Precision Farming Statistics By Market Revenue, Growth And Technology Adoption
Updated · Oct 09, 2024
WHAT WE HAVE ON THIS PAGE
- Introduction
- Editor’s Choice
- Global Precision Farming Market Value
- Income From Precision Farming Technology
- Precision Farming in England
- Precision Farming In US
- Use of Sensors in Precise Farming
- Use of Machines in Precision Farming
- Global Market Volume of Agricultural Robots in Precision Marketing
- Application of IoT in Precision Farming
- Status And Availability of Precision Farming
- Recent Developments
- Conclusion
Introduction
Precision Farming: Precision farming emerged as a revolutionary methodology in contemporary farming that is increasingly important for survival. It uses complex technologies to analyze and optimize land use, such as GPS devices, IoT sensors, and analytics. This allows farmers to manage their crops with remarkable accuracy; they can adjust their practices to the specific requirements of any part of a field. The increasing awareness of food security issues around the world has seen a steady rise in precision agriculture adoption.
It aims to cope with the rising demand for food globally while also reducing environmental impacts on the one hand and increasing profitability on the other. In this article, we give an overview of the precision farming statistics industry, highlighting key statistics from 2023 and projections for 2024.
Editor’s Choice
- The Precision Farming statistics are projected to be USD 13.11 billion in 2024 and USD 23.84 billion by 2029, expanding at a compound annual growth rate (CAGR) of 12.70% from 2024 to 2029.
- The main factors driving the adoption of precision farming include climate change, increasing food demand, higher technology uptake in the global agricultural sector, and government initiatives aimed at promoting farmers’ efficiency with new technology.
- Precision agriculture refers to an agricultural management practice that centers on observing, measuring, and responding to the variability of crop yields across fields based on property lines, anticipated yields, and geographical and environmental factors.
- With over 40% of global revenue, North America is expected to lead the market, reaching USD 3940.48 million in 2024 and having a compound annual growth rate (CAGR) of 9.2% from 2024 to 2031.
- Europe will take up more than 30% of the global market, amounting to USD 2955.36 million size.
- The Asia Pacific region is expected to hold about 23% of global revenue, with USD 2265.78 million, by 2024 and grow at a CAGR of 13.0% from 2024 to 2031.
- Latin America is projected to capture over 5% of global revenue; its size will be worth about USD 492.56 million by 2024, and it will grow at a CAGR of around 10.4% during the same time frame.
- The Middle East and Africa are estimated to account for approximately 2% of worldwide sales, which are expected to reach USD 197.02 million in 2024. Between 2024 and 2031, the anticipated CAGR is around 10.7.
- In 2030, precision farming statistics will surpass other agricultural advancements and become a dominant trend. Farmers can access real-time machinery data through mobile apps using remote sensing combined with ground communication.
- Variable rate technologies (VRTs) enable farmers to make more precise land management decisions and optimize inputs such as seeds, fertilizers, and pesticides, particularly in response to changing weather patterns.
- Broad-market vendors provide guidance systems, climate-weather predictions, and input application equipment, whereas small vendors specialize in smart irrigation systems and field monitoring techniques, often utilizing IoT solutions.
- The adoption of precision farming technology has occurred earlier in North America, where considerable use of IoT, big data, drones, and robotics within agriculture has been seen, driving its market growth.
- During the forecast period, increasing investments in technologies like driverless tractors, guidance systems, and GPS sensing systems are likely to contribute to market expansion.
- High costs among larger-sized farms have constrained the use of precision farming tools but not smallholdings due to the challenges they face in adopting them. However, VRA and Controlled Traffic Systems (CTF) aid in enhanced nutrient utilization and production efficiency
- It is anticipated that following the COVID-19 pandemic, there will be increased uptake of remote sensing and farm management software technologies as companies look at wireless platforms for instantaneous decisions on crop health monitoring, yield monitoring, irrigation scheduling, field mapping, and harvesting management within their enterprises. Such demand might push up prices within this industry, thereby leading to market growth in the years ahead.
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Global Precision Farming Market Value
(Reference: enterpriseappstoday.com)
- Precision farming statistics show that the precision farming market is anticipated to grow from USD 7.1 billion (in 2022) at a CAGR of 13.2% to USD 24.53 billion by 2032.
- The market is segmented into hardware, software, and services. Hardware is the biggest because of the increased use of sensors, GPS, and other advanced equipment.
- Precision farming, however, refers to an agriculture science that employs technology to improve the efficiency of farming practices, leading to its rapid growth in recent years.
- Some factors driving demand for precision agriculture include the increasing demand for food resulting from population growth, the need for better farm processes, hence higher productivity, and the use of precision techniques among farmers.
Income From Precision Farming Technology
(Source:agecon.unl.edu)
- The precision farming statistics data shows how long precision agriculture technologies are used and what happens when they are combined. In the beginning, precision farming does not have a visible effect on net farm income (NFI), which may even be negative.
