A report recently released by Infinium Global Research finds the market for precision agriculture will reach $5.78 billion by 2025, with an annual growth rate of 9.3% from 2018 to 2025.
Infinium Global Research is a business consulting and market research firm. Its clients include Fortune 500 companies.
The report says the growth of the precision agriculture market is attributed to the growing proliferation of the Internet of Things (IoT) and the usage of advanced analytics by farmers.
Precision agriculture is undergoing a rapid transformation from both a product and a service perspective.
The precision farming practices are anticipated to witness a surge in the adoption as they allow farmers to accurately manage variations in the field, increase productivity, and reduce production costs. These practices help to gather related information by analyzing the real-time data about the conditions of the soil, crops, and local weather predictions and offer actionable insights to farmers with directions about the soil management, harvesting time, crop rotation, and optimum planting time. The precision agriculture technology is gaining popularity in the agriculture sector as it holds the potential to increase crop yield by using advanced IT-based agriculture methods.
Precision agriculture is gaining tremendous popularity among farmers owing to the increasing need for optimum crop production with limited available resources. Furthermore, the changing weather patterns due to climate change have impelled the adoption of advanced farming technologies to enhance farm productivity and crop yield. Precision agriculture has the potential to transform the agricultural sector, making traditional farming activity more efficient and predictable.
Top market players are focusing on launching new services and solutions specifically suited for precision agricultural applications to consolidate their position in the global market. For instance, in February 2020, John Deere introduced ExactRate, a factory-installed option that precisely monitors and controls the application of liquid fertilizer during planting. As input costs continue to the upswing, farmers are looking for ways to improve their planting equipment to provide precise placement and reduce inputs when possible.
North America is expected to dominate the market for precision agriculture as the region is an early adopter of technologies. The Asia Pacific region is expected to witness high growth during the forecast period owing to the increasing adoption of precision farming technologies, rapidly increasing population, the availability of arable farms, and government support.