Executive Summary

The global precision agriculture market is expected to grow at a CAGR of 11.3% during the forecast period (2021-2026). The key factors driving the growth of the market include the increasing demand for food due to population growth, the need to increase crop yield and efficiency, and the development of new technologies such as drones and sensors. However, the high cost of precision agriculture technology and the lack of awareness and infrastructure in developing countries are the major factors hindering the growth of the market.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

The global precision agriculture market is expected to reach USD 12.7 billion by 2026, growing at a CAGR of 11.3% during the forecast period. North America is expected to dominate the market, followed by Europe and Asia-Pacific. The market is primarily driven by the increasing demand for food due to population growth and the need to increase crop yield and efficiency. The development of new technologies such as drones and sensors is also expected to drive the growth of the market.

Market Drivers

1. Increasing demand for food: The growing population is expected to increase the demand for food, and precision agriculture can help meet this demand by increasing crop yields and efficiency.
2. Need to increase crop yield and efficiency: Precision agriculture technology can help optimize inputs such as water, fertilizers, and pesticides, and reduce waste, resulting in increased crop yields and efficiency.
3. Development of new technologies: The development of new technologies such as drones and sensors is expected to drive the growth of the market, as these technologies can provide farmers with more accurate and detailed data on soil quality, weather patterns, and plant growth.

Market Restraints

1. High cost of precision agriculture technology: The high cost of precision agriculture technology is a major factor hindering the growth of the market, as it makes it difficult for small-scale farmers to adopt this technology.
2. Lack of awareness and infrastructure in developing countries: The lack of awareness and infrastructure in developing countries is another major factor hindering the growth of the market, as farmers in these countries may not have access to the necessary technology or training.

Market Opportunities

1. Increasing demand for organic food: The increasing demand for organic food presents an opportunity for precision agriculture, as this technology can help farmers to produce crops with fewer pesticides and fertilizers, resulting in more organic and sustainable farming practices.
2. Use of precision agriculture in livestock management: Precision agriculture can also be used in livestock management, as sensors and other technology can be used to monitor the health and behavior of animals, resulting in better management and increased efficiency.

Market Dynamics

The global precision agriculture market is a dynamic and rapidly growing industry. The increasing demand for food due to population growth and the need to increase crop yields and efficiency are the primary drivers of the market. The development of new technologies such as drones and sensors is also expected to drive the growth of the market. However, the high cost of precision agriculture technology and the lack of awareness and infrastructure in developing countries are the major factors hindering the growth of the market.

Regional Analysis

The precision agriculture market is expected to witness significant growth in North America, Europe, and Asia-Pacific regions. North America is expected to dominate the market owing to the presence of key market players, increasing adoption of advanced farming technologies, and supportive government initiatives. Europe is also expected to witness significant growth due to the increasing demand for food and the adoption of sustainable farming practices. The Asia-Pacific region is expected to witness substantial growth due to the increasing population, rising demand for food, and the need to increase crop yield and efficiency.

Competitive Landscape

Leading companies in the Precision Agriculture Market:

1. Deere & Company
2. Trimble Inc.
3. AgJunction Inc.
4. Raven Industries, Inc.
5. AGCO Corporation
6. Topcon Positioning Systems, Inc.
7. CNH Industrial N.V.
8. DICKEY-john Corporation
9. Ag Leader Technology
10. Precision Planting LLC

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The global precision agriculture market can be segmented on the basis of technology, application, and region. By technology, the market can be segmented into guidance technology, remote sensing, variable rate technology, and others. By application, the market can be segmented into yield monitoring, field mapping, crop scouting, soil monitoring, and others.

Category-wise Insights

The hardware category is expected to dominate the precision agriculture market, followed by the software category. The hardware category includes GPS receivers, sensors, drones, and others, while the software category includes farm management software, crop management software, and others. The hardware category is expected to dominate the market due to the increasing adoption of advanced farming technologies such as drones and sensors.

