Precision Agriculture Market Statistics: 2030
The precision agriculture market size was valued at $6,457 million in 2020, and is projected to reach $23,056 million by 2030, growing at a CAGR of 13.4% from 2020 to 2030.
Precision agriculture is a modern approach for farm and agriculture management which uses information technology to ensure that crops and soil receive exactly what they need for optimum health and productivity. The goal of precision agriculture is to ensure profitability, sustainability, and protection of the environment. Precision agriculture industry is known as satellite agriculture, precision farming, as-needed farming, and site-specific crop management (SSCM). Precision agriculture relies upon specialized equipment, software, and IT services. The approach includes accessing real-time data about the conditions of the crops, soil, and ambient air, along with other relevant information such as hyper-local weather predictions, labor costs, and equipment availability. Predictive analytics software uses the data to provide farmers with guidance about crop rotation, optimal planting times, harvesting times, and soil management. Sensors in fields measure the moisture content &temperature of the soil and surrounding air. Satellites and robotic drones provide farmers with real-time images of individual plants. Information from those images can be processed &integrated with sensor and other data to yield guidance for immediate & future decisions, such as precisely what fields to water and when or where to plant a particular crop.
As per precision agriculture market analysis on the basis of component, the hardware segment led the overall smart agriculture market in 2020, and is expected to remain dominant during the forecast period as there has been an increase in the adoption of hardware among the developing countries, as it ensures effective functioning of smart agriculture market software which drives the precision agriculture market growth. However, the service segment is expected to witness the highest growth in the upcoming years. This is attributed to increase in adoption of precision agriculture software in modern farming techniques. This increases the need for various services such as system integration and managed services. Most of the countries have started adopting these services to align all agricultural and farming tool together. This includes yield monitoring, field mapping, and weather forecasting, which improve the overall productivity of farming.
On the basis of region, North America leads the market and this trend is anticipated to continue during the forecast period. This is attributed due to the increase in inclination of the farmers toward the use of digital technology for yield management. Asia-Pacific is expected to exhibit highest growth during the forecast period, owing to strong economic growth along with the ongoing development in the agriculture sector, which drives organizations to invest heavily in precision agriculture market to sustain growth and improve productivity. In addition, factors such as, major shift toward digital transformation, rise in cloud deployment, technological advancement among farming operations, and ongoing modernization of agriculture business drive heavy investment in market in emerging economies. Furthermore, enterprises in Asia-Pacific are focused on enhancing their operations and increasing their overall efficiency to stay competitive in the market, which is expected to provide lucrative precision agriculture market opportunity during the forecast period.
The report focuses on the growth prospects, restraints, and precision agriculture market analysis. The study provides Porter’s five forces analysis of precision agriculture industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the precision agriculture market trends.
The precision agriculture market is segmented on the basis of component, application, technology, and region. By component, it is categorized into hardware, software and service. Depending on application, it is categorized into yield monitoring, field mapping, crop scouting, weather tracking & forecasting, irrigation management, inventory management, farm labor management, and others. By technology, it is categorized into guidance technology, remote sensing technology, and variable-rate technology. On the basis of region, it is studied across North America, Europe, Asia-Pacific, and LAMEA.
Impact of COVID-19 on the Market
As per precision agriculture market forecast Post COVID-19, the global precision agriculture market share is estimated to grow from $ 7,427.00 million in 2021, and reach $23,056.00 million by 2030, at a CAGR of 13.4%.
The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. Post COVID-19, revenue of the precision agriculture market share is estimated to be $ 6,457.00 million in 2020. It has registered increase in its revenue and is expected to reach $23,056.00million in 2030. The market is expected to come on normal track from mid-2021 and is projected to be attaining a growth rate of 13.4% from 2021 to 2030, owing to rise in adoption of modern agriculture techniques across the globe, which is expected to drive the growth of the market in the pandemic situation.
The precision agriculture market has witnessed growth in the past few years; however, due to the outbreak of the COVID-19 pandemic, the market has witnessed a slight decline in hardware revenue in 2020. This is attributed to implementation of lockdown by governments in majority of the countries and the shutdown of the cities to prevent the transmission of virus.
