Precision planting is a highly efficient and effective way to grow crops, allowing growers to maximize yields while minimizing inputs and environmental impact. It involves the use of automation and connected technologies, including the Global Positioning System (GPS)-based guidance technology, smart metering, display systems, and variable rate technology (VRT) to manage crops and optimize the use of resources, such as seed, fertilizers, and water.
The precision planting market is expected to grow from USD 5.0 billion in 2022 to USD 8.2 billion by 2027, at a CAGR of 10.3%.
The most significant factor driving the growth of the precision planting market includes surging adoption of advanced technologies to reduce labor cost. The agriculture industry is highly dependent on laborers for different activities; however, with technological advancements, automation is replacing the task of laborers and enabling the industry players to achieve high output in less time. The adoption of advanced technologies is helping farmers to cover a large area of their fields more efficiently in lesser time. Precision planting is an advanced planting technique that involves cutting-edge technologies that enable farmers to increase productivity and minimize labor costs. The major technologies used for precision planting are smart sensors, GPS, GNSS, auto-steering and guidance technology, and variable rate technology (VRT), among others.
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The US contributed a significant share to the precision planting market. The country has a large area for crops under cultivation; every year, more than 90 million ha are planted with row crops such as corn and soybean. High-speed precision planters are mainly used in commodity row crops in the US. As per USDA 2022 summary report, the country had 895 million acres of farmland in 2021, with an average farm size of 445 acres (Source: USDA). The adoption rate of automation and digitalization of agriculture is high in large farms, which further enables farmers in the country to make use of modern and precise equipment for agriculture. In order to produce various types of row crops, farmers practice conventional tillage and soil preparation, which involve several steps, including preparing the soil bed and eliminating weeds. These activities cannot be completed manually in a short span of time on large agricultural lands. Therefore, farmers are adopting precision planting and seeding equipment, such as precision air seeders, planting robots, and UAVs/drones.
Asia Pacific accounted for a significant share and highest growth rate of the precision planting market in 2021. The region is an emerging market with investments from several multinational manufacturers, especially in major markets, such as Australia, Japan, and China. The projected growth rate of the Indian market for precision planting equipment is high compared with other countries in the region due to government support and a high adoption rate among farmers. There are a number of global players in the market trying to enter this region by means of mergers, acquisitions, or partnerships for business expansion. The Asia Pacific market is expected to expand at the highest growth rate due to the increasing demand from countries, such as India, Australia, Japan, and China. Deere & Company (US), Precision Planting (US), Topcon Precision Agriculture (US), Trimble Inc. (US), and Topcon Corporation (Japan) are among the major companies operating in this region.