technology dependence, especially in farming communities. It is also slowly overhauling the

vast and complex agricultural sector which in turn is a factor that can have positive and major

impact on growth of the target market.

• Increasing adoption of ubiquitous technologies such as Internet of Things (IoT), Artificial

Intelligence (AI), Augmented Reality (AR), and others in precision farming to reduce production

cost, labor cost, and wastage. Additionally, IoT can help farmers meet the various challenges

involved in properly monitoring crops. It provides real-time data on ambient temperature and

soil moisture content through sensors placed on the farm, helping farmers make improved

decisions about harvest time, crop-to-market rates and soil management. This is a factor

driving growth of the global precision farming market.

• Government initiatives and programs encouraging and promoting utilization of precision

farming techniques across the US and several EU countries is expected to support and drive

Global Precision Farming Market (2015-2031)

adoption of precision farming is another factor expected to augment growth of the target

market.

• For example, the National Institute of Food and Agriculture (NIFA), part of the US

Department of Agriculture, conducts geospatial, sensor, and precision technology

programs to increase farmer awareness. NIFA works with Land-Grand University to

help farmers develop powerful sensors, related software and instrumentation for

modeling, viewing and analyzing a wide variety of complex biological materials and

processes.

• Additionally, in November 2016, the Government of Canada invested $425,000 in

Clean Seed Capital Group to enhance and commercialize precision farming

technology. The goal of this investment is to reduce the overuse of fertilizers and

pesticides. With the help of these funds, the company also developed the CX-6 SMART

planter for farmers.

• Climatic change, unprecedented economic damage, and requirement to meet the increasing

demand for food across the globe are some of the other factors expected to drive growth of the

global precision farming market. Moreover, advancements in big data analytics, the Internet of

Things, and accessible satellite imagery have brought optimism to the agricultural sector,

addressing the problem of unpredictability.

• Moreover, other factors promoting the adoption of sustainable farming techniques include

better farmer education and training, easy access to information, availability of financial

resources, and high demand for organic food. Growing environmental concerns such as

depletion of natural resources and environmental degradation are encouraging farmers to turn

their attention to sustainable farming practices, such as protecting natural resources in order

to increase crop production. This proliferates the need for improved crop nutrition and

protection, which in turn boosts the target market growth.

• Furthermore, growing population, rapid urbanization, increasing disposable income among

consumers, changing living standards and lifestyle, coupled with increasing volume of working

population are among other factors expected to drive growth of the global precision farming

market.

• The use of farm management software tools and remote sensing could lead to higher adoption

post-COVID-19 period. Companies have already begun focusing more on wireless platforms

to enable real-time decision-making for crop health monitoring, yield monitoring, irrigation

scheduling, field mapping, and harvesting management.

• The adoption of farm management software tools and remote sensing have increased after

COVID-19. Companies have begun to focus more on wireless platforms to enable real-time

Global Precision Farming Market (2015-2031)| 37

decision-making in crop health monitoring, yield monitoring, irrigation scheduling, field mapping

and harvest management.

1.4 Restraints in Global Precision Farming Market

• Precision farming equipment associated with high cost is a factor restraining growth of the

global market to a certain extent. Additionally, obsolescence of various precision farming with

respect to time is a factor that may challenge growth of the target market to a significant extent.

• Stringent regulations pertaining to environmental concern is another factor expected to

challenge the global precision farming market.

• COVID-19 not only impacted the operations of the various precision farming manufacturers

companies, but also affected the businesses of their suppliers and distributors and caused an

unprecedented economic damage across various regions. Developed as well as developing

economies were likely to face a severe negative impact on various sectors. China being at the

epicenter of this pandemic was likely to cause a dominos effect on several production, supply

and trade activities, thereby causing a bottleneck of inward and outward consignments, and

affecting the overall market growth adversely. The major companies operating in the target

market, have also witnessed the impact of the pandemic in their order intakes during the first

quarter of 2020.

1.5 Opportunities in Global Precision Farming Market

• The precision farming market is expected to be a profitable revenue group in 2021 owing to the

widespread adoption of technologies and equipment such as guidance systems and variable

rate technology (VRT) in crop cultivation. On the other hand, smart solutions involve high

investment, which is a disadvantage for farmers, especially in developing countries such as

China, India and Brazil. The investment in the precision agriculture market is high, but at a later

stage, it provides a significant return on investment due to lower overall production costs and

increased efficiency.

• Increasing penetration into untapped markets in developing economies is expected to create

enormous growth opportunities for prominent players operating in the global precision farming

market over the forecast period. Developing countries such as India, Sri Lanka and Nigeria are

taking many government initiatives to encourage the implementation of modern precision

farming techniques to maximize productivity. In addition, an effective management framework

also enables farmers to acquire sufficient knowledge about the proper use and maintenance

of precision farming equipment.

• Increase in technological innovations, such as vertical farming with smart designs to maximize

yields and reduce waste, have created potential opportunities for the target market growth.

Global Precision Farming Market (2015-2031)

Moreover, increasing investments in technologies such as guidance systems, driverless

tractors, and GPS sensing systems during the forecast period are expected to proliferate

growth of the global precision farming market. For example, numerous sensors such as soil

sensors, climate sensors, and water sensors are placed around fields to help farmers monitor

their crops and obtain real-time information. In addition, these sensors can help farmers

achieve high yields and reduce crop waste.

