Precision Farming Market Report By Insights, Size, and Growth - 2031

In 2023, the precision farming sector was valued at approximately US$ 9.87 billion and is projected to grow to US$ 26.44 billion by 2031, reflecting an anticipated compound annual growth rate (CAGR) of 13.1% during the period from 2023 to 2031.

The rise of precision farming is significantly attributed to its ability to enhance sustainability and reduce environmental impacts. This innovative approach allows farmers to manage their inputs and nutrients with greater accuracy, leading to more informed decisions. Consequently, there is a reduction in nutrient runoff and fertilizer wastage. By utilizing remote sensing technologies, farmers can identify specific areas within their fields that are experiencing high levels of disease and pest pressure, enabling them to apply chemicals only where they are truly needed rather than across the entire field. This targeted application minimizes the use of herbicides and fungicides. Additionally, farm managers can monitor equipment and driver performance to optimize fuel consumption, which in turn reduces emissions. Furthermore, precision agriculture technologies, including artificial intelligence (AI) and machine learning, enhance crop quality and minimize on-farm waste, contributing to a more sustainable food supply. Agribusinesses can also improve traceability and accountability by collecting and linking data throughout the crop production process, starting from seed production and continuing until the product reaches the consumer. This data-driven approach provides valuable insights that can be leveraged for more efficient production, thereby driving market growth throughout the forecast period.

Moreover, the growing investment in advanced technologies such as guidance systems, autonomous tractors, and GPS sensing systems is expected to further propel the precision farming market during the analysis period. For example, in April 2022, EarthScout, an Agtech company, introduced a new addition to its range of advanced agricultural products designed to assist farmers in conserving water and reducing irrigation needs during droughts by providing real-time soil moisture data. The EarthScout Soil Cub is a compact sensor measuring 4.5"x3"x2" that is deployed in the field to monitor soil temperature and humidity levels.

The Asia Pacific region is anticipated to experience significant growth in the precision farming market over the forecast period, primarily due to government initiatives in developing countries aimed at promoting the adoption of advanced precision farming technologies, which in turn enhances productivity. For instance, in December 2022, the Government of India launched Kisan Drones to digitize land records, assess crops, and spray nutrients and pesticides. Additionally, IG International, a fresh produce company based in India, collaborated with Fyllo, a provider of AI and IoT-driven precision agriculture solutions, to help businesses leverage advanced technologies for producing high-quality fruits. Such initiatives are expected to significantly contribute to market growth in the Asia Pacific region during the forecast period.

Key players in the precision farming market include AgJunction LLC, Ag Leader Technology, CropX Inc., AGCO Corporation, Trimble Inc., Deere and Company, CNH Industrial N.V., Topcon, DICKEY-john, and TeeJet Technologies, among others. A comprehensive analysis of several other important players in the precision farming market has also been conducted to provide a well-rounded view of the market and its ecosystem.

The overall size of the precision farming market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the precision farming market. This approach also aimed to provide an overview and forecast of market growth across all segments. Additionally, numerous primary interviews were conducted with industry stakeholders and experts to validate the findings and gain deeper analytical insights into the subject. Participants in this research included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in precision farming.