Precision Agriculture Market - A Global and Regional Analysis: Focus on Application, Product, and Country-Wise Analysis - Analysis and Forecast, 2022-2027

Precision Agriculture Market - A Global and Regional Analysis: Focus on Application, Product, and Country-Wise Analysis - Analysis and Forecast, 2022-2027

Global Precision Agriculture Market Industry Overview

The global precision agriculture market was valued at $7.89 billion in 2022 and is expected to reach $14.61 billion in 2027, following a CAGR of 13.12% during 2022-2027. The growth in the global precision agriculture market is expected to be driven by increase in requirement for higher crop yield and a boost in investments in climate-smart agriculture practices.

Market Lifecycle Stage

The precision agriculture market is in a growing phase owing to different advanced technologies in the market. As increase in adoption of automated machineries and equipment, sensors and navigation systems, artificial intelligence, IoT, smartphones, robots, autonomous vehicles, and others. Hardware systems is the most important product used in the modern agriculture operations.

ImpactPrecision agriculture is a modern approach to farm and farm management that uses information technology to ensure plants and soils receive exactly what they need for optimal health and productivity. The aim of precision agriculture is to ensure profitability, sustainability, and environmental protection. The precision agriculture industry is known as satellite farming, precision agriculture, demand farming and site-specific crop management (SSCM). Precision agriculture relies on specialized equipment, software, and IT services. The use of these precision agriculture technologies resulted in the increase in agriculture production with achieving sustainable goals.The use of precision agriculture technologies has positive impact of agriculture operations. These technologies offer benefits such as increased efficiency & productivity, water saving, reduced costs, pest detection and animal health, better sustainability, and others. In addition, precision agriculture helps farmers better understand the important factors such as water, topography, orientation, vegetation, and soil types.Impact of COVID-19

The outbreak of COVID-19, followed by the global nations’ lockdown in 2020, disrupted the function of the global precision agriculture market. It affected the production process and supply chain networks and resulted in losses for the manufacturers in the global precision agriculture market. Unavailability of labour and lack of raw materials such as sensors and other components were the key factors that limited production. However, the production activities gradually started by the end of 2020 as the governments of different countries provided some relief in lockdown.

Market Segmentation:

Segmentation 1: by ApplicationField MonitoringCrop ForecastingPrecision PlantingPrecision SprayingPrecision FertilizationPrecision IrrigationFarm ManagementOthersThe global precision agriculture market in the application segment is expected to be dominated by precision irrigation applications. This is owing to the rise in awareness towards use of water efficiently and reduce the wastage of nutrients, water, and chemicals. In addition, rise in demand for advanced irrigation systems paired with soil and water sensors are expected to generate higher returns than traditional irrigation systems.

Segmentation 2: by Product TypeHardware SystemsSoftwareServicesThe hardware systems segment is estimated to capture highest market share during the period 2022 to 2027. The hardware equipment is increasingly used in the various farming operations. In addition, Hardware solutions in precision agriculture include automation and control solutions, sensing and navigation solutions, and other hardware solutions such as probes and analysers. The rising demand for hardware solutions is because of the widespread use of yield monitors, handheld computers and mobiles, and agriculture cameras.

Segmentation 3: by FunctionFarm ManagementField ManagementFleet ManagementThe field management captures major market share due to the usage of hardware such as sensors, drones, nozzles, cameras, smartphones, and tasks such as planting, spraying, fertilizing, and irrigation, among other activities. In addition, the field management software integrates sensor data and imaging input with other data, allowing farmers to identify fields that require treatment and verify the optimum amount of water, fertilizers, and pesticides to apply.

Segmentation 4: by Farm ProduceField CropsPermanent CropsOthersField crops capture a significant market share in the global precision agriculture market because these crops are grown for large-scale consumption. This is followed by permanent crops, which include fruits, vegetables, and nuts, among others.

Segmentation 5: by TechnologyGuidance TechnologySensing TechnologyVariable Rate Application TechnologyData Analytics and IntelligenceOthersGuidance technology is a majorly used technology in the global precision agriculture market and registered the highest market share in the year 2021. The guidance technology comprises the global positioning system (GPS) and global navigation satellite system (GNSS) technologies applied in the agriculture industry for navigation purposes. It is followed by sensing technology. Sensing technology solutions are integrated with data analysis software that helps the farmers process the extracted farm information.

