Precision Agriculture (Farming) Market Size, Share, Growth and Industry Analysis by Type (Software, And, Hardware) By Application (Yield Monitoring, Field Mapping, And, Others) Regional Forecast To 2033

Last Updated: 22 January 2025

PRECISION AGRICULTURE (FARMING) MARKET REPORT OVERVIEW

The global precision agriculture (farming) market size was USD 10.18 billion in 2025 and the market is projected to touch USD 36.96 billion by 2033, exhibiting a CAGR of 12.43% during the forecast period.

The Precision Agriculture (Farming) market is revolutionizing the traditional farming practices with the help of technologies like GPS, IoT, and AI. They allow for monitoring and early decision making, efficient use of resources and improved cropping. This is due to increase demand of food, more usage of smart farming technology and increasing knowledge on methods of preserving resources. Precision agriculture also helps in reducing operation cost since inputs such as fertilizers are used in the right proportion for efficient input utilization. Hailed by various governments as an industry that needs to be developed to enable sustainable agriculture, the market is expected to post significant increases in the coming years around the world.

COVID-19 impact:

 Introduction of Automation and Remote Monitoring System during Pandemic Increased Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic hugely affected the Precision Agriculture (Farming) market, which calls for precise and sustainable farming techniques. Farmers had to embrace automation and remote monitoring systems in production due to disrupted supply chains, and scarcity of workers. A pressure to use such critical supply enablers as drones, sensors, and data analytics mounted as such equipment made it possible to carry on with operations while observing infection protocols. However, some factors which hindered the market growth included; economic risks and challenges and that reduced investment abilities. In general, the pandemic shifted the farming industry towards the use of digital solutions, underlining the role of progressive and digital agriculture.

LATEST TRENDS

"Sensitivity of Analysis, Speed of Execution and Automation of Method to Accelerate Market Growth"

The two major trends evident with the Precision Agriculture (Farming) market are the following trends due to advancement in technology. Computer technology especially artificial intelligence and machine learning are increasing effectiveness of analytics for better decision making. Drone and satellite imagery is becoming more common and it allows for timely picture of crop status and field characteristics. Measuring devices used in agriculture are increasingly using IoT sensors for purposes of soil quality, moisture, and weather. Proper supply chain transparency is already being brought about with the advent of blockchain technology. Further, the use of self-driving tractors and robots is transforming the approach to agricultural practices and improving productivity and eco-friendly performance throughout the farming industry. These trends are driving the precision agriculture (farming) market growth.

PRECISION AGRICULTURE (FARMING) MARKET SEGMENTATION

By Type:

Based on Type, the global market can be categorized into software, and, hardware

• Software: Precision agriculture software is therefore useful in farm management since it entails data analytic to make appropriate decisions and control the usage of resources at the right time. Among these are tools for mapping crop performance, forecasting, and crop performance monitoring.
• Hardware: Precision farming equipment refers to equipment used in the farm such as drones, GPSs, sensors and other automated farm equipment that is used to collect and analyze data for better farming.

By Application:

Based on Type, the global market can be categorized into yield monitoring, field mapping, and, others

• Yield Monitoring: Yield prescription systems monitor crop performance as it happens and helps user understand production efficiency and potential in upcoming plantings.
• Field Mapping: A sometimes more simplified form of geos spatial technology, especially used in agriculture, is referred to as field mapping where real farm fields are mapped in fine detail to allow for clear planning and management of inputs such as fertilizers and water.
• Others: Other segments are irrigation management segment which provides decision on irrigation, weather segment that provide the weather forecast and pest detection segment that assist in identification of pests that affect farming.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.             

Driving Factors

"Fast-Growing Evolution of Intelligent Technologies like Artificial Intelligence, Iot, and Machine Learning to Amplify Market Growth"

Among all the factors, the fast-growing evolution of intelligent technologies like Artificial Intelligence, IoT, and Machine learning has a very strong influence on the growth of Precision Agriculture, globally. They include ways to monitor the systems in real time, forecast results and better use resources that improves crop output and minimizes expenses. Rising trends of using drones and robotics are becoming common trends in farming since they enhance the traditional styles of farming and ends up being more precise. Additionally, the extension of high-speed internet to the rural areas is expanding the usage of digital products, hence improving the procurement of innovative technology solutions in farming by farmers all over the world. All of the above-mentioned factors are driving the precision agriculture (farming) market share.

"Awareness of Sustainability and Need to Guarantee Food Security to Propel Market Growth "

Of all the forces that are driving the precision agriculture market, awareness of sustainability and the need to guarantee food security stand out the most. Poor resource management with scarce arable land and increasing human population makes precision farming optimize the available resources successfully. The support of governmental programs and subsidies connected with organic farming also boosts market development. Also, the preferences for more organic food and the environmental effects of farming are leading farmers to use more precise equipment decreasing chemical consumption and pollution. All these factors collectively help the growth of the market and a balance is maintained with the ecology.

