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Digital Agriculture Market Overview
Digital Agriculture Market Size was estimated at USD 8.5 Billion in 2022. The Digital Agriculture market industry is projected to grow from USD 9 Billion in 2023 to USD 14.23 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.9% during the projected timeframe (2023 - 2032). Growing demand for high production, better crop quality, and the growing capacity for progressing several SDGs are key market drivers contributing to market growth and expansion.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Digital Agriculture Market Trends
Growing demand for high production and better crop quality drives market growth.
The rising demand for high production and better crop quality drives the Market CAGR for digital agriculture. The fundamental driver of the Digital Farming sector is a labor shortage paired with increased food demand. As the world's population expands, so does the need for more food, necessitating increased production at a reduced cost in a resource-constrained environment. Furthermore, the demand is being fueled by a rising scarcity of farmers due to urbanization in pursuit of a stable source of income. Likewise, as renewable resources, for example, water, becomes more scarce and warmer due to factors such as the carbon footprint, there is a growing need for Digital Farming to maximize resource efficiency and productivity.
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.
Digital Agriculture Market Segment Insights
Digital Agriculture Component Insights
The Digital Agriculture market segmentation, based on Components, includes Hardware, Software, and Services. The hardware category dominated the market, accounting for 42% of market revenue (USD 3.6 Billion) in 2022 because firms in the digital agriculture sector are constantly seeking new ways to provide innovative goods and services to customers.
Digital Agriculture Application Insights
The Digital Agriculture market segmentation, based on Applications, includes Yield Monitoring, Field Mapping, Crop Monitoring, Livestock Monitoring, Real-Time Safety Testing, Soil Monitoring, Precision Farming, and Others. The precision farming category dominated the market, accounting for 27% of market revenue (USD 2.3 Billion) in 2022. Farming precision programs and Internet of Things capabilities solve all of these criteria.
Digital Agriculture Deployment Insights
Based on Deployment, the Digital Agriculture market segmentation includes Cloud and On-Premises. The cloud category dominated the market, accounting for 75% of market revenue (USD 6.5 Billion) in 2022. Growing expenditure on cloud computing facilities by major digital farming industry participants and the benefits of cloud services drive up interest in agricultural precision solutions.
Figure 1: Digital Agriculture Market, by Deployment, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Digital Agriculture Regional Insights
By region, the research provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Digital Agriculture market will dominate during the projected timeframe because of the presence of major agricultural equipment companies. The economy is expected to be driven by rising government efforts and recommendations to strengthen the agriculture industry, boosting the market growth in the North American area.
Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Digital Agriculture Market Share by Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe region’s Digital Agriculture market accounts for the second-highest market share due to the stable financial status of the producers, accessibility to the newest technologies, good infrastructure, and improved supply network. Further, the German Digital Agriculture market holds the largest market share, and the UK Digital Agriculture market is expected to grow and expand significantly in the European region during the projected timeframe.
The Asia-Pacific Digital Agriculture Market is expected to grow quickly during the projected timeframe. In the Asia Pacific area, digital farming is in its early stages, with increased government assistance to create digital agriculture and boost agricultural production in emerging regions. Moreover, China’s Digital Agriculture market dominates the market share, and the Indian Digital Agriculture market is expected to expand and grow steadily in the Asia-Pacific region during the projected timeframe.
Digital Agriculture Key Market Players & Competitive Insights
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.
Key Companies in the Digital Agriculture market include
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AGCO Corporation (US)
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Deere & Company (US)
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IBM Corporation (US)
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Microsoft Corporation (US)
Digital Agriculture Industry Developments
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.
October 2021: CNH Industrial announced AGXTEND, a revolutionary platform for digital farming solutions in Brazil. AGXTEND creates and distributes innovative products that increase farmers' productivity, agricultural long-term viability, and revenue through precision farming.
December 2020: IBM Services and the GIZ) introduced a three-stage support program for the 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.
Digital Agriculture Market Segmentation
Digital Agriculture Component Outlook
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Hardware
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Software
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Services
Digital Agriculture Application Outlook
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Yield monitoring
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Field mapping
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Crop monitoring
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Livestock monitoring
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Real-time safety testing
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Soil monitoring
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Precision farming
Digital Agriculture Deployment Outlook
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Cloud
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On-premises
Digital Agriculture Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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