The global precision farming software market is anticipated to register a CAGR of 16.7% during the forecast period (2021-2026). As an impact of COVID-19, the requirement of digitization in every sector was felt. The market for precision agriculture including agriculture sensors, farming software, drones, etc also witnessed growth and felt the need during the COVID-19 pandemic. Many agritech companies came up with innovative models for easing the 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, and harvesting management, etc for helping the farmers from adverse price fluctuations of their produces. 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, helping the farmers maximize their yield and minimize losses with efficient use of resources. North America is the largest and mature market for precision agriculture, followed by Europe. Together, these two regions constitute more than 50.0% of the precision agriculture software market, globally.
Key Market Trends
Decreasing skilled labor in agriculture
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 cost and enhance productivity. According to International Labor Organization, Globally, in 2016, 28.8% of human resources were engaged in agriculture are skilled. This has reduced to 28.4% in 2017 which further decreased to 28.6% in 2018. As precision agriculture needs skilled labor who are in an acute shortage of availability, precision farmers admire and tend to consume software that can be productive with the current challenges. This scenario is one of the major factors that pendulate the market forward.
North America to Dominate the Global 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. The segment has 66.0% of market penetration. A large potential for satellite-based devices and equipment lies in the North American Market. 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 remotes sensing technologies. AgLeader, Agri-vision, Blue River Technologies, Crop Venture Incorporated, Farm Works, Holland Scientifics are some of the precision agriculture software-based companies based in the United States market.
The results of the market share analysis indicate that the market is highly fragmented with various small and medium-sized companies and a few big players, resulting in stiff competition in the market. This is one of the major factors for the fragmented nature of the market.
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