Precision Harvesting Market Size, Share & Trends Analysis Report By Application, By Product (Combine Harvesters, Harvesting Robots), By Offering (Hardware, Software), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global precision harvesting market size was valued at USD 11.6 billion in 2019 and is expected to register a CAGR of 8.6% from 2020 to 2027. Increasing adoption of autonomous combine harvesters and harvesting robots, increasing mechanization of farms in developing economies of Africa and Asia Pacific regions, and increased labor cost due to shortfall of skilled labor are the significant factors driving the market growth. The market is broadly divided into application, product, and offering.

Hardware held the largest market share owing to the high adoption of control and automation devices, such as guidance and steering systems, Global Positioning System (GPS), sensors, and yield monitors. Hardware such as GPS devices and sensors play an essential role in the yield monitoring process.

In the coming three decades, the world population is expected to increase by an additional 2.2 billion people. At the same time, water and land resources are decreasing due to pollution, land degradation, and urban encroachment. This entire scenario has fundamentally altered traditional methods of food production, forcing farmers to adopt precision harvesting techniques to produce more.

Precision harvesting is capable to transmute the agriculture sector and transform old-style harvesting activities into more economical and efficient ones. The market is driven by increasing global food demand, minimizing crop wastage during harvesting processes, and extended crop yield and profitability. Also, government initiatives in various countries are encouraging farmers to adopt advanced technological and agricultural machinery and tools to improve crop yield.

Product Insights

The combine harvesters segment held the largest market share in 2019 and is expected to continue its dominance over the forecast period. Increasing adoption of autonomous and connected combine harvesters along with advanced precision harvesting technology components such as sensors, GPS, yield monitoring systems, and 3D cameras, are the main reasons for the high adoption of combine harvesters. Other significant factors driving the segment growth include innovations in precision harvesting technology, increasing mechanization in the agricultural sector in developing countries, and increasing labor costs due to labor shortage. Additionally, increasing importance of farm productivity and efficiency supported by favorable government policies is attracting new generation toward precision farming. On the contrary, the high cost of advanced automated harvesters may hinder the market growth.

The precision harvesting robots segment is expected to expand at the highest CAGR from 2020 to 2027. Various factors are contributing to rising demand for precision harvesting robots, such as increasing strain on food supply due to rising population, labor costs due to labor shortage, and automation in the agriculture industry. The steady reduction in hardware cost is expected to boost the adoption of precision harvesting robots in the forecast period.

Offering Insights

Based on offering, the precision harvesting market has been segmented into hardware, software, and services. The hardware segment led the market for precision farming in terms of revenue in 2019 and is expected to remain dominant over the forecast period. The hardware segment has been further bifurcated into automation and control systems, sensing devices, and others. The hardware components such as automation and control system, sensing devices, and drones play a major role in helping farmers.

Under the software segment, cloud computing focuses on shared networks, servers, and storage devices, owing to which the high costs incurred in maintaining hardware and software infrastructure is eliminated. As a result, the software segment is anticipated to register a CAGR of over 11% during the forecast period. Predictive analytics software is used to provide guidance to farmers about crop rotation, soil management, optimal planting times, and harvesting times.

Application Insights

The crop harvesting segment held the largest market share in 2019 owing to increasing mechanization in open field traditional farming, which includes crops such as sugarcane, corn, soybean, maize, cotton, wheat, and rice. Increasing adoption of autonomous precision harvesting equipment is one of the primary reasons for segment growth. The application expansively uses various devices such as GIS, GPS, and sensor technologies to precisely measure the quantity of crop harvested at a specific time and location.

The greenhouse harvesting segment is expected to register the highest CAGR over the forecast period. Changing climatic conditions, environmental problems, soil degradation, groundwater depletion, unavailability of farmworkers, and need for data analysis to improve farm productivity are leading to increased need for greenhouses. Greenhouses use robotics harvesting systems such as automatic conveyor and material handling, harvesting robotic arms, and spacing robots.

Regional Insights

North America is an early adopter of technologies and dominated the market for precision harvesting in terms of revenue in 2019. Factors such as increasing government initiatives for the adoption of modern agriculture technologies and developed infrastructure have contributed to the high revenue of the regional market. For instance, the National Institute of Food and Agriculture (NIFA), a part of the U.S. Department of Agriculture, conducts geospatial, sensor, and precision technology programs to create awareness among farmers. In partnership with land-grant universities, NIFA helps farmers develop robust sensors, associated software, and instrumentation for modeling, observing, and analyzing a wide range of complex biological materials and processes.

The North America regional market held the largest share in 2019 due to early adoption of precision harvesting technologies by countries like U.S. and Canada. The farmers in the North America region are adopting advanced equipment and harvesting systems such as sensors, steering and guidance systems, harvesting management software, and display devices. Asia Pacific is expected to expand at the highest growth rate over the forecast period owing to increasing adoption of autonomous combine harvesters and harvesting robots, increasing farm mechanization, and increasing labor costs due to the shortage of skilled workers.

Precision Harvesting Market Share Insights

The key market participants include AGCO Corporation; Trimble Inc.; Deere & Company; AgJunction Inc.; Raven Industries, Inc.; AG Leader Technology, Inc.; FFRobotics; Precision Planting LLC; and Abundant Robotics, Inc. These market players adopt various strategies such as mergers, acquisitions, product developments, collaborations, partnerships, and expansions to cater to the customer demands for precision harvesting equipment and tools..

Report Scope

Segments Covered in Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global precision harvesting market report based on application, product, offering, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Combine Harvesters

  • Harvesting Robots

  • Self-propelled Forage Harvesters

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Crop

  • Greenhouse

  • Horticulture

  • Others

• Offering Outlook (Revenue, USD Million, 2016 - 2027)

  • Hardware

    • Automation & Control System

    • Sensing Devices

    • Others

  • Software

  • Services

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • The U.K.

    • Germany

    • France

  • AsiaPacific

    • China

    • Japan

    • India

    • Australia

  • South America

    • Brazil

  • Middle East & Africa