Precision agriculture market to reach $5B in 2021

The global market for precision agriculture solutions is forecast to grow from €2.2 billion ($2.6 billion) in 2016 at a compound annual growth rate (CAGR) of 13.6 percent to reach about €4.2 billion ($5 billion) in 2021, according to a research report from the market analyst firm Berg Insight.

A set of technologies are applied in precision farming practices that are aimed at managing variations in the field to maximize yield, raise productivity and reduce consumption of agricultural inputs. While solutions such as auto-guidance and machine monitoring and control via onboard displays are mainstream technologies in the agricultural industry, telematics and variable rate technology (VRT) are still in the early stages of adoption.

Interoperability between hardware and software solutions remains a challenge, although standardization initiatives led by organizations such as Agricultural Industry Electronics Foundation and AgGateway are making progress.

Most major agricultural equipment manufacturers have initiatives related to precision agriculture, although strategies vary markedly. Leading vendors include agricultural equipment manufacturer Deere & Company, followed by the U.S.-based precision technology vendors Trimble, Topcon Positioning Systems, Raven Industries and Ag Leader Technology. Hexagon further holds a strong position in the positioning segment through its subsidiary NovAtel.

A group of companies have emerged as leaders in the nascent market for in-field sensor systems. These include Davis Instruments, Pessl Instruments with its METOS brand, Semios, Hortau, AquaSpy and CropX.