Report Overview
"Kenya Precision Agriculture Market" is expected to grow at a high CAGR during the forecast period (2024-2031).
New product launches, expansion of facilities, mergers, and acquisitions, and strategic partnerships are vital strategies adopted by most companies to contribute to the growth of the company and improve their market growth rate.
Precision agriculture is a farming management concept based on observing, measuring, and responding to inter and intra-field variability in crops. The goal of precision agriculture research is to define a decision support system (DSS) for whole-farm management to optimize returns on inputs while preserving resources.
Market Summary
| Metrics | Details |
| Market CAGR | High |
| Segments Covered | By Technology, By Offering, By Application, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Market Dynamics
Increasing demand for food products, the need for optimization of resources, and growing awareness about the implementation of digital agriculture are the major factors boosting the growth of the Kenya Precision Agriculture Market.
The Kenya precision agriculture market is primarily driven due to the increasing demand for food in Kenya. The Food and Agriculture Organization (FAO) of the United Nations estimates that almost one-quarter (24.2%) of Kenyans are estimated to still suffer from undernourishment in 2016. Currently, in 2019, 46 percent of the population lives on less than 1 USD a day, 36.5 percent are food insecure and 35 percent of children under five are stunted (chronically malnourished) in Kenya. According to the World Food Program, the number of people that are acutely lacking food security in Kenya has risen to 3.4 million from August 2017 to February 2018 up from 2.6 million from February to July 2017. This deterioration of food security mostly in the arid and semi-arid zones of the country has been the result of poor rainy seasons affecting crop productivity. This is because the majority of farmers in Kenya produce poor yields due to poor farming techniques, nutrient deficiency, and lack of water. Land degradation is particularly acute in sub-Saharan African regions where long–term overuse of soil and low, unpredictable rainfall are prime reasons for poor food production. The farmers are so poor they take everything they can out of the soil and are not willing to invest in fertilizers because the growing season is very risky. Thus, companies and the government of Kenya are collaborating on precision agriculture research projects to improve agricultural productivity and crop yield. For instance, in April 2019, a group of scientists from Africa, the UK, and Zambia is pushing for the adoption of precision agriculture with a focus on soil fertility monitoring to enhance knowledge-driven smallholder farming in Africa.
However, precision agriculture has some disadvantages such as high initial and maintenance costs. The huge cost associated with precision agriculture equipment is expected to negatively affect the growth of the market.
Market Segmentation Analysis
Based on the offering, the market is segmented as software, hardware, and services. Software services in precision agriculture include real-time insights which help monitor real-time reports of labor and inputs that impact crop production, yield monitoring that helps the user measure yield for a specific location, and a built-in accounting feature that enables the user to keep records of crop yields and profitability. Inventory management, labor management, traceability of food production, weather records are some other essential features offered by the software services segment of precision agriculture. The software services segment of the Kenya Precision agriculture market is expected to witness healthy growth rates in the feature owing to the rising number of agricultural technology start-ups in Kenya coupled with rapid enhancements in agricultural R&D activities. According to the Precision Agriculture Development (PAD) organization, research in Kenya shows that sugar cane farmers working with Mumias Sugar Company who received agricultural advice via SMS experienced yield gains of 11.5 percent. By reporting delays in input deliveries through the phone system, interruptions in fertilizer distribution were reduced by 21.6 percent.
Start-ups in this region are focusing on the development of innovative software solutions to provide extensive precision agriculture solutions in helping the farmers improve their productivity and crop yield. Nigerian agri-tech startup, Hello Tractor which offers an IoT-enabled digital mechanized farming solution has partnered with the Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA) to expand its services across Nigeria and Kenya, connecting 5,000 smallholder farmers to mechanization services. UjuziKilimo, a Kenyan startup, uses big data and analytic capabilities to transform farmers into a knowledge-based community, to improve productivity through precision insights which helps adjust irrigation and determine the needs of individual plants. The growing awareness for software services in precision agriculture will drive the software segment of the Kenya precision agriculture market in the forecast period.
Market Competitive Landscape
New product launches, expansion of facilities, mergers, and acquisitions, and strategic partnerships are vital strategies adopted by most companies to contribute to the growth of the company and improve their market growth rate.
For instance, in August 2018, John Deere introduced new precision agriculture solutions and updated software services which include new products such as the 4240 Universal Display, AutoTrac Universal 300 guidance solution, and updated 18-2 Gen 4 software, which is designed to help farmers farm even better in 2019 and beyond.
Furthermore, in January 2018, Agribotix, a Colorado-based company specializing in drone-enabled agricultural intelligence, collaborated to integrate its UAS platform with John Deere. Agribotix will deploy its FarmLens ag-drone platform to empower John Deere dealers.
