Science fiction in agriculture: Chatbot with your plants?
Precision farming is about managing variations in the field with precision, to grow more food using fewer resources and reducing production costs. It can make a difference in food production, meeting the challenge of a growing world population, and it can help farmers achieve: greater sustainability, environmental protection, higher productivity and economic benefits.
What is happening in the industry?
Precision agriculture adoption rates are highest in the United States, Germany, Australia, and Brazil, while Asia-Pacific is expected to show record adoption rates in the forecast period. As the governments of several countries provide subsidies to farmers for use in their cultivation, adoption rates are expected to increase in the other regions as well. Several technologies dominating the market are GNSS / GPS Systems, GIS, Remote Sensing, and VRT, where VRT is the fastest growing segment with a robust 16% CAGR over the forecast period.
AGCO Corporation acquired Cimbria, a Dutch supplier of grain, seed and powder equipment. The acquisition of Cimbria will help expand and strengthen your business geographically in Denmark. The company also offers mobile tools that offer access to big data and information related to cultivation, further improving agriculture. John Deere acquired Precision Planting from Monsanto. This acquisition will help the company maximize digital farming and aid in the perfect collection of agronomic data within the field.
Precision agriculture: market dynamics
The reduced availability of productive land, constantly changing climatic conditions and the strict regulatory framework have led to a growing demand for a more effective and efficient agricultural sector. With the advent and implementation of modern technologies, the management of agricultural land becomes more competent. For example, automation technology, sensors, geographic mapping, and big data analytics tools help evaluate soil and climate data, increasing the overall efficiency of agriculture.
Innovation and technology have led to major breakthroughs in various sectors, and agriculture is one of them. Sensing technologies, software applications, communication systems, data analysis solutions, and positioning technologies are some of the latest technologies used. Various technologies, such as driverless machinery and drone sprayers, provide vital opportunities for growth.
In 2016, North America dominated the precision agriculture market with a share of approximately 50%. The United States and Canada dominate the market share in this region. Large-scale agricultural land, the constant need to increase yields and high labor costs will drive the market in the region. Farmers are highly trained and willing to adopt new technologies. However, most farms and farmers rely heavily on exports to maintain income and prices, which may change market dynamics in the near future. Asia-Pacific has been identified as a region that has not yet reached its full potential in this area.
Will global precision agriculture show an unprecedented upward growth trend until 2022?
According to a report by a market intelligence firm, the global precision agriculture market is estimated to reach a value of USD 5.98 billion by 2022, registering a CAGR of 12.97% during 2017-22. In the last 10 years, precision agriculture has evolved from good science to good practice and has witnessed unprecedented growth around the world. Between 70 and 80% of the new agricultural equipment sold today incorporates some type of precision agriculture component. Asia-Pacific is expected to be the fastest growing market with a CAGR of around 21% during 2017-2022. The main factor stimulating market growth in Asia-Pacific is increasing yields and profitability, which is pushing farmers towards crop monitoring technology. Australia has the majority of the market in this region.
Competition analysis
This market report includes competitive supplier landscaping from 17 companies involved in the precision agriculture industry, including large players such as AGCO Corporation, Ag Leader Technology, Monsanto, Deere & Company, and Lindsay. The market for is quite fragmented with the presence of several local and regional players. The precision agriculture market is still an emerging market, however brand loyalty in certain segments is reported to be good. Agricultural machinery and service support are the top two segments that have brand loyalty.