Advanced farming involves the integration of modern technologies such as precision farming, indoor farming, livestock monitoring, aquaculture, and others into traditional farming practices. Precision farming techniques uses latest technologies like GPS, IoT sensors, drones, and analytics to precisely monitor crop needs and soil conditions field by field or plant by plant. This helps farmers optimally manage their land and resources to maximize crop yields and minimize costs. Application of precision farming has improved productivity and reduced waste and environmental impact significantly.
The global advanced farming market is estimated to be valued at US$ 9.7 billion in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Detailed soil analysis, yield mapping, and variable rate technology employed in precision farming has allowed targeted and optimal application of inputs like water, fertilizers and pesticides field by field. This has not only improved crop yields substantially but also reduced costs of production and improved sustainability. Adoption of advanced technologies like AI and machine learning has further enabled precision agriculture by recommending prescriptive actions based on real-time field conditions monitored. Growing pressure of sustaining higher crop production while combating climate changes and resource scarcity has propelled many farmers globally to embrace precision farming techniques for enhanced agricultural productivity.
Segment Analysis
The advanced farming market is divided into four main sub segments- hardware, software, services and others. The hardware sub segment currently dominates the market accounting for over 30% share. This is because hardware components such asGPS/GNSS systems, field sensors, UAVs,VRT equipment, and automated steering and guidance systems formthe backbone of various advanced farming solutions.
PEST Analysis
Political: Governments across the globe are promoting adoption of advanced farming through various schemes and subsidies to farmers. This is being done to boost agricultural productivity and efficiency.
Economic: The advanced farming market is being driven by rising farm labor costs and need to optimize crop production. This technology helps farmers maximize yields at lower costs.
Social: Young farmers are more willing to adopt new technologies compared to traditional farmers. They are changing the way agricultural activities are performed through use of software and automated equipment.
Technological: Advancements in robotics, IoT, cloud and AI are facilitating development of autonomous farm equipment like self-driving tractors and harvesters. This is transforming agriculture practices.
Key Takeaways
The Global Advanced Farming Market Size is expected to witness high growth over the forecast period driven by necessity to meet rising global food demand in a sustainable manner.
Regional analysis: North America currently dominates the market owing to rapid technology adoption by farmers in the US and Canada. Asia Pacific is projected to be the fastest growing region on back of government support and rise of corporate farming models in countries like China and India.
Key players operating in the advanced farming market are Walmart, Amazon, Costco, Target, Best Buy, Home Depot, Kroger, Lowe’s, Albertsons, Publix, Walgreens Boots Alliance, CVS Health, 7-Eleven, Rite Aid, Ace Hardware, Menards, Dick’s Sporting Goods, L Brands, Nordstrom, and Macy’s. These players are focusing on developing smart farming equipment and technologies as well as collaborating with regional players to strengthen their positions.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it