The agriculture drones market is projected to register a CAGR of 7.1% during the forecast period (2021-2026). As an impact of COVID-19, the requirement of digitization was felt in every sector. The pandemic has affected the morale of farmers across the globe. The month-long slump in food crop prices has dropped the expectation of farmers for using agricultural drones. This can be attributed to adversely affected transportation systems and lack of incomes being generated owing to the lockdown. However, the market for drones has gained momentum since the economies are operating in normal conditions amidst the COVID-19 situation. Many agritech companies came up with innovative models for easing the farming practices by focusing more on wireless platforms like drone technology to enable real-time decision making with respect to yield monitoring, crop health monitoring, field mapping, irrigation scheduling, and harvesting management, etc for enhancing the agriculture productivity.
North America and Europe are the largest and the most advanced markets with respect to the adoption of innovative technologies in the field of agriculture, while South America has the greatest potential for growth in this market. The presence of a large share of the agricultural area as fragmented holdings in Asia, especially in regions of India, limits the potential growth of the agriculture drones market over the forecast period.
Key Market Trends
Increasing Adoption of Precision Farming
The concept of precision farming has a lot of advantages for the agricultural sector. Different technologies, such as global positioning systems and guided vehicles, are being developed to create an era of precision farming. The rapid growth of the agriculture sector, which is now inculcating technological innovations into its agricultural practices will continue to drive the market for precision farming, and subsequently agriculture drones as a part of it. Moreover, a shortage of employment in agriculture, which decreased from 27.8% in 2017 to 26.4% in 2020 as a percentage of the total population also led to more reliance on precision farming tools like agricultural drones. With the increasing demand for food, globally, there is constant pressure to increase agricultural productivity as well as to maintain good crop health. This is expected to lead to an increase in production.
North America Dominates the Market
North America and Europe are the largest and most advanced markets with respect to the adoption of innovative technologies in the field of agriculture. As a result of declining Total Factor Productivity (TFP) in East Asia and Southeast Asia, the adoption of improved technology in agribusiness is at the center of national strategic policy goals. This is to augment food production output via enhancing cooperation between the private sector and agricultural infrastructure development. The United States is the early adopter of precision farming technologies, which is the primary factor responsible for the region’s most significant share in the global market. A considerable acceptance of modern agriculture methods by Canada is contributing to industry growth.
The agriculture drones market is highly fragmented, with a number of local and regional players, in addition to the presence of major players. Relatively high capital requirements and the need for continuous R&D investments could affect new entrants. New entrants need to contend with the presence of market incumbents. This is because of their strong presence in several industries. Some of the players in the market are 3D Robotics Inc., AeroVironment, AgEagle LLC, DJI, and Trimble Navigation Limited.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support