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The global precision agriculture market is projected to reach $22.49 billion by 2034 from $9.86 billion in 2024, growing at a CAGR of 8.59% during the forecast period 2024-2034. This growth is driven by the increasing adoption of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and data analytics in farming practices. These technologies enable farmers to optimize resource utilization, enhance crop yields, and implement sustainable agricultural practices. Additionally, government initiatives promoting modern farming techniques and the rising demand for food due to a growing global population are significant factors contributing to the expansion of the precision agriculture market. This report comes with 10% free customization, enabling you to add data that meets your specific business needs.
Introduction of Precision Agriculture
The study conducted by BIS Research highlights precision agriculture as a transformative approach in modern farming, leveraging advanced technologies to optimize productivity, reduce resource wastage, and promote sustainability. Precision agriculture integrates tools such as IoT, AI, sensors, and drones to provide real-time data and actionable insights, enabling farmers to make informed decisions. These technologies reduce dependency on conventional farming practices, lower input costs, and enhance crop yields while addressing environmental challenges. Precision agriculture plays a critical role in reducing greenhouse gas emissions by optimizing fertilizer and pesticide application, aligning with global sustainability goals and climate-smart initiatives. Data analytics and automation innovations make precision agriculture scalable and efficient, fostering higher adoption rates among farmers globally.Market Introduction
The precision agriculture market is a transformative innovation in the agricultural sector, leveraging advanced technologies such as IoT, AI, and robotics to revolutionize farming practices. This market focuses on optimizing resource utilization and enhancing crop productivity by integrating real-time data and analytics into decision-making processes. Precision agriculture is critical for addressing global challenges such as food security, environmental sustainability, and climate resilience, aligning with the growing emphasis on sustainable development.Advanced tools and solutions in this market enable farmers to minimize environmental impact by reducing water, fertilizer, and pesticide usage while improving efficiency and yields. These technologies provide actionable insights, empowering stakeholders to meet stringent regulatory standards and sustainability goals. With rising awareness of climate change and increasing adoption of digital farming practices, the precision agriculture market is set for rapid growth, driving innovation and fostering a resilient and sustainable global agricultural ecosystem.
Industrial Impact
The industrial impact of the precision agriculture market spans sustainable farming practices, resource optimization, and regulatory compliance. Advancements in IoT, AI, and robotics drive innovation, enabling real-time monitoring, data-driven decision-making, and efficient use of water, fertilizers, and pesticides. These developments foster collaborations among technology providers, agribusinesses, and government bodies, raising industry standards and accelerating research and development in agriculture.Additionally, the emphasis on sustainable farming practices aligns with global climate goals, influencing industrial practices and ensuring adherence to stricter environmental regulations. As a result, the precision agriculture market plays a pivotal role in enhancing productivity, reducing environmental footprints, and promoting the adoption of smart farming technologies, supporting a resilient and sustainable global agricultural ecosystem.
