Precision Farming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Precision Farming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Precision Farming Market was valued at USD 5147.6 million in 2020 and is expected to reach USD 10491.45 million by 2026 and grow at a CAGR of 12.6% over the forecast period (2021-2026). Changing climate, growing demand for food, and increasing the adoption of smart technologies in the global agriculture sector, and government initiatives to enhance farmers' efficiency through new technologies are some of the major factors driving the adoption of precision farming. The adoption trend is varying across different regions, in terms of technology and investment, depending on the services providers in these regions.

Key Highlights

• By the end of 2030, precision farming will become the most influential trend in agriculture, eclipsing other advancements. Remote sensing and ground communication outlets enable real-time information about equipment through the mobile app. Variable-rate technologies (VRTs) have allowed farmers to make more customized land management decisions, enabling more efficient use of inputs such as seeds, fertilizers, and pesticides under variable in field conditions.
• Most of the broad market vendors are offering guidance systems, climate-weather predictions, and input applications equipment. Small vendors are mainly targeting smart irrigation and field monitoring techniques specializing in IoT solutions. North America is the early adopters of technology and has the highest rate of adoption in many of the smart technologies nowadays used in precision farming. The region is a significant adopter of IoT, big data, drones, and robotics in their agriculture sector. However, the global trend is also reflected in the region, i.e., adoption curves of various technologies vary by region because of infrastructure and available service providers.
• For instance, within the United States, McFadden and Schimmelpfenning reported that precision agriculture companies are headquartered in at least 38 US states, but are geographically concentrated. Many of the adoption trends also depend on the type and number of services providers in the area.
• Since the Corona crisis began, sanctions and regulations have hindered the workflow in farms around the world. In late 2019, PickApp, a precision farming ERP system that operates on smartphones, began developing a basic version of the app as part of its remote installation initiative. The goal was to be able to implement the system from a long distance, giving farmers the independence to install, implement, and upgrade at will. Once it became apparent that the coronavirus was changing the way people operate, the team decided to go a step further and offer the basic version they'd developed free of charge for three months, thus ensuring that farmers could manage their farmhands remotely, safely and at no extra cost.

Key Market TrendsSoil Monitoring is Expected to Hold Significant Share

• While some farmers have specific knowledge of detecting soil moisture and health, such knowledge is confined to only a few. Taking farming decisions based on soil moisture and health has become even more difficult in the age of climate change. Soil sensors measure a variety of essential soil properties and relay it to a display device through a reliable means of communication. Soil sensors are generally used in conjunction with the variable rate applications or GPS to generate field maps, categorized according to the properties of the soil. Soil sensors are very crucial to monitor the feasibility of the growth of the crops during the harvesting period.
• Sensors are used for generating real-time information after the analysis of the data and causes the corresponding changes in the application rate. Conventional models of the utilization of a map-based approach are considered to be more productive. They allow room for problem analyzing, and subsequently adjusting the variable rate application in the following steps. The various type of sensors being integrated for soil monitoring purposes includes electromagnetic, optical, mechanical, acoustic, and electrochemical, as far as industrial research has reached.
• In August 2019, a technology called Soilsens, which a low-cost smart soil monitoring system, has come as a potential help to farmers facing farming decision predicaments. Proximal Soilsens Technologies Pvt developed the Soilsens product line. Ltd, a startup incubated at the Indian Institute of Technology Bombay (IITB), Mumbai with support from the Ministry of Department of Science and Technology (DST) and Ministry of Electronics and Information Technology (Meity). The system is embedded with a soil moisture sensor, soil temperature sensor, ambient humidity sensor, and ambient temperature sensor. Based on these parameters, farmers are advised about optimum irrigation through a mobile app. This data is also available on the cloud. There is also a portable soil moisture system.
• In 2019, AGCO Corporation made a commercial and technological partnership with Solinftec, a developer and distributor of digital agriculture solutions. The business will give AGCO customers direct access to Solinftec´s portfolio of solutions, including on-board computers, weather stations, soil sensors, telemetry networks, proprietary algorithms, and the real-time generation of actionable insights generating operational efficiency and agronomic efficacy. The new solutions will launch in Brazil for growers of sugarcane, soybean, corn, and cotton and will begin in the United States for the 2020 crop cycle for corn and soybean growers.

Asia Pacific is Expected to Witness Highest Growth

• According to the Food and Agriculture Organization (FAO) of the UN, more than 80% of the food consumed in sub-Saharan Africa and Asia is grown by smallholder farmers. Growing global demand from food processors and consumers for accountability for the full lifecycle of produce is developing new access opportunities for smallholder farmers. Precision application of crop protection solutions is changing the agriculture sector in Asia. According to the German-based company Jebagro GmbH, its subsidiary in Myanmar is applying almost half of its pesticide products with UAVs.
• Service providers in many Asian countries are leapfrogging to advance application methods, hence making Asian agriculture prime focus for the studied market vendors. Smart tractors, UAVs, ground leveling services, satellite imaging, pesticide application, irrigation services, and handheld decision diagnostics and decision support are becoming more accessible for smallholder farmers in the region without investment in expensive infrastructure. In countries like Japan, the average farmer's average age is 67; therefore, with labor shortages, precision farming is significant for food production and food security.
• The Thailand Board of Investment is promoting startup projects and companies through direct investment and business matchmaking services. Major drone companies, like DJI and XAG, are pushing their technology in the region through the value chain to create new local businesses based on advanced service options. ListenField, which connects satellites, drones, sensors, and on-farm data, delivers analysis and recommendations and collaborates with numerous organizations in Japan. One notable project involves working with universities in Japan, India, and Thailand on data-based farming in the face of climate change.
• India's agricultural policies have recently acknowledged the advantage of smart farming and decided to focus on doubling farmer's income by 2022. The government also introduced the multilingual mobile app 'CHC-Farm Machinery,' that enable the farmers to rent farm machinery and implement it through a CHC in their area. Startups, such as Barton Breeze, have been doing hydroponic and other soil-less farming, and their farms continue to operate even in lockdown. According to DataLabs, India is estimated to have more than 1090 agritech startups, and this sector has been spearheading a revolution in terms of technology, especially in drones, IoT devices, and data analytics to AI and satellite imagery.

Competitive Landscape

The precision farming market consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. The companies operating in the market are also acquiring start-ups working on precision farming technologies to strengthen their product capabilities.

• March 2020 - AgJunction Inc partnered with GeoSurf Corporation (GeoSurf) and Anhui Zhongke Intelligent Sense and Big Data Industrial Technology Research Institute Co. Ltd (ISTI) to provide precision agriculture solutions in the Asia-Pacific region. GeoSurf has recently launched TaznaX, a precision agricultural solution for rice and onion transplanters based on AgJunction's Wheelman and Whirl technology.
• January 2020 - AGCO Corporation introduced the new Fendt Momentum planter to North American row crop producers. This planter's design and versatility establish a new standard for seed placement accuracy and provide technologies to help overcome planting conditions that have historically challenged even emergence and resulted in less than optimum crop yields. The Momentum planter is easily customized with popular Precision Planting technologies making it sophisticated yet simple to operate.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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