Precision Agriculture Market has valued at USD 8.56 Billion in 2022 and is anticipated to project impressive growth in the forecast period

Market Overview

Global Precision Agriculture Market is worth USD 8.56 Billion in 2022 and is expected to exhibit impressive growth in the forecast period with a CAGR of 9.55% during 2028.

Precision agriculture or site-specific crop management (SSCM) is a farm management approach that allows farmers to maximize food production in an economical way. It involves different technologies, such as global positioning system (GPS), geographical information system (GIS), remote sensing (RS), and variable rate technology (VRT). Precision agriculture uses specialized machinery, software, and information technology (IT) services to generate real-time information on soil type, surrounding air quality, plant health, the cost of labor, equipment availability, and immediate local weather forecasts. All this information enables accurate decision-making on planting, crop changing, and harvesting. Additionally, precision agriculture reduces water consumption, as well as the use of pesticides, herbicides, and fertilizers. It also increases the profitability, productivity, quality, and sustainability of agricultural crops. Owing to its capacity to reduce production costs and labor input, precision agriculture demand is on the rise globally.

Key Market Players

• Ag Leader Technology
• AgJunction, Inc.
• CropMetrics LLC
• Trimble, Inc.
• Raven Industries Inc.
• Deere and Company
• Topcon Corporation
• AgEagle Aerial Systems Inc.
• Farmers Edge Inc.
• Grownetics, Inc.

Growing Application of Cloud Computing in Agriculture Practices
The growth of Cloud Computing in agricultural practices will be likely to increase the demand for Precision Agriculture worldwide to a great extent. This technology-driven farming method leverages real-time data and cloud-based software to make more accurate and controlled agricultural practices. Now, farmers can track their livestock and crops to an unprecedented extent and accuracy, enabling optimization of water and fertilizers, predicting yields, and detecting diseases in advance. These are not only lowering costs and improving efficiency, they are also leading to environmental sustainability as they reduce waste and excessive consumption of resources. The scalability and availability provided by cloud computing make precision agriculture a feasible option for even small farmers, effectively making high-tech farming available to all. These augmented usage and accessibility of cloud computing are likely to fuel a hike in demand for precision agriculture across the globe as farmers try to harness technology in order to improve yield, efficiency, and profitability, while minimizing their environmental impact. In due course of time, it is only expected that the global agribusiness sector’s dependence on precision and technology will further grow.

Increase in the Use of Smartphone Apps Specialized for Precision Agriculture
The world’s expansion in smartphone adoption has been the key factor to the growth of demand for Precision Agriculture. Precision Agriculture is a new concept of farming management using information and technology to provide exactly what crops and soil require to achieve optimal health and production. The invention of smartphone apps developed exclusively for Precision Agriculture has also made the process more efficient and accessible for farmers across the world. These programs employ a range of technologies, such as GPS, satellite images, and sensors on the ground to provide real-time information regarding the health of the fields, thus making precision agriculture a more efficient and knowledge-based process. This data-driven process allows farmers to track and control their crops at the level of detail, minimizing the consumption of resources like water, fertilizer, and pesticides, thus reducing environmental degradation and enhancing sustainability. It also allows for more accurate prediction of crop yields, leading to better planning and profitability. In essence, the rise in the usage of such smartphone applications is set to expedite the global demand for Precision Agriculture, marking a significant stride towards a more sustainable and efficient future in agriculture.

Increasing Acceptance of Automated Farming Solutions
The growing acceptance of automated agricultural solutions is anticipated to contribute notably towards the increased demand for precision agriculture on a global level. Farmers are increasingly finding value in automated and Precision Agriculture, since these technologies provide the solution for handling the crop variability, hence optimizing yield and profitability. Through the use of Precision Agriculture methods like GPS soil sampling, remote sensing, variable rate technology (VRT), and Geographic Information Systems (GIS), farmers can make better decisions regarding when and where to plant, fertilize, and irrigate. These new technologies have the ability to save waste, conserve resources, and reduce the environmental footprint of farming, hence promoting sustainable agriculture. Also, with the arrival of smart devices and Internet of Things (IoT) in agriculture, the possibility of real-time monitoring of crop and soil health has arisen, resulting in enhanced crop management and forecasting. Hence, the rising efficiency, cost-effectiveness, and environmental sustainability provided by automated farming and precision agriculture are expected to fuel their adoption and demand globally, transforming the agricultural sector on a global basis.

