Precision Farming Market Trends and Industry Analysis

The global precision farming market was valued at USD 3.1 Bn in 2021. The market is projected to grow USD 11.2 Bn in 2028, at a CAGR of 25.2%. Precision farming is a cutting-edge farming method that uses modern technology to help farmers boost production and save labour costs. Smart sensors, GPS, GNSS, auto-steering and guiding technology, and variable rate technology (VRT) are a few of the key technologies utilised in precision farming. They not only assist in lowering labour costs, but also ensure that resources are used efficiently and eliminate waste, which is more prevalent in conventional agricultural methods.

The Covid-19 pandemic forced the closure or partial shutdown of industries, warehouses, enterprises, and educational institutions around the world. The other lockdown measures were implemented as well, including stringent social distance norms, restricted travel, and limited access to public areas, restaurants, theme parks, movie theatres, and shopping malls. Supply chain operations and logistics-related services were disrupted in almost every industry throughout the world. Vertical farming's growth has also been hampered by limited consumer and corporate spending, lockdown measures, and supply chain interruptions. The market is experiencing a downturn as a result of the Covid-19 epidemic, which has resulted in the closure of many SMEs, logistical disruptions, lockdowns, and other issues. The pandemic has forced governments all around the world to redirect their attention and resources to the health-care sector.

Increasing adoption of Internet of Things, smart and connected gadgets, drones, mobile applications, and other technologies provide real-time data to precision farming producers. Manually managing current information on crop health and the environment is difficult. Crop production can be made more efficient with the help of automation and information technology. Plenty's indoor farm in San Francisco, for example, has combined crop science with big data, IoT, climate management, and machine learning technology. This allows the enterprise to generate delicious and healthful food while keeping energy and water usage under control.

Growing Adoption for Urban Agriculture Will Aid the Growth of Precision Farming

Growing urban population and rising usage of innovative technology-driven agriculture will likely to drive the growth of global precision farming market. This is because environmentally friendly fruit and vegetable production methods are becoming more popular. As the world's population has grown at a rapid rate, the demand for urban agriculture has increased. Organic foods, in comparison to conventional foods, are regarded to be more nutritious.

Increasing deployment of harvesting robots has made the precision farming easier as compared to conventional technologies. Automation becomes streamlined and provides better efficiency. The rise of AI and other robotics breakthroughs has exploded the realm of agriculture robotics with innovation.

Technical solutions such as cameras, sensors, automated systems, artificial intelligence, hydroponic, aquaponic, and aeroponic systems are frequently used in precision farming. A skilled and knowledgeable personnel is required to run these modern technologies. Vertical farming is not immune to the effects of a lack of competent labor in several industries throughout the world. Furthermore, the majority of farmers enter this market with systems that are inefficient in terms of design and are pricey. Vertical farms must stay current on several elements of farming in order to stay competitive in the market.

The global precision farming market is segmented by structure, type, component and region. Based on the structure, the market is categorized into building-based & shipping container-based. based on type, the market is categorized into hydroponics, aeroponics, aquaponics. based on component, the market is categorized into irrigation, lighting, sensor, climate control & others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.

Based on the structure, the market is categorized into building-based & shipping container-based. The shipping container-based segment dominated the global precision farming market share is expected to continue during the forecast period owing to ability of the structure to assist in the growth of crops regardless of location one of the main advantages of container farming is that it is simple to carry, and it does not require a large plot of ground or a specialized structure to begin cultivating. Furthermore, as competition grows, the price of shipping containers lowers since the cost of acquiring old containers is relatively low, allowing other businesses to enter the market. Low comparative yield and antagonism between light, heat, and layout, on the other hand, are some of the disadvantages of this type of agriculture.

Based on the type, the market is categorized into hydroponics, aeroponics, aquaponics. The hydroponics segment is dominating the market share owing to inexpensive installation costs and ease of use, hydroponics is a popular growing method. It is a method of growing plants without soil in which a mineral solution is put around the plant roots to replace the soil. Furthermore, the hydroponics technology eliminates the potential of disease transmission from soil organisms. The demand for hydroponics is projected to rise as customers become more aware of the dangers of pesticides. Because the nutrients are controlled better in hydroponically grown plants, they produce a higher yield than equivalent plants cultivated on soil. Plant roots are also submerged in a chemical solution and tested on a regular basis to ensure that the proper chemical composition is maintained for growth.

Based on the component, the market is categorized into irrigation, lighting, sensor, climate control & others. The lighting segment is dominating the market share owing to the dependence on artificial lighting accounts for a large portion of the lighting market. Artificial lighting provides the necessary light intensity for crop growth. Over the projected period, the temperature control segment is expected to grow at the fastest rate of 27.0 percent. Farmers are expected to adopt more hydroponic components to reduce the weight load and infrastructure required to sustain the equipment, which will increase demand for hydroponic components.

The global Precision Farming market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. Asia Pacific region is expected to dominate the market share owing to the organic food is in high demand in the region, which eats more than 75% of all veggies produced worldwide. The growth of indoor farming and organic food in the region is being fueled by a shift in customer preferences, followed by an increase in pollution, food scandals, and a rise in aversion. Some of the largest indoor vertical farms in the world are located in the region. Hong Kong is a highly populated island with limited farmland. Traditional farming produces insufficient quantities to meet local demand, hence the country is heavily reliant on imports.

However, Europe region is expected to witness highest growth rate during the forecast period of global precision farming market due to the increasing implementation of nanotechnology and robotics in farming. Nanotechnology aids in the improvement of food packaging as well as disease and insect control. The European Environment Agency has undertaken many attempts to construct vertical farms in order to address the difficulties of population expansion and climate change, as well as the production of food in an environmentally unfavorable manner. As a result, market demand in the region has increased.

August 2021- AeroFarms has announced to expand to the Midwest region as part of a project with the World Wildlife Fund (WWF) to minimize the environmental footprint of indoor agriculture.

June 2021- Osram has expanded its business operation by launching Osconiq S 5050 white lighting to its horticulture portfolio.

+ What are the years considered for the study?

The historic period considered was 2017-2020, the base year – 2021 and the forecasted period is 2022-2030 for study.

+ Can the report be customized based on my requirements?

Yes, you can submit your customization request by clicking on “Enquire now” or “Speak to our Expert”.

+ When was the Research conducted/published?

Our analysts have been continuously tracking the market since 2015 and the recent study was published in 2022.

+ What are the mixed proportions of Primary and Secondary Interviews conducted for the study?

The mixed proportion is 70% Primary Interviews and 30% Secondary Research. The Information gathered through the secondary sources is verified by the primaries conducted through various industry experts. Along with this, the whole data is again re-validated through various primary correspondents in order to achieve an accurate outcome.

+ When will the report be updated?

Our team of analysts is frequently analyzing the changes in the market. Hence, we update our study on a regular basis and provide the updated report on a quarterly basis.

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