- Some technologies, like guidance and section control, can increase efficiency immediately, while others, like yield mapping, require several years’ worth of data before they can be applied to management decisions.
- Given that precision farming technology involves significant upfront costs (especially when charged against profits at once for taxation purposes rather than allowing it to wear off gradually), we would expect little from such investments in terms of immediate impacts upon NFI.
- However, over time, this has resulted in increased NFI due to improved operational efficiency, and more data has become available for informed managerial decisions.
- The precision farming statistics show substantial changes in NFI between five and nineteen years after its introduction, after which the effect seems to level off.
Precision Farming in England
- It is anticipated that the worldwide precision agriculture market will grow from more than six billion U.S. dollars in 2020 to 12.8 billion U.S. dollars by 2026.
- In England, 80% of farms that use precision farming methods concentrate on enhancing productivity.
- Half also aim to improve animal health and welfare, whereas close to 40% apply these techniques to reduce environmental pollution.
- The use of inputs more efficiently suggests that it is possible to achieve a sustainable increase in food production.
- Nonetheless, almost half of the farms that do not use precision farming point out high costs as a roadblock. Despite these difficulties, the number of farms employing precision agriculture in England has steadily increased over the past seven years.
- At least 20% of all English farms now use precision agriculture techniques outside the southwest region.
- These practices require accurate satellite positioning to ensure accuracy during execution; however, they can also significantly reduce soil compaction and fuel consumption during cultivation.
- Amongst the top quarter economic performers, around 40% utilize one or more precision farming methods.
Precision Farming In US
- In 2018, Latin America’s precision farming statistics market was worth more than 630 million U.S. dollars, and there is an expectation of continuous expansion in the coming years.
- That Argentina would be the fastest-growing country in this sector from 2019 to 2025, with an almost 17% CAGR.
- Brazil and Mexico were also considered to experience great growth since they were forecasted to register a CAGR of above 16% during that time.
- The precision farming statistics show how much precision horticulture technology can expand within this area.
Use of Sensors in Precise Farming
(Reference: media.market.us)
- In today’s world of agriculture, sensors have become an integral part of the crop production process as they provide necessary information and improve efficiency in various agricultural activities.
- About 40.46% of respondents monitor machine conditions using sensors, which allows them to carry out timely maintenance and reduce downtime.
- Another 50.38% use sensors for tracking machine positions, thus enabling precise and automated farming operations.
- Many people are using plant protection and nutrition sensors, with about 53.44% of respondents using these devices to optimize inputs and enhance crop health. Meanwhile, 58.02% employ weather stations to gather essential data needed for irrigation, pest control, and harvesting decisions.
- Nonetheless, precision farming statistics on crop anomaly detection are not widely available since only 21.37% of respondents have adopted this technology to identify and remedy any abnormalities that arise during their crops’ growth period.
Use of Machines in Precision Farming
- The role of machines in contemporary crop production is crucial. They perform various functions that enhance agricultural efficiency and productivity.
- For example, 89.31% of respondents use uncrewed vehicles such as tractors and robotic machines for planting, cultivation, and harvesting purposes.
- Notably, 61.83% of the respondents also frequently mentioned navigation and optimization systems as being used to improve precision and efficiency in field operations.
- Moreover, agriculture drones are becoming popular among farmers, with 33.59 % using them to monitor soil state, humidity levels, and crop growth stages.
- Therefore, the application of these devices reveals that the agriculture sector is focused on adopting new technologies for increased harvests while conserving resources and promoting sustainable farming methods.
Global Market Volume of Agricultural Robots in Precision Marketing
(Reference: statista.com)
- Insights on worldwide agricultural robot market volume from 2020 to 2030 can be derived from precision farming statistics.
- It probably has recent data on the market volume of agricultural robots, which tells how many are in use or sold now.
- The key highlight is the growth of this market. It is expected that by 2030, the global agricultural robot market will achieve nearly 36 billion units. This prediction indicates considerable growth in using and accepting them over ten years.
Application of IoT in Precision Farming
- Precision farming statistics reveal that the global market for Internet of Things (IoT) applications in agriculture is experiencing strong growth across various segments between 2020 and 2026. In 2020, the market value for precision crop farming was USD 7,285.3 million, while in 2021, it grew to USD 8,280.6 million, and it is estimated to hit USD 13,134 million by 2026.
- Similarly, the livestock monitoring and management segment saw a significant rise from USD 4,834.1 million in 2020 to USD 5,503.3 million in 2021, with expectations of reaching USD 8,797.6 million by 2026.
