Precision Planting Market

[274 Pages Report] The global precision planting market size is estimated to be USD 5.0 billion in 2022 and is projected to reach USD 8.2 billion by 2027, at a CAGR of 10.3% during the forecast period. Some of the major factors contributing to the growth of precision planting market includes the substantial cost-savings associated with precision planting and seeding equipment, surge in the adoption of advanced technologies in precision agriculture to reduce labour cost, and increasing promotion of precision planting techniques by governments worldwide. Moreover, climate change and need to meet rising demand for food will also drive the growth of the industry in the near future.

Precision Planting Market Forecast to 2027

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Market Dynamics:

Driver: Substantial cost-savings associated with precision planting and seeding equipment

Precision planting and seeding equipment, when used to their maximum potential, can ensure high returns in agribusiness. Planting and seeding equipment offer precision, which assists in ensuring accurate depth of sowing and equidistant arrangement of seeds. The launch of precision planting and seeding equipment with advanced features such as smart connector systems, controllers, and liquid control and delivery systems has also assisted in boosting the adoption of these equipment. Precision planting and seeding equipment help farmers obtain uniformity of seeds and ensure control over the depth of seed placements. They also safeguard crops from natural disasters by collecting real-time geospatial data pertaining to soil crop yield, weather conditions, and plant conditions, along with other inter- and intra-field information. Precision planting and seeding equipment also ensure the efficient use of seeds, fertilizers, nutrients, herbicides, and pesticides, thereby reducing the wastage of valuable resources. Precision planting and seeding equipment also involve the use of mapping software, variable rate technology (VRT), smart sensors, yield mapping, and other techniques that help increase crop yield and enhance land fertility and profitability. Additionally, precision planting and seeding equipment help reduce energy and fuel consumption by utilizing satellite guidance technologies, such as GPS or GIS, in navigation applications.

Restraint: The cost of purchase, operation, and maintenance is high

Precision planting equipment is expensive, which is a major constraint on the market. GPS, drones, GIS, VRT, and satellite devices, as well as skilled personnel, are all used during precision planting, which incurs additional running and maintenance costs. It costs more to run a precision planter per acre than to seed with an air seeder or to drill with an opener drill. To handle precision planting equipment efficiently, farmers or growers need technical knowledge. The poor farmers in developing countries such as India, China, and Brazil, therefore, do not use these tools and techniques.

Opportunities: Integration of smartphone applications with precision planting equipment

Presently, around 3.8 billion people in the world use smartphones, which is 48% of the global population. China, India, and the US are the countries with the highest number of smartphone users. Smartphones comprise multiple user-friendly applications that help them ease their day-to-day work. Similarly, they are helping farmers by providing information about weather and climate conditions to enable quick and effective decision-making. Most agriculture-based companies are nowadays developing mobile-based applications for farmers to make their work easier. These smartphone applications are linked to hardware, such as sensors, GPS receivers, and cameras to collect images, samples, and field data. Furthermore, they are connected to software to display the collected data and help farmers in quick decision-making. Mobile-based applications are helping farmers to save time and money. Farmers are using smartphones for routine day-to-day tasks, such as checking watering equipment, identifying weeds and pests, and checking the prices of commodities.

Challenge: Unavailability of single platform for integration of farm data

Various interfaces, technologies, and protocols are used in precision planting equipment. Data representation is hindered by the lack of technological standardization and the difficulty of integrating systems. In order for the precision planting market to grow, data integration on a single platform is a major challenge. A high volume of relevant data is regularly generated by precision planting from a variety of sources. The majority of these data relate to mapping, variable rate seeding, soil testing, weather change, yield monitoring, and historical crop rotation. Precision planting relies entirely on this data for assessing farm conditions and making decisions, so it must be properly integrated into a single platform.

The majority of equipment manufacturers use proprietary interfaces and communication protocols, making their devices incompatible with each other. In order to maximize yields, these brands must work together to develop systems that are compatible with each other. As a result, agriculturists and farmers face challenges receiving different equipment from different brands, integrating them, and building smart planting systems. In turn, this challenges the growth of precision planting.

Precision Planting Market Ecosystem

High-speed precision planting systems to led the precision planting market during the forecast period

Precision planting market share will continue to be dominated by high-speed precision planting systems in 2022 and similar trend is expected to be continued by 2027. Farmers are becoming more aware of the benefits of using these planting systems as well as the high return on investment (ROI). With GPS-based auto-guidance planters, growers can reduce seed overlap during the planting process, thereby reducing input costs substantially.

