Digital Agriculture Market Size, By Technology (Core technology, Peripheral Technology), By Operation (Farming & Feeding, Monitoring & Scouting, Marketing & Demand Generation), By Component (Hardware, Software, Services), By Offering, By Region, Forecast 2024 - 2032

Digital Agriculture Market Size, By Technology (Core technology, Peripheral Technology), By Operation (Farming & Feeding, Monitoring & Scouting, Marketing & Demand Generation), By Component (Hardware, Software, Services), By Offering, By Region, Forecast 2024 - 2032

Digital Agriculture Market Size

Digital Agriculture Market size was valued at over USD 22 billion in 2023 and is estimated to register a CAGR of over 11% between 2024 & 2032. The growing need for increased agriculture productivity and the rising demand for precision farming & crop monitoring are significantly driving the market growth.

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Digital agriculture makes use of data analytics and digital technologies to improve farming methods. To feed the world's expanding population, which is expected to reach 9.7 billion by 2050, food production must rise by over 70%. Despite this growing demand, climate change and a workforce deficit are impeding the farming sector. Digital farming can aid farmers across the globe in facing these challenges. Information technology is used in smart farming, also known as digital farming, or farming 4.0, to change agricultural operations.

For instance, farmers can now gather data using the Internet of Things (IoT) technology to enhance their overall production procedures, increase efficiency, and be prepared for unforeseen events. By using this data, farmers can also identify the operations that can be automated. This information can be used to develop methods to collaborate and form partnerships with other farms, which will increase production by concentrating resources on the areas that most require it.

Digital agriculture is essential for modern farming practices to meet sustainability requirements. It helps farmers adapt to and mitigate the negative effects of extreme weather and an unpredictable environment such as lower output & damage from unseasonably high temperatures, excessive rains, and runoff. The use of digital agriculture can significantly reduce the utilization of numerous chemicals derived from petroleum. Farms can also meet customer needs for sustainability by using data to manage the overall farm operations, nurture healthier crops, potentially save energy, and increase production while lowering overall farm-level operating expenses.
 

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The market for digital agriculture is severely constrained by the large upfront costs associated with implementing cutting-edge technologies such as IoT & Artificial Intelligence (AI) as well as the requirement for substantial infrastructure and training. Small- & medium-sized farmers are frequently discouraged from adopting digital solutions due to financial hurdles.

The intricacy of these technologies also presents a problem as many farmers lack the digital literacy and technical know-how necessary for successful adoption. The potential advantages of digital agriculture, such as increased productivity and sustainability, might not materialize without sufficient assistance & education, restricting its wide acceptance and influence on the agriculture industry.

Digital Agriculture Market Trends

The growing demand for precision farming is one of the dominant trends in the digital agriculture industry. Precision agriculture is a cutting-edge farming method that maximizes crop yield while lowering input expenses. This technique uses sensors, GPS units, and drones to gather information on temperature, nutrient levels, soil moisture content & other important parameters. Using this data, farmers can manage their fields, monitor crop development, and apply pesticides & fertilizers more effectively.

Farmers face a serious problem with water scarcity across the globe, especially during the dry season. An emerging solution to this problem is smart irrigation systems. By utilizing sensors to gather information on soil moisture, humidity & other variables, these systems automatically modify water usage to maximize crop development. Small-scale farmers without access to complex irrigation infrastructure can benefit from this approach.

Digital Agriculture Market Analysis

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Based on component, the market is divided into hardware, software, and services. The software segment is further sub-segmented into cloud, on-premises, and AI & data analytics. The software segment is expected to register a CAGR of over 12% during the forecast period.

• The market for digital agriculture is significantly shaped by the cloud and on-premises segments, which provide a range of possibilities for the deployment of agricultural technology solutions. Scalability, affordability, and accessibility are features of cloud-based solutions that enable farmers to remotely access data, analytics, and apps from any internet-connected device. Across agricultural operations, this flexibility promotes cooperation, data exchange, and real-time decision-making.
• Farmers with certain regulatory requirements or privacy concerns find on-premise solutions appealing as they provide increased control, security, and customization choices. The availability of cloud and on-premise options meets a range of needs & preferences of farmers, encouraging the adoption of digital technologies and broadening the application of digital agricultural solutions in modern farming methods.

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Based on offering, the digital agriculture market is divided into precision agriculture & farm management, advisory services, quality management & traceability, digital procurement, and agri e-commerce. The precision agriculture & farm management segment dominated the global market with a share of over 30% in 2023.

• Utilizing techniques, such as variable-rate fertilization, real-time monitoring & precision irrigation, farmers may maximize yield, reduce environmental impact, and optimize resource utilization. By using digital technologies, such as sensors, drones, and data analytics platforms, these methods provide farmers with useful information for making decisions.
   
• Crop planning, inventory management, and administrative activities can be streamlined by farm management software & platforms, boosting operational profitability and efficiency. The development and use of digital solutions are fueled by the increasing demand for efficiency & precision in agricultural methods, which in turn, are driving the market expansion.

