USD 22.3 billion
Report ID:
SQMIG45H2091 |
Region:
Global |
Published Date: May, 2025
Pages:
192
|Tables:
114
|Figures:
69
Global Digital Agriculture Market size was valued at USD 22.3 billion in 2023 and is poised to grow from USD 24.66 billion in 2024 to USD 55.22 billion by 2032, growing at a CAGR of 10.6% during the forecast period (2025-2032).
The rising 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 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.
The usage of Internet of Things (IoT) technology, along with precision agriculture software, will benefit the agricultural sector. There is a growing usage of digital agricultural equipment to track crop progress using sensors that record soil condition and temperature in the fields. Farmers use these programs to determine the best climate for crop growth. The growing reliance on digital technology is helping to improve the lives of farmers across the world.
The global digital agriculture industry 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. The growing recognition of digital agriculture's role in optimizing agricultural production has led to significant market expansion. The increasing global population and food demand necessitate the adoption of digital agriculture tools. Food security and nutritional concerns create opportunities for industry growth. The digital agriculture market 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.
Market snapshot - 2025-2032
Global Market Size
USD 22.3 billion
Largest Segment
Hardware
Fastest Growth
Software
Growth Rate
10.6% CAGR
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Global Digital Agriculture Market is segmented by Offering, Technology, Operation, Type and region. Based on Offering, the market is segmented into Advisory Services, Precision Agriculture & Farm Management, Quality Management & Traceability, Digital Procurement, Agri Ecommerce and Financial Services. Based on Technology, the market is segmented into Peripheral Technology and Core Technology. Based on Operation, the market is segmented into Farming & Feeding, Monitoring & Scouting and Marketing & Demand Generation. Based on Type, the market is segmented into Hardware, Software and Services. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
As per global digital agriculture outlook, hardware segment dominated the market in 2024. It acts as the cornerstone of various agriculture activities such as crop monitoring, sensing, surveying, and field intelligence systems. The hardware segment consists of automation & control systems, and sensing and monitoring devices. Automation & control systems aid farmers with improved crop protection through field surveying, real-time monitoring, effective irrigation, prompt harvesting, and pesticide application with robotic systems and field sensors. In addition, sensing and monitoring devices serve as crucial components for gathering crucial information regarding crops and fields, enabling in-depth analysis for decision-making, and supporting farmers in their agricultural operations. The growing need for farmers to make informed decisions and enhance their productivity is boosting the adoption of hardware devices and driving the growth of the market.
As per global digital agriculture market outlook, the offering segment is the fastest growing in the market. Advisory services have evolved consistently over the years with the integration of advanced tools such as virtual assistants and AI powered chatbots. Advisory services can be used in a wide range of ways to address challenges in farming operations across crop types. For example, digital advisory services can help a farmer decide when to harvest such as, the service could send an alert that a particular plant might be ready for harvest earlier than expected. The farmer can quickly see how each scenario would affect the crop’s profitability. According to the Food and Agriculture Organization of the United Nations (FAO), in 2023, Digital agricultural extension and advisory services (AEAS) offer tremendous potential to improve information access and farming outcomes for smallholder farmers, particularly in developing countries. Governments across the world are helping by providing advisory services to support the farmers.
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North America, led by the United States and Canada, is a global leader in AI-powered precision farming, robotics, and IoT-based smart agriculture. The U.S. Department of Agriculture (USDA) has invested heavily in AI-driven crop monitoring, autonomous farming equipment, and data-driven decision-making platforms. The integration of drones, robotic harvesters, and IoT sensors is revolutionizing resource management.
The U.S. has seen the integration of Artificial Intelligence (AI) and automation in agriculture. Companies like Solinftec have introduced autonomous robots, such as Solix Ag Robotics, equipped with solar panels to monitor plant health, detect pests, and assess nutritional content, providing real-time data to farmers.
Canada is focusing on agrivoltaics, combining agriculture with solar energy production. Studies indicate that utilizing just 1% of agricultural lands for agrivoltaics could meet a significant portion of Canada's energy needs. Organizations like Agrivoltaics Canada are promoting these initiatives to support farmers and enhance energy efficiency.
As per global digital agriculture market forecast, the Asia-Pacific region is rapidly adopting smart farming technologies, robotics, and AI-driven solutions to address food security, climate change, and resource efficiency. Countries like Japan, South Korea, Singapore, and Indonesia are at the forefront of digital agriculture, leveraging IoT, AI, vertical farming, and automation to modernize the sector.
