According to a new report published by Allied Market Research titled "World Precision Agriculture Market -Opportunities and Forecasts, 2015-2022," the global precision agriculture market is expected to generate revenue of $7.8 billion by 2022, growing at a CAGR of 14.9% from 2016-2022. Precision agriculture is a farming technique associated with application of different technologies and solutions to enable efficient farming and improve crop yield. It presents significant potential in enhancing food productivity while at the same time providing sustainable management of resources.
Precision agriculture technologies include GPS, GIS, telematics, variable rate technology (VRT), and remote sensing. Among the mentioned technologies, GPS is the largest revenue contributor, owing to its ability to help farmers and agriculture service providers to automatically record the field data and apply variable rate of inputs to smaller areas within larger fields. From a growth perspective, geographic information system (GIS) technology is anticipated to exhibit the highest CAGR of 15.7%, driven by higher adoption mainly in North America and Europe.
Among the component segments, hardware accounted for the higher revenue share in 2015, owing to high demand of hardware components such as drone, ASS and RADAR. The software market, encompassing inventory management software, people management software and financial management software among others, is expected to witness the highest growth during the forecast period with a CAGR of over 15%, owing to its ability of these software to enhance equipment's operating efficiency and smartphone integration with field machinery and devices for easy access of information.
North America presently leads the market, on account of high investment in agriculture technologies, high awareness levels and wide internet penetration. Within North America, the U.S constitutes over 80% of the market revenue. Furthermore, Asia-Pacific is likely to exhibit the highest growth, on account of the increasing adoption of advanced agriculture technologies such as VRT and drone, mainly in countries such as China and Japan.
- GPS technology held a significant share in the world precision agriculture market in 2015.
- Hardware held a higher share in the component segment in 2015, with over 50% revenue share and is expected to dominate the market during the forecast period.
- Asia-Pacific constituted around 16% of the total market revenue in 2015 and is likely to be the fastest growing region over the forecast period.
Key players in the precision agriculture market are Deere & Company, Trimble Navigation Limited, AGCO Corporation, and Monsanto Company among others. Product launch, acquisition and partnership are observed to be the prominent strategies adopted by the leading market players to strengthen their market position, enhance their product portfolio, and expand their geographical presence. For instance, in 2016, Deere & Company launched mobile real-time kinematics (RTK), an innovation in machine guidance and telematics that monitors field and crop requirements effectively.