Precision Agriculture Market Insights and Growth by 2031
The precision agriculture market is projected to grow from US$ 11.27 billion in 2023 to US$ 29.85 billion by 2031; it is expected to expand at a CAGR of 12.9% from 2023 to 2031. Increasing adoption of advanced technologies such as the Internet of Things (IoT) and AI-based solutions, among others, is expected to be a key trend in the market.
Precision Agriculture Market Analysis
The precision agriculture market growth can be credited to the increasing adoption of advanced technologies in farming, the continuous growth of the population resulting in a rise in demand for agriculture-based products, and a surge in the adoption of smartphones. Furthermore, increasing investments in technologies such as autonomous tractors, GPS systems, guidance systems, and favorable government initiatives to support smart farming create lucrative opportunities for the precision agriculture market growth.
Precision Agriculture Market Industry Overview
Precision agriculture is a farming approach that employs data sensors, remote control tools, connected devices, and other advanced technologies to offer farmers better control over their farms. Precision farming uses modern and advanced technologies such as satellite imagery, field mapping, GPS, and drones to improve crop quality and profitability, increase production, reduce labor time, and ensure the effective management of fertilizers and irrigation processes. It uses large volumes of ground, aerial, and satellite data to improve the use of agricultural resources, levels of yields, and quality of crops. Based on these data, farmers receive information on many key parameters related to farms, such as crop status, weather forecasts, and environmental changes.
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Precision Agriculture Market: Strategic Insights
Market Size Value in US$ 9.02 billion in 2021 Market Size Value by US$ 19.72 billion by 2028 Growth rate CAGR of 11.8% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Precision Agriculture Market: Strategic Insights
| Market Size Value in | US$ 9.02 billion in 2021 |
| Market Size Value by | US$ 19.72 billion by 2028 |
| Growth rate | CAGR of 11.8% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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Precision Agriculture Market Driver and Opportunities
Technological Advancements to Favor Market Growth
The agriculture sector continuously strives to meet consumer demands, regardless of environmental challenges such as unfavorable weather conditions and climate change. Technological advancements in both small and large-scale agricultural businesses are encouraging the implementation of precision agriculture. Innovations related to smart farming and precision farming through IoT will enable farmers to enhance their operational efficiencies, lower costs, reduce waste, and improve yield quality. The use of IoT devices in precision agriculture helps farmers improve field and cattle monitoring, risk management, and planning for aiding decision-making, return on investment (ROI), and overall site farm security. Moreover, the implementation of IoT applications, along with high-speed internet-connected mobile devices obtaining data from reliable, low-cost satellites, adds to the accuracy of precision agriculture, which bolsters the growth of the precision agriculture market growth.
Adoption of Digital Technologies in Sustainable Farming to Create Lucrative Market Opportunities
Technological advancements have significantly boosted agricultural productivity and development across the globe. Historically, technology adoption was aimed at increasing production, productivity, and agricultural income. Agriculture, trade, R&D, education, training, and advisory policies have had a significant impact on technology selection, productivity levels, and farming methods for decades. Addressing the challenge of sustainable development necessitates a fundamental shift in existing farming techniques. The introduction of digital technologies has the potential to improve the efficiency of input utilization, raise crop output, and reduce environmental harm, therefore benefiting both farmers and consumers. Thus, the adoption of digital technologies in sustainable farming is expected to create lucrative opportunities for market growth during the forecast period.
Precision Agriculture Market Report Segmentation Analysis
The key segments that contributed to the derivation of the Precision Agriculture Market analysis are coverage type and applications.
- Based on application, the precision agriculture market is segmented into data management, yield monitoring, precision spraying, precision irrigation, precision planting, field monitoring, precision fertilization, and others. The yield monitoring segment is dominating the precision agriculture industry. Yield monitoring using precision agriculture technologies helps identify, measure, and describe the intra-field variability within a cropping system.
- Based on component, the precision agriculture market is segmented into hardware, software, and services. The hardware segment is dominating the market. The hardware consists of automation and control systems, sensing devices, antennas, access points, sensors, and others. Automation and control systems, sensing devices, and drones play a major role in precision farming.
Precision Agriculture Market Share Analysis By Geography
Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America.
North American dominated the precision agriculture market share in 2023. The dominance of this region in the market is majorly ascribed to the increasing adoption of technological advancements in the agriculture sector. A few of the key players in the precision agriculture market are Ag Leader Technology; AgJunction, Inc.; CropMetrics LLC; Trimble, Inc.; AGCO Corporation; Raven Industries Inc.; Deere and Company; Topcon Corporation; Hexagon Agriculture; and CropX Technologies. These companies have been witnessing continuous demand from SMEs and large enterprises in the world. The following figure depicts a revenue growth trend in the precision agriculture market.
Precision Agriculture Market Report Scope
Precision Agriculture Market News and Recent Developments
The Precision Agriculture 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 Agriculture Market are listed below:
AGCO Corporation, a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, announced the launch of PTx, a new brand representing its precision ag portfolio. PTx combines precision ag technologies from the cornerstones of AGCO's tech stack: Precision Planting and its newest joint venture (JV), PTx Trimble. (Source: AGCO Corporation, Press Release, April 2024)
Precision Agriculture Market Report Coverage & Deliverables
The Precision Agriculture Market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Precision Agriculture Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Precision Agriculture Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Precision Agriculture Market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Precision Agriculture 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 in the Precision Agriculture Market
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Application, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
Increasing adoption of advanced technologies such as the Internet of Things (IoT) and AI-based solutions, among others, is the major trend in the market.
Ag Leader Technology, AgJunction, Inc., CropMetrics LLC, Trimble, Inc., AGCO Corporation, Raven Industries Inc., Deere and Company, Topcon Corporation, Hexagon Agriculture, DICKEY-john, AgSense, AgSmarts Inc, Monsanto Company, AgJunction Inc., Precision Planting, Teejet, Ecorobotix SA, Granular Inc., Farmers Edge, and CropX Technologies are the major market players.
Some of the customization options available based on the request are additional 3–5 company profiles and a country-specific analysis of 3–5 countries of your choice. Customizations are to be requested/discussed before making final order confirmation, as our team would review the same and check the feasibility.
Technological advancement and government support for precision farming are the major factors that drive the global Precision Agriculture Market.
The report can be delivered in PDF/PPT format; we can also share an Excel dataset based on the request.
The global Precision Agriculture Market was estimated to grow at a CAGR of 12.9% during 2023 - 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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