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Precision Agriculture Industry Size In 2020 – 2026 Analysis by BIS Research

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The global precision agriculture market is expected to reach $10.93 billion by 2026, with a CAGR of 14.8% during the forecast period 2021-2026. The growth rate in the market is because of the increased government initiatives around the world for precision agriculture services, as this leads to an increase in agricultural production to cater to the growing global food demand. Precision agriculture techniques are being adopted by farmers across the globe to increase crop yield, shrink wastage, and ensure food security. This has led to an increase in the growth of the global precision agriculture market.

Read Report Overview: Precision Agriculture Market

With the exponential growth of the world population, the subsequent rise in the global demand for food, shrinking agricultural lands, and the depletion of finite natural resources, the need to enhance farm yield has become critical. Limited availability of natural resources, such as fresh water and arable land, along with slowing yield trends in several staple crops, have further aggravated the problem. Another looming concern over the farming industry is the shifting structure of the agricultural workforce. Moreover, the agricultural labor in most of the countries has declined. As a result of the declining agricultural workforce, the adoption of automated solutions in farming practices has been triggered to reduce the need for manual labor.

To address the escalating demand for food from the limited farmlands and labor, established agriculture machinery developers and technology vendors are introducing innovative solutions in the farming arena. These solutions are focused on helping farmers to fill the supply-demand gap by ensuring high yield, increased profit, and protection of the environment. The approach of using information technology (IT) to ensure optimum utilization of resources to achieve high crop yields and reduced operational costs is called precision agriculture. Precision agriculture technologies comprise specialized equipment, software, and IT services.

Market Drivers and Challenges in Global Precision Agriculture Market

A major factor driving the precision agriculture market is that by 2050 the world’s population is expected to reach XX billion. Almost half of the world’s population lives in urban areas, which leads to an increase in the need for resource-intensive food products. New technologies trigger higher yields and reductions in costs. Climate change is one of the most severe environmental threats to the productivity of agriculture processes. Crop yields are affected due to natural calamities such as droughts and floods. Varying weather circumstances influence soil quality and crop yields. Therefore, it is essential to adopt precision farming technologies and practices which will lead to a potential crop yield.

Global Precision Agriculture Market (by Application)

The introduction of precision agriculture technology helps the farmer to improve crop production and lessen the concern over global food security. Precision agriculture technologies can be used for applications such as monitoring, planting, irrigation, data management, and spraying. Precision agriculture technologies enable the farmer to optimize and modify the number of agri-inputs as well as effectively manage the farm activities, resulting in high yield at a low operational cost.

Global Precision Agriculture Market (by Farm Produce)

As the world’s population is growing, farmers need to produce more and more of these farm products to cater to the needs of the increasing population. Thus, advanced precision agriculture techniques and technologies have been introduced in the agriculture industry, which aims to efficiently handle the production of all types of farm produce. Field crops comprise the mainstream traditional farm produce that the agriculture industry majorly focuses on for its daily revenue generation. These crops are grown for large-scale consumption purposes.

Competitive Landscape of Global Precision Agriculture Market

The competitive landscape for the precision agriculture market demonstrates an inclination toward companies adopting strategies such as partnerships and collaborations along with new product launches to introduce new technologies or develop further on the existing product portfolio. Moreover, acquisition activities have increased in the market between 2015 to 2020. With increasing growth in the global precision agriculture market, companies operating in the industry are compelled to come up with collaborative strategies to sustain themselves in the intensely competitive market. Some of the leading companies operating in the global precision agriculture market are Kubota Corporation, AGCO Corporation, CLAAS Group.

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In May 2021, AGCO Corporation collaborated with Bosch for xarvio digital farming solution, which was also powered by BASF and Raven Industries. In November 2020, the strategic acquisition between Hexagon Agriculture and DP Technology Corporation would benefit a wider range of customers with the best smart manufacturing.