Market Segmentation:
Segmentation 1: by Application
- Field Monitoring
- Crop Forecasting
- Precision Planting
- Precision Spraying
- Precision Fertilization
- Precision Irrigation
- Farm Management
- Others
Precision Irrigation Segment to Dominate the Precision Agriculture Market (by Application)
In the precision agriculture market, the precision irrigation segment is expected to dominate by application, driven by the growing need for efficient water management and sustainable farming practices. Precision irrigation technologies offer tailored solutions to optimize water usage, ensuring crops receive the exact amount needed to enhance yield and reduce waste. Farmers are adopting these systems to improve resource efficiency and productivity with increasing water scarcity and rising global food demand. Advancements in IoT-enabled sensors, real-time data analytics, and automated irrigation systems are enhancing the scalability and effectiveness of precision irrigation.Segmentation 2: by Function
- Farm Management
- Field Management
- Fleet Management
Field Management to Dominate the Precision Agriculture Market (by Function)
Field management is expected to dominate the precision agriculture market by function, driven by its critical role in optimizing farming practices and improving crop yields. Field management enables precise monitoring of soil health, crop conditions, and environmental factors by leveraging advanced technologies such as IoT sensors, drones, and data analytics. This real-time data empowers farmers to make informed decisions, enhancing productivity while reducing resource wastage. The adoption of field management practices is further fueled by advancements in automation and predictive analytics, which streamline operations and minimize environmental impact.Segmentation 3: by Farm Produce
- Field Crops
- Permanent Crops
- Other Farm Produce
Field Crops to Dominate the Precision Agriculture Market (by Farm Produce)
Field crops are anticipated to dominate the precision agriculture market by farm produce, driven by their extensive cultivation and critical role in global food security. Precision agriculture technologies such as GPS-guided equipment, sensors, and drones are increasingly being adopted to enhance the productivity of crops such as wheat, rice, corn, and soybeans. These tools enable precise monitoring of crop health, soil conditions, and resource utilization, resulting in higher yields and reduced input costs. The dominance of field crops is further supported by advancements in data analytics and automation, which optimize large-scale farming operations. As global agricultural practices shift toward sustainability and efficiency to address rising food demands and environmental concerns, the adoption of precision agriculture for field crops is set to grow significantly, solidifying its position as the leading segment in the market.Segmentation 4: by Technology
- Guidance Technology
- Sensing Technology
- Variable Rate Application Technology
- Data Analytics and Intelligence
- Others
Guidance Technology to Dominate the Precision Agriculture Market (by Technology)
Guidance technology is expected to dominate the precision agriculture market by technology, driven by its essential role in enhancing farm efficiency and productivity. This technology utilizes GPS-based systems, automated steering, and real-time tracking to enable precise navigation and field operations, minimizing overlaps and reducing input wastage. The growing adoption of autonomous tractors and other smart farming machinery further accelerates the integration of guidance technology in agricultural practices. Advancements in GPS accuracy, sensor integration, and machine learning have enhanced the efficiency and reliability of guidance systems.Segmentation 5: by Product
- Hardware: Automation and Control Systems, Sensing and Navigation Systems, Indoor Farming Equipment
- Software: Farm Operations Management, Hardware Control Applications, Data And Predictive Analytics
- Support Services
Hardware Systems to Dominate the Precision Agriculture Market (by Product)
Hardware systems are projected to dominate the precision agriculture market by product, owing to their critical role in enabling smart farming practices. Devices such as sensors, drones, GPS systems, and automated machinery form the backbone of precision agriculture, providing real-time data and facilitating efficient farm management. These systems help monitor soil health, weather conditions, and crop performance, ensuring optimized resource utilization and higher yields. The growing adoption of advanced farming equipment and IoT-enabled devices has been driving the demand for hardware systems. Continuous innovation in hardware technology, such as improved sensor accuracy and durable agricultural drones, enhances their usability and efficiency.Segmentation 6: by Region
- North America: U.S., Canada, and Mexico
- Europe: Germany, France, U.K., Spain, Italy, Netherlands, Denmark, and Rest-of-Europe
- Asia-Pacific: China, Japan, India, Indonesia, Vietnam, Malaysia, Australia, and Rest-of-Asia-Pacific
- Middle East and Africa: Israel, Turkey, South Africa, and Rest-of-Middle East and Africa
- South America: Brazil, Argentina, Chile, Peru, and Rest-of-South America
North America to Dominate the Precision Agriculture Market (by Region)
North America is set to dominate the precision agriculture market due to advanced technological adoption, large-scale farming operations, and supportive policies such as the U.S. Farm Bill. Key players such as John Deere and Trimble drive innovation, leveraging GPS, IoT, and AI to optimize inputs and enhance yields. The region's robust data infrastructure and access to venture capital further enable scalability. Meanwhile, Mexico is expected to witness the fastest growth, with a high CAGR of 14.47%, driven by the increasing adoption of precision tools to meet rising agricultural demands.Recent Developments in the Precision Agriculture Market
- In February 2022, Ag Leader Technology expanded its DirectCommand application product portfolio with the introduction of RightSpot, further strengthening its comprehensive farm solution offerings. RightSpot features advanced nozzle-by-nozzle sprayer control, delivering consistent coverage, enhanced flexibility, improved productivity, and precise accuracy. By maintaining the desired rate and pressure across varying speeds and terrains, RightSpot optimizes input efficiency with accurate droplet size and coverage, effectively reducing waste and operational time.
- In May 2024, AGCO Corporation announced the official opening of The Fendt Lodge in Jackson, Minnesota, on May 1, 2024. This state-of-the-art facility will serve as the brand’s North American headquarters, providing a venue for product launches, customer and dealer engagements, and a dedicated visitors center.
- In March 2024, CNH Industrial N.V. announced its commitment to enhancing rural connectivity in Latin America. The company aims to streamline farming operations and boost productivity by utilizing its extensive suite of precision technology solutions. These advanced technologies, designed to save time, reduce costs, and optimize resources, depend on robust internet connectivity. With a network of over 190 provider partners across 144 countries, CNH Industrial N.V. ensures seamless product connectivity and comprehensive coverage to support its equipment worldwide.
- In January 2024, Bayer AG unveiled its Climate FieldView digital farming platform enhancements for the 2024 crop season. The updates include advanced functionalities in FieldView Plus, newly tailored features within the FieldView Premium subscription tier, and significant improvements to the platform's in-cab experience.
Demand - Drivers, Limitations, and Opportunities
Market Demand Drivers: Rising Adoption of Precision Irrigation Technologies
The rising adoption of precision irrigation technologies is a significant market driver in the global precision agriculture sector. As farmers increasingly confront challenges such as climate change and resource scarcity, the benefits of precision irrigation become more pronounced. Key behavioral factors, including perceived economic benefits, environmental consciousness, and perceived compatibility with existing practices, influence farmers' decisions to embrace these technologies.For instance, in January 2024, Netafim, in partnership with Regrow Ag, introduced drip irrigation systems for rice cultivation, reducing water consumption by 70% and nearly eliminating methane emissions. These advancements align with global sustainability goals, encouraging farmers to transition to climate-smart practices. The ability to secure carbon credits through these technologies further accelerates their adoption, fostering resilience in agricultural systems and positioning precision irrigation as a critical component in modern, sustainable farming.
Market Challenges: Growing Concerns Over Data Security
Data security concerns significantly restrain the precision agriculture market, as farmers and agricultural enterprises remain cautious about potential data breaches. Precision agriculture systems collect extensive data on farm operations, including crop performance and resource usage, raising fears of unauthorized access or data theft. This apprehension can hinder the adoption of digital technologies as stakeholders prioritize safeguarding their proprietary agricultural information.In 2020, a ransomware attack on a major U.S. agricultural cooperative disrupted operations, exposing the vulnerabilities of digital systems in precision agriculture. This incident underscored the significant risks of data breaches and cyberattacks, prompting heightened caution among farmers and agribusinesses. Consequently, skepticism toward adopting precision agriculture technologies that collect and store sensitive farm data has grown as stakeholders focus on protecting their information from potential threats.
Market Opportunities: Partnerships with Agri-Tech Startups
Collaborations with agri-tech startups present a significant growth opportunity for the precision agriculture market. These partnerships enable established companies to harness innovative solutions developed by startups, including advanced technologies such as AI-driven analytics, IoT-enabled devices, and precision farming tools. By integrating these innovations into their offerings, larger firms can enhance their product portfolios and maintain a competitive edge in the market.Such partnerships also enable faster market entry, tailored solutions for specific agricultural challenges, and the scalability of new technologies to a wider audience. For instance, in 2021, Deere & Company acquired Blue River Technology to integrate its cutting-edge machine learning and computer vision capabilities into Deere’s agricultural machinery. This strategic move significantly bolstered Deere’s precision agriculture offerings, enhancing crop monitoring accuracy and resource efficiency. As a result, this collaboration became instrumental in driving the adoption of advanced precision agriculture technologies, solidifying Deere & Company’s position as a leader in agricultural innovation.
How can this report add value to an organization?
