Precision Forestry Global Market Report 2024

The precision forestry market size has grown rapidly in recent years. It will grow from $4.7 billion in 2023 to $5.19 billion in 2024 at a compound annual growth rate (CAGR) of 10.4%. The growth observed in the historical period can be attributed to environmental concerns and regulations, the emphasis on resource optimization and cost reduction, the demand for wood products, and efforts related to climate change mitigation and adaptation.

The precision forestry market size is expected to see strong growth in the next few years. It will grow to $7.29 billion in 2028 at a compound annual growth rate (CAGR) of 8.9%. The anticipated growth in the forecast period can be attributed to the demand for carbon sequestration services, heightened investment in research and development (R&D), the growing need for urban forestry management solutions, and the expansion of Internet of Things (IoT) applications. Key trends expected in the forecast period encompass the integration of artificial intelligence (AI) and machine learning (ML), the utilization of blockchain for traceability and certification, enhanced remote sensing capabilities, and the emergence of autonomous forestry equipment.

The anticipated growth of the precision forestry market is driven by the increasing demand for timber. Timber, commonly referring to wood prepared for construction or carpentry, is a vital resource derived from harvested and processed trees. The surge in timber demand is fueled by factors such as heightened housing needs, expansion in the construction sector, and infrastructure development. Precision forestry techniques play a crucial role in meeting this demand by optimizing forest management methods, enhancing the efficiency of timber harvesting operations, and facilitating improved tracking, harvesting, and processing of timber resources. For instance, in September 2023, reports from the International Tropical Timber Organization highlighted that the value of exports for processed timber wood products reached $36.5 billion in 2022, showing a significant increase of nearly $26 billion (40%) compared to 2020. Consequently, the growing demand for timber is expected to drive the growth of the precision forestry market.

Major players in the precision forestry market are actively focusing on innovative technological solutions, exemplified by precision forestry technology initiatives, to enhance efficiency, sustainability, and competitiveness in their operations while meeting the rising demand for timber products. This initiative involves a strategic realignment of technology offerings to streamline portfolios and deliver new solutions to the logging industry. For example, in February 2021, Deere & Company, a US-based manufacturing company, introduced its Precision Forestry Initiative, encompassing real-time, map-based production planning and tracking capabilities, along with evolving operator assistance features. By emphasizing technology solutions that boost efficiency and productivity in forestry, this initiative aims to empower loggers with the latest technology for optimized job site performance and efficiency while addressing challenges associated with traditional forestry management methods.

In June 2021, AFRY AB, a Sweden-based engineering company, completed the acquisition of Simosol Oy for an undisclosed amount. This strategic move by AFRY is aimed at reinforcing its smart forestry capabilities, gaining a competitive edge in the market, and aligning with its strategic goals of digitalization and sustainability. Simosol Oy, a Finland-based company, specializes in advanced simulation and optimization solutions for precision forestry equipment and services.

Major companies operating in the precision forestry market are Caterpillar Inc., Deere & Company, CNH Industrial N.V., Kubota Corporation, Monsanto Company, AGCO Corporation, Hitachi Construction Machinery Co Ltd, Valmont Industries Inc, J C Bamford Excavators Ltd. (JCB), Trimble Inc., Volvo Group, AFRY AB, Ponsse PLC, Tigercat International Inc., Precision Planting LLC, Sampo Rosenlew Ltd., A.G. Leader Technology Inc., BouMatic LLC, Taranis, AgJunction Inc, AgEagle Aerial Systems Inc, Rottne Industri AB, Insight Robotics Limited, Komatsu Forest AB, Treemetrics Ltd., Hyundai Doosan Infracore Co Ltd.

North America was the largest region in the precision forestry market in 2023. The regions covered in the precision forestry market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the precision forestry market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Precision forestry is a forest management technique that employs tools and technology for site-specific data collection, with the goal of enhancing wood quality, safeguarding the environment, minimizing waste, and maximizing profits. It encompasses the utilization of advanced data collection and analysis systems, as well as the integration of artificial intelligence and machine learning to make informed decisions across different stages of forestry operations.

The primary components in precision forestry include hardware, software, and services. Hardware refers to the physical equipment and devices used to implement and support various technologies and processes designed to optimize forest management practices. This encompasses diverse technologies such as cut-to-length (CTL), geospatial, and fire detection, applied in various applications such as genetics and nurseries, silviculture and fire management, harvesting management, and inventory and logistics management.

The precision forestry market research report is one of a series of new reports that provides precision forestry market statistics, including precision forestry industry global market size, regional shares, competitors with a precision forestry market share, detailed precision forestry market segments, market trends and opportunities, and any further data you may need to thrive in the precision forestry industry. This precision forestry market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The precision forestry market consists of revenues earned by entities by providing services such as forest inventory and mapping, harvest planning and optimization, forest inventory assessment, and forest health monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The precision forestry market also includes sales of decision support systems, precision logging equipment, decision support tools, remote sensing platforms, and GIS (geographic information system) mapping tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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