MARKET OVERVIEW - GLOBAL PRECISION FARMING TOOLS MARKET
Precision farming tools are primarily designed to maximize yields and crop-related yields. Precision agricultural software helps with information such as ideal planting schedules, maintenance instructions, and environmental factors that can affect a particular crop. Precision agriculture software often provides predictive analytics, such as projected waste, yields, and profitability related to market value, helping farmers and producers make the best decisions for each growing cycle. Precision farming (PA) is an agricultural management concept based on observing, measuring, and responding to inter- and intra-field crop variability. The technology relies heavily on specialized equipment such as sensor devices, antennas, access points, automation and control systems. Precision farming practices are expected to see a surge in adoption as they enable farmers to precisely adjust for field fluctuations, increasing productivity and reducing production costs. Thus, the growing precision farming across the globe is expected to drive the demand for precision farming tools in the market.
MARKET DRIVERS
Precision farming tool is gaining traction owing to the growing adoption of the internet of Things in farm data management. Also, various research institutes and associations play an important role in the development of the precision agriculture software market. Population growth, increasing demand for food, and the high penetration of cloud computing technology in farm data management are the factors driving the growth of this market. Further, an increasing use of precision agricultural tools in weather forecasting is fueling the growth of the market. Additionally, precision agricultural tools provide information about the amount of water present in the soil. This can be used by farmers to make better decisions about when to harvest. Moreover, the growing technological advancement in the agricultural sector to increase food production will boost market growth.
MARKET OPPORTUNITY
As environmental concerns grow, farmers are shifting their focus to sustainable farming practices such as protecting natural resources. This has increased the need for improved crop nutrition and crop protection, which is supporting the growth of the market. Also, there is a rising use of AI-based solutions in precision farming as it helps farmers with controlling and accurate farming by providing required information regarding the use of fertilizer, water management, crop rotation, and other operations. AI is also used in weather forecasting to help farmers decide the type of crop to grow and monitor the soil quality and nutrition level. Thus, rising use of AI-based solutions is expected to provide ample opportunity for the market. Further, high-speed internet connectivity and the integration of smartphones with agricultural hardware and software applications are factors that offer growth opportunities in the precision agriculture software market.
MARKET RESTRAINT
However, precision agriculture is a smart farming practice that requires technical understanding. The lack of information on state-of-the-art technologies and their applications creates a gap between understanding and implementing the principles of precision agriculture.
MARKET GROWTH CHALLENGES
The lack of farmers' awareness of precision farming and the high costs associated with the introduction of the technology are expect9ed to limit the growth of the precision farming market. Also, precision farming tools generate a large volume of data and this volume of data requires high expertise, and many users do not have the expertise to use their data for farm decision-making. Further, the COVID-19 pandemic hampered the growth of the market to a major extent, which has created a major challenge for market growth.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the precision farming tools market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. The increasing adoption of high-level agricultural equipment and solutions across the globe is fueling the growth of the market and is expected to witness growth at a specific CAGR from 2023-2029.
GLOBAL PRECISION FARMING TOOLS MARKET SEGMENTAL OVERVIEW
The precision farming tools market comprises of different market segment like component, technology, application, and geography.
GLOBAL PRECISION FARMING TOOLS MARKET BY COMPONENT
By component, the precision farming tools include key segment of
The hardware component is expected to dominate the market over the forecast period. The hardware segment is further subdivided into automation and control systems, sensor devices, antennas, and access points. Hardware components such as automation and control systems, sensor devices, and drones play an important role in supporting farmers. In addition, VRT technology helps farmers identify areas that need more pesticides and seeds and spread them evenly across the field.
The software segment is expected to register the fastest CAGR during the forecast period. Digitization is needed in every industry to reduce costs and improve productivity. The precision agriculture market, including agricultural sensors, agricultural software, drones, etc., is also going digital to support the agricultural business. Predictive analytics software is used to guide farmers about crop rotation, soil management, and harvesting times.