The precision agriculture market forecast is projected to prosper in the upcoming years after the recovery from the COVID-19 pandemic. Furthermore, various organizations across the Asian countries have adopted advanced agricultural techniques to improve their business process and to increase their operational efficiency. In addition, various countries have installed precision agriculture applications and have adopted precision agriculture solution for their farming operation without any transmission of the virus among public.
Top Impacting Factors
The top impacting factors on the global precision agriculture market include surge in adoption of smart phones, emergence in usage of advanced technology, and continuous growth in the population, which drive the market growth globally. However, factors such as lack of awareness about precision agriculture products and huge investments limit the market growth. Furthermore, increase in investments in technologies such as driverless tractors, guidance systems, GPS sensing systems, and strong government support for promoting the use of precision farming techniques creates lucrative opportunities in the precision agriculture market during the forecast period.
Rise in Adoption of Smart Phones in Agriculture
The rise in demand for smart phones has led to the growth in the demand for smart phone integration in precision agriculture. Companies have introduced advanced applications compatible with all smart phones. Farmers are able to monitor the field from any location and the data is stored in the cloud as backup with the help of smart phone integration. Smart phones satisfy the requirements of the farmer as it supports connectivity using Bluetooth, USB, and Wi-Fi. Thus, the surge in smart phone adoption has created immense opportunities for the global precision agriculture market. Advancement in technology makes way for improvements in the facilities used in farming. One of the most dramatic changes in the use of mobile devices in agriculture is the development of monitoring protocols &systems for monitoring &managing farms and farm workers. For instance, in December 2020, the survey done by the leading news agency which is “The Print” shows that farmers in India have adopted advanced technology and use of smart phone in farming activity has helped gain nearly double income and output than other farmers.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the precision agriculture market along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities &their impact analysis on the precision agriculture market size is provided.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the precision agriculture market.
- The quantitative analysis of the market from 2020 to 2030 is provided to determine the precision agriculture market potential.
Precision Agriculture Market Report Highlights
Key Market Players
Ag Leader Technology, AgSense, LLC, CropMetrics LLC, Deere & Company, Trimble Navigation Limited, AgSmarts Inc, AGCO Corporation, Monsanto Company, CropX, DICKEY-john
In accordance with several interviews that were conducted with top level CXOs, adoption of precision agriculture software has increased over the period of time due to surge in modern farming technique and evolving supportive government regulations across the region. In addition, ability of the precision agriculture software to improve productivity of farmers and reduced financial losses in farming and agriculture system increases its popularity among the end users.
Agriculture plays a crucial role in livelihood and country economy as it is the backbone of the economic system of a country. Moreover, for decades, agriculture has been associated with essential crop production. Presently, there is a rapid increase in population globally that necessitates more food requirement. Therefore, to satisfy the increased food demand, effective agriculture techniques such as precision agriculture are required. Precision agriculture plays a crucial part in the agriculture industry, facilitating the ability to monitor and understand what is happening around the crop. Some of the major benefits of precision agriculture are real-time monitoring, optimum utilization of resources, and improved productivity. Moreover, precision agriculture is popular in developed regions, such as North America and Europe.
The global precision agriculture market has been gaining traction owing to the increased adoption across various regions due to its superior benefits such as real-time farm monitoring, essential information collection related to crops, information analysis, and effective decision support that drives the growth of the market. Therefore, the global precision agriculture market is rapidly expanding and replacing the traditional methods. In addition, technological development in the agriculture industry help improve crop production and ultimately revenue of farmers which boosts the growth of the precision agriculture market globally.Major players have adopted various revenue and business growth strategies to enhance and develop their product portfolio, strengthen their precision agriculture market share, and help them increase their market penetration.
Also, various startups are focusing on innovation of various techniques for advanced agriculture method to uplift the agriculture production. For instance, in November 2020, Indian precision farming start-up which is Fasal has launched first ever, made in India plug and play IoT and sensors based system, ‘Fasal Kranti’. The IoT device ‘Fasal Kranti’ aims to make farming profitable and sustainable by helping the farmer in making optimized data-driven decisions on the farm concerning irrigation, fertilizer distribution, disease, and pest management.