The Global Precision Farming Market Growth, COVID-19 impact and Forecast (2021-2025)
Global precision farming market is segmented based on component type based on hardware, software and services; based on applications as yield monitoring, field mapping, crop scouting, weather tracking & forecasting, irrigation management, inventory management and farm labour management; based on geography as APAC, Europe, North America, and ROW.
Introduction
Precision Farming/Agriculture in the form of site-specific management, offers a solution to many of these concerns. It provides a methodology to farm management that can employ information technology to make sure that the crops and soil obtain exactly what they need for optimal wellbeing and productivity.
The goal of Precision Farming/Agriculture is to ensure profitability, sustainability and protection of the environment. It relies upon specialized equipment, software, and IT services.
The basic approach for this farming 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. The predictive analytics software then uses the data to provide farmers with guidance about optimal planting times, crop rotation, harvesting times and soil management.
Table of Contents
Market Overview
The Global precision farming is expected to grow to $12.73 billion by 2025 at a CAGR of 12.7%
Around 70-80% of new farm equipment sold in Europe now incorporates some form of precision agriculture component technology.
There are 4,500 manufacturers producing 450 different types of machine, turning over around €26bn annually and employing 135,000 people.
It is anticipated that food production will need to increase by 70% on today’s levels by 2050
Key Trends
The precision farming technology is gaining popularity in the agriculture sector as it holds the potential to increase crop yield by using advanced IT-based agriculture methods.
Decades of chemical heavy farming, deforestation, and subsequent global warming is forcing conventional farmers to adopt new technologies. Consumer trends such as plant-based and vegan diets are further propelling the demand for increased production from farmers.
Key Market Players
The market is dominated by global vendors like Ag Leader Technology; AgJunction; CropMetrics; Trimble; AGCO Corporation and Raven Industries.
Growth Drivers and Challenges
The major factors driving the growth of precision farming market includes increasing farm mechanization in developing countries, rising labor cost owing to shortage of skilled labor, increasing strain on the global food supply owing to increasing population, substantial cost savings associated with smart farming techniques, and government initiatives to adopt modern agricultural techniques.
Surging adoption of variable rate, remote sensing, and guidance technologies are the major drivers for precision farming market.
Management of data is a major challenge for the growth of the precision farming market. Precision farming regularly produces high volumes of important data pertaining to mapping, variable rate seeding, soil testing, yield monitoring, and historical crop rotation.
With more and more OEMs coming up with new and innovative agricultural IoT tools and platforms, interoperability is rapidly becoming a point of concern. The various available tools and technologies often do not follow the same technology standards/platforms – as a result of which there is a lack of uniformity in the final analysis done by end users.
The precision farming market is expected to witness a marginal dip in 2020 due to the COVID-19 pandemic as the movement restriction and lockdowns has resulted in the disruptions in the supply chain and led to a shortage of equipment, however the use of remote sensing and farm management software tools could lead to higher adoption during post COVID-19 period.