Global Precision Farming Market - Trends, Analysis and Forecasts (2017 - 2022)
Precision agriculture is a farm management approach that uses Information Technology to ensure that the soil, as well as, the crop receive an optimum number of nutrients needed to maximize the production, thereby increasing the crop yield. This approach helps to get real-time information about the plant health, requirements in the soil, weather predictions, and cost of labor incurred to complete a particular task in the field. Various sensors in the field, such as satellite and robotic drones, provide data and images that help farmers take immediate decisions relating to providing fertilizers, and water or protection chemicals needed by the crop for normal functioning. This data is also important for farmers to take decisions in the future.
The global market for precision farming was estimated at USD XX billion in 2015, and it is projected to reach USD 5.3billion by 2021 witnessing a remarkable CAGR of 12.9% during the forecast period. The changes in major playersâ€™ strategies in the precision farming market are evident from recent mergers and acquisitions. Monsanto acquired â€œThe Climate Corporationâ€ in 2013 for USD 930 million, to strengthen its hold in precision agriculture and expects huge profits from its subsidiary, in the coming years
The high growth in this sector is credited to growth in the agricultural industry, governmental incentives and subsidies, high demand for food crops, and the need to pay attention to crop health and yield to increase the productivity and cost effectiveness. The domain has certain constraints, such as high initial costs of investment, lack of technological skills, slow penetration of technology, unwillingness to adopt the latest technologies, privacy and protection issues with the data, and lack of common standards for farming practices.The areas in precision farming that have the scope and are yet to be explored are many. Various opportunities lie in the conservation of environment, governments promoting precision agriculture by providing incentives and subsidies, and high success rates of precision agriculture in various crops like tea, banana, etc.
The global precision farming is segmented by technology into GNSS/GPS systems, GIS, remote sensing and Variable Rate Technology (VRT). The Variable Rate Technology (VRT) segment constituted a major part of the market in 2015, with a share of XX%, estimated to be to the tune of USD XX million. There has been an increase in the penetration of this technology, which allows for precise seeding, improved application rate efficiency of pesticides, herbicides and nutrients, and optimization of planting density that results in cost reduction and lowering environmental impact. By components, it is segmented into hardware, software, and services. By application, the market is segmented into mapping, crop scouting, yield monitoring, soil monitoring, precision irrigation, and Variable Rate Application (VRA).
By geography, the market is segmented into North America, Latin America, Europe, Asia-Pacific, the Middle East and Africa. In 2015, North America dominated the precision farming market with a share of about XX %, with the USA and Canada dominating the market in the region. During the forecast period, North America is expected to grow at a CAGR of 7.15%. Large-scale farmlands, ever existing need to increase the productivity of agriculture and high labor costs are expected to drive the market for precision farming in the region. The regional farmers are highly skilled and are willing to embrace new technologies. However, most of the agriculture firms and farmers rely heavily on export markets, to sustain revenues and prices, which may also change the market dynamics in future. Asia-Pacific has been identified as a region that is yet to reach its maximum potential in the precise farming domain. This region is expected to be the fastest-growing market, with a CAGR of about 21% during 2016-2021.
Major companies in the sector include:
Deere & Company
Monsanto acquired â€œThe Climate Corporationâ€ in 2013 for USD 930 million to strengthen its hold in precision agriculture and expects huge profits from its subsidiary in the coming years. Monsanto has spent more than 1 billion for improving its digital platform in the recent years.
Dupont Pioneer entered into a partnership with DTN/The Progressive Farmer, a weather analysis firm for strengthening its position in precision farming services.
Land Oâ€™Lakes Inc. purchased GEOSYS, a satellite-imaging and mapping company
Key Deliverables in the Study
Market analysis for the global precision farming market, with region specific assessments and competition analysis.
Market overview and identification and analysis of the macro and micro factors that affect the global precision farming market and also instrumental in changing the market scenario, on both, global and regional scale.
Extensively researched competitive landscape section with profiles of major companies and their market share, along with an analysis of their current strategic interests and financial information and strategies adopted by them to sustain and grow in the studied market.
The report holds importance for the following stakeholders-
Producers and manufacturers
Enterprises operating in the industry
Traders and stakeholders operating in the sector
Investors/research institutions interested in the market