Precision Agriculture Systems & Services in the UK - Market Research Report (2013-2028)
London, United Kingdom
Last Updated: September 2023
SIC SP0.101Revenue
£135.7m
Past 5-Year Growth
Profit
£X.Xm
Employees
1,232
Businesses
106
Wages
£XX.Xm
Precision Agriculture Systems & Services in the UK industry analysis
Revenue is forecast to climb at a compound annual rate of 2.2% over the five years through 2023-24 to £135.7 million. The primary driver of revenue growth is agricultural income, business capital expenditure and the depreciation of the pound. Despite the onset of economic uncertainty following the Brexit vote, the pound's depreciation increased the relative value of payments from the Common Agricultural Policy as it is paid to UK farmers in euros. This contributed to rising agricultural income, helping farmers afford pricey precision agricultural systems and services.Significant inflationary pressures since the pandemic have actually aided farmers, as rising output prices led to increases in agricultural income, giving farmers more money to invest in new technology and systems. This spurred a strong revenue bounce back of 14.1% and 10% respectively over the two years through 2022-23. During 2023-24, revenue growth is expected to slow to 3% as inflationary pressures ease and interest rates hike the cost of borrowing.Revenue is forecast to expand at a compound annual rate of 6.3% over the five years through 2028-29 to £184.5 million. Ongoing technological advancements are likely to be a key driver of growth in the coming years as new developments make advanced technologies more affordable, and even lead to the development of completely new precision agricultural products. However, technology innovation may even threaten the industry. The recent commercialisation of the space sector could boost the reliability and reduce the costs of industry products segments that are currently less accepted by downstream markets. Innovation outside the industry, such as vertical farming, could replace demand for industry services.
Trends and Insights
- UK farms lag behind in precision agriculture tech adoption. Due to smaller-scale farms than the US and Canada, systematic cost inefficiencies have limited the uptake of precision agricultural technology in the UK farming industry.
- UK farmers profit from soil mapping services. Soil mapping, with benefits including nutrient mapping and variable-rate tech application, forms a significant source of revenue for UK's precision agriculture industry since it's seen as a better value due to lower capital requirements.
- London draws tech-heavy companies with its talent pool. In a city bursting with skilled workers, technology-driven enterprises find a thriving hub, capitalising on economies of scale and prime access to innovative minds.
- Larger companies are integrating agricultural systems into machinery. Big names like John Deere and AGCO are embedding precision technology into their products but face challenges due to high costs and increased competition from cheaper services like soil mapping.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 2.2 % over the past five years, to reach an estimated £135.7m in 2023.
Trends and Insights
The scale of UK firms hinders sales
- Farms in the UK are dwarfed by those located in the US and Canada. For example, the average UK farm was 87 hectares in 2022, while the average US farm was 180.5 hectares in 2022, and 327.4 hectares for Canada in 2021.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Technological innovations will improve precision agricultural products and services
- The falling cost of launching satellites into orbit following the commercialisation of the space sector by firms like SpaceX and Blue Origin.
Biggest companies in the Precision Agriculture Systems & Services in the UK
| Company | Market Share (%)
2024 | Revenue (£m)
2024 |
|---|---|---|
John Deere Limited | 23.2 | |
AGCO Corporation | 14.2 | |
Allflex UK Group Limited | 7.2 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Soil mapping, Livestock management and Variable-rate application technology. Soil mapping is the largest segment of the Precision Agriculture Systems & Services in the UK.
Trends and Insights
Farmers are reaping the rewards from soil mapping
- Soil mapping services are generally carried out by low-earth orbiting satellites or unmanned aerial vehicles (UAVs), depending on the price paid and area of land to be covered.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Agricultural & Forestry Machinery Manufacturing in the UK
- Agricultural Machinery & Equipment Wholesaling in the UK
- Agricultural Insurance in the UK
International industries
- Precision Agriculture Systems & Services in the US
Table of Contents
About this industry
Industry definition
Industry operators develop systems, software and testing applications that gather, track and analyse agricultural data to improve productivity on farms. Software and systems may be packaged as individual units for sale to downstream markets or integrated into third-party products, such as farm machinery.
What's included in this industry?
Soil mappingLivestock management Variable-rate application technologyGNSS services Guidance systemsCompanies
John Deere LimitedAGCO CorporationAllflex UK Group LimitedPurchase this report to view all 6 major companies in this industry.
Related Terms
DRIVETRAINMANAGEMENT BUYOUTGLOBAL NAVIGATIONAL SATELLITE SYSTEM (GNSS)UNMANNED AERIAL VEHICLES (UAVS)GLOBAL POSITIONING SYSTEM (GPS)Industry Code
SIC 62.01 - Precision Agriculture Systems & Services in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
UK farms lag behind in precision agriculture tech adoption. Due to smaller-scale farms than the US and Canada, systematic cost inefficiencies have limited the uptake of preci...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
UK farmers profit from soil mapping services. Soil mapping, with benefits including nutrient mapping and variable-rate tech application, forms a significant source of revenue...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London draws tech-heavy companies with its talent pool. In a city bursting with skilled workers, technology-driven enterprises find a thriving hub, capitalising on economies ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Larger companies are integrating agricultural systems into machinery. Big names like John Deere and AGCO are embedding precision technology into their products but face chall...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Integrating agricultural systems into machinery proves a winning formula. John Deere Limited and AGCO Corporation embed precision agricultural systems into their machinery, e...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of John Deere Limited's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of AGCO Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Allflex UK Group Limited's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for John Deere Limited, and factors influencing its performance in the industry
- Description and key data for AGCO Corporation, and factors influencing its performance in the industry
- Description and key data for Allflex UK Group Limited, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Livestock tagging gains momentum in the UK. This is becoming a mandatory practice to improve herd management and disease control, especially for cattle, as indicated by leadi...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Inflation weighs on farmers' profitability, hurting tech companies' profit. Rising cost inflations for essential farm inputs, wages for skilled staff and supply chain disrupt...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2021)
- Coverage Ratios (2017-2021)
- Leverage Ratios (2017-2021)
- Operating Ratios (2017-2021)
- Assets (2017-2021)
- Liabilities (2017-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Precision Agriculture Systems & Services in the UK industry in United Kingdom in 2024?
The market size of the Precision Agriculture Systems & Services in the UK industry in United Kingdom is £135.7m in 2024.
How many businesses are there in the Precision Agriculture Systems & Services in the UK industry in 2023?
There are 106 businesses in the Precision Agriculture Systems & Services in the UK industry in United Kingdom, which has grown at a CAGR of 5.3 % between 2018 and 2023.
Has the Precision Agriculture Systems & Services in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Precision Agriculture Systems & Services in the UK industry in United Kingdom has been growing at a CAGR of 2.2 % between 2018 and 2023.
What is the forecast growth of the Precision Agriculture Systems & Services in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Precision Agriculture Systems & Services in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Precision Agriculture Systems & Services in the UK market in United Kingdom?
The biggest companies operating in the Precision Agriculture Systems & Services market in United Kingdom are John Deere Limited, AGCO Corporation and Allflex UK Group Limited
What does the Precision Agriculture Systems & Services in the UK in United Kingdom include?
Soil mapping and Livestock management are part of the Precision Agriculture Systems & Services in the UK industry.
Which companies have the highest market share in the Precision Agriculture Systems & Services in the UK in United Kingdom?
The company holding the most market share in United Kingdom is John Deere Limited.
How competitive is the Precision Agriculture Systems & Services in the UK industry in United Kingdom?
The level of competition is low and increasing in the Precision Agriculture Systems & Services in the UK industry in United Kingdom.