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Asia Pacific is expected to register the largest CAGR of over 12% during the forecast period. The region is experiencing rapid growth in the agriculture sector, along with the rising adoption of advanced technologies, leading to increased demand for digital agriculture solutions. China and India are the largest contributors to the market in Asia Pacific. Increasing government initiatives are also spurring digital agriculture market growth.

For example, Karnataka, one of India's most productive agricultural states, has been at the forefront of adopting digital agriculture to develop farming techniques, boost crop yields, and improve farmer lifestyles. The state’s agricultural department has been collaborating closely with agriculturalists, researchers, and technology companies to create digital solutions that enhance farming methods. The government has also made significant investments in infrastructure and training to help farmers adopt digital technologies.

The Indian government is promoting the use of intelligent farming techniques. The India Digital Ecosystem of Agriculture (IDEA), Farmers Database, Unified Farmers Service Interface (UFSI), Funding to the States on the New Technology (NeGPA), Redesign of the Mahalanobis National Crop Forecast Centre (MNCFC), Soil Health, Fertility, and Profile Mapping are all components of the government's Digital Agriculture Mission (DAM). Under the NeGPA program, state governments receive funding for digital agriculture projects that make use of leading-edge technologies such as blockchain, IoT, and AI/ML.

Digital Agriculture Market Share

Deere & Company offers tractors and other equipment (with data-driven capabilities) integrated with precision agriculture technologies. Through its main platform, John Deere Operations Center, farmers can optimize operations and maximize yields by gaining analytics & real-time field data. Deere's digital solutions support informed decision-making throughout the planting & harvesting processes, increasing farm productivity, efficiency, and ultimately profitability. The use of digitization makes it a significant force in creating a more intelligent and sustainable future for agriculture.

Trimble Inc. is a leading provider of location and navigation technology used in digital agriculture. With its Connected Farm platform, which offers a variety of precision farming tools, agricultural equipment and sensors can be effortlessly integrated. To maximize yield and optimize operations, farmers can use data on fleet management, planting, irrigation, and other topics. With Trimble’s precision guidance systems, farmers can accomplish activities such as harvesting & seeding with accuracy down to a centimeter.

Digital Agriculture Market Companies

Major players operating in the digital agriculture industry are

• Deere & Company
• Trimble Inc.
• Syngenta AG
• Farmers Edge Inc.
• AGCO Corporation
• Cisco Systems, Inc.
• IBM Corporation
• Accenture
• AKVA Group
• Byer AG
• Hexagon AB
• DeLaval
• DJI
• Epicor Software Corporation
• Raven Industries, Inc.
• Eurofins Scientific
• Gamaya
• PrecisionHawk
• Agreena

Digital Agriculture Industry News

• In November 2022, AGCO Corporation launched Geo-Bird, a brand-new online application designed to assist farmers worldwide in autonomously designing and refining their machine guiding lines for the Global Navigation Satellite System (GNSS)
   
• In September 2020, Syngenta Crop, a leading agricultural innovator, introduced the first-ever commercial digital solution to identify plant-parasitic nematode infestations in soybean crops through the analysis of satellite-derived photos. This represents a significant advancement in controlling this destructive pest and Syngenta's commitment to providing farmers globally with an increasing array of digital & precision agriculture solutions.

The digital agriculture market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Technology, 2018 – 2032

• Core technology
  • Automation
  • Drones
  • Robotics
  • AI/ML 
• Peripheral technology
  • Platform
  • Apps

Market, By Operation, 2018 – 2032

• Farming & feeding
  • Precision agriculture
  • Precision animal rearing & feeding
  • Precision aquaculture
  • Precision forestry
  • Smart greenhouse 
• Monitoring & scouting
• Marketing & demand generation

Market, By Component, 2018 – 2032

• Hardware
• Automation & control systems
  • Drones/Unmanned Aerial Vehicles (UAVs)
  • Irrigation controllers
  • GPS/GNSS
  • Flow & offering control devices
  • Guidance & steering
  • Handheld mobile devices & computers
  • Displays
  • Harvesters & forwarders
  • Variable and rate controllers
  • Robotics hardware
  • HVAC systems
  • LED grow lights
  • Others
• Sensing & monitoring devices
  • Soil sensors
  • Water sensors
  • Climate sensors
  • Temperature & environment monitoring sensors
  • pH & dissolved oxygen sensors
  • EC sensors
  • Yield monitors
  • Camera systems
  • RFID Tags & Readers for livestock monitoring
  • Sensors for smart greenhouse
  • Others 
• Software
  • Cloud
  • On-premises
  • AI & data analytics
• Services
  • Consulting & system integration
  • Data collection & analytical services
  • Connectivity services
  • Assistant professional services
  • Maintenance & support services

Market, By Offering, 2018 - 2032

• Precision agriculture and farm management
• Advisory services
• Quality management & traceability
• Digital procurement
• Agri e-commerce

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA