Precision Agriculture or Precision Farming is a concept of farm management based on observing, measuring, and responding to inter and intra-field changing variability of the crops. It is a management strategy that gathers, processes, and analyzes temporal, spatial, and individual data and combines it with other information to support management decisions following estimated variability for improved resource efficiency, productivity, quality, profitability, and sustainability of agricultural production. It uses information technology to ensure that the crops and soil receive what they need for optimum health and productivity.
The Latin America Precision Agriculture Market is projected to grow at a CAGR of around 12% during the forecast period, i.e., 2023-28. Latin America has been associated with producing and exporting diverse agricultural crops and products like coffee from Brazil and Colombia, beef from Argentina, and bananas from Ecuador. Therefore, the increased agricultural production calls for enhancement in the farming technique and infrastructure to ensure maximum output and utilization of numerous resources, extending the need for precision agriculture. In view of this,
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Country Covered||Brazil, Mexico, Argentina, Colombia, Chile, Peru, Rest of Latin America|
|Key Companies Profiled||Ag Smarts Inc., AGCO Corporation, BASF SE, Bayer, Cropmetrics LLC, Deere & Company, Leica Geosystem, Monsanto Company, Raven Industries, Inc., Topcon Corporation, Trimble Inc., Others|
|Unit Denominations||USD Million|
The market growth is favorably fostered by the burgeoning need for advanced farming techniques and concepts to keep up with Latin America's rising food demands leading to constant upgrades in traditional farming methods. Besides, precision farming allows farmers to manage large stretches of land as a group of small fields, increasing crop efficiency and decreasing the errors in product application.
Furthermore, the integration of remote sensors, telematics, autonomous vehicles, GPS soil sampling, drones and robotics into numerous aspects of farming has opened plentiful lucrative opportunities for market extension. However, the high cost and added expenses for farmers in shifting to precision farming methods could hamper the market.
Key Driver: Rising Popularity of Technology in Farming and Decreasing Agricultural Land
The popularity of numerous benefits and upgrades in agricultural processes through technology has primarily driven the market. Additionally, with decreasing agricultural land with spreading infrastructural changes in Latin America, technology allowing a quality production of crops and food has been furthering the industrial value. Moreover, the rapid boost in population and ever-increasing food demands are extending the need and adoption of technologically upgraded farming habits. Several advantages, such as increased productivity and decreased labor costs, are fueling the market ascension.
Possible Restraint: High Cost and Added Expenses for Farmers
The high cost and other added expenses associated with precision farming could hamper the market. The technology and devices used in precision agriculture are highly advanced in technology and expensive in price, such as smart sensors, GPS, VRT, guidance tools, and receivers. Moreover, the requirement of experienced personnel to operate and understand the complicated system and calculations could further impede the market acceleration. The need for high investment restrains the adoption of precision farming in numerous developing countries, which follow traditional farming concepts instead.
Growth Opportunity: Integration of Artificial Intelligence (AI) in Precision Farming
The continuous integration of modern information and communication technologies (ICT) followed by Artificial Intelligence (AI) into numerous aspects of precision farming has opened new avenues for the farmers and tech-enabled service providers. For instance, AI is used in weather forecasting to assist farmers in deciding the most beneficial crop to cultivate while monitoring and evaluating the quality and nutrition level of the soil. In addition, AI can help provide information or guidance about using fertilizers, water management, crop rotation, pest control, optimum planting, and more.
Moreover, AI also helps in pest control by using satellite imagery and comparing it with historical data to check if the insect has landed on the crops and the type of the insect. High-quality monitoring and harvest through AI tools opens enumerative opportunities and add to the industrial expansion.
Key Trend: Surging Demand for Smartphones for Monitoring and Other Applications
The rising adoption of smartphones among farmers to have easy access to their farm's data and information has been increasing the value of the market. Besides, companies are introducing new advanced applications compatible with smartphones to help farmers monitor the field from any location, and the option of cloud backup directly through smartphone integration is adding to the market ascension. Furthermore, as smartphones fulfill the different requirements of farmers by supporting connectivity using Bluetooth, USB, and Wi-Fi, they create further opportunities for the industry and surge in smartphone adoption. Thus, easy access to farm data and added features like monitoring and using the phone as a remote control for specific functions are further fueling the industrial expansion.
Among all, Hardware dominated the industry during the historical period and is expected to garner the greatest revenue share in the forecast period. The segment is primarily driven by the requirement for numerous devices for precision farming, such as sensing devices, drones, control systems, etc. Furthermore, automation, GPS receivers, guidance and steering devices, and variable-rate technology (VRT) devices further benefit the agricultural goal for healthy produce and precision farming’s purpose of monitoring and maintaining fields and crops, extending the industrial expansion.
Moreover, the trending adoption of automation and control devices such as drones, irrigation controllers, guidance and steering systems, yield monitors, and sensors is adding to the market value of the precision agriculture market.
On the other hand, the software is also expected to experience considerable growth due to the implementation and adoption of numerous web-based and cloud-based software, such as predictive analytics software, to guide crop rotation, soil management, ideal planting seasons, and harvesting timings.
Here, Yield Monitoring held the largest market share during the historical period. The need for climate service initiatives enabling farmers to deal with climate-related disasters effectively is pushing market acceleration. Besides, the benefits of improving food security and helping make decisions for the farm add to the application of yield monitoring. Farmers can get real-time data during harvest by implementing yield monitoring and developing a historical-geographical database to benefit the farm. Moreover, equitable landlord negotiations, proof of environmental compliance, and track records for food safety further add to the industrial expansion.
Recent Developments in the Market
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Frequently Asked Questions
A. The Latin America Precision Agriculture Market is projected to grow at a CAGR of around 12% during 2023-28.
A. The rising popularity of technology in farming and decreasing agricultural land is expected to drive the Latin America Precision Agriculture Market during 2023-28.
A. Deere & Company, Trimble Inc., BASF SE, AGCO Corporation, Bayer, Ag Smarts Inc., Topcon Corporation, Cropmetrics LLC, Raven Industries, Inc., Leica Geosystem, Monsanto Company, and Others are the top players in the Latin America Precision Agriculture Market.
A. Hardware is anticipated to emerge as an area of remunerative opportunities for the leading players in the Latin America Precision Agriculture Market during the forecast period.
A. The surging demand for smartphones for monitoring and other applications is the key trend shaping the growth of the Latin America Precision Agriculture Market during 2023-28.
A. Integration of AI in precision farming is the growth opportunity driving the Latin America Precision Agriculture Market through 2028.
A. High costs and added expenses for farmers are the possible restraints affecting the growth of the Latin America Precision Agriculture Market.