The wine market is booming. The global wine market size is valued at $304 billon and is expected to reach $380 billion by 2022, expanding at a compound annual growth rate (CAGR) of 3.4%16.
The wine market is dominated by European and North American countries. US, Italy, France, and Spain are the largest producers and consumers of wine. The European Union commands more than 70% of the global wine trade and accounts for 63% of the global production. Globally, there are about one million small and big wine makers and the world’s most famous brands (around 84%) are French.
Europe’s leading position is under threat though; exports are expected to weaken over the next years due to competitive prices from New World markets. Over the last 16 years, New World wine export share has increased
by 370%17. Vineyards in these countries are owned by much fewer landowners and the average vineyard size is more than 10 times larger than that of Europe, a fact that allows for greater economies of scale.
At such scales, Precision Viticulture (PV) proximal and remote sensing solutions field support and service are spread over hundreds of hectares so their economic viability is proven. But for the typical European vineyard of
2 to 20 hectares these costs are too large to produce a meaningful Return on Investment (ROI).
The number of small vineyard owners (2 to 20 hectares) who currently use no PV tools exceeds 170,000 and their land accounts for 48.63% of the total vineyard land dedicated to quality wines (PGI), i.e. an astonishing 904,000 hectares.
Our target market segment is thus clearly defined; we are aiming to serve these 180,000 vine growers all over Europe.