Key Benefits for Industry Participants and Stakeholders

The precision agriculture market provides several benefits for industry participants and stakeholders. These benefits include increased crop yields and efficiency, reduced waste, improved soil quality, and reduced environmental impact. Precision agriculture technology can also help farmers to save time and money by optimizing inputs such as water, fertilizers, and pesticides.

SWOT Analysis

Strengths:

• Precision agriculture technology can help increase crop yields and efficiency, resulting in improved profitability for farmers.
• The development of new technologies such as drones and sensors is expected to drive the growth of the market.

Weaknesses:

• The high cost of precision agriculture technology is a major factor hindering the growth of the market.
• The lack of awareness and infrastructure in developing countries is another major factor hindering the growth of the market.

Opportunities:

• The increasing demand for organic food presents an opportunity for precision agriculture, as this technology can help farmers to produce crops with fewer pesticides and fertilizers, resulting in more organic and sustainable farming practices.
• Use of precision agriculture in livestock management presents an opportunity for the market, as sensors and other technology can be used to monitor the health and behavior of animals, resulting in better management and increased efficiency.

Threats:

• The increasing use of precision agriculture technology may lead to a decrease in demand for farm labor, which could have negative social and economic impacts.
• The potential for data breaches and cybersecurity threats is a major threat to the market, as precision agriculture technology relies heavily on data collection and analysis.

Market Key Trends

1. Increasing adoption of drones and sensors: The adoption of drones and sensors is expected to increase in the precision agriculture market, as these technologies can provide farmers with more accurate and detailed data on soil quality, weather patterns, and plant growth.
2. Growing demand for precision irrigation systems: The demand for precision irrigation systems is expected to increase in the precision agriculture market, as these systems can help farmers to optimize water use and reduce waste.

3. Integration of artificial intelligence and machine learning: The integration of artificial intelligence and machine learning is expected to become more prevalent in the precision agriculture market, as these technologies can help farmers to analyze large amounts of data and make more accurate predictions.

Covid-19 Impact

The Covid-19 pandemic has had a mixed impact on the precision agriculture market. On one hand, the pandemic has led to disruptions in the supply chain and reduced demand for certain products, which has negatively impacted the market. On the other hand, the pandemic has highlighted the importance of food security and the need for sustainable farming practices, which has increased the demand for precision agriculture technology.

Key Industry Developments

1. In June 2020, Deere & Company announced the acquisition of Unimil, a Brazilian company that produces precision agriculture equipment.
2. In September 2020, Trimble Inc. launched its new Farmer Core software, which provides farmers with access to their precision farming data in one centralized location.
3. In October 2020, AGCO Corporation announced the acquisition of Ceres Imaging, a California-based company that specializes in aerial imaging and analytics.

Analyst Suggestions

Industry analysts suggest that the precision agriculture market will continue to grow in the coming years, driven by the increasing demand for food, the need to increase crop yield and efficiency, and the development of new technologies. However, analysts also note that the high cost of precision agriculture technology and the lack of awareness and infrastructure in developing countries are major challenges that need to be addressed.

Future Outlook

The future of the precision agriculture market looks bright, with significant growth expected in the coming years. The increasing demand for food due to population growth, the need to increase crop yield and efficiency, and the development of new technologies are expected to drive the growth of the market. The integration of artificial intelligence and machine learning is also expected to become more prevalent in the market, as these technologies can help farmers to analyze large amounts of data and make more accurate predictions.

Conclusion

The precision agriculture market is a rapidly growing industry that is expected to continue to grow in the coming years. Precision agriculture technology can help increase crop yields and efficiency, reduce waste, and improve sustainable farming practices. However, the high cost of precision agriculture technology and the lack of awareness and infrastructure in developing countries are major challenges that need to be addressed. With the development of new technologies and increasing demand for food, the precision agriculture market is poised for significant growth in the future.