Hardware segment to account for largest market share of precision planting market during the forecast period

Precision planting market share is expected to remain high in the hardware segment until 2027. Increasing adoption of automation and control devices, such as drones/unmanned aerial vehicles (UAV), GPS devices, control systems, guidance systems, delivery systems, and display systems, has contributed to the growth of this segment. Planters use hardware such as delivery systems, control systems, seed meters, sensors, and GPS devices to ensure accurate seed placement and uniform seed distribution. Agricultural vehicles use GPS-based auto-guidance technology to reduce overlapping during field mapping, which in turn saves fuel, labor, and time, and compacts soil. Precision planting hardware market growth is expected to be driven by the increasing adoption of advanced planting and seeding equipment with new features such as VRT and guidance systems for precision planting.

The precision planting market is expected to see higher growth rate for the electric drive segment during the forecast period

The electric drive makes precision planter and seeding systems simpler. Farmers for whom corn is a secondary crop say the cost of a new planter forces them to keep fixing, modifying, and upgrading the older unit. By using electric motors, farmers or growers are able to control individual row units at a variable rate. As energy consumption on farm equipment increases, they have a clear advantage over mechanical, hydraulic, and pneumatic components. The power delivery of an electric motor is consistent and uniform. The regulation of electricity is more precise than any other power source. As a result, seed placement functions in planters and drills are more accurate. With electric drive metering, hydraulic requirements such as chains, sprockets, and gears are eliminated. With fewer parts, the metering system will be simpler. These systems also eliminate frequent maintenance, as there are no drive chains, ground wheels, shafts, clutches, and sprockets. An electric drive powers a shaft that turns a seeding meter. The electric motor can be controlled over ISO-compatible systems and offer farmers row shutoff capability. Electric drives are majorly used to simulate row crop seeds. Electric drives have fewer moving parts and can potentially respond more quickly than other drive mechanisms. In most precision planters, electric drives replace hydraulic drives. Electric drive seed meters are largely used for seed rate control and on rough fields where planter performance is hampered due to high speed. The speed of seeding of electric drive systems is almost double that of mechanical/hydraulic drive systems. Deere & Company (US), and Precision Planting (brand of AGCO) (US) are among the key players that offer precision planters and seeders with electric drive.

Americas likely to lead precision planting market during the forecast period.

Precision Planting Market by Region

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The Americas is segmented into North America and South America. North America is expected to account for the largest share of the precision planting market during the forecast period, owing to the presence of a substantial number of large-sized farms and major players, such as Deere & Company (US), Precision Planting (brand of AGCO) (US), Kinze Manufacturing Inc. (US), and Topcon Positioning Systems (US) in this region. These companies have contributed to the growth of the precision planting market by launching innovative products and services, and extensively investing in the R&D of precision planting technologies. Further, countries in this region, such as the US and Canada, are the early adopters of precision planting technologies since these countries have a large number of progressive farmers with bigger farms. South America plays a significant role in the global trade of agricultural products, especially in terms of exports. The region is a net exporter of important agricultural commodities, accounting for 18% of the total global agricultural and food exports.

Key Market Players

Deere & Company (US), Trimble Inc. (US), CNH Industrial N.V. (UK), Kinze Manufacturing, Inc. (US), and Precision Planting (brand of AGCO) (US) are among the major players in the precision planting market.

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Scope of the Report

Precision Planting Market Highlights

This research report categorizes the precision planting market, by offering, system type, drive type, farm size, application, and region available at the regional and global level

Recent Developments

• In October 2022, Trimble Inc. introduced next-generation displays for precision agriculture applications—the Trimble GFX-1060 and GFX-1260 guidance displays. Farmers can map and monitor field information in real time with precision and complete in-field operations quickly and efficiently with these displays.
• In February 2022, CNH Industrials’ brand Case IH launched the 2150S Early Riser front-fold trailing planter to give producers a high-performance split-row configuration option to increase planting productivity.
• In February 2022, Kinze Manufacturing has introduced its new 3505 True Speed high-speed planter for the 2023 planting season, providing advanced technology and improved productivity for small farms and small fields.
• In November 2021, Vaderstad Industries Inc. launched Tempo L Central Fill can be configured with 16 or 24 rows, allowing for a row spacing of 450 to 762 mm.
• In June 2021, Deere & Company signed a partnership agreement with Mobile Track Solution to provide digital solutions for precision farming.
• In November 2020. Deere & Company acquired Harvest Profit; a leading provider of software used in precision farming.

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