Europe Precision Agriculture Market

Europe Precision Agriculture Market (2023 to 2028)

The precision agriculture market is growing aggressively in the European region and is anticipated to showcase a CAGR of 13.7% from 2023 to 2028. The European market size is expected to be valued at USD 2.91 billion in 2023 and USD 5.53 billion by 2028.

The rising trend of IOT usage in agriculture in Europe is driving the growth of the European precision agriculture market. The fruit and vegetable farming sector depends entirely on automatic machines with minimal manual labor. Precision technology is integrated with farming machinery for better results, accelerating Europe's market expansion of precision agriculture. Precision agriculture technologies include sensors, GPS, and data analytics, which farmers can incorporate into harvesters, tractors, and drones. This integration with the help of IOT helps in data collection by enhancing efficiency and enabling efficient decision-making. Automation helps in increasing efficiency by reducing labor costs. By introducing data analytics and farm management software, farmers can easily make decisions about irrigation, fertilization, and pest control, resulting in significant productivity and sustainability. Introducing drones in farm machinery enhances the precision agriculture benefits due to the results of aerial surveys and early detection of disease outbreaks. 

Cost Effectiveness and decreased energy consumption are accelerating the growth rate of the European market. Due to the introduction of innovative farm management, the overall energy consumption and cost have been reduced due to minimal labor costs. There is increasing demand for convenient, innovative farming solutions that produce better results than traditional methods. The incorporation of precision agriculture techniques is projected to have a significant growth rate in the upcoming years. With the reduced input energy and cost, farmers are getting the same output in a better way, which is accelerating the expansion of the European precision agriculture market. 

Digital agriculture platforms and farm management software are in demand for sustainable agriculture. The output of smart agriculture is attracting farmers for installation. The rising usage of smart agriculture in start-ups is expected to create lucrative opportunities for market expansion. Agritech start-ups are using AI and data analytics to provide farmers with better solutions to problems.

The primary factor hampering market growth is the need for more technical knowledge. Many studies show that many farmers are stepping back without investing in new agricultural techniques due to a lack of understanding of technology. For successful smart agriculture implementation, farmers must be trained in using apps and technologies to expand the regional market growth.  Another restraining factor for the market expansion is the high cost of installation. The initial cost of installing smart agriculture is expensive, and farmers are thinking about future expenses in farming, such as supply chain, harvesting, and others. There needs to be more financial resources and certainty in supply chain issues. 

The primary challenge is greater data privacy and security in the precision farming market. Precision farming uses sensors, drones, and satellites for data collection, so the data collected needs to be protected and secured. The technology providers should assure the farmers that the data collected will be secured and stored to avoid data breaches and unauthorized access. 

Impact of COVID-19 on the European precision agriculture market:

The effect of COVID-19 is severe on all fields, including the agricultural department. Precision farming is expected to witness significant growth pre-pandemic, but the outbreak of COVID disrupted the supply chain, and restricted lockdown decreased the workforce due to social distancing regulations. Disruption of the supply chain negatively influenced the precision agriculture market. 

REPORT COVERAGE:

This research report on the European precision agriculture market has been segmented and sub-segmented into the following categories.

Europe Precision Agriculture Market - By Offering:

• Hardware
  • Automation and Control systems
  • Sensing and Monitoring devices
• Software
  • Web-based 
  • Cloud-based
• Services

The hardware segment held a significant share of the European precision agriculture market in 2022 and is expected to dominate in the forecast period. The automation and control systems sub-segment dominated the precision agriculture market due to its services, such as GPS receivers, guidance in steering mechanisms, and variable-rate technology devices. Automation helps reduce manual labor, which is increasing the adoption of the technology. 

Cloud-based software is projected to be the fastest-growing software segment in the forecast period.

Europe Precision Agriculture Market - By Technology:

• Guidance Systems
• Variable Rate Technology
• Remote Sensing

The variable rate technology segment dominated the precision agriculture market in the European region in 2022 due to its high adaptability. It is expected to have the highest CAGR in the forecast period compared to other technologies. The integration of GPS-based auto technology, which is highly up-taken by farmers, is driving the market in this technology. It empowered agricultural professionals to optimize the equipment and tractor utilization, reducing fuel and labor expenses with high efficiency.

Europe Precision Agriculture Market - By Application:

• Yield Monitoring
• Field Mapping
• Crop Scouting
• Weather Tracking and Forecasting
• Irrigation Management
• Inventory Management
• Farm Labor Management
• Financial Management

Irrigation management had the highest market value in 2022 due to water scarcity problems, and farmers are increasingly adopting micro-irrigation control systems. Yield monitoring is projected to dominate the European precision agriculture market revenue over the forecast period. This domination is due to services like climate service initiatives, which enhance food security with a quality decision-making process in agriculture.

Europe Precision Agriculture Market – By Country:

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe

Europe is expected to be the second largest region adopting smart agriculture after North America. Germany dominated the European precision agriculture market due to significant agricultural revenue output. The rapid adoption of new technologies in Germany and the UK is accelerating the market expansion in Europe. As a developed country, the UK consists of the market key players investing in the R&D sector for innovative technological developments with better adoption among the farmers. France and Spain are expected to have a decent growth rate in the upcoming years due to the increasing adoption of farm management software. The increasing demand for crop protection in many countries with fresh crop production and animal feed drives smart agriculture techniques. The increasing government investments are allowing smart agriculture technologies to expand and reach the farmers.

KEY MARKET PLAYERS:

Deere & Company, Trimble, Inc., Leica Geosystems, AJ Junction, Inc., Monsanto Company, AgSmarts Inc., CropMetrics LLC, and Dickey-John Corporation are some of the major companies in the European precision agriculture market.