Precision farming market to grow to USD 15.6 billion by 2030

The global precision farming market is expected to grow from USD 8.5 billion in 2022 to USD 15.6 billion by 2030, at a CAGR of 7.9%.

According to a recent report by MarketsandMarkets the most significant factor driving the growth of the precision farming market is the increasing focus of farmers on enhancing the efficiency of their fields and increasing productivity due to the rising global population and food demand.

Strong support from governments for promoting the use of precision farming techniques, and increased adoption of variable rate technology (VRT), remote sensing technology and guidance technologies by farmers worldwide are other major factors fueling the growth of the market. However, the researchers expect that high upfront cost of modern agricultural equipment and limited technical knowledge and skills of farmers will restrain the market growth.

Ag tech startup investments have grown significantly in the recent years, with a 370% rise from 2013 reaching USD 4.7 billion in 2019 with 695 deals. The number of mergers and acquisitions (M&A) since 2014 has risen extensively taking it to USD 6.3 billion with 131 M&A transaction activities.

The researchers state the ag-tech industry is expected to garner additional investments from institutional and strategic investors with the increasing number of players entering this space. The ag-tech industry is expected to grow in the future and the companies will try to solve the problems of different stakeholders in the value chain such as sustainability, farm-level productivity, resistance to herbicide and pesticide, and the challenging economics of conventional agriculture methods.