Increased adoption of variable rate, remote sensing and guidance technologies are fuelling the growth of the precision farming market.
According to the new market research report by MarketsandMarkets, the Precision Farming Market is expected to grow from USD 7.0 billion in 2020 to USD 12.8 billion by 2025, at a CAGR of 12.7%.
According to the researchers the high demand for agricultural products due to population growth, increased adoption of variable rate technology, remote sensing technology, and guidance technologies by worldwide farmers and strong government support for promoting the use of precision farming techniques are the major factors fuelling the growth of the precision farming market.
Also, government initiatives in many countries such as the UK, the US, and India enable farmers to make use of optimised agricultural and technological tools to improve their production levels. Further, the changing weather patterns due to increasing global warming have impelled the adoption of advanced farming technologies to enhance farm productivity and crop yield.
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According to MarketsandMarkets guidance technologies were adopted on more than 80% of planted acres for several major crops in 2019 in North America. “The ease-of-use and advanced functionality of these systems are major factors for the higher adoption of this technology on farms across the world,” conclude the researchers.
The hardware segment is expected to continue to hold the largest share of the precision farming market from 2020 to 2025. The growth of the market for hardware is attributed to the increasing adoption of automation and control devices such as drones/unmanned aerial vehicles (UAV), GPS, irrigation controllers, guidance and steering systems, yield monitors, and sensors.
Increasing adoption of new technologies and advanced devices in precision farming is expected to drive the growth of the precision farming market for hardware.
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The precision farming market for software is expected to grow at the highest CAGR from 2020 to 2025. Increasing demand for AI-based data analytics is the major factor contributing to the highest CAGR of the market for software.
The report futher states that yield maps have grown in popularity in recent years as mapping programs on computer tablets have become easier to use. Yield monitoring is the most widely used application in precision farming as it plays a vital role in understanding field variability and helps farmers in maximising their yields.
According to the report, North and South America are expected to hold the largest share of the precision farming market during the forecast period: “The presence of large-sized farms in the US, Canada, and Brazil provides ideal environment for the adoption of agriculture technology. Countries such as the US and Canada in the Americas are the early adopters of precision farming technologies, which is the major reason for the high share of this region in the precision farming market. Farmers or growers in this region are increasingly adopting advanced farming systems and equipment such as steering and guidance systems, sensors, display devices, and farm management software.”