Middle East and Africa (MEA) Precision farming Market Outlook to 2028

Middle East and Africa (MEA) Precision farming Market Overview

The Middle East and Africa (MEA) precision farming market size was USD 1.02 billion in 2023, reflecting advancements in agricultural technology and the need for efficient farming practices. The market growth is primarily driven by the increasing adoption of precision farming technologies, such as GPS, drones, and Io T devices, which help farmers optimize inputs like water, fertilizer, and pesticides, leading to higher crop yields and reduced costs.

Major players in the MEA precision farming market include Trimble Inc., AGCO Corporation, John Deere, Topcon Positioning Systems, and Tee Jet Technologies. These companies have established themselves as leaders by offering a range of precision farming equipment and solutions tailored to the unique needs of the MEA region.

Pure Harvest Smart Farms entered a three-year exclusive strategic partnership with Richel Group to deploy over USD 150 million in smart growing systems across the Middle East and Asia. This collaboration focuses on the industrialization and professionalization of Controlled-Environment Agriculture (CEA). This partnership is expected to improve crop production efficiency, especially in arid regions.

Egypt is one of the leading countries in the MEA precision farming market, particularly in the use of precision irrigation systems. The country's dominance is attributed to its strategic focus on water conservation and the modernization of its agricultural sector. In 2023, Egypt's Ministry of Agriculture reported that most large-scale farms in the Nile Delta region had adopted precision irrigation technologies. The adoption is driven by the need to maximize water use efficiency in a country where water resources are limited.

Middle East and Africa (MEA) Precision farming Market Segmentation

By Technology Type: The market is segmented by technology type into guidance systems, remote sensing, and variable rate technology (VRT). Guidance systems held the largest market share in 2023. This dominance is due to the widespread adoption of GPS-enabled equipment for farm operations, allowing farmers to reduce overlaps in field operations and increase efficiency.

By Application: The market is further segmented by application into yield monitoring, crop scouting, and irrigation management. Yield monitoring emerged as the dominant sub-segment in 2023. Yield monitoring is the leading application in the MEA precision farming market, driven by the growing emphasis on maximizing crop output and efficiency. The increasing focus on maximizing crop yields and the use of data analytics to make informed decisions have fueled the growth of this segment.

By Region: South Africa dominates the MEA precision farming market. This dominance is due to its advanced agricultural infrastructure, government support for technology adoption, and high awareness among farmers about the benefits of precision farming. The countrys focus on sustainable agriculture practices and significant investments in precision farming technologies have solidified its leadership in the region.

Middle East and Africa (MEA) Precision farming Market Competitive Landscape

Company

Year Established

Headquarters

Trimble Inc.

1978

Sunnyvale, USA

AGCO Corporation

1990

Duluth, USA

Deere & Company

1837

Moline, USA

Raven Industries

1956

Sioux Falls, USA

Topcon Positioning Systems

1932

Tokyo, Japan

Topcon Positioning Systems: In 2023, Topcon Positioning Systems expanded its satellite-based remote sensing services in the MEA region, covering an additional 5 million hectares of farmland. The service has been particularly beneficial in the arid regions of North Africa, where traditional farming methods are less effective. The expansion has contributed to a 1.2 times improvement in crop productivity across the region.

AG Leader: In 2023, AG Leader Technology launched a collaboration with a consortium of Egyptian farmers to pilot a new precision irrigation system. The pilot program, covering 10,000 hectares of farmland, resulted in water savings of 500 million liters and 1.3 times increase in crop yields. The success of this collaboration has led to plans for a wider rollout of the technology across Egypt in 2024.

Middle East and Africa (MEA) Precision farming Market Industry Analysis

Growth Drivers

Increasing Adoption of Io T Devices in Agriculture: In 2023, 1.2 million Io T devices were deployed across farms in the MEA region, an increase from 800,000 devices in 2022. This surge in Io T adoption is driven by the need for real-time monitoring of soil conditions, crop health, and weather patterns, enabling farmers to make data-driven decisions. The deployment of Io T devices has led to an increase in productivity per acre.

Expansion of Agricultural Technology Infrastructure: The MEA region saw the establishment of new agri-tech innovation hubs in 2023, focusing on the development of precision farming solutions. The proliferation of these hubs has accelerated the development and deployment of cutting-edge technologies tailored to the unique needs of MEA farmers, such as drought-resistant crop varieties and advanced irrigation systems.

Rising Demand for Food Security: The MEA region's population reached 493 million in 2023, intensifying the demand for food security. Precision farming has emerged as a key solution to meet this demand by optimizing resource use and increasing crop yields. This trend is particularly significant in countries like Morocco and Tunisia, where the government has prioritized food security through the promotion of sustainable agricultural practices.

Challenges

Limited Access to High-Speed Internet and Connectivity: The lack of reliable internet connectivity hampers the ability of farmers to utilize cloud-based data analytics, remote sensing, and real-time monitoring tools. This digital divide has created disparities in technology adoption, with urban and peri-urban farmers more likely to benefit from precision farming than their rural counterparts. Efforts to improve rural connectivity are ongoing but are progressing at a slower pace than required.

Scarcity of Skilled Labor: Precision farming technologies require skilled operators who can interpret data and manage advanced machinery. In 2023, it was reported that only one fourth of the agricultural workforce in the MEA region had received training in these technologies. The scarcity of skilled labor is a major bottleneck, limiting the effective implementation of precision farming practices.

Government Initiatives

Saudi Arabia's Precision Farming Initiative: In 2023, the Saudi government launched a USD 200 million Precision Farming Initiative aimed at enhancing agricultural productivity through the adoption of advanced technologies. It includes subsidies for purchasing precision farming equipment, training programs for farmers, and investments in agri-tech infrastructure. This initiative is part of Saudi Arabias broader Vision 2030 plan, which emphasizes the modernization of the agricultural sector.

UAEs Agri-Tech Investment Fund: The search results indicate that the Abu Dhabi Investment Office (ADIO) invested roughly USD 14 billion in agtech companies in 2019 as part of its Ghadan 21 accelerator program.Additionally, the Emirates Development Bank (EDB) recently launched an Agri Tech loans scheme and plans to allocate Dh100 million (USD 27.2 million) in financing support for the country's food security sector.

Middle East and Africa (MEA) Precision farming Market Future Outlook

The MEA precision farming market is projected to grow exponentially by 2028. The growth will be driven by increasing government support, technological advancements, and the rising awareness among farmers regarding the benefits of precision farming. The expansion of smart farming technologies and the integration of AI and machine learning in agriculture are expected to further boost the market.

Future Trends

Growth in AI-Driven Precision Agriculture Solutions: Over the next five years, AI-driven precision agriculture solutions are expected to become a dominant force in the MEA market. These platforms will enable farmers to predict crop diseases, optimize irrigation schedules, and make data-driven decisions, thereby reducing waste and improving yields. The widespread adoption of AI in agriculture will also contribute to a reduction in the environmental footprint of farming practices in the region.

Expansion of Drone Usage for Precision Farming: The use of drones in precision farming is projected to expand in the MEA region by 2028. These drones will be equipped with advanced imaging and sensing technologies, allowing for more precise monitoring of crop health, pest infestations, and soil conditions. The increased use of drones is expected to result in improvement in crop yields.
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