This report adds value to an organization by providing in-depth insights into the precision agriculture market, enabling informed decision-making and strategic planning. It highlights emerging technologies, market trends, and competitive dynamics, helping organizations identify growth opportunities and align their offerings with industry needs. The report's detailed segmentation and regional analysis support targeted market entry strategies, while its regulatory and sustainability insights ensure compliance and alignment with global goals. By leveraging this report, organizations can drive innovation, enhance operational efficiency, and gain a competitive edge in the evolving precision agriculture landscape.Research Methodology
Factors for Data Prediction and Modelling
- The base currency considered for the market analysis is U.S.$. Currencies other than the U.S.$ have been converted to the U.S.$ for all statistical calculations, considering the average conversion rate for that particular year.
- The currency conversion rate was taken from the historical exchange rate on the Oanda website.
- Nearly all the recent developments from January 2021 to November 2024 have been considered in this research study.
- The information rendered in the report is a result of in-depth primary interviews, surveys, and secondary analysis.
- Where relevant information was not available, proxy indicators and extrapolation were employed.
- Any economic downturn in the future has not been taken into consideration for the market estimation and forecast.
- Technologies currently used are expected to persist through the forecast with no major technological breakthroughs.
Market Estimation and Forecast
This research study involves the usage of extensive secondary sources, such as certified publications, articles from recognized authors, white papers, annual reports of companies, directories, and major databases to collect useful and effective information for an extensive, technical, market-oriented, and commercial study of the precision agriculture market.The market engineering process involves the calculation of the market statistics, market size estimation, market forecast, market crackdown, and data triangulation (the methodology for such quantitative data processes is explained in further sections). The primary research study has been undertaken to gather information and validate the market numbers for segmentation types and industry trends of the key players in the market.
Primary Research
The primary sources involve industry experts from the precision agriculture market and various stakeholders in the ecosystem. Respondents such as CEOs, vice presidents, marketing directors, and technology and innovation directors have been interviewed to obtain and verify both qualitative and quantitative aspects of this research study.The key data points taken from primary sources Include:
- validation and triangulation of all the numbers and graphs
- validation of reports segmentation and key qualitative findings
- understanding the competitive landscape
- validation of the numbers of various markets for market type
- percentage split of individual markets for geographical analysis
Secondary Research
This research study involves the usage of extensive secondary research, directories, company websites, and annual reports. It also makes use of databases, such as Hoovers, Bloomberg, Businessweek, and Factiva, to collect useful and effective information for an extensive, technical, market-oriented, and commercial study of the global market. In addition to the data sources, the study has been undertaken with the help of other data sources and websites, such as the Census Bureau, OICA, and ACEA.Secondary research was done to obtain crucial information about the industry’s value chain, revenue models, the market’s monetary chain, the total pool of key players, and the current and potential use cases and applications.
The key data points taken from secondary research include:
- segmentations and percentage shares
- data for market value
- key industry trends of the top players of the market
- qualitative insights into various aspects of the market, key trends, and emerging areas of innovation
- quantitative data for mathematical and statistical calculations
Key Market Players and Competition Synopsis
The companies that are profiled in the precision agriculture market have been selected based on inputs gathered from primary experts who have analyzed company coverage, product portfolio, and market penetration.Some of the prominent names in this market are:
- Accenture
- AGRIVI
- Bayer AG
- X (Alphabet Inc.)
- Amazon Web Services (AWS), Inc
- IBM Corporation
- BASF
- Microsoft
- Farmers Edge Inc.
- The Toro Company
- AGCO Corporation
- CNH Industrial N.V.
- Ag Leader Technology
- KUBOTA Corporation
- Deere & Company
- Hexagon AB
- Topcon Corporation
- YANMAR HOLDINGS Co., Ltd.
- TeeJet Technologies
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Table of Contents
Executive SummaryScope and Definition
1 Markets
2 Application
3 Products
4 Region
5 Markets - Competitive Benchmarking & Company Profiles
6 Research Methodology
List of Figures
List of Tables
Executive Summary
The global precision agriculture market is estimated to reach $14.61 billion in 2027, reveals this market intelligence study. The study also highlights that the market is set to witness a CAGR of 13.12% during the forecast period 2022-2027.
