Precision Farming Market Growth, Size, Share, Trends, Key Players Analysis, and Forecast till 2031

The precision farming market size is projected to reach US$ 26.44 billion by 2031 from US$ 9.87 billion in 2023. The market is expected to register a CAGR of 13.1% during 2023–2031. Advanced precision farming techniques are likely to remain key trends in the market.

Precision Farming Market Analysis

Precision farming is a method where inputs are applied in precise amounts to grow increased yields compared to traditional cultivation procedures. Hence, it is an all-inclusive system designed to improve production efficiency, enhance product quality, expand the efficiency of crop chemical usage, protect the environment, and conserve energy by utilizing critical elements of technology, information, and management. Thus, precision farming is an attractive concept, and its ideologies support that agricultural inputs can be used more efficiently, with improved profits and ecologically less burdensome production.

Precision Farming Market Overview

Precision farming is an information and technology-based farm management system used to analyze, identify, and manage temporal and spatial variability within fields for optimal profitability and productivity, sustainability, and protection of land resources by minimalizing production costs. The growth of the precision farming market is attributed to the rising penetration of the Internet of Things (IoT) and increased usage of progressive analytics by farmers. Advanced analytics is a section of data science that utilizes numerous methods and tools to forecast data and confirm that the soil and crop receive sufficient nurturing. This helps farmers plan their actions accordingly. Thus, technological advancements in the precision farming market are expected to boost its growth during the forecast period.

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Precision Farming Market Drivers and Opportunities

Increasing Reliance on Smartphones

Farmers depend on broadband and wireless networks to obtain information about specific industry-directed knowledge-sharing initiatives, including farming-related progressive solutions. Agriculture mobile apps can be used for collecting data, recording crop scouting activities, tracking machine performance, and controlling drones. As a result, there is an increasing reliance on smartphones to access agriculture mobile apps, such as Digi-Star’s Grain Tracker, My New Holland app, Just In Time Plant Nutrient Calculator, AgDNA, and Cropalyser. These apps are widely used in precision farming.

Growing Demand for Agricultural Robots

An agricultural robot is a robotic device that can advance agricultural processes by taking over farmer’s labor-intensive duties. Agriculture robots make many applications faster, simpler, more precise, and effective. Driverless tractors, drones for data collection and crop monitoring, automated irrigation and harvesting, and autonomous precision seedings are a few of the frequently used agricultural robots for crop farming, soil management, and livestock production. Furthermore, various companies offer agricultural robots for farming, harvesting, picking, and weeding purposes.

Precision Farming Market Report Segmentation Analysis

Key segments that contributed to the derivation of the precision farming market analysis are offering and application.

• Based on offering, the market is segmented into hardware, software, and services. The hardware segment held the largest 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.
• By application, the precision farming market is categorized into yield monitoring, field mapping, crop scouting, inventory management, weather tracking and forecasting, and others. The yield monitoring segment held the largest share of the market in 2023. In precision farming, yield monitoring is used because it helps measure, identify, and define the intra-field variability in a cropping system, which forms the foundation of the concept of precision agriculture. In a single field, yield monitoring offers variable data that is produced by the intricate interaction of climatic, environmental, and farm management practices.

Precision Farming Market Share Analysis by Geography

The geographic scope of the precision farming market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

North America held the largest share of the precision farming market in 2023. Factors such as rising labor expenses; a shortage of skilled workers; high demand for agricultural products; and the integration of advanced technologies such as VRT, remote sensing, GPS, GIS, and guidance systems are contributing to the expansion of the precision farming market in North America. Furthermore, the escalating utilization of cloud-based technology, the increasing uptake of contemporary farming methods, and government programs aimed at promoting the use of modern agricultural technologies are driving the market. Moreover, many companies are collaborating to develop innovative products in the market. For instance, in December 2023, Deep Sand Technology (DST), a company specializing in autosteering and precision agriculture, joined forces with the GEODNET Foundation to launch real-time kinematic (RTK) services for precision agriculture in rural North America.

The Europe precision farming market exhibits significant partnerships, with major industry participants such as Deere & Company, Bayer Crop Science, Trimble Inc., Agco Corporation, and Granular Inc. actively engaged in research and development, product introductions, advancements, and collaborative ventures. Notably, Agco Corporation introduced the WR Series Windrower in February 2022, delivering a 10% enhancement in overall efficiency compared to prior models, thereby optimizing hay production and quality. Precision farming methodologies, encompassing digital agriculture, are recognized as pivotal in advancing the EU's strategic objectives of sustainability, intelligence, and safety. With the integration of precision farming into the National Recovery and Resilience Plans of all member states, the EU's sustainability targets will be achieved in the near future.

Precision Farming Market Regional Insights

The regional trends and factors influencing the Precision Farming Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Precision Farming Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Precision Farming Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Precision Farming Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Precision Farming Market are:

1. AgJunction LLC
2. Ag Leader Technology
3. CropX inc
4. AGCO Corporation
5. Trimble Inc.
6. Deere and Company

Disclaimer: The companies listed above are not ranked in any particular order.

Precision Farming Market News and Recent Developments

The precision farming market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the precision farming market are listed below:

• Deere & Company announced its agreement with SpaceX to provide cutting-edge satellite communications (SATCOM) service to farmers. Utilizing the industry leading Starlink network, this solution will allow farmers facing rural connectivity challenges to fully leverage precision agriculture technologies. This partnership, an industry first, will enable John Deere customers to be more productive, profitable, and sustainable in their operations as they continue to provide food, fuel, and fiber for their communities and the rest of the global population.

(Source: Deere & Company, Press Release, January 2024)

• Trimble (NASDAQ: TRMB) announced a definitive agreement to form a joint venture (the "JV") with AGCO (NYSE: AGCO) to better serve farmers with factory fit and aftermarket applications in the mixed fleet precision agriculture market. Trimble and AGCO's shared vision is to create a global leader in mixed fleet smart farming and autonomy solutions.

(Source: Trimble Inc., Company Website, September 2023)

Precision Farming Market Report Coverage and Deliverables

The “Precision Farming Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Precision farming market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Precision farming market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Precision farming market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the precision farming market
• Detailed company profiles