1.6 Trends in Global Precision Farming Market

• Currently, incorporation of advanced technologies in precision farming is a key trend observed

in the target market. Increasing adoption of technologies enables effective automation and

development of farming across the globe. Hardware components such as automation and

control systems, sensing devices, and drones play an important role in helping farmers. For

example, a GIS guidance system is very beneficial to growers because of its ability to visualize

agricultural workflows and the environment. In addition, VRT technology helps farmers identify

areas that need more pesticides and seeds so they can be distributed evenly across the field.

• Smart irrigation involves the use of various technologies, such as rain sensors, weather-based

controllers, sensor-based controllers, and water meters, to help estimate the appropriate

amount of irrigation water. These benefits are likely to drive the adoption of irrigation drones.

The use of sensors helps weather forecasters provide accurate weather readings and

forecasts. In addition, the introduction of machine learning techniques and advanced data

analysis services improves the reliability and accuracy of weather forecasts, which is an

ongoing trend witnessed in the target market growth.

• Significant strategies regarding product launches, partnership & agreements, mergers and

acquisitions between major and local players to enhance product portfolio and strengthen

global presence is an ongoing trend observed in the global precision farming market.

• In February 2022, TELUS Agriculture, a division of TELUS, the world's leading

communications technology company, has partnered with Solace, a leading enabler of

event-driven architectures for real-time enterprises. Through this collaboration, TELUS

Agriculture prefers to use the Solace PubSub+ platform as the data distribution

backbone for new solutions they are developing to connect, digitize and exchange real time data across the agriculture, food and consumer goods value chain.

• In July 2021, Deere & Company launched JDLINK, an information management

product. This product provides connectivity services free of charge. They help

customers connect their machines.

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• In October 2019, Deere & Company acquired Unimil, a supplier of aftermarket parts

for sugar cane harvesters. Through this acquisition, the company will help Brazilian

customers reduce sugarcane production costs.

• In September 2020, Trimble introduced the Trimble R12i GNSS receiver. It

incorporates inertial measurement unit-based tilt compensation to provide 30% higher

performance in challenging environments compared to other receivers.

• In July 2021, AGCO launched a pilot model of its Precision Ag Line (PAL) program, a

tool designed to simplify support services for farmers using AGCO's mixed fleet

operations solutions. PAL provides precision agriculture expertise to farmers from

AGCO brands such as Challenger, Fendt, Gleaner, Massey Ferguson and Precision

Planting.

• In May 2021, Raven Industries announced the launch of its new own product brand

"OMNI". The brand highlights the company's capabilities in autonomous solutions

• In May 2021, agricultural machinery manufacturer AGCO partnered with brands such

as Raven. The aim is to evaluate spraying techniques to make the application of crop

protection products more effective and efficient.

• AGCO (USA) focuses on connecting with agritech entrepreneurs and seeking

partnerships through innovative and disruptive solutions.

• In December 2018, AgJunction Inc. formed a partnership with Mahindra and Mahindra

Ltd.

• In September 2017, China and Israel signed a US$300 million trade agreement to

boost the export of Israeli environmental technology to China.

Global Precision Farming Market (2015-2031)

1.7 COVID-19 Impact Analysis

Production Side: Manufacturing industries are the utmost contributors to the global economy;

however, their respective activities have been halted in various countries as a means to curb the

trajectory of this virus. In addition to this, several countries now face issues related to the scarcity of

labor. Owing to the fear associated with COVID- 19 spreading further, numerous workers refrained

from working, which in turn led to the temporary halting of manufacturing activities.

Supply Side: The outbreak of COVID- 19 has had economic ramifications on global supply chain

providers, right from the supply of raw materials to the delivery of finished products. International supply

chain activities have also been disrupted accordingly. Moreover, the domino effect of supply shortages

and plant closures is also leading to significant manufacturing disruptions.

• The lack of raw materials necessary for production, coupled with poor credit and cash flow, is

also expected to negatively impact this target market, in the process.

Demand Side: Due to a decline in demand, as well as financial uncertainty among various businesses,

has led to an immense disturbance in entire production and demand cycle chains. The consumption

patterns of consumers have completely changed, owing to a decrease in average incomes and rising

levels of unemployment. The looming fear of this pandemic has also affected the mental wellbeing of

consumers, and in turn affected their respective purchasing decisions. This has resulted in a decline in

demand, and poor economic activity, forcing marginal industries and similar other organizations to shut

for business. This so far has had a negative impact on this target market. However, with lifting of

respective lockdowns in various nations, and to cater to the demand aroused from several industries,

employment rate is expected to rise from the down fall in initial wave of this virus, further contributing

towards growth of this target market.

New Strategies: As respective lockdowns are gradually lifted, and markets begin to resume, various

companies are now considering altering their given strategies, as a means to return their businesses

to their earlier standing. Strategies such as partnerships, mergers & acquisitions, increasing product

portfolio, etc., will also require to enroll new talents into their respective organization. This is expected

to positively contribute towards growth of this target market, and further aiding organizations to help

recover from losses occurred during this pandemic.