Industry Statistics and Trends
Market size and recent performance (2016-2031)
Industry revenue has grown at a CAGR of 5.9 % over the past five years, to reach an estimated £156.5m in 2026.
Trends and Insights
Agricultural labour shortages heighten demand for precision systems and services
- The acute labour shortage in the UK agricultural sector continues to affect the sector in 2025-26, with the Department for Food, Environment and Rural Affairs (Defra) reporting a 1.9% decline in the workforce to 279,000 in the year to June 2025. The shortage is particularly pronounced in the dairy sector, where 84% of farmers reported recruitment difficulties in a 2025 survey by Arla Foods. Despite a 27% wage hike since 2019, attracting and retaining workers remains a challenge, suggesting that wage increases alone are insufficient to resolve the shortage.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2026-2031)
Market size is projected to grow over the next five years.
Trends and Insights
Emerging farming methods challenge the precision agriculture industry
- The growth of vertical farming poses a direct threat to the traditional precision agriculture market. Since vertical farming operates in controlled environments, it negates the need for typical precision agriculture technologies such as GPS guidance systems, soil sensors and weather monitoring.
Biggest companies in the Precision Agriculture Systems & Services in the UK
| Company | Market Share (%)
2026 | Revenue (£m)
2026 |
|---|---|---|
Allflex UK Group Limited | 14.5 | |
AGCO Ltd | 13.6 | |
John Deere Ltd | 10.3 |
To view the market share and analysis for all 5 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
Precision livestock management systems expand with labour shortages
- Precision livestock management systems, including wearable monitors like ear tags and neck collars and automated milking systems with integrated sensors, are revolutionising herd management by automating vital tasks such as heat detection and health monitoring. These technologies convert manual observations into data-driven strategies, significantly enhancing operational efficiency.
- More insights available in the full report
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?
Products and services covered in the Precision Agriculture Systems & Services industry in the United Kingdom include Soil mapping, Livestock management , Variable-rate application technology, GNSS services and Guidance systems .Companies
Companies covered in the Precision Agriculture Systems & Services industry in the United Kingdom include Allflex UK Group Limited, AGCO Ltd and John Deere Ltd.Purchase this report to view all 5 major companies in this industry.
Related Terms
Related terms covered in the Precision Agriculture Systems & Services industry in the United Kingdom include drivetrain, management buyout, global navigational satellite system (gnss), unmanned aerial vehicles (uavs) and 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
Agricultural labour shortages are increasing the demand for precision systems and services. The UK agricultural sector faces workforce decline, especially in dairy, prompting...
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 (2016-2025) and forecast (2026-2031)
- Employees, including historical (2016-2025) and forecast (2026-2031)
- Businesses, including historical (2016-2025) and forecast (2026-2031)
- Profit, including historical (2016-2026)
- 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
Precision livestock management systems are expanding due to labour shortages in farming. Technologies like wearable monitors and automated milking systems enhance herd manage...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2026
- Product innovation level
Charts
- Products & services segmentation in 2026
- Major market segmentation in 2026
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 2026
Tables
- Number and share of establishments in each region in 2026
- Number and share of revenue each region accounts for in 2026
- Number and share of wages each region accounts for in 2026
- Number and share of employees in each region in 2026
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
Vertically integrated equipment manufacturers dominate the UK precision agriculture market. Companies like John Deere and AGCO lead by bundling machinery production and preci...
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 2021-2026
- 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
John Deere focuses on retrofitting and subscription models to boost revenue from new products. By leveraging these strategies, the company removes high upfront cost barriers,...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2022 through 2026
- Major companies in the industry, including market share, revenue, profit and profit margin in 2026
- Overview of Allflex UK Group Limited's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of AGCO Ltd's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of John Deere Ltd's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Allflex UK Group Limited, and factors influencing its performance in the industry
- Description and key data for AGCO Ltd, and factors influencing its performance in the industry
- Description and key data for John Deere Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Farming Innovation Programme (FIP) supports agricultural research and development through competitive funding. Delivered by Defra and Innovate UK, this programme funds pr...
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 (2016-2031)
- Assistance historical data and forecast (2016-2031)
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
Subscription models have significantly boosted profitability in the UK precision agriculture industry. By shifting to subscription pricing, companies like Allflex and John De...
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 2026
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2020-2024)
- Coverage Ratios (2020-2024)
- Leverage Ratios (2020-2024)
- Operating Ratios (2020-2024)
- Assets (2020-2024)
- Liabilities (2020-2024)
- Cash Flow & Debt Service Ratios (2016-2031)
- Revenue per Employee (2016-2031)
- Revenue per Enterprise (2016-2031)
- Employees per Establishment (2016-2031)
- Employees per Enterprise (2016-2031)
- Average Wage (2016-2031)
- Wages/Revenue (2016-2031)
- Establishments per Enterprise (2016-2031)
- IVA/Revenue (2016-2031)
- Imports/Demand (2016-2031)
- Exports/Revenue (2016-2031)
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 (2016-2031)
- IVA (2016-2031)
- Establishments (2016-2031)
- Enterprises (2016-2031)
- Employment (2016-2031)
- Exports (2016-2031)
- Imports (2016-2031)
- Wages (2016-2031)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Precision Agriculture Systems & Services industry in the United Kingdom in 2026?
The market size of the Precision Agriculture Systems & Services industry in the United Kingdom is £156.5m in 2026.
How many businesses are there in the Precision Agriculture Systems & Services industry in the United Kingdom in 2026?
There are 127 businesses in the Precision Agriculture Systems & Services industry in the United Kingdom, which has grown at a CAGR of 8.4 % between 2021 and 2026.
How may import tariffs affect the Precision Agriculture Systems & Services industry in the United Kingdom?
The Precision Agriculture Systems & Services industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Precision Agriculture Systems & Services industry in the United Kingdom?
The Precision Agriculture Systems & Services industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Precision Agriculture Systems & Services industry in the United Kingdom grown or declined over the past 5 years?
The market size of the Precision Agriculture Systems & Services industry in the United Kingdom has been growing at a CAGR of 5.9 % between 2021 and 2026.
What is the forecast growth of the Precision Agriculture Systems & Services industry in the United Kingdom over the next 5 years?
Over the next five years, the Precision Agriculture Systems & Services industry in the United Kingdom is expected to grow.
What are the biggest companies in the Precision Agriculture Systems & Services industry in the United Kingdom?
The biggest companies operating in the Precision Agriculture Systems & Services industry in the United Kingdom are Allflex UK Group Limited, AGCO Ltd and John Deere Ltd
What does the Precision Agriculture Systems & Services industry in the United Kingdom include?
Soil mapping and Livestock management are part of the Precision Agriculture Systems & Services industry in the United Kingdom.
Which companies have the highest market share in the Precision Agriculture Systems & Services industry in the United Kingdom?
The company holding the most market share in the Precision Agriculture Systems & Services industry in the United Kingdom is Allflex UK Group Limited.
How competitive is the Precision Agriculture Systems & Services industry in the United Kingdom?
The level of competition is low and increasing in the Precision Agriculture Systems & Services industry in the United Kingdom.
Methodology
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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.
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