US-based global business development firm TerraMetric has teamed up with international consulting and research firm Euroconsult to produce a new study titled, "EO4AG - Earth Observation for Agriculture".
With both companies operating in the space and geospatial markets, TerraMetric's specialised knowledge of the agriculture market has helped create a report that provides an in-depth analysis of the global trends, vertical integration opportunities and regional demand forecasted for Earth observation-based services and products addressing the agriculture sector.
The two companies forecast that by 2029 the total agricultural market is expected to double in value to reach over $815 million. While government-driven sales are foreseen to remain significant, the uptake of precision agriculture solutions within the private sector due to expected near-global broadband coverage is expected to be the main catalyst behind this anticipated market growth.
Precision agriculture incorporates a broad range of technology areas. In this context, it refers to supporting commercial agricultural supply chains by providing Earth observation-based solutions and tools to back farming optimization processes, as well as research and development initiatives.
For precision agriculture to evolve, connectivity will be essential. Several outside factors, such as the expansion of automated analytics and the emergence of low Earth orbit (LEO) broadband constellations, are expected to act as catalysts for significant growth in the reach and efficiency of existing precision agriculture capabilities attributed to better connectivity.
Drawing on these trends and technology developments, the total addressable market for precision agriculture is thus expected to equate to a little over $4 billion by 2029, according to the research's forecasts.
"As a company that specialises in bringing new space tech and geospatial data to market to support a wide range of businesses, we clearly see, in our analysis, the largely untapped potential for Earth Observation data to support commercial agricultural supply chains," explained TerraMetric CEO Clint Graumann.
He added: "While the precision agriculture market has made great strides, it has significantly more potential if the right service models and solutions can be found. With this research, we aimed at providing Earth observation companies with more clarity as to how the agriculture sector does business while presenting AgTech stakeholders with a holistic assessment of the solutions coming to market in the next 10 years."
"At a time when the advancements in connectivity brought by new Low Earth Orbit (LEO) constellations are poised to transform the precision agriculture market, partnering with TerraMetric, has been invaluable for us to be able to provide our clients with a two-folded approach by which we sought to bridge the knowledge gap between the Earth observation community and the AgTech market," said Pacome Revillon, CEO of Euroconsult.
The study is available now and can be ordered directly from the TerraMetric and Euroconsult websites.