Segmentation 6: by RegionNorth America - U.S. and Canada Europe - Germany, France, Italy, Spain, Netherlands, Denmark, and Rest-of-EuropeChinaU.K.Asia-Pacific and Japan - India, Japan, Australia and New Zealand (ANZ), Indonesia, Vietnam, Malaysia, and Rest-of-Asia-Pacific and JapanMiddle East & Africa - Israel, South Africa, Turkey, and Rest-of-Middle East & AfricaSouth America - Brazil, Argentina, Chile, Peru, Mexico, and Rest-of-South AmericaNorth America generated the highest revenue of $2,860.3 million in 2021. The region is experiencing an increase in adoption of precision agriculture technologies such as autonomous vehicles, software systems, guidance & navigation systems, agriculture sensors, and other automation & control systems. In addition, increase adoption of digital technologies for modern farm machineries in efficient crop production in the region along with rise in popularity of indoor farming owing to urbanization are expected to drive the market growth during the forecast period.

Recent Developments in Global Precision Agriculture MarketIn September 2022, Trimble Inc. acquired Bilberry, a France-based company specializing in selective spraying technology systems for sustainable farming. By this acquisition Trimble Inc. get access to Bilberry’s artificial intelligence (AI) technology that identifies a wide variety of weed species in real time for a broad range of crop types.In February 2022, Trimble Inc. launched its Virtual Farm, an interactive online experience for farmers across the world to immerse themselves in precision agriculture. In this new online tool, users walk through a digital farm and identify common challenges they encounter daily.In February 2022, Deere & Company opened a development facility in Austin, the U.S. that focus on developing software used in autonomous tractors that helps tractors use data from the cloud and GPS signals to take a precise and specific path.In June 2022, Kubota Corporation partnered with the National Electronics and Computer Technology Center (NECTEC-NSTDA) to develop Thailand's KAS Crop Calendar application, a rice crop calendar application powered by KUBOTA Agri Solution.Demand – Drivers and Limitations

Following are the demand drivers for the Precision Agriculture Market:Increasing Demand for Global Food ProductionNeed for Automation of Workforce in AgricultureSurging Investment and Support in Climate-Smart Agriculture PracticesNeed for Input Optimization in AgricultureThe market is expected to face some following challenges:High Initial InvestmentThreat to Data Security and PrivacyLack of Awareness and IT Infrastructure in Developing RegionsHow This Report Can Add Value to End Users

Product/Innovation Strategy: The product segment helps the reader understand the different types of hardware systems, software, and services available in the precision agriculture applications. Moreover, the study provides the reader a detailed understanding of the different product types by applications (field monitoring, crop forecasting, precision planting, precision spraying, precision fertilization, precision irrigation, farm management, and others). Hardware solutions such as automation & control systems, sensing & navigation systems, and indoor farming equipment are most widely used in modern agriculture practices. Therefore, the precision agriculture market is a moderate investment and high revenue generating product in the coming years owing to the rise in investment towards climate smart agriculture practices across the globe.

Growth/Marketing Strategy: The global precision agriculture market has seen major development by key players operating in the market, such as partnership, joint ventures, collaborations, and product developments. The favoured strategy for the companies has been partnership, joint venture, collaborations, and alliances to strengthen their positions in the precision agriculture market.

For instance, in June 2022, Kubota Corporation partnered up with the National Electronics and Computer Technology Center (NECTEC-NSTDA) to develop Thailand's KAS Crop Calendar application, a rice crop calendar application powered by KUBOTA Agri Solution.

Competitive Strategy: Key players in the global precision agriculture market analysed and profiled in the study involve hardware systems and software manufacturers that are engaged in providing advanced precision agriculture solutions to farmers and other agriculture service companies. Moreover, a detailed competitive benchmarking of the players operating in the global precision agriculture market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, acquisitions, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.

Key Market Players and Competition Synopsis

The companies that are profiled have been selected based on inputs gathered from primary experts and analysing the company's coverage, product portfolio, its market penetration.

The top segment players who are leading include key precision agriculture technologies manufacturers in the market and the ones which are engaged in providing modern precision technologies across the globe.

Key Companies Profiled

Company Type 1: Precision Agriculture Equipment ManufacturersAGCO CorporationCLAAS GroupCNH Industrial N.V.Deere & CompanyHexagon AgricultureKubota CorporationTeeJet TechnologiesThe Toro CompanyTopcon CorporationYanmar Co. Ltd.Company Type 2: Precision Agriculture Software and Service ProvidersAccentureAGRIVIAmazon Web Services, Inc.BASF SEClimate LLCGranular Inc.IBM CorporationMicrosoft CorporationX Development LLC (Alphabet Inc.)

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