Rising environment concerns have propelled the use of methods that are harmonious to nature. Agriculture sector has started implementing sustainable farming methods, which do not affect the soil adversely and promise better yield to meet the growing food demand without harming the environment. Increasing food sufficiency demand, economic boom in the Asia Pacific region and emerging technologies are driving the growth of precision agriculture and spreading its significance in sustainable development globally.
The global precision agriculture market is expected to reach $7.6 billion by 2022, growing at a CAGR of 12.7% from 2016 to 2022. Even though the estimated rate of growth is quite promising, some factors such as huge capital investment required, lack of awareness, and data management are restraining the growth of the market. Beside these challenges, the market is set to speed up with key players in the market looking forward to product launches, and mergers & acquisitions to expand their operations.
Precision agriculture has various segment which play a significant role in revenue generation for the market. Among these segments, hardware components hold the major share, 85% of the market share, in terms of revenue generation. Whereas, management systems and services have low shares, which does not affect their significance in the market. The higher revenue generation from hardware components can be attributed to the high costs of the hardware. Among hardware devices, GNSS/GPS devices, sensing devices and others (including cameras & displays), are the maximum used hardware components. These sub-components are exalted as the backbone of this industry as they assist the user in reducing the missing and overlapping of the inputs in the field.
With the use of precision agriculture farmers have witnessed yield in crop production, without harming the soil quality and environment, and with sustainable use of available water resources. Hence, precision agriculture has gained popularity and is being widely used for yield monitoring, variable rate application, field mapping, soil monitoring, crop scouting, and precision irrigation. The yield monitoring application is expected to grow at the highest rate owing to high energy and cost saving properties. Similarly, variable rate application is expected to grow at significant rate in the coming years, whereas precision irrigation application, which is generating a considerable share of revenue at present, may suffer in growth due to the high price of required precision irrigation equipment and technologies preventing the users from adopting them.
Since the adoption rate of this emerging technology in agriculture has been higher in North America, the largest revenue generated for this industry in 2015 was from this region itself. Both the U.S. and Canada invest huge amount in this area than any other region. North America is followed by Asia Pacific, as it includes major countries such as Australia, India and China, which are predominantly involved into agriculture.
BIS Research has compiled an extensive market research report on ‘Global Precision Agriculture Market – Analysis & Forecast, 2016-2022’. The market analysis report provides an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which includes drivers, restraints and opportunities prevailing in the industry.
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