Precision Farming Market Size, Share, Growth, Trends, and Global Industry Analysis: By Technology (Guidance System, Variable-rate Technology, Drones and UAVs, Remote Sensing, and Others), By Components (Hardware, Software, and Services), By Application (Yield Monitoring, Variable Rate Application, Field Mapping, Soil Monitoring, Inventory Management, Crop Scouting, and Others), and Region Forecast 2020-2031

Precision Farming Market size was valued at US$ 11,981.7 million in 2024 and is projected to reach US$ 22,044.0 million by 2031 at a CAGR of 9.1% from 2025-2031. Moreover, the U.S. Precision Farming Market is projected to grow significantly, reaching an estimated value of US$ 6,877.7 Million by 2031.

Precision farming is an agricultural management concept that focuses on the observation, measurement, and response to crop variability between fields. The market is witnessing significant growth due to various interrelated factors. A key driver is the increasing adoption of smartphones in agriculture, which has enabled the use of mobile-compatible applications for field monitoring, data storage, and equipment control. This technological advancement, along with rising global food demand, supportive government policies, and decreasing costs of tools like sensors, GPS, and drones, is accelerating adoption across diverse farming communities. Among the prominent trends, the integration of artificial intelligence and machine learning is transforming farming practices through real-time data analysis, predictive insights, and improved decision-making in areas such as irrigation, fertilization, and pest control. This evolution supports a shift toward sustainable and efficient farming models.

An important opportunity lies in expanding AI-based applications, which assist in monitoring soil conditions, managing resources, and forecasting weather patterns, ultimately enhancing crop yield and quality. However, the market faces restraints due to the high initial costs of precision equipment and the need for skilled personnel to operate them. These barriers are especially pronounced in developing regions, where small and medium-scale farmers often lack financial and technical resources. Despite these challenges, the market holds strong potential for transformation through continued innovation and increased accessibility of smart farming solutions.

Facts & Figures

• Smartphone and mobile app penetration: Farmers increasingly use smartphone-compatible apps for field monitoring, data backup, and equipment control. This democratizes precision farming, even in remote areas. For instance, a smartphone-less satellite advisory system in Madhya Pradesh prints farm insights in local languages, bridging the digital divide for smallholder farmers.
• Integration of AI and machine learning: AI/ML tools analyse real-time data from sensors, drones, and satellites, to enable predictive agronomy, disease forecasting, and resource optimization. For instance, Maharashtra’s recent Rs?500?cr “MahaAgri?AI” initiative will deploy AI-powered drones, sensors, apps, and voice bots to improve crop management.
• Government initiatives and funding: National and state governments are investing in agri-tech to boost productivity and sustainability. Maharashtra’s AI policy with Rs?500?cr funding and India’s increased agri-budget reflect strong public backing.
• Growing global food demand and sustainability focus: Rising population pressures require efficient farming, while environmental concerns drive precision input use.

Key Developments

• In May 2025, a joint venture between CHS and GROWMARK invested in Precision AI’s Series?A round to accelerate AI-based aerial insights, enabling plant-by-plant decision-making across North America.
• In February 2025, Cordulus released a new AI-driven rainfall prediction tool aimed at European farmers, improving irrigation planning and resilience.
• In January 2025, Amsterdam-based Agurotech secured funding to expand its AI and IoT-enabled digital agriculture platform internationally.
• In March 2024, Syngenta extended its multi-year collaboration with Planet Labs, integrating high-resolution daily satellite data into its Cropwise platform to boost remote crop monitoring.

Precision Farming Market Segmentation

Based on the technology

• Guidance System
  • Global Positioning System (GPS)
  • Global Information System (GIS)
• Variable-rate Technology
  • Variable Rate Fertilizer
  • Variable Rate Seeding
  • Variable Rate Pesticide
• Drones and UAVs
• Remote Sensing
• Others

Remote sensing holds the largest market share in the market due to its ability to provide large-scale, real-time data on crop health, soil conditions, moisture levels, and pest infestations. Using satellite imagery, aerial sensors, and drones, remote sensing helps farmers monitor fields efficiently without physically being present, saving both time and labor. It supports early detection of issues, enabling timely interventions that improve yield and reduce input waste. In contrast, technologies like drones and UAVs, while growing in popularity, currently hold a smaller market share due to higher costs and regulatory limitations.

 Based on the components

• Hardware
• Software
• Services

Based on components, hardware holds the largest market share in the market. This is because most precision agriculture practices rely heavily on physical tools such as GPS devices, sensors, drones, automatic steering systems, and other field equipment that collect and transmit data. These hardware components form the foundation for data-driven farming operations, enabling real-time monitoring and automated actions in the field. Their durability, scalability, and direct impact on improving productivity make them essential for adoption. In contrast, while software and services are rapidly growing due to digitalization and analytics demand, they currently hold relatively smaller shares compared to hardware.

 Based on the application

• Yield Monitoring
• Variable Rate Application
• Field Mapping
• Soil Monitoring
• Inventory Management
• Crop Scouting
• Others

Based on application, yield monitoring holds the largest market share in the precision farming market. It is a critical component of farm management as it helps farmers analyze crop performance across different field zones, identify yield variability, and make informed decisions for future planting, fertilization, and irrigation. The high demand for real-time data to optimize productivity and resource use has made yield monitoring systems highly valuable, especially in large-scale operations. These systems are often integrated with GPS and sensors, making them efficient and reliable. On the other hand, crop scouting holds a smaller market share, mainly due to its manual or semi-automated nature, requiring more labor and time.