Mordor Intelligence announces the publication of their research report on the global precision farming market. The report titled “Global Precision Farming Market- Application, Geography, Trends, Forecast- (2017-22)”, discusses the current landscape and outlook of the aforementioned market. Precision farming is about managing variations in the field accurately, to grow more food using fewer resources and by reducing production costs. Precision farming can make a difference in food production, facing the challenge of a growing world population, and can help farmers achieve: greater sustainability, environmental protection, higher productivity, and economic benefits.
What is happening in the industry?
Highest adoption rates of precision farming are seen in the United States, Germany, Australia, and Brazil, while Asia-Pacific is expected to show record high rates of adoption in the forecast period. With the governments of various countries providing subsidies to farmers for the use of precision farming in their cultivation, the adoption rates are expected to increase in the other regions as well. Various technologies dominating the market are GNSS/GPS Systems, GIS, Remote Sensing and VRT, where VRT is the fastest growing segment with a robust CAGR of 16% during the forecast period.
AGCO Corporation acquired Cimbria, a Dutch equipment supplier of grain, seed, and powders. The acquisition of Cimbria will help expand and strengthen their business geographically in Denmark. The company also offers mobile tools that offer access to large data and information related to crop, which further improves farming. John Deere acquired Monsanto’s Precision Planting. This acquisition will help the company maximize digital agriculture and helps in seamless collection of infield agronomics data.
Precision Farming – Market Dynamics
Less availability of productive land, constant change in climatic conditions, and the strict regulatory framework have led to increasing demand for a more effective and efficient agricultural sector. With the advent and implementation of modern technologies, management of the agricultural land becomes more competent. For example, automation technology, sensors, geo-mapping, and big data analysis tools help evaluate climate and soil data, which increases the overall efficiency of agriculture.
Innovation and technology have led to major developments in various sectors, and agriculture is one of them. Sensing technologies, software applications, communication systems, data analytics solutions, and positioning technologies are some of the latest technologies used in precision farming. Various technologies, like driverless machinery and drone crop dusters, provide vital opportunities for the growth of precision agriculture.
In 2016, North America dominated the precision farming market with a share of about 50%. The United States and Canada dominate the market share for precision farming in this region. Large-scale farmlands, ever-existing need to increase yield, and high labor costs will drive the market for precision farming in the region. The farmers are highly skilled and willing to embrace new technologies. However, most of the agriculture farms and farmers rely heavily on exports to sustain revenues and prices, which may change the market dynamics in the near future. Asia-Pacific has been identified as a region that is yet to reach its maximum potential in the precise farming domain.
Will global precision farming show an unprecedented upward growth trend till 2022?
According to a report by Mordor Intelligence, the global precision farming market is estimated to reach a value of USD 5.98 billion by 2022, recording a CAGR of 12.97% during 2017-22. In the past 10 years, precision farming has moved from good science to good practice and has witnessed unprecedented growth around the globe. 70 to 80% of the new farm equipment sold today, incorporates some form of precision farming component. Asia-Pacific is expected to be the fastest growing market with a CAGR of about 21% during 2017-2022. The major factor stimulating market growth in Asia-Pacific is augmented yield and profitability, which is pushing farmers toward crop monitoring technology. Australia holds the major share of the market in this region.
The global precision farming market report includes competitive vendor landscaping of 17 companies involved in the precision farming industry, including big players, like AGCO Corporation, Ag Leader Technology, Monsanto, Deere & Company, and Lindsay. The market of precision farming is fairly fragmented with the presence of several local and regional players. The market of precision farming is still an emerging market, however, brand loyalty in certain segments is reportedly good. Farm machinery and service support are the two major segments that have brand loyalty.
Click to know more about the latest trends and scope of the market.