Japan pioneered agrivoltaics, integrating solar panels with crop cultivation. Since 2004, developments include demountable structures and large-scale facilities, such as a 35 MW plant operating since 2018, allowing dual land use for energy and agriculture. The Ministry of Agriculture, Forestry and Fisheries (MAFF) supports programs that provide financial incentives and subsidies for adopting digital solutions like AI-driven farm management, autonomous tractors, and IoT-enabled monitoring systems. These technologies allow real-time data collection on soil health, weather conditions, and crop growth, transmitted directly to farmers’ mobile devices.
South Korea is also heavily investing in agricultural robotics, AI-powered smart farms, and vertical farming to tackle challenges like labor shortages and climate variability. The Korean Ministry of Agriculture, Food and Rural Affairs (MAFRA) launched the Smart Farm Expansion Initiative, which focuses on scaling up the use of automated greenhouses, hydroponic vertical farms, and AI-driven livestock monitoring systems. The government is promoting smart farming to address challenges like an aging farmer population. Initiatives include financial support and training for technologies that send real-time information to farmers' mobile devices, aiming to bolster the competitiveness of domestic agriculture.
Singapore is investing in urban farming and vertical agriculture to enhance food security. Technologies such as hydroponics and aeroponics are being utilized to maximize limited land resources, enabling local production of vegetables and fish in controlled environments.
Indonesia, in collaboration with South Korea, launched the Green Digital Economy Platform (GDEP) to provide farmers with access to agricultural and carbon-trading information. The platform aims to benefit millions of Indonesian farmers by integrating AI and promoting sustainable practices.
European countries, including Germany, France, Spain, Italy, and the UK, are focusing on sustainable farming, regenerative agriculture, and AI-driven crop management. The EU Green Deal is pushing for advanced digital farming techniques that improve soil health, reduce carbon footprints, and optimize water usage.
Germany has been proactive in integrating digital technologies into agriculture, focusing on precision farming and automation. The country has implemented extensive commercial robot trials alongside farms and businesses, aiming to revolutionize agriculture through robotics and automation. The German government has also supported initiatives like the "Digital Farming Strategy" and "Smart Agriculture Demonstration Farms", which promote IoT-based soil monitoring, automated irrigation systems, and data-driven decision-making tools. Companies such as Bosch, Fendt, and Claas have been at the forefront of developing smart farming equipment.
France has embraced digital transformation in its agricultural sector by implementing national strategies and investing in research and innovation initiatives. The country has developed a robust ecosystem to foster the adoption of digital tools in agriculture, enhancing efficiency and sustainability.
Spanish farmers are combining traditional methods with digital tools to combat climate change and maintain agricultural productivity. The integration of cover crops and digital technologies aims to protect soil health and optimize resource management, ensuring sustainable agriculture.
Italy has seen a rise in the use of digital tools to help farmers manage their resources more efficiently. The adoption of such technologies is part of a broader effort to safeguard production of regional favorites like Prosecco as climate change forces rapid adaptation.
The UK is harnessing Artificial Intelligence (AI) to promote regenerative agriculture. Companies are developing AI-driven solutions to measure and manage soil carbon sequestration effectively, contributing to sustainable farming practices and aiding in climate change mitigation.
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Adoption of AI and IoT in Smart Farming
Rising Demand for Sustainable Agriculture
High Initial Investment and Infrastructure Costs
Limited Technical Knowledge
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The global digital agriculture industry is highly competitive, with established agritech companies, startups, and technology giants competing to revolutionize farming through AI, IoT, robotics, and big data analytics. The market is driven by strategic partnerships, acquisitions, and innovation to improve farm productivity, sustainability, and efficiency.
How is AI Transforming the Digital Agriculture Market?
AI is revolutionizing the digital agriculture market by enhancing efficiency, productivity, and sustainability. Precision farming, powered by AI-driven computer vision, and machine learning enables real-time monitoring of crop health, disease detection, and optimized irrigation through satellite imagery, drones, and IoT sensors. Predictive analytics further empowers farmers by analyzing historical data, weather patterns, and soil conditions to forecast crop yields, pest outbreaks, and ideal planting times, reducing risks and improving decision-making. AI-driven automation in farm equipment, such as autonomous tractors and robotic harvesters enhances operational efficiency, while reducing labor costs. Additionally, AI-powered agricultural chatbots and virtual assistants provide farmers with instant insights on soil quality, climate conditions, and pest control strategies.
Which Startups Are Driving Innovation in the Digital Agriculture Market?
SiembraCo (Founded in 2020): SiembraCo, founded by Yuly Galindo and her husband in Colombia, connects farmers directly with consumers through a virtual cultivation model. Consumers can create virtual crops, which farmers then cultivate in real life, ensuring fair pricing and full traceability. This innovative approach has supported over 2,600 farming families in Colombia and Guatemala by providing technical assistance and interest-free financial support. By digitizing agriculture, SiembraCo enhances market accessibility for small farmers and promotes fair trade practices.
