The primary drivers behind the expansion of the market include the swift uptake of cutting-edge technologies in precision agriculture aimed at lowering labor expenses, the growing embrace of Internet of Things (IoT) devices in farming domains, considerable monetary savings linked with precision farming, the impact of climate change and the imperative to meet escalating food requirements, as well as the mounting endorsement of precision farming methods by governments on a global scale.

The global precision farming industry size is projected to grow from USD 9.7 billion in 2023 to USD 21.9 billion by 2031; it is expected to grow at a CAGR of 10.7% from 2023 to 2031. The rapid uptake of advanced technologies in precision farming to mitigate labor costs, the increased integration of Internet of Things (IoT) devices in agricultural domains, substantial cost efficiencies linked to precision farming practices, the urgency posed by climate change and escalating food demands, and the expanding global endorsement of precision farming methods by governmental bodies collectively serve as the pivotal drivers propelling the growth of the precision farming industry.

By segment, precision farming industry for hardware segment to hold a larger market share in 2031.

The component of the Precision Farming industry that pertains to hardware is projected to secure a more substantial portion of the market share by the year 2031. This dominance in the market is rooted in a notable surge in the adoption of automation and control devices within the agricultural landscape. These devices encompass a comprehensive range of cutting-edge technologies, including drones or Unmanned Aerial Vehicles (UAVs), Global Positioning System (GPS) or Global Navigation Satellite System (GNSS), irrigation controllers, guidance and steering systems, yield monitors, and an array of sensors. This remarkable growth can be attributed to their pivotal role in revolutionizing traditional farming practices. Automation technologies such as drones and UAVs provide aerial perspectives that enable precision analysis of fields, aiding in accurate crop health assessments and optimized resource allocation. GPS/GNSS technologies enhance accuracy in navigation and positioning, which is crucial for activities like automated driving and precision application of inputs.

By segment, precision farming Market for Variable Rate Technology registers the highest CAGR during the forecast period.

The Variable Rate Technology (VRT) segment within the precision farming industry is anticipated to exhibit the highest CAGR during the projected period. VRT's widespread adoption in precision farming can be attributed to its numerous advantages. VRT enables the dynamic adjustment of input application rates across fields, catering to the specific conditions of each area. This technology empowers farmers to regulate the input quantities applied to particular locations precisely. The core components of VRT include a computer, software, a controller, and a Differential Global Positioning System (DGPS). VRT can function independently or be seamlessly integrated with GPS/GNSS systems. When deployed on equipment, VRT permits the modulation of input application rates based on field variability, leading to more targeted management. This approach holds potential for reducing input consumption and environmental impact, while concurrently enhancing efficiency and economic gains. Furthermore, this technology aids in strategic decisions encompassing machinery investment, drainage systems, field layouts, and fertilizer allocation, thereby enhancing overall productivity and profitability.

By region, precision farming industry in APAC to register highest CAGR in global market during 2023- 2031.

During the forecast period from 2023 to 2031, the Asia Pacific region is projected to showcase the highest Compound Annual Growth Rate (CAGR) within the precision farming market. This surge is attributed to escalating government efforts to embrace advanced technologies and heightened awareness among farmers regarding the advantages of precision farming. Notably, countries like China, India, and Indonesia are witnessing substantial modernization in their agriculture sectors, significantly contributing to the regional precision farming industry's expansion. The growing populations in these developing nations are exerting intensified pressure on the agriculture industry to enhance productivity, thereby driving the demand for precision farming equipment.

Major players in the precision farming industry are Deere & Company (John Deere) (US), Trimble Inc. (US), AGCO Corporation (US), AgJunction LLC (US), Raven Industries, Inc. (US), AG Leader Technology (US), Teejet Technologies (US), Topcon (US), Taranis (Israel), AgEagle Aerial Systems Inc (US), ec2ce (Spain), Descartes Labs, Inc. (US), Granular Inc. (US), Hexagon AB (Brazil), Climate LLC (US), and CropX Inc. (Israel). The top players have adopted merger & acquisition, partnership, collaboration, and product launch strategies to grow in the global precision farming market.