Precision Agriculture Market Forecasts to 2030 – Global Analysis By Component (Hardware, Software, Services and Other Components), Technology (GPS/GNSS Systems, Variable Rate Technology (VRT), Guidance Software, Geomapping, Remote Sensing and Other Techno

Precision Agriculture Market Forecasts to 2030 – Global Analysis By Component (Hardware, Software, Services and Other Components), Technology (GPS/GNSS Systems, Variable Rate Technology (VRT), Guidance Software, Geomapping, Remote Sensing and Other Technologies), Application and by Geography

According to Stratistics MRC, the Global Precision Agriculture Market is accounted for $7.51 billion in 2023 and is expected to reach $22.47 billion by 2030 growing at a CAGR of 17.0% during the forecast period. Precision agriculture (PA) is a farming strategy that uses IT to discover, analyze, and manage variability on a farm in order to increase crop production while requiring less labor from humans. Through the retrieval of actual data on the conditions of the soil, crops, and weather, precision agriculture enables farmers to analyze the precise quantity of nutrition crops need for optimum production. Precision farming techniques help farmers make better judgments about when to harvest their crops, how to manage their soil and inventories, and how to manage their water resources.

Market Dynamics

Driver

Rising demand in precision farming

Precision farming is a farming technique that makes use of big data, artificial intelligence, the internet of things (IoT), software, and other technologies to maximize the use of farm inputs and boost output while lowering costs. Although there would be a lot of fixed expenses during the adoption phase, there would be a big drop in variable costs. Moreover, the farm's long-term productivity rises as labor costs drop by about 20%. Hence, by increasing crop productivity and profitability without having a harmful impact on the environment, precision agriculture helps the globe handle the issues caused by climate change and a growing population.

Restraint

High cost

One of the most important challenges restricting market growth is the high cost of precision farming equipment. Precision agriculture uses a variety of high-tech yet expensive instruments and technology, including smart sensors, drones, VRT, GPS, GNSS, guidance tools, and receivers. In addition, trained employees are needed for the setup and use of precision farming machinery.

Opportunity

Rise in smart phones demand

The growing desire for smart phone integration in precision agriculture is a result of rising smart phone demand. Additionally, businesses have released cutting-edge apps that are compatible with all smart phones. With the aid of smartphone integration, farmers can keep an eye on their fields from any location, and the data is backup-stored on the cloud. Moreover, due to Bluetooth, USB, and Wi-Fi connectivity features, smart phones meet the needs of farmers. Thus, as a result, the global market for precision agriculture has greatly benefited from the rapid usage of smart phones.

Threat

Challenges faced in handling data

The precision agriculture generates a ton of data through variable-rate planting; yield monitoring, mapping, soil testing, and crop rotation histories. Moreover, the precision agriculture depends on the analysis of this data, which is used for decision-making. It must be controlled and stored as a result. Therefore, the biggest challenge is handling this enormous volume of data, which calls for a high degree of skill, and many users don't have that expertise to use this data to make decisions for their farms.

Covid-19 Impact

The COVID-19 pandemic outbreak has caused a modest reduction in hardware sales in the market. This is linked to the majority of nations putting their citizens on lockdown and closing down cities to stop the spread of the virus which disrupted the production and distribution of precision agriculture technologies by upsetting global supply lines. As a result, there is a shortage of some parts and equipment, which drives up prices and restricts supply. Furthermore, it caused a decline in investments across many industries and caused lower wages and unpredictable market conditions, which hinders the market’s expansion.

The hardware segment is expected to be the largest during the forecast period

The hardware segment is estimated to hold the largest share, due to automation and control systems, as well as monitoring and sensing equipment, are additional divisions of the hardware market. Automation and control systems, such as GPS receivers, guidance, and steering devices, are expected to make up a sizeable portion of the precision farming hardware market during the course of the forecast period due to their widespread use in precision farming.

The variable-rate technology segment is expected to have the highest CAGR during the forecast period

During the projected period, the segment with the highest CAGR is anticipated to be the variable-rate technology (VRT). Farmers get to improve production and resource allocation by using VRT, which collects data using technologies like GPS, GIS, and sensors to develop prescription maps. Additionally, depending on the needs, it includes applying inputs across a field at various rates. Additionally, technology developments, growing public awareness of sustainable farming practices, and the demand for effective resource management have all contributed to the VRT segment's tremendous rise.

Region with largest share

Asia Pacific commanded the largest market share during the extrapolated period owing to strong economic growth and continued agricultural development are pushing businesses to spend extensively in the precision agriculture market in order to maintain growth and boost output. Additionally, significant move toward digital transformation, the increase in cloud deployment, the adoption of technology in farming operations, and the ongoing modernization of the agriculture sector fuel significant market investment in emerging nations. Furthermore, businesses in the area are focusing on enhancing their operations and increasing their overall efficiency to stay competitive in the market.

Region with highest CAGR

North America is expected to witness profitable growth over the projection period, owing to 66% market penetration; the GNSS-based Wide Area Augmentation System (WAAS) is the most widely used technology in North America. Moreover, there is a large market opportunity for satellite-based technology in North America, with the rising demand for real-time kinetic technology, fertilizer and sprayer controls, robots, variable rate irrigation, networks, and remote sensing technologies.

Key players in the market

Some of the key players in the Precision Agriculture Market include TeeJet Technologies, CropMetrics LLC, Trimble Inc., Monsanto Company, Ag Leader Technology, Deere & Company, Raven Industries, Lindsay Corporation, Valmont Industries, Topcon, Farmers Edge Inc. and Dickey-John Corporation.

Key Developments

In July 2021, AGCO Corporation debuted the pilot version of its Precision Ag Line (PAL) program, a tool designed to streamline support services for farmers utilizing AGCO's solutions for mixed-fleet operations. AGCO's brands, including Challenger, Fendt, Gleaner, Massey Ferguson, and Precision Planting, have access to PAL's precision farming expertise.

In May 2021, AGCO, a manufacturer of agricultural machinery, collaborated with Raven and other brands. The objective is to evaluate spraying technology in an effort to increase the effectiveness and efficiency of crop protection product application.

Components Covered
• Hardware
• Software
• Services
• Other Components

Technologies Covered
• Global Positioning System/Global Navigation Satellite Systems
• Variable Rate Technology (VRT)
• Guidance Software
• Geomapping
• Remote Sensing
• Other Technologies

Applications Covered
• Weather Forecasting
• Person and Inventory Management
• Crop Management
• Financial management
• Irrigation Management
• Other Applications

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements