On January 2, 2018, Raven Industries (US) completed the acquisition of AgSync, Inc., headquartered in Indiana, US. This acquisition is expected to enhance the Slingshot platform of Raven Industries by delivering a seamless logistics solution for agriculture retailers, custom applicators, and enterprise farms. AgSync, an ag logistics software company, has expertise in precision agriculture logistic management that already compliments the Raven Slingshot solution. With the integration of AgSync’s systems and expertise, Raven Industries will be able to offer an end-to-end logistics solution in the market, improving the bottom-line of its core customers.
Analysis by MarketsandMarkets™:
Sachin Garg – AVP : Semiconductor and Electronics, at MarketsandMarkets™, shares his point of view as mentioned below:
This acquisition is expected to improve agricultural efficiency by managing large fleets in multiple locations. The acquisition is aligned with the commitment of Raven Industries to provide outstanding quality, services, and innovative solutions to its customers in precision farming logistics and inventory management. AgSync has been a strategic partner of Raven Industries for several years, and the acquisition of AgSync by Raven Industries will further strengthen its capabilities into the precision farming market.
What will be the scenario of the market for farm inventory management solutions from 2018 to 2023? The precision farming market for inventory management software and services was valued at USD 241.0 million in 2018 and is expected to reach USD 409.0 million by 2023, at a CAGR of 13.38% from 2018 to 2023. The farm inventory management software often organizes and tracks materials, chemicals, equipment, irrigation parts, and more. Farm inventory management software makes it easy to buy pesticides, fertilizers, and other necessary materials online and allows to track inventory on consignment, transfer inventory from one location to another, as well as keep track of inventory through user-specified locations such as barn and warehouse.
Source: MarketsandMarkets™ Analysis
What will be the scenario of the market for precision farming automation and control tools based on guidance systems, remote sensing, and variable rate technology from 2018 to 2023?
Precision farming, or precision agriculture, is a modern farming management concept that involves the use of digital technologies to monitor and optimize agricultural processes and to maintain sustainability in farm production. Precision farming is based on the optimized management of inputs in a field according to actual crop needs. It involves data-based technologies, including satellite positioning systems such as GPS, remote sensing, and the internet, to manage crops and optimize the use of resources such as fertilizers, pesticides, and water.
Currently, the precision farming market is in an introductory growth phase and is expected to grow further due to the increasing adoption of Global Positioning System (GPS), guidance system, and remote sensing technology by farmers. The precision farming market was valued at USD 4.42 billion in 2017 and is expected to reach USD 9.53 billion by 2023, at a CAGR of 13.38% from 2018 to 2023.
The most significant factor driving the precision farming market is the strong focus on increasing farm efficiency and crop productivity. Precision farming has the potential to transform the agricultural sector, making the traditional farming activity more efficient and predictable. Increasing global food demand, extended profitability and crop yield, and crop health monitoring for higher yield production are the major factors fueling the growth of the precision farming market. Also, government initiatives in many countries such as Australia, China, and India are helping farmers to use optimized agricultural and technological tools and improve their production levels.
“Major strategies adopted by key companies in the precision farming market”
During 2016–2018, major players adopted strategies such as acquisitions, partnerships, and product launches and developments to achieve growth in the precision farming market. For instance, in September 2017, John Deere acquired Blue River Technology, a start-up in the artificial intelligence space. This acquisition is expected to help the Deere & Company to expand its business and strengthen its market position in the precision farming market. Similarly, in November 2017, Topcon Positioning Systems launched an IoT farm management information system (FMIS) for data analytics and visualization.
A few major players in the precision farming market are as follows: Deere & Company (John Deere) (US), Trimble, Inc. (Trimble) (US), AGCO Corporation (AGCO) (US), AgJunction Inc. (AgJunction) (US), Raven Industries Inc. (Raven) (US), AG Leader Technology (AG Leader) (US), Precision Planting, Inc. (Precision Planting) (US), Topcon Positioning Systems, Inc. (Topcon Positioning Systems) (US), CropMetrics LLC (CropMetrics) (US), Agribotix LLC (Agribotix) (US), The Climate Corporation (Climate Corp) (US), ec2ce (ec2ce) (Spain), Descartes Labs, Inc. (Descartes Labs) (US), Gamaya (Gamaya) (Switzerland), Granular, Inc. (Granular) (US), Prospera Technologies (Prospera) (Israel), Autonomous Tractor Corporation (ATC) (US), Decisive Farming (Decisive Farming) (Canada), Hexagon Agriculture (Hexagon Agriculture) (Brazil), and Autocopter Corp (Autocopter) (US).
According to the UN Food and Agriculture Organization, to feed the growing population on earth, the world will need to produce 70% more food in 2050 than it did in 2006. To meet this demand, farmers and agricultural companies are turning to the Internet of Things (IoT) for analytics and greater production capabilities. Internet of Things (IoT) can play a vital role in increasing productivity of farm on per acre basis, monitoring the crop field and automating the irrigation. With the use of sensors in farms and farming tools, IoT-based smart farming offers real-time data and alarms, which enables farmers to take corrective and preventive actions. Hence, IoT is the most reliable approach for monitoring and predicting critical variables such as water quality, ambient temperature and moisture, and soil condition, which impacts the crop quality, yield, and the returns. Thus, IoT-based precision farming has the potential to transform the agricultural sector, making the traditional farming activity more efficient and productive.