The digital agriculture market size is expected to be valued at USD 24.86 billion in 2024 and is expected to reach USD 45.80 billion by 2029, growing at a CAGR of 13% from 2024 to 2029.
The digital agricultural market is experiencing a significant growth rate owing to the rising awareness of its advantages in maximizing farm output. Also, the expanding population and growing food consumption will lead to the implementation of digital agro solutions.
Global Digital Agriculture Market Drivers:
The growing food security is majorly driving the growth of the digital agriculture market. The availability of food is one aspect, while another is improved access to food. Poverty is the main source of this insecurity in today's world. It affects even citizens of OECD nations, with indigenous peoples being especially susceptible. Therefore, it is projected that rising worries about food safety and nutrition will provide several growth prospects for the digital agriculture market. The digital agriculture market is further driven by technological developments and improvements. This enables farmers to optimize resource utilization and minimize losses while maximizing production. Further, digital farming will be propelled by the rising demands of the growing population as well as the limited natural resources.
Additionally, the formation of strategic policies and incentives will further encourage the farmers to adopt the latest and suitable technology. Also, farm advisory services can help to close the gap between science and practice. Also, these services support farmers in implementing cutting-edge, new technologies in the market. Hence, they can assist in overcoming obstacles to the digital agriculture market and are more successful in making use of the available resources.
Global Digital Agriculture Market Restraints:
The primary constraints for the digital agriculture market are raising the income of the poor and solving national development issues that can lead to global food security. However, measures related to infrastructure, social safety, education, health, and education may also be required to guarantee that increased revenues result in better nutrition. The OECD offers a series of policy proposals for promoting healthy eating choices that fall into four categories. Inadequate and inconsistent food data collection, including the frequency of food insecurity, makes it difficult to assess the efficacy of programs and the requirements of socioeconomic and demographic groups. Most agricultural support provided now improves existing production patterns and hampers adaptation to climate change. International markets are crucial for mitigating shortages and bolstering agriculture. But are distorted by price support and commodity-specific transfers. Thus affecting production signals and discouraging system changes.
Global Digital Agriculture Market Opportunities:
Digitalization and new technology are expanding the digital agriculture market. It is creating new opportunities for policy improvement. Also, it includes technologies like the Internet, mobile devices and technologies, data analytics, artificial intelligence, and digitally delivered services and apps. Moreover, automated farm machinery, in-situ sensors, remote satellite data, traceability technologies, and digital logistics services are optimizing agri-food supply chains, reducing labor-intensive work, enhancing crop growth, and providing reliable information to consumers.
Global Digital Agriculture Market Challenges:
Data security and privacy issues continue to hinder the expansion of the digital agriculture market share. These issues are created by the gathering and exchange of private agricultural data. Further, one of the biggest challenges facing the digital agricultural market is resolving these problems and building confidence among farmers and stakeholders.
Impact of COVID-19 on the Digital Agriculture Market:
COVID-19 had both positive and negative impacts on the digital agriculture market. It increased awareness and adoption of technologies. Lockdowns and travel restrictions have accelerated the adoption of digital solutions in agriculture. It includes precision farming, remote monitoring, and online marketplaces. Also, the pandemic caused a shift towards digital solutions for remote monitoring and management. Farmers are increasingly utilizing digital tools for remote monitoring of crops, livestock, and equipment. Therefore, minimizing physical contact and ensuring operational continuity. However, it disrupted the supply chain and affected the affordability of the latest solutions.
REPORT COVERAGE
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
13% |
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Segments Covered |
By Offering, Technology, Operation, Type and Region |
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Various Analyses Covered |
Global, Regional, & Country Level Analysis; Segment-Level Analysis; DROC, PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, RoW |
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Market Leaders Profiled |
Cropin, Robertet, Deere & Company (U.S.), Kubota Corporation (Japan), CNH Industrial N.V. (U.K.), Hexagon AB (Sweden), Topcon Corporation (Japan), CLAAS KGaA mbH (Germany), Trimble (U.S.), AGCO Corporation (U.S.). |
This research report on the global digital agriculture market has been segmented and sub-segmented based on offering, technology, operation, type and region.
Global Digital Agriculture Market - By Offering:
The advisory services segment is the leading category of the digital agriculture market. The incorporation of new technologies, such as chatbots driven by artificial intelligence, virtual assistants, and augmented reality, has caused a steady evolution in advising services. The segment is growing because of these technologies, which provide more convenience, access around the clock, and tailored recommendations. Farmers are becoming aware of how analytics and data may improve their operations. By using these technologies, advisory services can provide specific guidance on irrigation, crop selection, pest management, and other topics that increase productivity, profitability, and yields.
