In Europe, precision agriculture employs modern techniques and information technology to precisely provide nutrients to soils and plants, aiming for optimal health, productivity, and the key goals of environmental protection, sustainability, and profitability.
The Europe precision agriculture market (excluding U.K.) was valued at $2,476.5 million in 2022 and is expected to reach $4,367.4 million by 2027, following a CAGR of 12.02% during 2022-2027.
The global precision agriculture market is expected to grow as increased demand for higher crop yields and greater investments in climate-smart agricultural methods become prominent factors driving its expansion.
The precision agriculture industry, referred to as demand farming, satellite farming, and site-specific crop management (SSCM), relies on advanced machinery, IT services, and software. In Europe, the adoption of precision agriculture technologies has increased agricultural output and aligned with sustainable development objectives.
Some major companies operating in the Europe Precision Agriculture Market are:
CLAAS Group
CNH Industrial N.V.
Accenture
AGRIVI
Amazon Web Services, Inc.
BASF SE
The precision agriculture market is flourishing, driven by a potent cocktail of factors:
Rising food demand: Feeding a growing global population necessitates optimizing crop yields and resource efficiency.
Climate change concerns: Adapting to extreme weather events and water scarcity demands data-driven farming practices.
Technological advancements: AI, IoT, robotics, and automation are revolutionizing agricultural data collection and analysis.
Within the application segment of the European precision agriculture market, precision irrigation applications are anticipated to take the lead. This trend is attributed to the growing awareness of the need for efficient water utilization and the reduction of wastage in nutrients, water, and chemicals. Moreover, an increasing demand for sophisticated irrigation systems, coupled with the integration of soil and water sensors, is projected to yield more significant benefits compared to conventional irrigation systems.
Over the period from 2022 to 2027, it is anticipated that the hardware systems segment will secure the largest market share. This prevalence is attributed to the growing utilization of hardware equipment in diverse farming operations. Furthermore, precision agriculture's hardware solutions encompass automation and control solutions, sensing and navigation solutions, along with other hardware tools like probes and analyzers. The escalating demand for hardware solutions is driven by the extensive use of yield monitors, handheld computers, mobile devices, and agricultural cameras.
Field management dominates a significant market share, primarily driven by the utilization of hardware such as sensors, drones, nozzles, cameras, smartphones, and the execution of various tasks including planting, spraying, fertilizing, and irrigation. Moreover, field management software plays a crucial role by integrating sensor data and imaging input with other information. This integration enables farmers to identify fields in need of treatment and ensures the precise determination of optimal amounts of water, fertilizers, and pesticides for application.
In the European precision agriculture market, a substantial market share is held by field crops, primarily due to their cultivation for widespread consumption on a large scale. Following closely are permanent crops, encompassing fruits, vegetables, nuts, and other similar produce.
Precision agriculture technologies have seen rapid growth in adoption worldwide in recent years, with developed nations such as Canada, Australia, Europe, and the U.S leading the way due to their access to advanced resources and technology. In fact, large-scale farmers in the U.S. have adopted precision agriculture technologies at a rate of approximately 70%.
However, developing countries have been slower to adopt these technologies due to reasons such as inadequate infrastructure, resources, and education. Nonetheless, some countries such as Brazil and Argentina have made notable strides in the adoption of precision agriculture technologies.
