Worldwide Advanced Farming Market to grow at a CAGR of 13.4% over the period 2016-2022; to aggregate $ 25.81 Bn by 2022

Even as countries focus on sustainable improvements in agricultural productivity to mitigate the effects of climate change, High Precision Positioning systems to lead with $ 7.23 Bn or 28% revenue share in 2022; Livestock Farming solutions to reach $ 3.32 Bn, while Variable-rate Technology market set to reach $ 2.31 Bn by 2022

Asia-Pacific with 13.6% CAGR and MEA with 13.8% CAGR to show highest growth over the period 2016-2022

BENGALURU, India - May 24, 2016

Infoholic Research LLP, a global ICT and Electronics market research and consulting organization, has published a study titled "Worldwide Advanced Farming:Market Drivers, Opportunities, Trends and Forecasts, 2016-2022" (May 2016).

Infoholic Research forecasts that advanced farming will change the way agriculture is practiced and will result in increased productivity, better crop-yields and reduce the demand of manual labour on farms. With higher ownership and deployment of farm mechanization equipment across large, corporate farms/plantations, and the rising trend of custom hiring of equipment by individual/family owned holdings for tillage, sowing, plant protection, harvesting, post-harvest processing and so on, the market is expected to grow at a CAGR of 13.4% during the period 2016-2022 to touch an aggregate of $ 25.81 billion by 2022. Most of the Advanced Farming systems are linked with Farming Management Systems (FMS); these technologies also help farmers track and monitor animal health. In the last 2-3 years, cloud based FMS have started penetrating into the Advanced Farming market.

Source: Infoholic Research, 2016

"Advanced Farming is turning out to be a key revenue pocket for policy makers and agri-equipment makers. However, faced with economic challenges and a dynamic global commodities market, adoption is subject to farmers' feeling the need to acquire appropriate technology within a suitable farming policy framework," said Tariq A. Shaik, Research Manager at Infoholic Research.

Advanced Farming and its close cousin, farm mechanization, are still in a nascent stage of adoption in emerging economies, and need significant support from governments to achieve higher market penetration. Despite the potential, bringing about sustainable growth in the advanced farming market remains a challenge for most developing countries on account of various macro-economic, demographic and market factors:

The benefits of the 'Green Revolution' of the 1960s-1980s have run their course in major emerging markets such as India;

Changing consumer choices - food preferences and habits are increasingly influenced by health, lifestyle and convenience considerations;

Non-availability of farm labor during peak season;
Rising production costs such as seeds and chemical fertilizers;
Resource scarcity and efficient utilization of the same, for example, water for irrigation in dryland farming, and
Impact of climate change on crop yields and the need to develop drought-resistant, high yield plant and crop varieties.

In view of the above, leading stakeholders in the business, especially large, MNC vendors need to invest in research and development and testing of market-specific machinery and equipment for standardization and quality control, and education, training and popularization.

"Private investment in the field of agriculture will drive the market for the next few years. Developing regions and countries are expected to register high growth due to increased demand for foodgrains, vegetables, fruits and dairy products, and a shift from subsistence farming to cash crops as incomes rise, lifestyles change and rural populations migrate to urban areas," said Preeti Wadhwani, Senior Research Analyst at Infoholic Research.

Figure 2. Worldwide Advanced Farming Market by Region, 2016 and 2022

Source: Infoholic Research, 2016

"The advanced farming market is expected to witness a healthy growth in the emerging markets of Asia-Pacific and the MEA region over the next six years, with CAGR of 13.6% and 13.8% respectively. In this high growth scenario, there will be ample opportunities to integrate with cloud and analytics to rapidly modernize farming in these regions," said Komal Sharma, Research Analyst at Infoholic Research.

Report Synopsis

"Worldwide Advanced Farming: Market Drivers, Opportunities, Trends and Forecasts, 2016-2022" (May 2016) aims to highlight key insights from both vendors and end users. It provides an in-depth analysis and forecast for the industry, covering the following important issues and trends:

Drivers of the Advanced Farming market:

Growing Food Requirement
Need for Environment Friendly Farming Techniques
UN/FAO/international community support

Restraints of the Advanced Farming market:

High Initial Investment Costs
Lack of IT Literate Farmers
Improper IT Infrastructure

Key questions answered in the report:

What will be the global advanced farming markets size in 2016-2022?
What is the industry structure?
What are the submarkets attracting the business opportunities?
What are the advanced farming technology trends?
What are the advanced farming market drivers and inhibitors?
What are the challenges to the advanced farming market?
How is the advanced farming market growing in the regions such as Americas, Europe, APEJ, and MEA?
How are the service and technology industry growing in the advanced farming market?
How much investments have been made into advanced farming and what are the ongoing and upcoming advanced farming projects?

Advanced Farming Companies covered in the report:

Trimble Navigation Ltd.
AGCO Corp.
Deere & Company
Raven Industries