Restraining Factor

"High Initial Investments Required For Purchasing Hardware and Software to Decrease Market Growth"

However, there are some drawbacks to using precision agriculture: high initial investments required for purchasing hardware and software, which create barriers for individual entrepreneurs – small farmers. Another factor that prevents adoption is the poor awareness and low levels of technical knowledge among farmers, notably where most GI technology is claimed to be most needed in the developing nations. Relying on the internet connection and electricity which are basic needs can be a little hard in the rural areas. Other factors that deter market growth include: Cloud based systems related data security and privacy issues. Also, the fragmentation of the agricultural sector and the necessity to use highly specific solutions all over the world create difficulties for the large-scale implementation; thus, the growth rate of the market is not very high.

Opportunity

"Variety of Opportunities for Utilizing Technologies, Such As AI, Block chain, and, Iot to Create an Opportunity in the Market"

Consequently, the variety of opportunities for utilizing technologies, such as AI, blockchain, IoT, in Precision Agriculture market is virtually limitless. Increased market demand for organic farming and earth friendly farming practices therefore necessitates precision farming technologies. Availability of more freelancers in developing nations, cheap and easily available internet connectivity in rural regions, more funding from the government towards smart agricultural solutions augment market potential. Furthermore, there are opportunities residing in underdeveloped territories worldwide because many people over there remain underserved. New to the field breakthrough technologies like auto tractors and robotics will soon embark the farming arena thus providing the most appropriate atmosphere for using of enhanced farming solutions in the world. These factors are creating several opportunities in the market.

Challenge

Access for Precision Agriculture for Small and Marginal Farmers to Create Challenge in the Market

Some of the key threats facing the precision agriculture market include high costs and access for Precision agriculture for small and marginal farmers. Equipment and maintenance costs are also relatively high in the initial period of setting up a new hotel, and during the subsequent period of operations periodically there are certain heavy expenses such as periodic maintenance of the equipment, etc. The farmers generally lack technical competence that I a way hinders the facilitate utilization of sophisticated implements. Patient communication in remote areas may be interrupted due to poor network connectivity and, as a result, IoT devices for monitoring and cloud systems will also not be able to run smoothly. In addition, perceived risks of data privacy and low tendency to allow change in the traditional farming industry acts as a barrier. These are factors that need to be overcome in order to achieve optimal utilization of precision farming solutions. These factors may pose a challenge in the development of the market.

PRECISION AGRICULTURE (FARMING) MARKET REGIONAL INSIGHTS

• North America

Particularly North America has marked itself as a leader in it due to adoption of new technologies and hi-tech farming practices. The United States of America and Canada are in the leadership position by investing a lot of money in research and development and most farmers use IoT, drones, and AI in farming. Government support and enhancing necessity of adequate water and resources management additionally contributes to the growth in the process’ popularity. The emphasis on the sustainable use of fertile land and increasing demand for quality crops act in this context as both drivers for the increased share of the region in the global Precision Agriculture market.

• Europe

Europe is a key market for Precision Agriculture, supported by stringent environmental regulations and the promotion of sustainable farming practices. Countries like Germany, France, and the UK are driving innovation with increased adoption of smart farming tools, including sensors, GPS-based systems, and automated machinery. The European Union's initiatives, such as the Common Agricultural Policy (CAP), provide financial support to farmers adopting precision techniques. Additionally, the growing demand for organic produce and resource optimization across the region propels the adoption of advanced agricultural technologies.

• Asia

Asia is emerging as a significant market for Precision Agriculture, driven by its vast agricultural base and rising demand for food due to population growth. Countries like China, India, and Japan are increasingly adopting smart farming tools to enhance productivity and reduce resource wastage. Government initiatives supporting technology-driven agriculture and subsidies for precision equipment play a crucial role. However, challenges like fragmented land holdings and limited farmer awareness slow adoption. Despite these hurdles, Asia presents enormous growth potential due to its focus on achieving food security and sustainable farming practices.

 Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive"

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

LIST OF MARKET PLAYERS PROFILED

• HP (U.S.)
• IBM (U.S.)
• Oracle (U.S.)
• SAP (Germany)
• Appian (U.S.)
• Bosch (Germany)
• EMC (U.S.)
• Fujitsu (Japan)
• Network Automation (U.S.)
• Newgen Software (India)
• OrangeScape Technologies (India)
• PaperSave (U.S.)
• Pegasystems (U.S.)
• PNMsoft (U.K.)
• Software AG (Germany)
• Tibco Software (U.S.)

INDUSTRIAL DEVELOPMENT

December 2024: The Precision Agriculture market went through changes in 2024. AGCO Corporation acted greatly acquiring 85% of the agribusiness Trimble for $ 2 billion to create PTx Trimble, designed to develop the automation of farm equipment.  This collaboration focuses on using technologies to improve the possibilities of precision farming. Furthermore, the global market is anticipated to grow at a CAGR of 12% between the year 2024 to 2033 due to growing use of hardware components in precision farming.  These development shows that the industry is yet in the process of incorporating advanced technologies for enhanced agricultural yields and a sustainable food system.

Report Coverage

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.