The global digital agriculture market is predicted to register a CAGR of ~11.2% during the forecast period, 2021–2027.
Global Digital Agriculture Market, 2018–2027 (USD Billion)
Source: MRFR Analysis
Agriculture and the food chain are being transformed by advancements in digital technologies such as the Internet, mobile technologies and devices, data analytics, artificial intelligence, and digitally delivered services and apps. For instance, farm machinery automation allows fine-tuning of inputs while reducing the demand for manual labor, remote satellite data and in-situ sensors improve the accuracy and lower the cost of monitoring crop growth and land or water quality, and traceability technologies and digital logistics services have the potential to streamline the agri-food value chain.
Sensors, AI, UAVs, robots, GPS, temperature and moisture detectors, and other agricultural technologies are used to gather, store, and evaluate data for needed action in digital agriculture. The technology is not confined to the farm but rather to the entire value-added chain till the final product reaches the client. Digital agriculture, also known as smart farming or e-agricultural, results from increased technology development, a manpower scarcity on farms, changing climate conditions, and a decrease in irrigation water levels, among other factors. Continuous income with a better standard of living without working in the field has led to the urbanization and deployment of technology in a farm for day-to-day activities, which will help in improving productivity at a low cost and providing a better environment for agriculture due to reduced human resource dependence, efficient processes, and timely activities.
A rising number of nations are experiencing extreme food insecurity, undoing years of development progress. Chronic and acute hunger was on the rise even before COVID-19 lowered wages and disrupted supply chains, owing to various reasons such as conflict, socioeconomic circumstances, natural disasters, climate change, and pests. COVID-19's effects have resulted in significant and widespread increases in global food insecurity, impacting vulnerable households in virtually every nation, and the effects are anticipated to last through 2021 and 2022.The Agricultural Commodity Price Index stayed around its highest level since 2013 and was roughly 30% higher than in January 2020 as of July 16, 2021. Maize, wheat, and rice prices are approximately 43%, 13%, and 10% higher than they were in January 2020.
While the worldwide production outlook for key grains remains positive, rising prices reflect high demand, as well as weather concerns, macroeconomic factors, and COVID-19-related supply interruptions. Food price inflation is significant at the retail level in many nations, indicating persisting supply disruptions caused by COVID-19 social distancing measures, currency devaluations, and other causes. Individuals in low- and middle-income nations are more affected by rising food costs because they spend a higher portion of their income on food than people in high-income countries. The problems posed by mobility restrictions (national or international border closures) and changes in consumer demand were significant. Consumers were unable to eat out due to the limitations and must cook their meals at home. Furthermore, because of the risk of contracting COVID-19 in stores, people are avoiding going to markets and supermarkets. The supply chain disruptions have not only had an impact on just producers, distributors, and consumers but also on labor-intensive food processing factories. Many plants' production was decreased, paused, or temporarily halted due to workers who were confirmed to be COVID-19 positive and who were afraid of becoming sick at work, mostly at meat-processing food firms at the time of the epidemic.
The major factors driving the growth of the digital agriculture market are the increasing requirement for high productivity & improved crop health, the growing shortage of farm labor, and rising concerns of food security & nutrition. However, the complex system of integration & high costs of technology and the lack of technical knowledge for effective utilization of technology are hindering the market growth. Nevertheless, the growing potential to advance multiple sustainable development goals (SDGs), the ability to increase efficiency to create new market opportunities, and the increasing penetration of advanced technology in the agriculture sector are creating growth opportunities for the market vendors.
Farmers are under continual pressure to produce more food and animal feed while using fewer pesticides. Simultaneously, it is critical to utilize less energy and labor while enhancing environmental land and water management. With the fast-rising population, it is becoming increasingly difficult to feed the growing population, putting increased strain on agricultural output. Agriculture can become more productive, consistent, and efficient with the utilization of time and resources thanks to digital agriculture. This has significant benefits for farmers as well as broader societal benefits throughout the world. It also allows businesses to communicate information beyond conventional industry boundaries, allowing new, disruptive opportunities to emerge. The digital age's advancement propels the globe towards new modes of work. Technology improves capacities in the agricultural and agriculture industries. This shift is accelerated by the adoption of mobile phones for digital farming. In the developing world, expanding Internet and digital connectivity has the potential to have beneficial results.