- Indoor farming is also an emerging sector, with market values increasing from USD 3,234.1 million in 2020 to USD 3,707.4 million in 2021 and projected to rise to USD 6,086.9 million by 2026. Aquaculture followed suit, as its value rose from USD 2,011 billion in 2011 and 2020 to USD 2,327 billion next year, likely reaching USD 4 billion over five years.
- Other segments have also played a part in this expansion as their market values increased from 1,1525 billion dollars (2020) – to 1,2851 billion dollars (2021), expecting an increase of up to 1,8187 billion dollars (2026)
- Overall, rapid global growth in agriculture is being experienced through the applications of IoT technology-driven solutions meant to optimize and improve efficiency on various agricultural fronts.
Status And Availability of Precision Farming
- Cost/profit mapping services were adopted more frequently, increasing from 38% in 2019 to 55% in 2022, which highlights an increased emphasis on financial analysis in farm management.
- Geographical Information Systems (GIS) were used for field mapping, and the percentage increased from 85% to 90%, which indicates that spatial data analysis is being integrated into precision agriculture.
- Grid or zone soil sampling remained widely used as it increased only slightly from 90% to 91%.
- Guidance and autosteer sales and support rose from 38% to 46%, indicating a growing demand for automated navigation systems in farm machinery.
- Satellite and aerial imagery use surged by 10%—from 70% to 80%—showcasing an overall reliance on remote sensing technologies.
- This was evidenced by the growth of variable rate technology (VRT) applications for fertilizers, lime, and pesticides, where VRT pesticide application increased by 30%, going up from 20% to almost half at 50%.
- Sales and support for yield monitors and data analysis tools also increased rates of acceptance, with yield monitors raising their uptake rate from 40% to 46%. In comparison, other data-related devices rose in uptake levels from 63% to 70%.
- According to dealer statistics, precision agriculture services are generally widely and more progressively adopted, thus depicting how the industry continues to move towards advanced technologies that require considerable amounts of data.
Recent Developments
- Agri-tech organizations are introducing developers of innovative precision agriculture technologies to increase crop production.
- In 2023, John Deere released the latest precision farming gear, including high-tech GPS-controlled tractors and automated planting systems. These were designed to increase yields while decreasing expenditures.
- Precision farming statistics have witnessed several strategic mergers and acquisitions following large-scale expansion into various markets and the combination of complementary technologies.
- For instance, in 2023, Trimble purchased a recognized agricultural data analytics firm to strengthen its range of precision agriculture services.
- Collaboration between suppliers of precision farming technologies and agricultural stakeholders is rising.
- The objective is to combine different technologies into single farming solutions.
- In 2023, one top precision farming software firm collaborated with a big agribusiness corporation to execute integrated systems for large commercial farms.
Conclusion
The precision farming statistics market is changing fast due to technological development and rising uptake in different areas all over the world. As a result, this industry will have a market worth USD 10.5 billion US dollars in 2024, a figure that indicates an expectation for growth in the future. The main driving forces behind this include science and technology improvements, a greater focus on sustainability, and the need for improved agricultural production. When more sophisticated and simply available precision farming instruments come into being, they seem set to transform agriculture in the future.
Through advanced technologies applied in precision farming, food production has been optimized, leading to reduced wastage and environmental impacts. Other advantages, such as higher yields, optimal resource use, and sustainable practices that can make a profit more easily, along with evidence-driven decisions, have become possible. The sector continues to experience growth and innovation despite challenges like increased input costs or price instability in markets.
FAQ.
In precision farming, cutting-edge agricultural methods are applied using GPS devices, IoT sensors, and analytics to maximise land usage and crop production. This enables farmers to look after their crops precisely, tailoring practices to specific field conditions.
The precision farming market is anticipated to expand from USD 13.11 billion in 2024 to USD 23.84 billion by 2029, with a compound annual growth rate (CAGR) of 12.70%.
The precision farming market is likely to be led by North America, which will account for over 40% of global sales and reach USD 3940.48 million in revenue in 2024. Europe will hold over 30%, while the Asia Pacific region may contribute approximately 23% share of worldwide revenue. Growth will also occur in Latin America, the Middle East and Africa but may at different rates, between 10.4% and 13.0%.
Key trends include increased adoption of cost/profit mapping services, GIS for field mapping, and satellite and aerial imagery. Variable rate technologies (VRT) are being used more frequently for inputs like pesticides, and more farmers are employing data analysis tools and yield monitors.
Initially, precision farming technology may not significantly impact net farm income (NFI) and might even have a negative effect due to high upfront costs.
Ketaki Joshi is a professional medical writer with extensive experience in scientific research on illness, health, and healthcare. Her work includes creating feature articles for newsletters and websites, as well as research news stories for doctors and researchers. With a lifelong passion for reading, Ketaki transitioned from a career at a French multinational company to pursue writing professionally. Her dedication to the craft has culminated in the recent release of her first Amazon-published short story, "The Envelope That Changed Our Lives."
