Digital Agriculture Market Size to Cross USD 49.5 Bn by 2032

Published Date : 15 May 2024

The global digital agriculture market size surpassed USD 20.82 billion in 2023 and is estimated to cross around USD 49.5 billion by 2032, poised to grow at a CAGR of 10.10% from 2023 to 2032. The rising trend in digital agriculture including cloud computing and mobile internet are expected to drive the growth of the digital agriculture market.

Digital Agriculture Market Size and Growth Rate From 2023 to 2032

Market Overview

The digital agriculture market deals with programming tools that are developed to manage and optimize farm production and operations activities. The software helps automate several farm activities, including streamlining production activities, monitoring, data storage, and record management. Digital farming software increases revenue and yield related to data-driven insights and crops.

The growing adoption of advanced agriculture technology, automation, and data analysis is anticipated to drive the growth of the market. The increasing interest in digital agriculture and its capacity to improve crop efficiency optimization is expected to enhance market growth. In addition, increasing awareness regarding the advantages of digital agriculture in better development of agriculture production and increasing demand for food due to the rising population is anticipated to drive the growth of the digital agriculture market during the forecast period.

Increased efficiency and productivity and reduced environmental impact to fuel the market growth.

By giving them access to accurate data information about crop health, soil moisture levels, and weather patterns, digital agriculture can guide farmers in increasing their efficiency and output. This knowledge authorizes producers to choose when to fertilize, water, and plant their crops with better knowledge, leading to less waste and better yields.

In addition, digital agriculture can minimize the negative impacts of farming on the atmosphere. By giving producers information regarding the health of their crops and soil, they can use fewer fertilizers and pesticides, enhancing soil quality and reducing pollution. Moreover, advanced agriculture methods like planting and precise irrigation can cut down on water use, water, greenhouse gas emissions, and energy use. These are the major factors anticipated to drive the growth of the digital agriculture market.

However, dependence on technology may restrain the growth of the market. Digital and technological advancements have been greatly beneficial in agriculture. They have also generated a dependence on complicated systems. Farmers now highly depend on information technology, sensors, and machinery to carry out several tasks. Any malfunctions or disruptions in these systems can significantly disturb the whole farming process, thus causing losses and production delays. These are the major restraining factors expected to hinder the growth of the market.

Digital Agriculture Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 20.82 Billion
Projected Forecast Revenue by 2032 USD 49.5 Billion
Growth Rate from 2023 to 2032 CAGR of 10.10%
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Digital Agriculture Market Top Companies

  • Simio
  • The Mathworks, Inc.
  • SimScale
  • GSE Systems Inc.
  • Bentley Systems, Inc.
  • Simulations Plus
  • ESI Group
  • Dassault Systemes
  • Hexagon AB
  • Autodesk, Inc
  • Altair Engineering, Inc.
  • Rockwell Automation, Inc.
  • Schneider Electric
  • ANSYS Inc
  • Siemens
  • Others

Recent Development by FMC

  • In March 2024, in India, an agricultural sciences company, FMC India, launched its advanced precision agriculture platform ‘Arc’ farm intelligence. The advanced providing aims to motivate digital agricultural practices for channel partners, advisors, and farmers.

Recent Development by Rockwell Automation

  • In February 2024, to modernize dairy farming in the water-scare region, Rockwell Automation collaborated with ISAP India Foundation in India Maharashtra. The unique initiative “Economic and Social Development of India Village Through Technology Enabled Dairy Farming” also included a partnership with technology integration partner eVerse.AI to execute the corporate social responsibility project.

Regional Insights

North America is expected to grow at the fastest rate during the forecast period. The rising government guidelines and initiatives to improve the digital agriculture industry and the increasing presence of leading agricultural equipment manufacturers are expected to enhance market growth in North America. The U.S. and Canada are the major leading countries in North America.

The ongoing transformation of farming that involves automation and digitalization in digital agriculture farming is a vital factor in U.S. farming. Technologies such as VRT, soil maps, and yield maps have been adopted in the U.S. with applications on planted rice, cotton, and corn. The U.S. government offers some advanced digital drivers, such as the availability of consultant services, expected productivity impacts, labor-saving benefits, and soil variability. These are the major factors anticipated to drive the growth of the digital agriculture market in North America.

Asia Pacific dominated the digital agriculture market in 2023. The increasing government initiatives to develop digital agriculture and improve agricultural efficiency across emerging countries are anticipated to drive the growth of the market in Asia Pacific. India, China, Japan, and South Korea are the major developing countries in the Asia Pacific region. India is one of the fastest-growing markets.

The Indian government has continuously developed the digitalization of agriculture through several initiatives that help to improve farmer income, market access, and farm productivity. Digital agriculture tools such as sensors, robotics, and AI are integrated into the farms to improve the efficiency and accuracy of soil and farms. India’s national strategy on artificial intelligence also aims to realize the social benefits and potential economic benefits that technology provides.

In addition, the National Strategy on AI identifies agriculture as the leading sector area for the integration of AI-driven solutions. To provide farmers with the necessary advice and real-time, NITI Aayog has teamed up with International Business Machines to generate crop production supported by artificial intelligence. It helps in boosting early disease outbreak warning, agricultural input control, soil quality, and crop output. India is moderately developing climate-smart farming methods, which will guide the country in cutting greenhouse gas emissions and altering its ecology.

Implementing digital agriculture in Indian farms creates various developments such as low-cost technology, portable hardware, imagery taken from satellites, and sharing platforms of agriculture equipment and machinery. These are the major factors anticipated to drive the growth of the digital agriculture market in the Asia Pacific region.

Market Potential and Growth Opportunity

Increasing use of agricultural-based software via smartphones

Smartphone adoption is highly increasing, especially in villages or under-developed areas where many farmers operate smartphones for farming. This helps to make agricultural apps more accessible to market growth, driving adoption and a wider audience. Smartphones can be penetrated by various hardware devices, including GPS receivers, high-resolution cameras, and sensors, for activities such as record-keeping and sample collection. Some farming apps can load smartphones, which helps small farmers connect with agents and customers. These are the major opportunities to enhance the growth of the digital agriculture market in the coming years.

Digital Agriculture Market News

  • In February 2024, in Rajasthan, to enhance soil health and water needs and detect pests and water crops, Kota Teen launched an artificial intelligence (AI) robot. The son of a farmer spent four years building the robot, and he got Pradhan Mantri Rashtriya Bal Puraskar under the technology and science category.
  • In April 2024, to measure the soil aggregate stability, the Soil Health Institute SHI launched a free smartphone application Slakes to engage and empower citizens around the world. This was one of the most common factors of soil health.

Market Segmentation

By Business Channel

  • B2B
  • B2C

By Product Type

  • Perishables
  • Non perishables
  • Raw materials
  • Others

By Component Type

  • Hardware
  • Software
  • Devices

By Deployment

  • Cloud
  • On-Premise
  • Hybrid 

By Infrastructure

  • Sensing & Monitoring
  • Sensors
  • Cameras
  • Communication Technology
  • Short Range
  • Medium Range
  • Long Range
  • Cloud and Data Processing
  • Telematics/Positioning
  • GIS

By Type

  • Crop Monitoring
  • Artificial Intelligence
  • Precision Farming

By Company Type

  • Tier 1-55%
  • Tier 2-20%
  • Tier 3-25%

By Designation

  • C-Level Executives-40%
  • Directors -35%
  • Others-25%

By Application

  • Field Mapping
  • Livestock Monitoring
  • Greenhouse Farming
  • Crop Scouting
  • Weather Tracking
  • Drone Analytics
  • Financial Management
  • Farm Inventory Management
  • Others

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