Precision agriculture is focused on detecting, analyzing, and reacting to field variability concerning crop properties with the help of precision agriculture technologies such as global positioning systems (GPS) and sensors. Adopting such technologies will assist the farmers in whole-farm management practices.
USPs of the Report
- Study on research & development projects
- Competitive study
- Market strategies & developments
- Patent analysis
- Impact of key enabling technologies
- Funding analysis
- Future investment trends
- Impact of Russia-Ukraine crisis
- Impact of COVID-19
Analyst Perspective
According to the principal analyst of the study, "Precision agriculture technologies have seen rapid growth in adoption worldwide in recent years, with developed nations such as Canada, Australia, Europe, and the U.S leading the way due to their access to advanced resources and technology. In fact, large-scale farmers in the U.S. have adopted precision agriculture technologies at a rate of approximately 70%. However, developing countries have been slower to adopt these technologies due to reasons such as inadequate infrastructure, resources, and education. Nonetheless, some countries such as Brazil and Argentina have made notable strides in the adoption of precision agriculture technologies."
Key Companies Operating in the Market
Key players in the global precision agriculture market analysed and profiled in the study involve hardware systems and software manufacturers that are engaged in providing advanced precision agriculture solutions to farmers and other agriculture service companies. Moreover, a detailed competitive benchmarking of the players operating in the global precision agriculture market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, acquisitions, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
The key players profiled in the report include AGCO Corporation, CLAAS Group, CNH Industrial N.V., Deere & Company, Hexagon Agriculture, Kubota Corporation, TeeJet Technologies, The Toro Company, Topcon Corporation, Yanmar Co. Ltd., Accenture, AGRIVI, Amazon Web Services, Inc., BASF SE, Climate LLC, Granular Inc., IBM Corporation, Microsoft Corporation, and X Development LLC (Alphabet Inc.)
Key Questions Answered in the Report
- What is the expected global precision agriculture market size in terms of value during 2022-2027?
- What is the expected future scenario and revenue generated by different solutions, including software and platform, hardware, and support services?
- What is the expected future scenario and revenue to be generated by the technology segment, including guidance technology, sensing technology, variable rate application technology, and data analytics and intelligence?
- What is the expected future scenario and revenue generated by different applications for precision agriculture solutions, including precision irrigation, field monitoring, spraying, fertilization, precision planting, and data management?
- Which region is the largest market for the global precision agriculture market?
- What is the expected future scenario and revenue generated by different regions and countries in the global precision agriculture market, such as North America, South America, Europe, the U.K., China, Asia-Pacific and Japan, and Middle East and Africa?
- What is the competitive strength of the key players in the global precision agriculture market based on the analysis of their recent developments, product offerings, and regional presence?
- Which are the different consortiums and associations present in the global precision agriculture market, and what are their roles, focus areas, and key functions in this market?
- Where do the key precision agriculture companies lie in their competitive benchmarking based on market coverage and market potential?
- What does the technology ecosystem of precision agriculture solutions constitute?
Companies Mentioned
- Accenture
- AGRIVI
- Bayer AG
- X (Alphabet Inc.)
- Amazon Web Services, Inc.
- IBM Corporation
- BASF
- Microsoft
- Farmers Edge Inc.
- The Toro Company
- AGCO Corporation
- CNH Industrial N.V.
- Ag Leader Technology
- KUBOTA Corporation
- Deere & Company
- Hexagon AB
- Topcon Corporation
- CLAAS KGaA mbH
- YANMAR HOLDINGS Co., Ltd.
- TeeJet Technologies
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 249 |
| Published | February 2025 |
| Forecast Period | 2024 - 2034 |
| Estimated Market Value ( USD | $ 9.86 Billion |
| Forecasted Market Value ( USD | $ 22.49 Billion |
| Compound Annual Growth Rate | 8.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 20 |
