Precision agriculture is a farm management approach that uses IT to ensure that the soil, as well as, the crop receive an optimum number of nutrients needed to maximize the production, thereby, increasing 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 specific task on the field. Various sensors in the field, such as satellite and robotic drones, provide data and images that help farmers take immediate decisions related to providing fertilizers and water or protection chemicals needed by the crop for normal functioning. Precision agriculture for development and for sustainability and environmental protection is gaining a lot of prominence in the current scenario.
The global precision agriculture market is estimated to be USD 3.26 billion in 2017 and is projected to increase steadily in the future, witnessing a double digit growth during the forecast period 2017-2022. The global precision agriculture market is expected to grow to USD 5.1 billion in 2020. The total market for precision agriculture is experiencing a huge evolution in terms of market players and their activities. The changes in major players’ strategies in the precision agriculture market are evident from recent mergers and acquisitions.
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 latest technologies, privacy and protection issues with the data, and lack of common standards for agriculture practices. Various opportunities lie in the conservation of the environment with the governments promoting precision agriculture by providing incentives and subsidies and high success rate of precision agriculture in various crops like tea, banana, etc.
The market is segmented by technology into GNSS/GPS systems, GIS, remote sensing and variable rate technology (VRT). The GNSS/GPS segment constituted a major part of the market while VRT is expected to witness the fastest growth of 16.10% in the forecast period. 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.
In 2015, North America dominated the precision agriculture market, with the United States and Canada dominating the market in the region. During the forecast period, North America is expected to grow at a CAGR of 7.15% due to large-scale farmlands, ever existing need to increase productivity of agriculture and high labor costs in the region. Asia-Pacific has been identified as a region yet to reach its maximum potential in the precise agriculture domain. This region is expected to be the fastest-growing market in the near future.
List of precision agriculture companies:
Recent Industry Insights
Key Deliverables in the Study
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