Precision Farming Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The global precision farming software market is anticipated to register a CAGR of 14% during the forecast period 2022-2027.

As an impact of the COVID-19 pandemic, the requirement for digitization in every sector was felt. The market for precision agriculture, including agriculture sensors, farming software, drones, etc., also witnessed the growth of digitization during the COVID-19 pandemic. Many agritech companies came up with innovative models for easing farming practices by focusing more on wireless platforms to enable real-time decision making with respect to yield monitoring, crop health monitoring, field mapping, irrigation scheduling, harvesting management, etc. to help farmers remain protected from the impact of adverse price fluctuations of their produce. Increasing awareness about the benefits of precision agriculture in optimizing agricultural production has resulted in a great boom in the precision agriculture market. With the growing food demand, owing to the increasing population, the adoption of precision agriculture tools is inevitable for farmers. The advancements and innovations in technology are the major factors driving the precision agriculture market since they help farmers maximize their yield and minimize losses with efficient use of resources. North America is the largest and most mature market for precision agriculture, followed by Europe. Together, these two regions constitute more than 50% of the precision agriculture software market globally.

Scope of the Report

Precision agriculture software is a farm management software that uses information technology and ensures that soil and crop both receive the optimum amount of nutrients needed to maximize production, thereby increasing the crop yield. This approach helps the user receive real-time information about plant health, soil requirements, weather predictions, and the labor cost incurred to complete a particular task in the field. Various sensors in the field, such as satellite and robotic drones, provide data and images, which help farmers make immediate decisions on providing fertilizers, water, or crop protection chemicals needed by the crop for normal functioning. The global precision farming software market is segmented by type into local or web-based and cloud-based software, by application into crop management, financial management, farm inventory management, personnel management, weather tracking and forecasting, and other applications. A detailed geographical analysis covers more than 16 demographics across regions, including North America, Europe, Asia-Pacific, South America, and Africa.

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Key Market Trends

Decrease in Variable Costs with Increased Productivity

Precision farming is a way of farming in which the internet of things (IoT), software, artificial intelligence, big data, and other technologies are used to utilize farm inputs in a productive way to cut costs and enhance productivity. According to a study conducted by MDPI, Basel, Switzerland, it was found that the amount of pesticides and fuel used after adopting precision farming was reduced significantly. Though there would be high fixed costs in the adoption phase, there would be significant reductions in the variable cost. The labor cost goes down by approximately 20%, and the productivity of the farm would increase in the long run. Precision farming is helping the world cater to the problems associated with climate change and the growing population by increasing the productivity and profitability of crops without harming the environment.

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