Report: Precision ag market to exceed US$ 20.36 Bn by 2032

Precision farming is gaining popularity among modern farmers, as it enables them to use crop inputs including tillage, pesticides, fertilizers, and irrigation water more efficiently.

Hence, with growing inclination towards sustainable agriculture and development, it is extensively being used for efficient use of water, reduction of chemicals use in crop production, and preventing soil degradation.

According to a recent report by Fact.MR, the surging application of precision farming in field mapping, weather tracking & forecasting, yield monitoring, and irrigation management among others is projected to assist the market to top US$ 6 Bn through 2022.

Precision farming sales to rise at a CAGR of 13%

In addition, increasing adoption of innovative farming technologies such as remote sensing, variable-rate technology, global positioning systems (GPS), and drones among others for weeding, spraying, trimming, and harvesting is favoring the growth in the market.

Driven by this, the sales in the precision farming market are estimated to rise at a Compound Annual Growth Rate (CAGR) of 13% over the assessment period.

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Guidance systems

Based on technology, precision farming guidance systems are forecast to outrank other segments, accounting for revenue share of more than 41% between 2022 and 2032. Growing usage of these systems for agriculture vigilance such as security, preventive care, and maintenance is facilitating the sales across the segment.

Key takeaways from the report

• The U.S. is estimated to register robust growth in North America market, assisting the region to account for over 42% of the global share by 2022.
• Demand in the U.K. is expected to surge at a rapid pace owing to the increasing utilisation of guidance systems for increasing agriculture productivity.
• China is anticipated to account for a leading share in the East Asia market on the back of growing adoption of innovative farming technologies in the country.
• The hardware segment is forecast to dominate the market, accounting for more than 70% of the revenue share by the end of 2022.
• The precision farming solutions for the yield monitoring segment is projected to outpace other segments, projecting growth by 3x over the assessment period.

Key drivers:

• Increasing penetration of automated technologies to address the need for increasing agricultural crop productivity to mitigate concerns pertaining to limited resources is expected to favor the growth in the precision farming market.
• Rising demand for innovative solutions for reducing negative effects of chemicals and resolving soil fertility imbalance is bolstering the sales of variable-rate technology precision farming.

Key restraints

• High initial cost and cost of maintenance of precision farming hardware are primary factors hampering the sales in the market.
• Need for a proper understanding of precision farming technologies and efficient management of data for proper decision-making are restraining the growth in the market.

In 2021 we talked to Shambhu Nath Jha, Senior Research Consultant at Fact.MR, about the autonomous farm equipment market. According to him, autonomous tractors are the future.