by Advanced farming techniques have become crucial to meet the rising global demand for food which is driven by the increasing global population. Advanced farming involves precision agriculture technologies such as precision soil scanning, GPS-based land surveying equipment, irrigation management solutions, crop monitoring sensors, drones, and agricultural software and solutions. These techniques help farmers monitor crop growth, optimize inputs such as water, fertilizers and pesticides, reduce production costs, and maximize crop yield.
The global Advanced Farming Market is estimated to be valued at US$ 11.18 Billion in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends
The increased adoption of data analytics and AI in agriculture is one of the major trends driving the advanced farming market growth. Technologies such as computer vision, IoT, robotics, and predictive analytics are being used for real-time crop and soil monitoring, automated irrigation systems, applying targeted crop treatments, and yield forecasting. Furthermore, the growing focus on precision farming and controlled environment agriculture to improve production efficiency is also fueling the demand for advanced farming solutions. Techniques like greenhouse farming, vertical farming and hydroponics allow year-round harvests and maximize crop yields on limited arable land.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as high capital investment and brand reputation are required to enter this market. However, threat from new technological startups cannot be ignored.
Bargaining power of buyers: The bargaining power of buyers is high as the market has numerous farming technology providers and buyers can choose from a variety of solutions. This forces providers to offer competitive pricing and invest in innovation.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key inputs like sensors, automation equipment, and data analytics are supplied by several regional and global players. However, the differentiation of these inputs provides some pricing power to suppliers.
Threat of new substitutes: The threat of substitutes is moderate to high due to continuous technological advancements in precision farming and emerging disruptive technologies like Internet of Things, robotics and drones that offer new alternatives.
Competitive rivalry: The competitive rivalry is high among the top farming technology providers due to their global presence and capabilities to offer end-to-end solutions. This forces companies to focus on innovation and introduce new complementary solutions.
Key Takeaways
The global Advanced Farming Market Demand is expected to witness high growth. The market size for 2023 is US$ 11.18 Bn and forecast period is from 2023 to 2031 with a CAGR of 7.9% .
North America holds the largest share of the market currently owing to rapid technological adoption and presence of major players in the region. However, Asia Pacific region is poised to grow at the highest CAGR during the forecast period. This is attributed to factors such as increasing population, rising food demand, supportive government schemes for smart agriculture adoption and presence of agro-climatic conditions supportive for farming. China and India are emerging as lucrative markets in the region.
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, and Menards. These players are focusing on offering innovative farming hardware, software, imagery and data solutions to farmers through diverse subscription and pricing models. They also form strategic collaborations with technology companies and local players to strengthen their presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
