PRECISION FARMING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Global Precision Farming Market Size and Forecast – 2025-2032  

The Global Precision Farming Market is estimated to be valued at USD 11.72 Bn in 2025 and is expected to reach USD 27.91 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 13.20% from 2025 to 2032.

Key Takeaways of the Precision Farming Market:

• The hardware segment is projected to account for 42.7% of the market share in 2025, driven by increasing adoption of GPS systems, drones, and variable rate technology (VRT) equipment to enhance operational efficiency and productivity in precision farming.
• The crop management segment is expected to contribute 36.8% of the market share in 2025, primarily driven by the rising need for data-driven decision-making tools to optimize yield, monitor crop health, and manage resources efficiently.
• North America is set to lead the global precision farming market in 2025 with a 47.5% share, driven by technological advancements, widespread adoption of digital agriculture solutions, and government support for precision agriculture practices. Asia Pacific, with an 18.5% share in 2025, will be the fastest-growing region, fueled by rising demand for food security, increasing adoption of smart farming technologies, and supportive government initiatives.

Market Overview:

The precision farming market is experiencing significant growth due to the increasing demand for efficient and sustainable agricultural practices. The adoption of advanced technologies, such as GPS, remote sensing, and variable rate application, is driving the market trend. Farmers are increasingly embracing precision farming techniques and smart agriculture solution to optimize crop yields, reduce input costs, and minimize environmental impact. Additionally, the rising global population and the need for food security are further fueling the demand for precision farming solutions.

Currents Events and their Impact

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Segmental Analysis

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Precision Farming Market Insights, By Offering - Hardware segment dominates the market driven by rising demand for drones in precision agriculture

The hardware segment is expected to contribute 42.7% share of the market in 2025. This remarkable growth can be attributed to the rapid technological advancements in precision farming hardware, which have revolutionized the way farmers manage their crops and livestock. One of the key factors driving the hardware segment's growth is the increasing adoption of drones in precision farming. Drones equipped with advanced sensors and imaging capabilities enable farmers to gather valuable data about their crops, such as plant health, soil moisture levels, and pest infestations.

In 2024, DJI Agriculture introduced the DJI Agras T50, a drone designed specifically for precision spraying and crop monitoring. It can carry up to 40 kg of pesticide and survey up to 80 hectares per day. This drone is widely used across North America and Asia Pacific for its efficiency in covering large areas with minimal human input, showcasing the real-world impact of drone-based precision hardware.

Precision Farming Market Insights, By Application - Crop Management segment leads the market owing to the increasing adoption of advanced farming practices

Crop management segment is projected to contribute 36.8% share of the market in 2025. This significant growth can be attributed to the increasing focus on optimizing crop yields and improving overall farm productivity. Precision farming techniques have revolutionized crop management by providing farmers with data-driven insights and tools to make informed decisions.

One of the primary factors driving the growth of the crop management segment is the adoption of variable rate technology (VRT). VRT enables farmers to apply inputs such as seeds, fertilizers, and pesticides at varying rates across their fields, based on the specific needs of each area. By optimizing input application, farmers can maximize crop yields, reduce costs, and minimize environmental impact.

Regional Insights:

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North America Precision Farming Market Analysis and Trends

The North America region is projected to lead the market with a 47.5% share in 2025. The region boasts a well-established agricultural industry, with a strong focus on technology adoption and innovation. The presence of large-scale farms and progressive farmers who are keen on implementing precision farming techniques has significantly contributed to the market's growth.

In February 2025, Yamaha Motor Co., Ltd. launched a new subsidiary, Yamaha Agriculture, Inc., aimed at developing AI-driven and automated digital solutions for the specialty crop sector. This initiative is designed to support farmers in achieving sustainability, profitability, and resilience in the face of labor shortages, climate change, and limited resources. The company plans to integrate autonomous robots with extensive data analytics to usher in a new era of precision agriculture across North America, Australia, and New Zealand. This development marks a significant step in Yamaha’s Long-Term Vision 2030: ART for Human Possibilities, which focuses on three core pillars Advanced Robotics, Rethinking Solutions, and Transforming Mobility.

Asia Pacific Precision Farming Market Analysis and Trends

The Asia Pacific region is expected to exhibit the fastest growth in the market contributing 18.5% share in 2025. This growth can be ascribed to the increasing population, rising food demand, and the need for sustainable agricultural practices in the region. Countries such as China, India, and Japan are witnessing a rapid adoption of precision farming technologies to improve crop yields, optimize resource utilization, and address challenges such as limited arable land and water scarcity.

In October 2024, a major shift was observed in disaster response and agricultural practices through the integration of drones and robotics. The Asia Pacific region has emerged as a global center for innovation in these technologies, with nations like China, Japan, South Korea, and Singapore making substantial investments in research and development. This has positioned the region as a leader in the adoption and advancement of drone and robotics solutions.

Global Precision Farming Market Outlook for Key Countries:

U.S. Precision Farming Market Trends

The U.S. precision farming market is characterized by a strong emphasis on technological advancements and data-driven decision-making. The country's large-scale farms and progressive farmers have been quick to adopt precision farming techniques, leveraging technologies such as GPS guidance systems, variable rate applications, and remote sensing.

In February 2025, U.S. Senators Mr. John Thune and Mr. Raphael Warnock reintroduced the Promoting Precision Agriculture Act, aiming to accelerate the adoption of precision farming technologies. The proposed legislation focuses on developing voluntary industry standards, improving system interoperability, and strengthening cybersecurity measures within the agricultural sector.

China Precision Farming Market Trends

China precision farming market is rapidly expanding, driven by the need to enhance agricultural productivity and address challenges such as limited arable land and increasing food demand. The government's focus on modernizing the agricultural sector and promoting sustainable practices has been a key driver for the adoption of precision farming technologies.

In China, the use of drones and robotics is revolutionizing conventional farming methods, especially in areas like Zigui County, renowned for its navel oranges. Farmers have adopted drones to transport harvested oranges from steep mountain orchards to central collection points, cutting down transport time from 40 minutes to just one minute. At processing centers, robotic arms and AI-driven systems manage the sorting, cleaning, and quality evaluation of the oranges, accurately analyzing their sugar and water content.

India Precision Farming Market Trends

India continues to be a promising market for precision farming, with a vast agricultural landscape and a growing need for efficient farming practices. The country's diverse agro-climatic conditions and fragmented land holdings present unique challenges that precision farming can address. The Indian government's initiatives, such as the "Digital India" program and the promotion of agri-tech startups, have created a favorable environment for the adoption of precision farming technologies. Companies like CropIn and AgNext have emerged as key players, providing innovative solutions for crop monitoring, yield prediction, and quality assessment.

Australia Precision Farming Market Trends

Australia precision farming market is driven by the country's vast agricultural lands, the need for efficient water management, and the adoption of sustainable farming practices. The country's farmers have been early adopters of precision farming technologies, leveraging tools such as variable rate irrigation, soil moisture sensors, and satellite imagery to optimize crop production. Companies like Rubicon Water and The Yield have been at the forefront of providing advanced solutions for water management and data-driven decision-making in the Australia precision farming market.

Impact of U.S. Tariffs on the Market

• Precision farming products and services are classified under the agricultural machinery and equipment industry (NAICS code 333111). This industry encompasses the manufacturing of farm machinery and equipment, including tractors, harvesters, planting and fertilizing machinery, and other agricultural implements.
• The U.S. government has imposed various tariffs on agricultural machinery and equipment, depending on the country of origin. For example, in the ongoing trade dispute with China, the U.S. has levied a 25% tariff on Chinese agricultural machinery and equipment. This tariff has significantly impacted Chinese manufacturers and suppliers of precision farming equipment.
• The U.S. has a 4.5% tariff on agricultural machinery and equipment from most European countries, while the tariff rate for Japan and South Korea is 0% due to existing trade agreements. However, the U.S. has threatened to impose tariffs on European agricultural products in response to the European Union's subsidies to Airbus, which could potentially impact the precision farming market.

Market Players, Key Development, and Competitive Intelligence:

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Key Developments:

• In February 2025, Topcon Corporation entered into a strategic partnership with Bonsai Robotics to accelerate automation in the agricultural industry, with a focus on permanent crops. The collaboration brings together Bonsai Robotics’ advanced vision-based autonomous driving systems and Topcon Agriculture’s expertise in sensors, connectivity, and smart equipment. By integrating Bonsai’s navigation technologies with Topcon’s autosteering, telematics, and system integration capabilities, the partnership aims to deliver robust solutions that reduce manual labor, support data-driven decision-making, and improve precision harvesting in complex farming environments.
• In April 2024, AGCO Corporation and Trimble unveiled a joint venture (JV) agreement to establish a new company named PTx Trimble. This venture combines Trimble’s precision agriculture business with AGCO’s JCA Technologies to offer advanced solutions for both factory-installed and aftermarket applications in the mixed-fleet precision farming market. Through PTx Trimble, AGCO Corporation enhances its technology portfolio in critical areas including guidance systems, autonomous operations, precision spraying, connected farming, data management, and sustainable agricultural practices.
• In July 2023, Deere & Company, a leading manufacturer of agricultural and construction equipment, announced its acquisition of Smart Apply Inc., a provider of agricultural technology solutions. The company plans to leverage Smart Apply’s precision spraying technology to help growers tackle challenges such as regulatory compliance, rising input costs, and labor shortages. This acquisition is also expected to support Deere & Company in expanding its customer base.

Top Strategies Followed by Global Precision Farming Market Players

• Established players in the global precision farming market are focusing on extensive research and development to innovate high-performance products. These companies are investing heavily in R&D to develop cutting-edge technologies such as advanced sensors, GPS systems, and data analytics tools.
  • For instance, in August 2021, Deere & Company announced the acquisition of Bear Flag Robotics, a Silicon Valley startup specializing in autonomous driving technology for existing agricultural machinery, for USD 250 million. This strategic move aims to fast-track the advancement and deployment of automation and autonomy in farming, aligning with John Deere's long-term vision to develop intelligent machines equipped with advanced technologies tailored to meet the specific needs of farmers.

• Mid-level players in the global precision farming market are adopting strategies focused on delivering cost-effective solutions to target price-sensitive consumers. These companies are striving to offer quality products at competitive prices to attract customers who may not be able to afford premium offerings.
  • In November 2021, CNH Industrial N.V. announced the successful completion of its acquisition of Raven Industries, Inc., a U.S.-based leader in precision agriculture technology. This acquisition marks a significant step in CNH Industrial’s ongoing digital transformation and strengthens its long-standing collaboration with Raven.

• Small-scale players in the global precision farming market are targeting niche markets by offering unique features or innovative products. These companies are focusing on specific segments of the market where they can differentiate themselves from larger competitors. By specializing in niche areas, small-scale players can attract customers looking for specific solutions tailored to their needs.
  • For example, CropX Technologies, an Israeli agri-tech startup, developed a soil sensor platform using AI and machine learning to provide hyper-local irrigation insights. Its unique product appeals to small- and medium-sized farms focused on water efficiency.

Market Report Scope

Precision Farming Market Dynamics

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Precision Farming Market Driver - Increasing demand for food due to population growth

The increasing demand for food, driven by the rapidly growing global population, is a significant factor propelling the growth of the precision farming market. As the world's population continues to rise, with the United Nations projecting it to reach 9.7 billion by 2050, the need for efficient and sustainable food production methods becomes paramount. Precision farming techniques, such as variable rate application, GPS-guided equipment, and remote sensing, enable farmers to optimize resource utilization, reduce waste, and improve crop yields. For instance, the Food and Agriculture Organization (FAO) estimates that precision farming practices can increase crop yields by up to 30% while reducing water usage by 20% and fertilizer application by 15% (FAO, 2021).

These technologies, such as GPS-guided equipment, variable rate application, and remote sensing, allow farmers to optimize resource utilization, reduce waste, and improve crop productivity. By adopting precision farming practices, farmers can enhance crop quality, reduce environmental impact, and ultimately increase food production to cater to the rising global population.

Precision Farming Market Opportunity - Growth in government initiatives supporting smart agriculture

The global precision farming market is poised for significant growth due to the increasing number of government initiatives supporting smart agriculture practices. Governments around the world are recognizing the importance of precision farming in addressing food security, environmental sustainability, and resource efficiency. Many countries are introducing policies, subsidies, and grants to encourage farmers to adopt precision farming technologies. A key driver of this trend is the Internet of Things in Precision Agriculture, which enables real-time monitoring, data-driven decision-making, and enhanced operational efficiency. By leveraging IoT-enabled devices, sensors, and platforms, precision farming is transforming conventional agricultural practices, paving the way for a more sustainable and productive future.

For example, the European Union's Common Agricultural Policy (CAP) has been revised to prioritize precision farming practices, offering financial support to farmers who implement these technologies. Similarly, the United States Department of Agriculture (USDA) has launched various programs, such as the Conservation Innovation Grants, to promote precision agriculture adoption.

These government initiatives not only provide financial incentives but also raise awareness about the benefits of precision farming, driving market growth. As more governments worldwide recognize the potential of precision agriculture in meeting the challenges of modern farming, the demand for precision farming technologies is expected to rise, creating significant opportunities for market players to expand their offerings and tap into new markets.