Global Digital Agriculture Market - By Technology:
The AI/ML subsegment is anticipated to hold the maximum share of the digital agriculture market. The need for sophisticated and automated farming equipment is driving the demand for the incorporation of AI and machine learning technology into agricultural machinery. Moreover, businesses are developing cutting-edge AI-enabled solutions to identify pests, weeds, and weather patterns, as well as the health of crops and soil. Moreover, sensors, drones, robotics, and computer imaging combined with different analytical tools for improved insights and farm monitoring are anticipated to boost the expansion of IoT technology.
Global Digital Agriculture Market - By Operation:
The monitoring & scouting segment is growing at a higher CAGR because of rising investments in developing cloud infrastructure. Moreover, it is necessary to monitor soil temperature, moisture content, and weather conditions for effective farming, the sensing and monitoring segment. Furthermore, the demand for cloud and data processing is surging rapidly. The need for precision farming solutions is rising because major market players are investing in cloud infrastructure development and the advantages of using these services.
Global Digital Agriculture Market - By Type:
The yield monitoring segment is witnessing a significant rise in market share. This is due to the rise in assistance to farmers in choosing the appropriate crops for their climate. In addition, there is a growing need for smart agricultural monitoring due to factors including soil deterioration, water scarcity, and crop failure risk.
Global Digital Agriculture Market – By Region:
North America is expected to grow at a significant growth rate in the coming year. This is because it is home to some of the top producers of agricultural equipment. Moreover, the regional market in NA is expected to be driven by government efforts and rules aimed at improving the agriculture business. For Instance, an 80 million dollar grant was given to Virginia Tech to assist farmers in using climate-smart techniques that have the potential to drastically lower greenhouse gas emissions.
Europe is anticipated to propel at a rapid pace during the forecast period. Nations, including Germany, the United Kingdom, the Netherlands, and Spain, are encouraging the growth of digital farming in the area. Further, the EU launched several initiatives to help farmers use cutting-edge technologies in their farming endeavours. It has also started a financing program called Life, GAIA Sense, to invest in smart farming throughout the area.
Asia Pacific is projected to dominate the digital agriculture market in the future. The adoption of smart farming technologies in China's agriculture industry has seen a revolutionary upheaval in recent years. In addition, the demand for sensors has increased in the nation despite the relatively recent introduction of sensor-based technologies. For example, Internet of Things cellular devices, gear tooth sensor-based irrigation and fertilization equipment, and valve position sensors, among others.
Latin America is anticipated to rise more quickly in the coming years. The increasing use of the Internet and smart technology in the area is thought to be the reason for the market's expansion. Further, there will be plenty of market opportunities due to the numerous initiatives by governments and highly tech-savvy businesses to construct cloud data centers and deploy cutting-edge technologies in Brazil, Argentina, Israel, and the GCC. It includes big data, cloud computing, artificial intelligence, and machine learning.
Middle East and Africa's digital agriculture market presents a distinct growth dynamic and a unique landscape. There is a demand for food production due to a growing population strains the available agricultural resources. Digital technologies provide ways to maximize resource usage and production.
KEY MARKET PLAYERS:
Cropin, Robertet, Deere & Company (U.S.), Kubota Corporation (Japan), CNH Industrial N.V. (U.K.), Hexagon AB (Sweden), Topcon Corporation (Japan), CLAAS KGaA mbH (Germany), Trimble (U.S.), AGCO Corporation (U.S.) are some of the major players in the global digital agriculture market.
RECENT DEVELOPMENTS IN THE MARKET:
Frequently Asked Questions
The global digital agriculture market is expected to be valued at USD 24.86 billion in 2024.
Regions such as North America and Europe are leading in digital agriculture adoption due to factors like strong technological infrastructure, government support, and high awareness among farmers.
In Asia Pacific, challenges such as limited access to advanced technology in rural areas, inadequate digital literacy among farmers, and fragmented land holdings are hindering the widespread adoption of digital agriculture solutions.
Latin America is expected to witness significant growth in the digital agriculture market due to increasing investments in agricultural technology, government initiatives promoting digitalization in farming, and a growing focus on sustainable agriculture practices.
In North America, the digital agriculture market is segmented into precision farming, livestock monitoring, smart greenhouse, and others, with precision farming holding the largest market share due to its widespread adoption by farmers.
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