Precision Farming Market

Precision Farming Market Outlook (2024 to 2034)

The global precision farming market size is approximated at US$ 8.3 billion in 2024 and is foreseen to increase at a CAGR of 10.4% and reach a value of US$ 22.3 billion by the end of 2034.

Decades of chemical-intensive farming, deforestation, and eventual global warming have been driving traditional farmers to adopt new and innovative farming technologies. Consumer trends such as the growing consumption of plant-based and vegan food products, are pushing farmers to produce more organic-based yields. Because of the high prevalence of nitrogen-intensive fertilizers and the diminishing availability of arable land, more value-chain players are turning their attention to precision farming. Precision farming improves control over farming conditions by ensuring a seamless flow of critical information.

Surging labor costs, a dearth of experienced personnel, and increasing demand for clean-label agricultural goods are prompting agriculturists to invest in precision farming solutions. Yield monitoring, field mapping, crop scouting, weather tracking and forecasting, irrigation management, inventory management, and farm labor management are some of the other factors driving overall precision farming market growth.

Increasing demand for climate information services due to their benefits that help farmers deal with climate change and their unpredictability for better agricultural decision-making is one of the primary reasons boosting the adoption of weather observing technologies. Furthermore, the growing need for cloud platforms for climate services is a significant driver of increasing precision farming technology demand.

Weather-based controllers, rain sensors, temperature sensors, network components, water meters, and sensor-based controllers are some of the technologies used in irrigation management. Growing demand for water conservation and food production, as well as the reduction of resource waste, are the primary motivators for the increasing usage of precision instruments for irrigation management applications.

• North America is projected to hold 24.6% of the global precision farming market share by 2034.

Report Attribute	Detail
Precision Farming Market Size (2024E)	US$ 8.3 Billion
Forecasted Market Value (2034F)	US$ 22.3 Billion
Global Market Growth Rate (2024 to 2034)	10.4% CAGR
South Korea Market Value (2034F)	US$ 1.2 Billion
Variable-Rate Technology Demand Growth (2024 to 2034)	12.3% CAGR
Key Companies Profiled	Teejet Technologies; Grownetics, Inc.; AGCO Corporation; Raven Industries Inc.; Deere and Company; Topcon Corporation; Dickey-John Corporation; Ag Leader Technology; AgEagle Aerial Systems Inc. (Agribotix LLC); Farmers Edge Inc.; AgJunction, Inc.; Proagrica (SST Development Group, Inc.); The Climate Corporation; CropMetrics LLC; Trimble, Inc.

Which Market Trends are Increasing Adoption of Precision Farming Technologies?

“Integration of Digital Technologies Aiding Farmers in Making More Effective Decisions”

Adoption of advanced technologies such as variable-rate technology (VRT), remote sensing, global positioning systems (GPS), geographic information systems (GIS), and guiding technology in precision farming is resulting in increased yield and decreased labor overheads. Similarly, the adoption of cutting-edge agricultural equipment permits the most efficient use of resources. Precision farming equipment with digital technologies not only adds to the bottom line by lowering labor costs but also vastly improves agricultural operations.

Weeding, fertilizer application, and site inspections are tasks conducted before harvesting. Agricultural drones with cameras are utilized in precision farming for spraying, weeding, trimming, and harvesting. These drones capture hyperspectral photos, allowing farmers to remotely monitor farm activities. Precision farming technologies are predicted to gain traction over the next 10 years, eliminating most of the need for human work on fields. Integration of artificial intelligence, machine learning, big data, and predictive analytics are some of the notable precision farming market trends increasing the profits of key providers.

“Use of Smartphones Loaded with Advanced Farming Software Applications Aiding Farmers in Effective Decision Making”

Smartphones are one of the most extensively utilized technical breakthroughs in history, and with the availability of a plethora of user-friendly agricultural programs (apps), cell phones have evolved into a powerful and portable tool for farmers. The majority of smartphone applications are affordable and give important farming information, such as weather and climatic conditions. These apps efficiently assist farmers in making sound selections.

Smartphones can be combined with a variety of hardware devices, including sensors, high-resolution cameras, and GPS receivers, to perform tasks such as sample collection, aerial photography, and record-keeping (a task recommended by experts). Some agricultural applications can input field data and then grid it acre by acre using software tools.

What’s Lowering Use of Precision Farming Technologies?

“Lack of Technical Knowledge and Low Ability to Understand Latest Technologies”

Precision farming is an intelligent agricultural practice that necessitates technological understanding. Lack of information about cutting-edge technologies and their applications creates a chasm between the understanding and execution of precision farming principles.

Despite several governments across the world and market participants launching projects to provide farmers with training and consultancy services on the use of precision farming techniques, many farmers remain beyond the scope of such efforts.

