From Traditional to Tech-Driven: APAC Precision Farming Market Ripe for Growth

The Asia-Pacific Precision market is projected to grow at a compound annual growth rate (CAGR) of 16.4 per cent to reach $2.62 billion by 2026, according to a report by Markets and Markets. The increasing use of cloud-based technology, the growing adoption rate of modern farming techniques to enhance productivity and growing food demand are the major factors driving the precision agriculture market. The growing need to increase food production in the available agricultural land and government initiatives to increase the usage of modern technologies in agriculture are propelling the market growth. However, the requirement of high initial investment and lack of awareness among the farmers are becoming obstacles to growth. The silver lining, though, is that in the Asia-Pacific region, the precision farming industry is steadily taking root through joint ventures between global agri-tech players and local companies. Let’s explore further.

- Dipti Barve

AGCO Corporation, a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology from the US and Trimble, a global technology company delivering solutions from the US on April 1 announced the closing of their joint venture (JV) transaction. The JV, known as PTx Trimble, combines Trimble’s precision agriculture business and AGCO’s JCA Technologies to form a new company that will better serve farmers with factory fit and retrofit applications in the mixed-fleet precision agriculture market.

The formation of PTx Trimble enhances AGCO’s comprehensive technology offering around guidance, autonomy, precision spraying, connected farming, data management and sustainability. Both these companies have a strong presence in the Asia Pacific region.