Precision Farming Market is expected to reach US$ 26.44 Billion by 2031

According to our latest study on “Precision Farming Market Size and Forecast (2021–2031), Global and Regional Share, Trends, and Growth Opportunity Analysis — by Offering and Application,” the precision farming market was valued at US$ 9.87 billion in 2023 and is expected to reach US$ 26.44 billion by 2031; it is estimated to record a CAGR of 13.1% from 2023 to 2031. The report includes growth prospects in light of current precision farming market trends and driving factors influencing the market growth.

Rising Government Support for Modernizing Agricultural Practices Drives Precision Farming Market 

Governments of various countries are taking initiatives to modernize agricultural practices such as precision farming. For instance, the European Commission's new Common Agricultural Policy (CAP) introduced eco-schemes to incentivize farmers to adopt more environmentally conscious and climate-friendly practices. CAP is responsible for the shift to a sustainable food system and assists European farmers during this process of shifting. Similarly, the Government of India also launched several schemes to promote the use of modern farming technology. For example, the National Food Security Mission (NFSM) provides financial assistance to farmers for the purchase of modern agricultural implements. The scheme is aimed at promoting mechanization as well as boosting productivity in the agricultural sector. Also, in April 2024, the US Department of Agriculture (USDA) announced to invest US$ 1.5 billion in partner-driven conservation and climate solutions through the Regional Conservation Partnership Program (RCPP) as part of President Biden’s Investing in America agenda. As of July 2, 2024, the USDA is accepting proposals that will help farmers, ranchers, and forest landowners adopt and expand conservation strategic initiatives to prevent the deterioration of natural resources while tackling the climate crisis. These projects can save farmers money, create new revenue streams, and increase productivity. Thus, rising government support and schemes for modernizing agricultural practices fuel the precision farming market growth.

Precision Farming Market – by Region, 2023 and 2031

Source: The Insight Partners Analysis

North America held the largest precision farming market share in 2023. In the Middle East & Africa, governments of various countries provide support to smallholder farmers in leveraging precision agriculture by providing necessary digital technologies and services. For example, the Western Cape Department of Agriculture in South Africa developed the Fruit Look Application, an agricultural-based technology to help fruit farmers. This application utilizes spatial data from remote sensing technologies to enhance farm water usage efficiency and provides crucial information such as crop nitrogen status, crop growth, and evapotranspiration deficits. The Fruit Look Application has significantly improved fruit farmers' yields through cost-effective crop management practices. Additionally, other notable precision agriculture technologies in Africa, such as the Chameleon and Wetting Front Detector Sensors, have been implemented in Tanzania, Mozambique, and Zimbabwe. These technologies have helped smallholder farmers in the region reduce their irrigation frequency by 50% by detecting farm soil nutrient and moisture contents, enabling better management of soil nutrients and improved water usage efficiency. The provision of digital technologies and services by governments plays a crucial role in enhancing smallholder farmers' access to precision agriculture in Africa, leading to improved productivity and sustainability in the agricultural sector.

In 2021, EOS Data Analytics, a company specializing in satellite image analysis, revealed its partnership with StarkSat, a provider of precision farming solutions in Latin America, to bring satellite monitoring technology to South America. The collaboration's objective is to enhance access to precision farming technologies for farmers in Brazil, Argentina, and Paraguay, ultimately aiming to boost agricultural productivity in the region. EOS Data Analytics' monitoring platform offers a range of services to support precision agriculture, including crop health monitoring, soil moisture assessment, accurate weather forecasting, change detection, vegetation and productivity assessment, and other analytical data collection operations to facilitate improved field management. Precision farming in South America presents both challenges and opportunities, particularly in the context of smallholder farmers and the need for sustainable agricultural practices. Thus, the rising adoption of technology and data-driven approaches is expected to play a crucial role in the field of farming across the region in the coming years.

In terms of offering, the market is segmented into hardware, software, and services. The hardware segment held the largest precision farming market share in 2023. Hardware components such as control systems and automation, sensing devices, and drones play a significant role in helping farmers. For instance, the GIS guidance system benefits growers as it can predict agricultural workflows. Also, variable-rate technology (VRT) helps farmers analyze areas that need more pesticides and seeds, distributing them equally across the field. The automation and control systems comprise steering and guidance mechanisms, VRT devices, and GPS receivers. These components are essential parts of precision farming hardware due to their widespread utilization in the field of precision farming. Also, the significant adoption of automation and control devices, such as drones/LJAVs, irrigation controllers, guidance and steering systems, GPS/GNSS systems, agricultural sensors, and yield monitors within the agricultural domain, fuels the precision farming market growth.

Precision Farming Market Report Segmentation and Scope:

The “precision farming market analysis” has been carried out by considering the following segments: offering, application, and geography. In terms of offering, the precision farming market is segmented into hardware, software, and services. Based on application, the market is categorized into yield monitoring, crop scouting, field mapping, inventory management, weather tracking and forecasting, and others. Based on geography, the market is segmented into North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

AgJunction LLC, Ag Leader Technology, CropX Inc., AGCO Corporation, Trimble Inc., Deere and Company, CNH Industrial N.V., Topcon, DICKEY-john, and TeeJet Technologies are among the prominent players profiled in the precision farming market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem. The precision farming market forecast can help stakeholders plan their growth strategies.  

Precision Farming Market Recent Developments:

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies operating in the precision farming market. As per the company press releases, below are a few recent key developments:

• In 2023, CNH Industrial and ONE SMART SPRAY, a joint venture between Bosch and BASF, signed a collaboration agreement to integrate the latter's advanced spraying system within CNH Industrial's agricultural brand product portfolios. The Raven team will lead the system's integration and will be commercially available via the global Case IH and New Holland Agriculture brands.
• In 2023, Trimble announced the release of its flexible API for the Trimble Agriculture Cloud, an industry cloud that streamlines farming operations. The availability of this API represents the next evolution of connectivity for agriculture integrators by coupling in-field devices and operational workflows to enable compatibility with both Trimble and third-party agriculture applications.

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