GLOBAL PRECISION FARMING TOOLS MARKET BY TECHNOLOGY
By technology, the precision farming tools include key segment of
- Precision Farming Guidance System
- Remote Sensing
- Variable-Rate Technology
- Proximate Sensors Technology
- Proximate Sensors Technology
- Soil Temperature Sensors
- Soil Nutrient Sensors
- Others
The precision farming guidance system is expected to dominate the market over the forecast period. Precision agriculture guidance systems includes GPS/ GNSS-based and GIS based. GPS-based applications in precision farming are being used for farm planning, field mapping, soil sampling, tractor guidance, crop scouting, variable rate application, and yield mapping. With GPS, farmers can work in poor visibility conditions such as rain, dust, fog and darkness. Manufacturers of GPS devices have developed a variety of tools to help farmers and agribusinesses increase the productivity and efficiency of their precision farming activities.
GLOBAL PRECISION FARMING TOOLS MARKET BY APPLICATION
By application, the precision farming tools include key segment of
- Field Mapping
- Crop Scouting
- Weather Tracking and Forecasting
- Inventory Management
- Irrigation Management
- Farm Labor Management
- Others
Field mapping is expected to dominate the market over the forecast period. Accurate agricultural mapping involves the timely collection of geospatial information about crop or soil characteristics and requirements, and the application and prescription of site-specific treatments to increase production while protecting the environment.
The irrigation management segment is expected to register the fastest CAGR during the forecast period. Smart irrigation involves the use of various technologies, such as rain sensors, weather-based controllers, sensor-based controllers, and water meters, to help estimate the right amount of irrigation water. Such benefits are likely to drive the adoption of irrigation drones.
GLOBAL PRECISION FARMING TOOLS MARKET BY GEOGRAPHY
By geography, the precision farming tools includes key segment of
- North America
- Asia Pacific
- Europe
- RoW
The Asia Pacific region is expected to dominate the precision farming tools market over the projected time period due to increased government initiatives and the farmers in the region are well educated and increasingly using advanced farming systems is expected to drive the market. Further, increased government initiatives and infrastructure development to support the introduction of modern farming techniques contribute to the high revenues of the regional market. For example, the National Institute of Food and Agriculture (NIFA), part of the U.S. Department of Agriculture, conducts geospatial, sensor, and precision technology programs to raise awareness among farmers. Moreover, increasing using farming systems, farm management software, mobile applications, cloud services, imaging services and data analytics services. All these factors are expected to drive the precision farming tools market.
The Asia Pacific region is expected to register the fastest CAGR during the forecast period due to the vast agricultural land and population growth. In developing countries such as India, Sri Lanka and Nigeria. There are numerous government initiatives to encourage the adoption of the latest precision farming technologies and thereby maximize productivity.
COVID-19 IMPACT ANALYSIS ON GLOBAL PRECISION FARMING TOOLS MARKET
The precision agriculture tools market is expected to show a modest decline due to the 2020 COVID-19 pandemic, as travel restrictions and lockdowns led to supply chain disruptions and equipment shortages, while remote sensing and farm management software tools are expected, to expand their adoption in the post-COVID-19 era. COVID-19 has disrupted supply chains in the market for precision agriculture tools, with companies looking for new ways to use technology to interact with producers and farmers. Companies are starting to focus more on wireless platforms to enable real-time decision making related to yield monitoring, crop health monitoring, field mapping, irrigation planning, and crop management. COVID-19 is also expected to accelerate the installation of IoT devices on farms around the world, reducing on-site labor and streamlining irrigation schedules. As pandemic easing slightly,is expected that precision farm market will cover slowly
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the precision farming tools market is primarily focused on expanding the global growth of the market through new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in the market has led to growing demand for the market. Besides, the market offers a range of products to fulfil the required demand of consumers, which is further contributing to healthy growth in the market.
The key players studied in market are
- AGCO Corporation
- Ag Leader Technology
- AgJunction, Inc
- Trimble, Inc
- Deere and Company
- Topcon Corporation
- Precision Hawk
- Aker Technologies
- DICKEY-john
- Precision Planting Inc.
- Raven Industries Inc
- Kuboto Corp
- Buhler Industries Inc
- CNH Global NV
- AG Growth Inc FD
- ISEKI & Co Ltd
- Lindsay – Corporation
- Teejet Technologies
RECENT DEVELOPMENTS
December 2018: AgJunction Inc. has partnered with Mahindra and Mahindra Ltd. a. With this agreement, the companies agreed to make a performance statement for the future development of agricultural products.