Start-Up Ecosystem

• PreAgri is a Ukraine-based start-up that offers precision agriculture technology that makes use of drones and satellite imagery for data collection and analysis.
• German start-up GeoPard Agriculture offers a precision agriculture platform that combines multispectral analysis and satellite-based remote sensing to allow field monitoring and condition evaluation.
• AGAM Aquaculture is an Israel-based start-up that has developed a precision aquaculture system that catches and sorts fish using sensor-based biomass calculations. The system is integrated with sensors and provides data on fish behavior and weight.

Country-wise Analysis

What is the Demand Outlook for Precision Farming Solutions in the United States?

“American Farmers Forefront in Adoption of Advanced Farming Technologies”

Attribute	United States
Market Value (2024E)	US$ 900 Million
Growth Rate (2024 to 2034)	10.5% CAGR
Projected Value (2034F)	US$ 2.5 Billion

Highly industrialized row crop farms in the United States are driving the demand for precision farming technologies to enhance crop productivity with less area. The government in the United States has initiated several awareness programs related to precision farming. Several American farmers are making use of agriculture drones and smart agricultural equipment to monitor and analyse crop information such as biomass, height, and weed presence, which is helping them take more effective decisions.

Why is Japan a Profitable Market for Precision Farming Technology Suppliers?

“Limited Agricultural Land and Country Prone to Natural Disasters

Attribute	Japan
Market Value (2024E)	US$ 600 Million
Growth Rate (2024 to 2034)	10.8% CAGR
Projected Value (2034F)	US$ 1.5 Billion

Besides having limited land to farm, Japan has adopted smart agriculture practices primarily due to harsh environmental conditions that are common in the country. Farmers are widely utilizing smart agricultural robots and machines to maximize their production output. Compared to traditional farming, the use of advanced techniques is benefiting farmers in numerous ways such as higher yields, cost-effectiveness, and time-saving. Several farmers are also adopting rice transplanting robots, automatic lawnmowers, and robotic tractors in Japan.

Category-wise Analysis

Which Precision Farming Technology is Set to Lead to High Revenue Generation?

“Increasing Demand for Agricultural Guidance Systems”

Attribute	Guidance Systems
Segment Value (2024E)	US$ 4 Billion
Growth Rate (2024 to 2034)	8.9% CAGR
Projected Value (2034F)	US$ 9.4 Billion

Growing number of industrialized row crop farms is driving an urgent need to map production plans, automate sowing methods, assess soil variability, and assure appropriate input use (fertilizers, pesticides). Guidance systems that map and track numerous farm parameters are set to account for 42% of the global precision farming market share by 2034.

Remote sensing technology is also gaining momentum due to its capacity to identify soil variations and maintain agricultural security. Variable rate technology, on the other hand, is set to exhibit rapid growth during the forecast period. Growing awareness of the negative effects of chemically loaded agricultural systems is driving the use of variable rate technologies to solve soil fertility imbalances.

Why are Precision Hardware Systems Highly Adopted by Farmers?

“Farmers Utilizing Advanced Hardware Systems for Precision Farming”

Attribute	Hardware
Segment Value (2024E)	US$ 5.8 Billion
Growth Rate (2024 to 2034)	9.9% CAGR
Projected Value (2034F)	US$ 14.9 Billion

Precision farming hardware systems are segmented into sensing devices, antennas, automation and control systems, and access points. Hardware components such as sensing devices, control systems, and drones are some of the effective technologies aiding farmers in earning higher profits by allowing them to make more accurate decisions. Farmers are widely employing smart and latest hardware systems in their farming activities to maximize their yield.

Competitive Landscape

Key players in the precision farming industry are active in awareness campaigns that address the pressing issue of soil degradation and are educating farmers about the benefits of precision farming. Industrialized farms use automated machinery to assure a consistent level of output yield. Farmers are investing in farm digitization to improve crop security.

Leading companies are advancing their product offerings by resorting to strategies such as mergers, acquisitions, and collaborations. These tactics are aiding industry giants in adding the latest technologies to their product lists.

• In January 2022, John Deere & Co. introduced a line of autonomous tractors at the Consumer Electronics Show organized in the first week of the month, as a part of its endeavor to expand its footprint in the precision agriculture domain.
• In April 2021, Trimble Inc. entered into a collaborative agreement with HORSCH, one of the leading manufacturers of agricultural technology globally, to establish a future for autonomous machines and workflows in the agricultural industry. These companies are currently implementing a high level of automation and driver support with steering systems, which allows a driver to perform additional in-cab tasks during active field work.

Fact.MR provides detailed information about the price points of key providers of precision farming technologies positioned across the world, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Key Segments of Precision Farming Market Research

• By Application :

  • Yield Monitoring
  • Field Mapping
  • Crop Scouting
  • Weather Tracking & Forecasting
  • Irrigation Management
  • Inventory Management
  • Farm Labor Management
  • Others

• By Technology :

  • Guidance Systems
  • Remote Sensing
  • Variable-Rate Technologies

• By Offering :

  • Hardware
  • Software
  • Services

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa