May 18, 2024

Advanced Farming Market Driven by Rising Demand for Crop Monitoring

Key advanced farming products and services include precision agriculture equipment such as GPS/GNSS, remote sensing, variable rate technology (VRT), automation and robotics. Advanced farming maximizes productivity while minimizing wastage and decreases the strain on natural resources. Farmers can monitor crops in real-time to understand growth cycles and identify problems immediately, leading to higher yields with lower costs. This has increased demand for solutions that facilitate data-driven decision making.

The global Advanced Farming Market is estimated to be valued at US$ 9.7 Bn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Demand for crop monitoring and yield mapping is increasing among farmers as these tools help apply inputs variably based on a field’s needs. Soil sensors, drone imagery and variable-rate crop sprays allow customized nutrient and pesticide application based on precise location data. This improves farm efficiency while reducing costs and environmental impact. Precision agriculture also enables data-driven harvesting – computer vision and sensors help optimize picking based on ripeness. Advanced analytics of huge farming datasets further enhances productivity by predicting yields, spotting anomalous field areas and automating certain processes. The integration of AI and IoT is a notable trend, with “smart” machines able to autonomously undertake fieldwork. This is driving the advanced farming market as new technologies streamline operations from seeding to storage.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the advanced farming market is moderate as the capital required for R&D and the need for technical expertise pose challenges for new companies. However, emerging technologies and growing market opportunities attract new startups.

Bargaining power of buyers: The bargaining power of buyers in the advanced farming market is high as the market has several big buyers such as large agricultural companies. Buyers can negotiate on price and demand high quality and service.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as suppliers of advanced farming technologies and equipment have established themselves. However, suppliers are dependent on buyers for sales.

Threat of new substitutes: The threat of substitutes is moderate as alternative farming techniques can substitute advanced farming. However, advanced farming allows higher yields and resource efficiency.

Competitive rivalry: The competitive rivalry in the advanced farming market is high owing to the presence of numerous global and regional players offering similar technologies. Players compete based on product features, pricing, and service.

Key Takeaways

The Global Advanced Farming Market Size is expected to witness high growth over the forecast period driven by the need to boost farm efficiency and handle demand supply gaps. The continuous urbanization has also contributed to shortage of agricultural land and workforce pushing adoption of advanced farming technologies.

Regional analysis: North America dominates the global advanced farming market currently owing to widespread commercial adoption of digital and precision agriculture solutions across major countries like the US and Canada. However, Asia Pacific is expected to grow at the fastest pace during the forecast period led by increasing government support in countries such as China and India.a

Key players: Key players operating in the advanced farming market are Walmart, Amazon, Costco, Target, Best Buy, Home Depot, Kroger, Lowe’s, Albertsons, Publix, Walgreens Boots Alliance, CVS Health, 7-Eleven, Rite Aid, Ace Hardware, Menards, Dick’s Sporting Goods, L Brands, Nordstrom, and Macy’s. Walmart and Amazon have launched several pilot projects and initiatives to leverage technologies to enhance farm management and operations.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it