Digital Agriculture Market Size

Growing demand for high production and better crop quality drives market growth.

On the other hand, individuals need more technical knowledge to maintain market growth. AI and algorithms for learning are quickly becoming commonplace in farming goods and in-field practices. Cognitive computing has gained acceptance in the industry because it helps people learn, analyze, and adapt to new circumstances while increasing efficiency. Chatbots and other conversational systems, for example, assist farmers in keeping up with current technology.

Additionally, the increasing need for high productivity and enhanced crop health, a growing lack of farm labor, and increased worries about food security and nutrition are a few reasons driving the expansion of the digital agricultural business. Yet, the complicated system of connectivity, high prices of technology, and a lack of technical expertise for optimal technology utilization are impeding market growth.

Nonetheless, the increasing potential for progressing multiple SDGs, the ability to boost efficiency and generate novel markets, and the growing adoption of modern technology in the farming industry present growth opportunities for market vendors. The growth of the digital era moves the world towards new types of labor. Agriculture and agriculture sectors benefit from technological advancements. The use of cell phones for digital agriculture has expedited this change. Increasing Internet and digital connection has the potential to be useful in underdeveloped countries.

COVID-19 harmed the farming industry due to the national lockdown, limitations on travel, and the suspension of imports and exports due to limited mobility for migrants and rural laborers during the pandemic, leading to a shortage of labor that hindered crop production around the world. Due to constrained shipping and unfavorable transaction consequences, the COVID-19 epidemic has reduced agricultural equipment sales. The interrupted supply chain impacted the farm equipment distribution channel and impeded smart farming gear purchases. The COVID-19 epidemic, on the other hand, drove the sector towards digitization.

During the pandemic, the use of technology, including farm administration systems, applications for smartphones, and wireless gadgets, gained popularity. According to the 2021 Finistere Ventures' 2020 Agrifood Tech Funding Review, crop protection and input management protected the agricultural biotech industry.

For instance, according to a new UN estimate, the globe's population of 7.6 billion will increase to 8.6 bn in 2030, 9.8 bn in 2050, and 11.2 bn in 2100. Thus, demand for Digital Agriculture is anticipated to increase throughout the projected timeframe due to the rising demand for high production and better crop quality. Thus, driving the Digital Agriculture market revenue.

The increasing global population is a significant driver of the Global Digital Agriculture Market Industry. As the world population is projected to reach approximately 9.7 billion by 2050, the demand for food is expected to rise substantially. Digital agriculture technologies are essential in addressing this challenge by improving crop yields and resource efficiency. For example, precision farming techniques can help maximize output on limited arable land. This growing demand for food production is likely to propel the market forward, as stakeholders seek innovative solutions to meet future needs.

Sustainability initiatives are increasingly influencing the Global Digital Agriculture Market Industry as stakeholders seek to reduce environmental impacts. Digital agriculture technologies facilitate sustainable practices by enabling efficient resource management, such as water and fertilizer usage. For example, smart irrigation systems can reduce water consumption by up to 50 percent. This shift towards sustainability is not only driven by regulatory pressures but also by consumer demand for environmentally friendly products. Consequently, the market is expected to grow significantly, with projections indicating a value of 16.5 USD Billion by 2035.

The Global Digital Agriculture Market Industry is experiencing rapid technological advancements that enhance productivity and efficiency. Innovations such as precision agriculture, which utilizes GPS and IoT devices, allow farmers to monitor crop health and soil conditions in real-time. This technology not only optimizes resource use but also increases yield potential. For instance, the integration of drones for crop surveillance has shown to improve decision-making processes. As a result, the market is projected to reach 9.53 USD Billion in 2024, indicating a growing reliance on technology to meet global food demands.

The rise of data-driven decision-making is transforming the Global Digital Agriculture Market Industry. Farmers are increasingly utilizing big data analytics to inform their agricultural practices, leading to improved crop management and operational efficiency. By analyzing historical data and real-time information, farmers can make informed decisions regarding planting schedules, pest control, and resource allocation. This trend is likely to enhance productivity and profitability, contributing to a compound annual growth rate of 5.14% from 2025 to 2035. As data becomes more accessible, its impact on the industry will continue to expand.

Government support and favorable policies play a crucial role in shaping the Global Digital Agriculture Market Industry. Many governments are investing in digital agriculture initiatives to enhance food security and promote sustainable farming practices. For instance, subsidies for technology adoption and funding for research and development are becoming more common. Such support not only encourages farmers to adopt digital solutions but also fosters innovation within the industry. As a result, the market is likely to see accelerated growth, driven by these supportive measures.

Leading market players invested heavily in research and Development (R&D) to scale up their manufacturing units and develop technologically advanced solutions, which will help the Digital Agriculture market grow worldwide. Market participants are also undertaking various organic or inorganic strategic approaches to strengthen and expand their footprint, with significant market developments including new Component portfolios, contractual deals, mergers and acquisitions, capital expenditure, higher investments, and strategic alliances with other organizations. Businesses are also coming up with marketing strategies such as digital marketing, social media influencing, and content marketing to increase their scope of profit earnings.

The Digital Agriculture industry must offer cost-effective and sustainable options to survive in a highly fragmented and dynamic market climate.

Manufacturing locally to minimize operational expenses and offer aftermarket services to customers is one of the critical business strategies organizations use in the Digital Agriculture industry to benefit customers and capture untapped market share and revenue. The Digital Agriculture industry has recently offered significant advantages to the Information and Communications Technology industry. Moreover, more industry participants are utilizing and adopting cutting-edge technology has grown substantially.

Major players in the Digital Agriculture market, including AGCO Corporation (US), Deere & Company (US), IBM Corporation (US) Microsoft Corporation (US), are attempting to expand market share and demand by investing in R&D operations to produce sustainable and affordable solutions.

IBM (International Business Machines) is a computer, technology, and IT consulting firm headquartered in the United States. It is the world's largest technology business and the second most valuable worldwide brand. It produces and sells software and computer components, web hosting, and consulting services in fields including mainframe systems and nanotechnology. IBM Services and the GIZ) introduced a three-stage support program for Digital4Agriculture Action (D4Ag) to help small-scale farming ventures or start-ups across Africa predict conditions and make weather data and tools available to improve the growth of crops.

AGCO Corporation (AGCO) designs and sells agricultural machinery and spare parts. It specializes in the following regions: the United States, Latin America, European nations and the Middle East, and APAC regions. Robert J. Ratliff created the firm in 1990, located in Duluth, Georgia. In November 2022, AGCO Corporation introduced Geo-Bird, a brand-new online application designed to assist farmers worldwide in autonomously planning and optimizing existing navigation satellite system equipment guiding lines.