The Global Imaging Technology Market for Precision Agriculture Market, By Technology (Multispectral and Hyperspectral), By Product (Camera, Sensor, Software and Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 1509.8 Million by 2027, exhibiting a CAGR of 9.0% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Precision agriculture refers to a management strategy that collects, analyzes, and processes spatial, individual, and temporal data and combines with other data to support management decisions according to estimated variability for improved resource use efficiency, quality, and productivity. Imaging technology for precision agriculture comes under Unmanned Aerial Vehicle (UAV) category, in which images are captured with the help of sensors mounted on a UAV, and data are interpreted with the help of systems and software The primary objective of precision agriculture is to define a decision support system (DSS) for the entire farm management with a goal to optimize returns on inputs while preserving resources.
The global Imaging Technology Market for Precision Agriculture was accounted for US$ 730.4 Mn in terms of value in 2019 and is expected to grow at CAGR of 9.0% for the period 2020-2027.
Rising sales of UAV drones for precision agriculture is expected to drive growth of the global imaging technology market for precision agriculture during the forecast period
The adoption of UAV drones has increased significantly in precision farming for imaging applications. Since the average cost of drones is declining, the sales for the same is on the rise. Moreover, the demand for imaging systems for precision farming with the help of drones is expected to increase significantly over the forecast period. According to the Federal Aviation Administration (FAA) report on UAV sales forecast, demand for commercial UAVs is expected to increase at a CAGR of 45.6 % over 2016–2020. An increase in sales figures of UAVs is expected to reflect an increase in demand for imaging systems in the precision farming segment. Hence, these factors are expected to drive growth of the market during the forecast period.
Precision farming with the help of imagery systems can provide lucrative growth opportunities
Relatively low awareness among farmers about technologies available and relatively costlier technologies enabled under GNSS have been the main reasons for lower penetration of precision farming techniques, especially in non-industrial areas. As a result, application in precision farming is significantly low and provides an opportunity for camera manufacturers to design and develop new and innovative products for better and more efficient operation and performance. However, increasing awareness and decreasing costs for supporting technologies will open up major opportunities for camera manufacturers and software solution providers, especially for drone-enabled precision farming applications.
Global Imaging Technology Market for Precision Agriculture - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 Pandemic have adversely affected the economies of various countries around the globe. According to the International Monetary fund Analysis, the global economy is expected to shrink down by 3% percent in the year 2020 compared to year 2019. Due to the reduction in the size of global economy the spending or purchasing power of people also decreases. Moreover the farmers are also expected to reduce the expenditure on adopting the new technologies for the agriculture.
High cost associated with precision agriculture is expected to hamper growth of the global imaging technology precision agriculture during the forecast period
Adopting precision agriculture requires significant investment since advanced technology is involved such as UAV drones, image sensors, advanced software, and more. Moreover, these technologies require timely maintenance, thereby incurring in additional costs. Hence, these factors are expected to hamper growth of the global imaging technology precision agriculture over the forecast period.
Rising adoption of advanced imaging technology
North America is one of the more technologically advanced regions, where agriculture holdings are bigger in size, have more resources, and are technically more advanced. High labor costs also make North America an attractive region for precision farming techniques, systems, and solutions providers. Equipment costs, regulations, and understanding of software and systems are major challenges for adoption of the technology. However, this technology is currently recognized as a solution for food security issues, which could be a major factor driving demand in the near future.
Open regulation for commercial application of drones
In Latin America, only Brazil has passed a regulation to provide guidelines regarding drones in military and commercial applications, hence regulations are required in other countries in order to capitalize on drone technology. For instance, in June 2016, Bryant, a Brazil-based drone manufacturer, entered into an agreement with Drone USA, a low altitude drone manufacturer, which enabled Drone USA to have export and representation rights to Brvant’s product with the option of acquiring full ownership of its product if agreed. Moreover, in September 2016, Embraer, a Brazil-based drone manufacturer – inaugurated a 50,000 sq. ft. manufacturing plant in Florida, U.S.
Key players operating in the global imaging technology market for precision agriculture are Bayspec, Quest Innovations, Tetracam, Pixelteq, Micasense, Resonon¸ Ximena, and Teledyne Dalsa.