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Precision Farming Market Opportunities and Challenges detailed Report 2025

The precision farming market growth increasing farm mechanization in developing countries, rising labor cost owing to shortage of skilled labor, increasing strain on the global food supply owing to increasing population, substantial cost savings associated with smart farming techniques, and government initiatives to adopt modern agricultural techniques.
The precision farming market is estimated to be USD 7.0 billion in 2020 and is projected to reach USD 12.8 billion by 2025, at a CAGR of 12.7% between 2020 and 2025.
The precision farming market in APAC is expected to grow at the highest CAGR from 2020 to 2025. The increasing adoption of precision farming technologies such as guidance systems, remote sensing, and variable-rate technology by farmers in APAC is expected to propel the growth of the precision farming market during the forecast period. The adoption rate of precision farming techniques is expected to grow at a high rate in APAC as this region comprises emerging countries such as India and China, and other Southeast Asian countries. Rapidly increasing population, the availability of arable farms, and government support through subsidies are the factors driving the adoption of smart agricultural techniques in APAC.
The precision farming market for weather tracking and forecasting application is expected to grow at the highest CAGR during the forecast period. Increasing demand for climate information services owing to their benefits that enable farmers to deal with climate change and variability to improve decision-making in agriculture is the major reason for the high growth of the market for weather tracking and forecasting from 2020 to 2025. The increasing demand for the cloud platform for climate services is also a major factor for the high growth of this market.
The precision farming market for variable rate technology is expected to grow at the highest CAGR during the forecast period. The wide adoption of VRT in precision farming is because of the various benefits associated with it. VRT allows input application rates to be varied across fields for site-specific management of the field variability. This technology helps in reducing the input usage, thereby decreasing environmental impacts such as greenhouse gas emission, soil erosion and degradation, and genetic erosion. The market for VRT is expected to grow at a higher CAGR than that for other technologies as this technology helps in applying the right amount of input at the right place on the field, which minimizes the input waste and increases land and crop productivity.
The precision farming market for services is expected to grow at the highest CAGR during the forecast period. The growing interest in automation in the agriculture industry and advancements in precision farming technology are expected to propel the demand for precision farming services during the forecast period. Increasing demand for managed services is also a major reason behind the high growth of the precision farming market for services.
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