Precision Farming Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global precision farming software market is anticipated to register a CAGR of 14% during the forecast period 2022-2027.

As an impact of the COVID-19 pandemic, the requirement for digitization in every sector was felt. The market for precision agriculture, including agriculture sensors, farming software, drones, etc., also witnessed the growth of digitization during the COVID-19 pandemic. Many agritech companies came up with innovative models for easing farming practices by focusing more on wireless platforms to enable real-time decision making with respect to yield monitoring, crop health monitoring, field mapping, irrigation scheduling, harvesting management, etc. to help farmers remain protected from the impact of adverse price fluctuations of their produce. Increasing awareness about the benefits of precision agriculture in optimizing agricultural production has resulted in a great boom in the precision agriculture market. With the growing food demand, owing to the increasing population, the adoption of precision agriculture tools is inevitable for farmers. The advancements and innovations in technology are the major factors driving the precision agriculture market since they help farmers maximize their yield and minimize losses with efficient use of resources. North America is the largest and most mature market for precision agriculture, followed by Europe. Together, these two regions constitute more than 50% of the precision agriculture software market globally.

Key Market Trends

Decrease in Variable Costs with Increased Productivity

Precision farming is a way of farming in which the internet of things (IoT), software, artificial intelligence, big data, and other technologies are used to utilize farm inputs in a productive way to cut costs and enhance productivity. According to a study conducted by MDPI, Basel, Switzerland, it was found that the amount of pesticides and fuel used after adopting precision farming was reduced significantly. Though there would be high fixed costs in the adoption phase, there would be significant reductions in the variable cost. The labor cost goes down by approximately 20%, and the productivity of the farm would increase in the long run. Precision farming is helping the world cater to the problems associated with climate change and the growing population by increasing the productivity and profitability of crops without harming the environment.

North America to Dominate the Precision Farming Software Market

North America is one of the most important regions in the world for precision agriculture, apart from Europe and Brazil. Wide Area Augmentation System (WAAS), a GNSS-based solution, is the most popular technology in North America and has achieved 66% of market penetration. The North American market has a high potential for satellite-based devices and equipment. The market growth is primarily accelerated by the increasing demand for real-time kinetic technology, fertilizer and sprayer controllers, robotics, variable rate irrigation, networks, and remote sensing technologies. AgLeader, Agri-vision, Blue River Technologies, Crop Venture Incorporated, Farm Works, and Holland Scientifics are some of the precision agriculture software-based companies located in the US market.

Competitive Landscape

The market is highly fragmented, with various small and medium-sized companies and a few big players, resulting in stiff competition. This is one of the major factors for the fragmented nature of the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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