The global precision farming market is projected to grow significantly from USD 10.43 billion in 2024 to USD 27.29 billion by 2035, reflecting a compound annual growth rate (CAGR) of 9.1% during this period. This growth is driven by the increasing adoption of digital farming technologies aimed at improving crop yields and sustainable agricultural production. The market expansion is fueled by rising food demand, labor shortages in agriculture, and a shift toward sustainable farming practices that reduce environmental impact.
Drivers of Growth
Key factors propelling the precision farming market include:
- The need to meet the food demands of a growing global population, expected to reach 10 billion by 2050.
- Challenges of conventional farming such as labor-intensive operations, uncertain weather, poor yield quality, and wastage of water, fertilizers, and pesticides.
- Environmental concerns, including high CO2 emissions from traditional farming machinery and excessive water consumption, with farming accounting for over 70% of fresh water use and 60% wastage due to runoff and contamination.
- Advantages of precision farming technologies, such as reducing food prices by up to 50%, water consumption by 30%, and increasing crop yields by 67% if fully adopted globally.
- Technological advancements including sensors, drones, GPS/GNSS, variable rate technology (VRT), remote sensing, robotics, artificial intelligence, and machine learning that enable precise monitoring and management of crop fields.
Market Segmentation
The precision farming market is segmented across multiple dimensions:
- Type of Offering: Hardware, software, and services. Hardware currently holds the largest market share, but software is expected to grow at a higher CAGR of 11.5% due to increasing digitalization.
- Type of Hardware: Sensors, drones, monitoring devices, and automation controllers. Automation controllers dominate the hardware segment, driven by their use in robotic weeding, spot irrigation, and targeted pesticide application.
- Application of Hardware: Yield and soil monitoring, field mapping, crop scouting, and weather tracking and forecasting. Crop scouting is projected to grow at a higher CAGR of 11% compared to other applications.
- Deployment Model for Software: Cloud-based, web-based, and on-premises. Cloud-based deployment leads the market and is expected to grow at a CAGR of 12.8%.
- Application of Software: Weather tracking and forecasting, variable rate application (VRA), inventory management, farm labor management, irrigation management, and financial management. VRA holds the majority share and is anticipated to grow at the highest CAGR of 11.4%.
- Type of Services: Installation and consultation, climate information, and supply chain management services. Climate information services are expected to grow at a CAGR of 11%.
- Type of Technology: Guidance systems (including GPS, GNSS, GIS), variable rate technology, and remote sensing. Guidance systems currently hold the largest share, while remote sensing is expected to gain significant market share by 2035.
- Farm Size: Small, medium, and large farms. Large farms dominate the market due to better access to credit and higher labor costs.
- Geography: North America, Europe, Asia-Pacific, Latin America, and Middle East & North Africa. North America leads with approximately 45% market share, while Asia-Pacific is expected to grow at a healthy CAGR of 13%.
Application Areas
Precision farming technologies are applied in various areas to optimize farming operations:
- Monitoring soil and crop parameters such as moisture, pH, protein content, nutrients, and temperature using sensors.
- Crop scouting and field mapping to assess crop health and variability.
- Weather tracking and forecasting to mitigate risks from uncertain weather conditions.
- Variable rate application of water, fertilizers, and pesticides to reduce overuse and environmental impact.
- Farm labor and inventory management to improve operational efficiency.
- Irrigation and financial management to optimize resource use and profitability.
Challenges
Despite the benefits, precision farming faces challenges including:
- High initial costs of technology, such as weather sensors costing between $1,500 and $2,000, limiting adoption primarily to large-scale farmers.
- The need for cost-efficient or financing options to enable small-scale farmers to access precision farming technologies.
- The evolving nature of the market with many small and mid-sized hardware providers, indicating ongoing opportunities but also fragmentation.
Key Players
The precision farming market features over 90 companies specializing in hardware, software, and services. Notable players include:
- 360 Yield Center
- Ag Leader Technology
- AgJunction
- Capstan Ag Systems
- Deere & Company
- DICKEY-john
- Evvos
- Graham Planter
- Grownetics
- Hexagon Agriculture
- Instacrops
- Massey Ferguson
- METER Group
- O’Connors
- Precision Planting
- Prointegra
- SurePoint Ag Systems
- Synelixis Solutions
- Trimble
These companies contribute to a diverse and competitive landscape, with a significant concentration of providers headquartered in North America (42%), followed by Europe (36%) and Asia-Pacific (14%).
Recent Developments and Market Trends
- Over 150 partnerships and collaborations have been formed in the past four years, with 31% occurring in 2023, reflecting active efforts to expand product portfolios and integrate technologies.
- Strategic alliances, such as the Farmers Edge Innovation Lab launched in Mumbai in 2024, promote precision farming adoption in emerging markets like India.
- Investment activity is robust, with over USD 1.32 billion raised globally, primarily through venture capital rounds. For example, Omnivore raised USD 150 million in 2023, and Stable secured USD 107 million across two funding rounds.
- The market is expected to benefit from ongoing technological advancements and increasing digitalization, which will drive further adoption and innovation.
Conclusion
The precision farming market is poised for substantial growth through 2035, driven by technological innovation, rising food demand, and the need for sustainable agricultural practices. With broad segmentation across hardware, software, services, and technologies, and a strong presence in North America and emerging growth in Asia-Pacific, precision farming is set to revolutionize traditional agriculture by enhancing productivity, reducing environmental impact, and enabling data-driven decision-making for farmers worldwide.
Thank you for reading Roots Analysis report. Kindly get in touch with Roots’ team to know more about the report or to receive a customized copy of it. Our team will ensure the report is tailored according to your needs.
URL: https://www.rootsanalysis.com/reports/precision-farming-market.html
About Roots Analysis
Roots Analysis is a global leader in market research, competitive intelligence and consulting services across industries. Having worked with over 750 clients worldwide, including Fortune 500 companies, start-ups, academia, and venture and strategic investors for more than a decade, we offer a highly analytical / data-driven perspective to a network of over 450,000 senior industry stakeholders looking for credible market insights. All reports provided by us are structured in a way that enables the reader to develop a thorough perspective on the given subject. Apart from writing reports on identified areas, we provide bespoke research / consulting services dedicated to serving our clients in the best possible way.
Contact Details
Roots Analysis
Gaurav Chaudhary
+1 (415) 800 3415
+44 (122) 391 1091
Website: https://www.rootsanalysis.com/
