SYDNEY, Oct. 26, 2016 /PRNewswire/ -- The global precision agriculture market is currently at a nascent stage of growth. With the rise of tech savvy Gen Y and millennial farmers as well as the need for increased cost efficiencies associated with climate change, including water management and pollution control, Frost & Sullivan anticipates a substantial increase in precision agriculture over the next 5 years, especially in markets such as North America and Australia.
The Australian precision agriculture market accounted for approximately 7.2 percent of the global market share in 2015 and is forecast to increase its share over the next 5 years. Adoption of remote monitoring, Big Data, variable rate technology and farm management software will also drive the precision agriculture market.
Frost & Sullivan's latest study, Australian Precision Agriculture Market – Forecast to 2020 finds that the market will reach A$508M by 2020. While growth will be moderate in 2016 and 2017, there will be steady increases through to 2020.
The precision agriculture market in Australia represents a significant opportunity for AgriTech companies such as AgDNA, PCT, Observant, Trimble, Ovass, The Yield, Software Objectives, Ninox Robotics, Falcon UAV, Drone AG, Swarm Farm and FarmBot.
Hardware sales currently dominate the bulk of the Australian precision agriculture market revenues. However, as the market matures, service and support revenues, along with communication revenues, will gain market share.
"Information and communication technologies play an important role in precision agriculture as communication solutions providers are a critical link in ensuring that data gathered from the farm is transmitted for further analysis," noted Audrey William, Head of Research, ICT Practice, Frost & Sullivan Australia & New Zealand. "Due to the remote location of farms, most of this data and the necessary analytic platforms are hosted in the cloud. The game changer for the market will be in successfully leveraging powerful artificial intelligence platforms in order to make relevant recommendations based on predictive analysis."
Big Data and artificial intelligence will play an important role in the precision agriculture landscape, incorporating intelligent systems such as drones and driverless tractors. The farm equipment, livestock, and crop management sectors will be amongst the first to adopt precision agriculture solutions in Australia.
"Broadacre cropping technology is the most widely used in the Australian agriculture industry, in particular global navigation satellite system (GNSS)-enabled guidance/auto steering solutions," said Dev Anand Dorasamy, Research Analyst, Industrial Practice, Frost & Sullivan Australia & New Zealand. "Automation type precision agriculture solutions are currently employed mainly in irrigation. However they will play an important role in the farms of the future, where direct labour input will be minimised and much of the farm management will be done remotely."
"The establishment on an open data protocol for easy sharing and integration of data from various sources will be critical for the Australian agriculture market to unlock the value of farm generated data," added Dorasamy.
Australian Precision Agriculture Market – Forecast to 2020 Report, is part of the Frost & Sullivan Australian Digital Transformation Research program. All research services included in this subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. For queries and more information please send an e-mail with your contact details to David Hymers, Frost & Sullivan Australia, at firstname.lastname@example.org.
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SOURCE Frost & Sullivan