SAN FRANCISCO, Feb. 17, 2020 /PRNewswire/ -- The global precision farming market size is anticipated to reachUSD 12.9 billion by 2027, according to a new report by Grand View Research, Inc. It is expected to register a CAGR of 13.0% over the forecast period. Precision farming, also known as site-specific crop management or satellite farming, is a farm management concept that uses information technology to ensure optimum health and productivity of crops. The precision farming technique largely depends on specialized equipment such as sensing devices, antennas and access points, and automation and control system. It also involves maintenance services and managed services. Additionally, it incorporates a broad range of technologies such as bio-engineering, robotics and automation, imagery and sensors, and big data.
Key suggestions from the report:
Increasing government support for adopting modern agricultural techniques and growing need for efficiently monitoring the health of crops are expected to drive market growth
Cloud-based software model is anticipated to gain significant precision farming market share over the projected period as it reduces energy consumption and provides storage for large amount of data while facilitating cost saving
Innovations in GPS mapping and related farming applications are enabling farmers to operate more efficiently and increase their profit margins
Demand for drones is expected to grow in the agriculture field as they are increasingly used in monitoring irrigation systems
Yield monitoring finds wide applications in soil monitoring as it helps detect the properties of soil for increasing yields
Digital revolution in the agricultural sector, along with government financial incentives to farms, is likely to drive demand for precision farming in Europe in the forthcoming years
Asia Pacific is expected to witness the fastest growth owing to availability of the largest agricultural land, which provides growth opportunities in countries such as China, India, Australia, and Japan
Key players in the precision agriculture market include Agribotix LLC (U.S.); Deere & Company (U.S.); SST Development Group, Inc. (U.S.); Farmers Edge, Inc. (Canada); and Granular, Inc. (U.S.).
Growing number of applications for telematics in agriculture is anticipated to drive demand for precision farming over the projected period. Telematics services include tracking devices using Global Navigation Satellite System (GNSS) to show the position of the equipment for management purposes. Major manufacturers of agriculture equipment are adopting telematics services for their equipment to improve farm efficiency, thereby reducing the cost of agricultural operations and maximizing profitability. Additionally, improved management can help reduce environmental impact. Telematics technology is used to capture and transfer data from the farm equipment through sensors installed on tractors and other field monitoring equipment. The increasing adoption of telematics systems by agricultural equipment companies is expected to drive the precision agriculture market.
Furthermore, with advancements in GPS guidance and automation, drones are poised to transform the agriculture industry. The ability of drones to precisely analyze the soil at the beginning of the crop cycle and detect a plant infected with bacteria or fungus is anticipated to propel the growth of the drone segment.
However, low rate of technology adoption among farmers is likely to hamper market growth over the forecast period. This may be due to factors such as absence of stringent standards and limitations on the exchange of data. Furthermore, farmers lack independent consulting and advisory services owing to the absence of validated agronomic models for Variable Rate Technology (VRT) to make decisions on investments. In addition, independent services are not linked to co-operatives, government bodies, and farmer's associations where farmers can get additional information to make improved decisions.
Grand View Research has segmented the global precision farming market based on offering, application, and region:
Precision Farming Offering Outlook (Revenue, USD Million, 2016 - 2027)
Automation & Control Systems
Application Control Devices
Antennas & Access Points
System Integration & Consulting
Maintenance & Support
Farm Operation Services
Assisted Professional Services
Supply Chain Management Services
Climate Information Services
Precision Farming Application Outlook (Revenue, USD Million, 2016 - 2027)
Weather Tracking & Forecasting
Farm Labor Management
Precision Farming Regional Outlook (Revenue, USD Million, 2016 - 2027)
Agriculture Drone Market – Global agriculture drone market was valued at USD 193.4 million in 2015. The increasing investments rendered to the manufacturers, by the venture firms, are expected to drive the market over the forecast period.
Smart Agriculture/Farming Market – Global smart agriculture/farming market size was valued at USD 5.79 billion in 2016. Increasing automation of commercial greenhouses and growing implementation of the Controlled Environment Agriculture (CEA) concept in greenhouses, in a bid to obtain a higher yield
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.