Advanced Farming Is Estimated To Witness High Growth Owing To...

Advanced Farming Is Estimated To Witness High Growth Owing To Increasing Adoption Of Farm Management Software

Posted 2024-01-23 12:35:27

Advanced farming involves deployment of latest technologies on the farms to maximize yield, optimize resource usage and minimize environmental impact. Some of the key advanced farming technologies include farm management software, aerial imagery, GPS/GNSS and guidance systems, sensors, RFID tags on livestock and automated machinery. Farm management software allows farmers to monitor field data, maximize production quality and engage in precision agriculture. It helps analyze huge amounts of complex datasets and automate tasks to improve operational efficiency.

The global advanced farming market is estimated to be valued at US$ 11.18 Bn 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 Dynamics:
One of the key drivers for the advanced farming market is the increasing adoption of farm management software. Farm management software helps farmers streamline operations, simplify record keeping, improve traceability and drive higher yields through data-driven decision making. They provide actionable insights on crop monitoring, yield prediction, soil and field analyses. Use of such software minimizes wastage, reduces costs and maximizes output. For instance, agricultural software company Granular has developed a digital agronomy platform that provides precision recommendations and prescriptions for seeds, crop protection products and fertilizers. It leverages field data, weather patterns, soil type and yield goals to optimize field productivity. Rising awareness about benefits of these software and availability of easy to use solutions are fueling their adoption rates globally. Additionally, government initiatives in some countries to encourage use of advanced technologies on farms is also augmenting the market growth.

SWOT Analysis

Strength: Advanced farming offers technologies like smart irrigation, yield monitoring, and drones that help optimize agricultural production. These technologies increase farm productivity and crop yields with precise application of inputs. They also help reduce costs by applying inputs only as needed which conserves resources. Precision agriculture technologies provide real-time farm and crop data that help farmers make informed decisions.

Weakness: The high initial investment required for precision farming technologies can be prohibitive for small and medium scale farmers. Dependence on satellite and mobile connectivity in rural areas can also be a challenge. Lack of technical know-how and skills is a hurdle for widespread adoption of these technologies by farmers.

Opportunity: Growing global population and declining availability of farm land create demand for technologies that optimize land and resource use. Precision agriculture addresses global challenges of increasing food production sustainably. Advancements in IoT, automation, and cloud computing create opportunities for new precision farming solutions. Government initiatives and investment in rural areas also support digitization of agriculture.

Threats: Technology changes rapidly which risks investments in existing machinery becoming obsolete. Equipment failure or data security breaches on connected devices pose risks. Dependence on technology suppliers could impact continuity of farm operations. Changing climate and environment threaten sustainable agricultural production.

Key Takeaways

The global Advanced Farming Market Demand is expected to witness high growth over the forecast period driven by need to optimize farming processes. Technological advancements, supportive government policies, and focus on sustainable agriculture practices are expected to drive market revenues. The global Advanced Farming Market is estimated to be valued at US$ 11.18 Bn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2031.

Regional analysis: North America currently dominates the advanced farming market owing to strong economies, technology adoption, and government support for farmers. However, Asia Pacific is expected to be the fastest growing region fueled by growing population, government initiatives for smart agriculture, and market penetration of technology providers. China and India are emerging as major centers for advanced farming technologies.

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. These players are focusing on developing new precision farming solutions, partnering with technology providers, and supporting farmers through financing and training.