To achieve the maximum profitability, sustainability, and preservation of land resources, information and technology-based farm management systems find, analyze, and regulate the variability in fields by executing crop production techniques at the appropriate location, time, and in the proper method. Despite extensive study, only a small percentage of farmers have used any sort of precision agriculture (PA) technology system strategy to re-organize the whole agricultural system toward low-input, high-efficiency, and sustainable agriculture.
Value Chain Analysis
Due to rapid technological advancements, the global digital agriculture market has grown significantly over the last decade. It is likely to continue growing at a steady pace in the next few years. The digital agriculture market's value chain is divided into four levels: agriculture producers, hardware/software vendors, system integrators, and distribution/retail/service.
The global digital agriculture market has been segmented based on component, application, deployment, and region.
Based on the component, the digital agriculture market has been segmented into hardware, software, and services. The hardware segment is further classified into displays, guidance and steering systems, GPS/GNSS devices, irrigation controllers, and drones/UAVs.
By application, the digital agriculture market has been segmented into yield monitoring, field mapping, crop monitoring, livestock monitoring, real-time safety testing, soil monitoring, precision farming, and others (weather tracking and drone analytics).
By deployment, the digital agriculture market has been segmented into cloud and on-premise.
The regional analysis for the global digital agriculture market has been done for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. The market in North America accounted for the largest share in 2019, and it is expected to register a strong growth rate over the study period. However, the APAC area is experiencing tremendous growth in the agriculture sector. The major economies in the region are technologically advanced and provide significant investment and income potential. During the research period, India is anticipated to lead the APAC area as the region's greatest adopter of digital agriculture. Farmers in southern regions of India such as Andhra Pradesh, Telangana, and Tamil Nadu are using precision agriculture techniques to increase crop yields.
Increasing Technological Advancements in Asia-Pacific Expected to Bolster the Digital Agriculture Market
Asia-Pacific is expected to be the fastest-growing regional market during the forecast period. The regional market has been segmented into China, Japan, India, and the rest of Asia-Pacific. Furthermore, APAC is experiencing tremendous growth due to various factors, such as the expansion of local businesses and government programs aimed towards advanced technological developments. Some nations in the region, such as China and Japan, have embraced digital agricultural technology and are rapidly implementing it. However, in most markets in Asia-Pacific, the enormous growth potential remains untapped. Compared to traditional cultivation practices, new farming technologies such as precision farming can aid in utilizing agricultural inputs in exact proportions to enhance average yields.
The global digital agriculture market is characterized by the presence of several regional and local providers. There are several domestic, regional, and international players operating in the digital agriculture market that continuously strive to gain a significant share of the global market.
In many aspects, AGCO has positioned itself as a growth-oriented leader. The company's investments in sustainable technology are both large and through wise decisions. It aspires to increase its global presence and work in unmatched growth markets. In summary, the firm prioritizes growth as a reliable, long-term partner. The firm has the financial strength, which gives its brands legitimacy and worldwide resources. AGCO is committed to assisting those farmers who are committed to being more lucrative and productive in the future.
The global digital agriculture market is characterized by the presence of several regional and local providers. Some of the key players in the market are Microsoft Corporation (US), IBM Corporation (US), Gameya SA (Switzerland), Agrivi (England), AGCO Corporation (US), Small Robot Company (UK), Hummingbird Technologies (UK), Deere & Company (US), Bayer Crop Science AG (Germany), Conservis Corporation (US), Raven Industries (US), Trimble Inc. (US), DTN (US), Case Corporation (US), Farmers Edge (Canada), and Agri Webb (Australia).
This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2019 to 2027. For this analysis, MRFR segmented the global digital agriculture market has been segmented based on component, application, deployment, and region.
|Market Size||Significant USD|
|Forecast Units||Significant value|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Component, Application|
|Geographies Covered||North America, Europe, Aisa Pacific|
|Key Vendors||AGCO Corporation (US) Deere & Company (US) IBM Corporation (US) Microsoft Corporation (US)|
|Key Market Opportunities|
|Key Market Drivers||Increasing Requirement for High Productivity & Improved Crop Health|
The digital agriculture market is predicted to register a CAGR of 11.2% during the forecast period, 2021–2027.
The Asia-Pacific regional market is projected to be the major driver of the market.
The segments in the market are component, application, and deployment.
The major contenders in the market are Deere & Company, AGCO Corporation, IBM Corporation, and Microsoft Corporation.