FarmLab (Founded in 2017): Based in Australia, FarmLab utilizes AI, satellite imagery, and advanced soil analytics to help farmers monitor and manage soil carbon levels. The startup, founded by former air force members Sam Duncan and Shahriar Jamshidi, is instrumental in sustainable land management and carbon credit trading. By providing precise insights into soil health, FarmLab aids farmers in reducing carbon footprints, optimizing fertilizer use, and improving land regeneration. The company has also expanded internationally, working with Tasmanian farms and U.S. agricultural enterprises.
Loam Bio (Founded in 2019): Loam Bio, an Australian agri-biotech startup, focuses on enhancing soil health through fungal-based carbon capture solutions. The company has developed a microbial treatment that allows crops to absorb and store more carbon, turning farmlands into carbon sinks. This innovation not only improves soil fertility but also contributes to climate change mitigation by increasing carbon sequestration in agriculture.
What Emerging Technologies Will Drive Digital Agriculture in the Next Few Years?
In the short term (1-3 years), AI-powered predictive analytics, IoT-enabled smart sensors, and automation will drive efficiency in digital agriculture. AI models will refine weather forecasting, disease detection, and yield predictions, helping farmers make data-driven decisions. IoT sensors will enable real-time soil and crop monitoring, improving precision farming and resource management. Additionally, autonomous equipment such as robotic harvesters, drones for pest control, and automated irrigation systems will enhance efficiency while reducing labor dependency.
In the mid-term (3-7 years), blockchain technology will revolutionize supply chain transparency, ensuring traceability and fair pricing. Advanced biotechnology, including gene editing and synthetic biology, will improve crop resilience and productivity, while regenerative agriculture techniques, supported by AI, will focus on soil health and sustainable farming.
In the long term (7+ years), quantum computing will optimize large-scale agricultural data analysis, enabling hyper-precise climate modeling and resource management. AI-powered agribots and fully automated farms will become more prevalent, reducing manual labor and enhancing food security. Additionally, vertical and cellular agriculture will advance, making food production more efficient and sustainable in urban environments. These emerging technologies will collectively transform the digital agriculture landscape, making farming more resilient, efficient, and environmentally sustainable.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, continuous innovations in the digital agriculture market concerning precision farming techniques such as GPS/GNSS technology, sensors, and increased use of mobile internet services are enabling improved overall farm management. Advancements in digital farming technology are aiding farmers to enhance the productivity and sustainability of their land and agricultural practices. This is further contributing to the growth of the digital agriculture market. Digital agriculture presents innovative solutions to address food insecurity challenges, significantly exacerbated by population increase. Digital agriculture enables more efficient and sustainable food production with technologies such as remote sensing and data analytics. This can optimize resource utilization, enhance crop yields, and alleviate environmental impacts, growth in food availability and access. Additionally, digital platforms can promote access to information among farmers, and financial services, connect them to new markets, and empower them to make informed decisions and improve their livelihoods. Thus, the increase in farmers' adoption of digital agriculture tools and the steadily growing automation of farms are propelling the growth of the digital agriculture market during the forecast period.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 22.3 billion |
Market size value in 2032 | USD 55.22 billion |
Growth Rate | 10.6% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Digital Agriculture Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Digital Agriculture Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Digital Agriculture Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Digital Agriculture Market for additional countries.
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Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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Global Digital Agriculture Market size was valued at USD 22 Billion in 2023 and is poised to grow from USD 24.42 Billion in 2024 to USD 56.28 Billion by 2032, growing at a CAGR of 11% in the forecast period (2025-2032).
The global digital agriculture industry is highly competitive, with established agritech companies, startups, and technology giants competing to revolutionize farming through AI, IoT, robotics, and big data analytics. The market is driven by strategic partnerships, acquisitions, and innovation to improve farm productivity, sustainability, and efficiency. 'Bayer AG', 'Deere & Company', 'Trimble Inc.', 'BASF SE', 'Syngenta AG', 'AG Leader Technology', 'CNH Industrial', 'Raven Industries', 'Corteva Agriscience', 'Kubota Corporation', 'FarmWise', 'CropX'
The integration of Artificial Intelligence (AI) and the Internet of Things (IoT) in agriculture is transforming farming operations worldwide. AI-powered analytics enable farmers to make data-driven decisions, optimizing crop yield, detecting plant diseases early, and predicting weather patterns for efficient farming. IoT-based smart sensors help monitor soil moisture, nutrient levels, and weather conditions in real-time, allowing for precision irrigation and fertilization. For instance, in the U.S. and Canada, agritech startups are developing autonomous tractors, AI-driven drones for crop monitoring, and robotic harvesters that reduce labor dependency.
How is Precision Farming and AI Integration Driving North America?
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