Precision Viticulture Market Set to Witness an Uptick during 2020 to 2027

Posted by Mrudula Anil Karmarkar on April 30th, 2021

The global precision viticulture market size is expected to reach USD 2.55 billion by 2027, registering a CAGR of 9.2% from 2020 to 2027, according to a new report by Grand View Research, Inc. The increasing focus of farmers on ensuring farm productivity coupled with the rising need to monitor grape quality is the key factor driving the adoption of advanced technology solutions at vineyards. Moreover, the demand for high-quality grapes from vine manufacturing companies is further encouraging vineyard owners to adopt precision viticulture technologies at vineyards.

Precision viticulture also includes the use of services including system integration and consulting, farm operation services, supply chain management services, and climate information services, for grape cultivation. These services are provided to the vineyard owner for assisting in the proper implementation and integration of precision technologies in vineyard practices. Moreover, the companies also offer data and analytics services that provide an in-depth analysis of the vineyards based on the data collected by different hardware and software components. The need for quality produce and better farm management is propelling the demand for precision viticulture technologies worldwide.

Moreover, the use of drones has been increasing over the years owing to the advancements in guidance systems in combination with automation. Drones provide real-time imagery and state of the crops and soil. This helps growers take preventive action to avert crop damage by analyzing/monitoring crops and identify areas where the crop is infected or has chances of failure. Vine grapes are considered high-value crops and therefore require proper maintenance and monitoring. Thus, the adoption of technologies in vineyard practices is anticipated to further witness growth during the forecast period.

Thus, advancements in technology and growing awareness among growers regarding the benefits offered are collectively driving the adoption of technologies for vineyard cultivation worldwide. Real-time monitoring of fields enables growers to undertake requisite steps necessary for reducing waste or crop failure. The quality of the grapes is of utmost importance for the vineyard owners and therefore they prefer using advanced technologies for in-depth monitoring of grapes under cultivation/production. Moreover, the use of advanced technology in vineyards helps in the optimized utilization of fertilizers using variable rate technology (VRT). VRT enables farm owners/growers in fertilization, weed control, irrigation, and seeding based on the requirement of the soil or plant. Reduction in production cost and better-quality produce are some of the benefits offered by the precision viticulture technologies.

Precision Viticulture Market Report Highlights

  • The hardware segment held the largest market share in 2020 owing to the increasing use of technologies such as Global Positioning System (GPS), environmental sensors, drones, and remote sensing for capturing high-resolution spatial data
  • The cloud-based software segment is anticipated to register the highest CAGR during the forecast period. Elimination of infrastructure cost is the key factor driving the growth of the segment
  • Guidance systems held the largest revenue share of 29.4% in 2020 owing to greater use of GPS systems for capturing and recording highly analytical spatial data
  • Europe accounted for the largest revenue share in 2020, followed by the Asia Pacific and the Middle East and Africa. The presence of large vineyards and increased adoption of precision viticulture technologies among growers in the region are the primary factors supporting high regional market share
  • Some of the prominent players in the market include Deere & Company, Trimble, Topcon, Teejet Technologies, and Aha Viticulture

The use of precision technologies for farm applications requires technical knowledge and a pre-requisite skill set. The use of drones, driverless tractors, guidance systems, and other state-of-the-art technologies for farm practices require a high understanding of the procedures. Although the governments across several countries are undertaking steps to promote the adoption of precision technologies for farming practices, the lack of technical know-how among growers coupled with the shortage of skilled labor is collectively hindering the market growth.

The yield monitoring segment dominated the global precision viticulture market in 2020 with a revenue share of over 41%. The segment is anticipated to maintain its dominance over the forecast period owing to the benefits offered in terms of identifying the effects of both internal and external forces such as weather, soil properties, pesticides, and fertilizers on the yield. Yield monitoring can be done on-farm as well as off-farm. The on-farm yield monitoring provides the grape growers with real-time information during harvest. It also enables the grape growers to generate yield maps for identifying areas of different crop yields. This further enables efficient planning and management of the production using spatial yield trends, thereby improving the overall crop productivity.

Based on application, the market is further segmented into field mapping, weather tracking and forecasting, crop scouting, irrigation management, farm labor management, and inventory management. The weather tracking and forecasting segment is anticipated to register a CAGR of over 13.6% during the forecast period. Sensors are used for providing accurate weather tracking and forecasting. Moreover, the use of advanced data analytics services helps winegrowers to monitor the crops per the weather and respond quickly to weather changes. The imminent need for crop safety and to ensure crop quality is expected to be the driving factor for the segment growth.

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The market for precision viticulture is moderately fragmented with the presence of several market players. In a bid to gain early movers’ advantage and strengthen their market positions, the players are embracing various strategies, including product development, strategic collaborations, and mergers and acquisitions. For instance, in November 2020, Trimble Inc. announced the launch of its new GNSS receiver, Trimble R12. Powered by the Real-Time Kinematic and Trimble RTX positioning engine, Trimble R12 enables a faster survey of the field and reduces the owner’s dependency on conventional techniques by improving the measurement reliability, position accuracy, and precision levels of the survey conducted. Further, in May 2018, Deere & Company announced the launch of 5075GL tractor for vineyard and orchard growers. The launch was in line with the company’s strategy to provide an optimum solution for the producers of high-value crops. Some of the prominent players in the precision viticulture market include:

  • Deere & Company
  • Trimble
  • Topcon
  • Deveron UAS
  • Groupe ICV
  • Atlas Vineyard Management, Inc.
  • Teejet Technologies
  • Tracmap
  • Ateknea Solutions
  • Aha Viticulture

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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