Segmental Insights

Component Insights

According to the Component, the hardware segment contributed the maximum revenue share in 2022 and is expected to hold market leadership during the forecast period. In the hardware segment, there are a number of subcategories such as automation and control systems, sensing devices, antennas, and access points. These hardware parts, for instance, automation and control systems, sensing devices, and drones, are of extreme importance to support farmers. For instance, the GIS advisory system gives farmers useful visualization of farm workflows and the surrounding environment. Further, VRT technology helps farmers locate areas needing targeted pesticide and seed application in order to have even distribution within the field.

The software segment is categorized into web-based and cloud-based Precision Agriculture solutions. Cloud computing provides shared networks, servers, and storage devices, effectively removing the huge costs of equipment and software infrastructure maintenance. The software segment is thus anticipated to display a strong CAGR over the forecast period. Software predictive analytics is utilized to offer farmers advice on crop rotation, soil management, the best time for planting, and harvesting times.

Application Insights

According to the Application, the yield monitoring segment, which held the highest revenue share in 2022, is expected to continue its leading position during the forecast period. The segment is pivotal in helping farmers make informed decisions regarding their fields. It is also classified into two categorieson-farm yield monitoring and off-farm yield monitoring. On-farm yield monitoring allows farmers to obtain real-time data at harvest time and build a complete historical spatial database. In addition to aiding fair negotiations with landlords, on-farm yield monitoring assures documentation of environmental compliance and builds track records for food safety. The segment of on-farm yield monitoring is expected to contribute the largest percentage of the Precision Agriculture market since it has many advantages and real-world applications within the agriculture sector.

Regional Insights
North America was the highest revenue contributor in 2022. The region has been a trendsetter for the adoption of emerging technologies, creating a path for innovation across multiple industries. This success is contributed by a combination of factors, such as the rising government support for the uptake of advanced agricultural technologies and well-established infrastructure for easy integration.

For example, the National Institute of Food and Agriculture (NIFA), one of the major divisions of the U.S. Department of Agriculture, is responsible for fostering awareness among farmers. With their geospatial, sensor, and precision technology programs, NIFA partners with Land-Grant universities to equip farmers with sound sensors, software, and instrumentation. This helps them to model, monitor, and analyze a vast array of complex biological materials and processes effectively, finally optimizing their agriculture.

Recent Developments
February 2022Ag Leader broadened their end-to-end full-farm solution product portfolio by introducing the latest addition to the highly regarded DirectCommand application product line. The RightSpot device, just released, offers nozzle-by-nozzle control of the sprayer, providing consistent and effective coverage. Additionally, it offers greater flexibility, a broader speed range, higher productivity, and more precision, further enabling growers who have trusted Ag Leader for more than two decades.
February 2022Sway AI, an AI technology and services developer, announced partnership with Trilogy Networks to become a member of the Rural Cloud Initiative (RCI). This special group of network and edge innovation partners is committed to powering and speeding the digital transformation of rural America. Through this strategic alliance, Sway AI and Trilogy Networks will offer farmers an end-to-end AI-powered precision agricultural solution, addressing their varied needs.
August 2022Trimble, Inc. entered into a strategic alliance with CLAAS KGaA mbH, a leading agriculture engineering equipment firm. The association is to form a state-of-the-art precision farming system from the SAT 900 GNSS receiver, CLAAS CEMIS 1200, and the GPS PILOT guidance system. Through the combined endeavors of Trimble and CLAAS, efforts are made towards transforming agriculture with enhanced technologies that ensure greater efficiency and productivity.