Analyst Opinion (Expert Opinion):

• The precision farming market is experiencing significant momentum, driven by the integration of advanced technologies such as IoT, AI, and satellite imagery to optimize agricultural practices. Companies like John Deere are leading the way with innovative solutions that enable farmers to monitor crop health and soil conditions in real-time, significantly enhancing productivity and resource efficiency.
• Recent events such as the Precision Agriculture Conference (2022) and the AgFunder Innovation Summit (2023) have provided vital platforms for industry experts to share insights on emerging trends and technologies. AgriNext Conference 2025, held in Dubai will feature cutting-edge innovations in vertical farming and AgTech. Following the overwhelming response to the upcoming AgriNext 2024 event in Dubai, the organizers are expanding their reach by planning another edition of AgriNext in November in Dubai in 2025.
• These conferences underscore the critical role of data analytics in decision-making processes, highlighting how precision farming can not only increase yields but also contribute to sustainable agriculture practices. As the industry continues to evolve, the collaboration fostered at these events will be essential in overcoming challenges and driving further adoption of precision farming techniques globally.

Market Segmentation

•  Offering Insights (Revenue, USD Bn, 2020 - 2032)
  • Hardware
    • Drones
    • GPS
    • Yield Monitors
    • Sensors
    • Others
  • Software
    • Local/Web-Based Software
    • Cloud-Based Software
  • Services
    • System Integration and Consulting Services
    • Managed Services
    • Connectivity Services
    • Others
•  Application Insights (Revenue, USD Bn, 2020 - 2032)
  • Crop Management
  • Soil Management
  • Livestock Monitoring
  • Water Management
  • Farm Management Software
  • Others
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • John Deere
  • Trimble Inc.
  • AG Leader Technology
  • CNH Industrial
  • AG Leader Technology
  • Monsanto Company (Bayer)
  • Topcon Positioning Systems
  • Hexagon AB
  • Raven Industries
  • Valmont Industries, Inc.
  • Drones for Agriculture
  • Aker Solutions
  • Yara International
  • SST Development Group, Inc.
  • Farmers Edge

Sources:

Primary Research Interviews:

• Head of R&D – Leading Agricultural Drone Manufacturer (for insights on drone-based field analysis)
• Product Director – Smart Irrigation Systems Provider (demand for water-efficient technologies)
• Regional Agronomist – Large Farming Co-operative (end-user feedback on precision tools)
• CTO – Agritech SaaS Platform (role of AI and data analytics in decision support tools)

Stakeholders:

• Technology Providers (GPS, GIS, IoT, AI-based platforms)
• Farm Equipment Manufacturers (smart tractors, VRT-enabled tools)
• Agri-consulting & Extension Services
• Agritech Startups and Platform Providers
• Input Suppliers (seeds, fertilizers with variable application tech)

Databases:

• UN Comtrade Database
• FAO Statistical Database (FAOSTAT) – Precision agriculture penetration
• USDA Economic Research Service – Technology adoption rates in U.S. agriculture
• India AgriCensus – Precision farming tools and government schemes adoption
• EUROSTAT – Smart farming equipment sales trends across the EU

Magazines:

• PrecisionAg Alliance – Trends and innovations in precision farming
• Farm Equipment Magazine – Tech integration in tractors and implements
• AgriBusiness Global – Global expansion strategies of agri-tech firms
• Modern Farmer – Case studies on yield improvement through smart tools
• AgFunder News – Start-up funding and agri-tech M&A activity

Journals:

• Computers and Electronics in Agriculture – AI, IoT, and robotics in farming
• Journal of Precision Agriculture – Data-driven farm management insights
• Agricultural Water Management – Smart irrigation system efficacy
• Remote Sensing of Environment – Satellite and drone imaging in crop monitoring
• Environmental Modelling & Software – Simulation tools for variable rate tech

Newspapers

• The Economic Times – Indian government’s push for digital agriculture
• Reuters – Global agri-tech investment trends
• Financial Times – Precision farming in developed markets
• The Guardian – Sustainability concerns driving smart farming adoption
• The Australian – Agri-digitalisation and farm efficiency innovations

Associations:

• International Society of Precision Agriculture (ISPA)
• American Society of Agricultural and Biological Engineers (ASABE)
• Federation of Indian Chambers of Commerce & Industry (FICCI) – AgriTech Division
• European Agricultural Machinery Association (CEMA)
• National Association of State Departments of Agriculture (NASDA)
• Asian Precision Agriculture Association (APAA)

Public Domain Sources

• World Bank – Precision agriculture in climate resilience strategies
• OECD – Digital transformation in agriculture
• European Commission – Digital farming & smart village initiatives
• US EPA – Environmental impact of sustainable farming technologies
• Government of India – PM-Kisan and Digital Agriculture Mission reports
• UNESCAP – Technology for food security in Asia-Pacific

Proprietary Elements:

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of Information for Last 8 Years.