Digital Agriculture Market

[510 Pages Report] The global digital agriculture market is on a trajectory of significant expansion, with an estimated value projected to reach USD 36.0 billion by 2028 from the 2023 valuation of USD 22.0 billion, displaying a promising Compound Annual Growth Rate (CAGR) of 10.3%. This growth surge is primarily attributed to an emerging trend in the digital agriculture market which includes the rise of mobile internet and cloud computing makes digital agriculture tools more accessible to smallholder farmers, particularly in developing countries. This empowers them to improve their livelihoods and participate in the digital economy.

Moreover, the global expansion of the digital agriculture market is fueled by the growing adoption of precision agriculture technology. Continuous advancements in technology, data analysis, and automation will further enhance its capabilities and make it more accessible to all farmers. Precision agriculture has the potential to revolutionize agriculture, ensuring sustainable food production for a growing population while protecting the environment.

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Market Dynamics

Drivers: Increasing adoption of IoT and AI by farmers and agriculturists

The agricultural sector is witnessing a technological revolution driven by the Internet of Things (IoT) and Artificial Intelligence (AI). This trend, spurred by factors like rising global population, resource scarcity, and climate change, presents significant opportunities for improved efficiency, productivity, and sustainability in farming practices. Internet of Things (IoT) and artificial intelligence (AI) are helping farmers and agriculturists optimize their crop yields through remote monitoring and data-driven decision-making. Technologies such as machine learning, satellite imagery, variable rate technology, and advanced analytics are empowering farmers having small land holdings to increase their income through high crop yields. IoT and advanced analytics help farmers analyze real-time data related to weather, temperature, soil moisture, and crop prices. They provide insights to farmers for optimizing resources and increasing their yields, improving farm planning, and making smart decisions about the level of resources required to minimize waste.

Restraints: Lack of technical knowledge and training activities

The lack of technical knowledge and training activities on digital agriculture is a critical barrier to wider adoption and successful implementation of these technologies. This can hinder the potential of digital agriculture to revolutionize the farming industry and improve overall agricultural productivity and sustainability.

Addressing the lack of technical knowledge and training activities on digital agriculture requires a multi-pronged approach, with concerted efforts from various stakeholders. By promoting access to information, developing tailored training programs, and fostering innovation, we can empower farmers to harness the full potential of digital technologies and revolutionize the agricultural sector.

Opportunities: Increase in the use of agricultural-based software via smartphones.

The increasing use of agricultural-based software via smartphones presents a lucrative opportunity for businesses that can develop and deliver innovative solutions that address the specific needs of farmers. Smartphone penetration is rapidly increasing, especially in rural areas where many farmers operate. This makes agricultural apps readily accessible to a wider audience, driving adoption and market growth. Smartphones can be integrated with several hardware devices such as sensors, high-resolution cameras, and GPS receivers for various activities such as sample collection, aerial imaging, and record-keeping (experts recommended). Some farming apps can load field information, and smartphones also help small-scale farmers connect with customers and agents. Farmers can access smartphone apps to get precise information on climate, weather, water, seed grains, and fertilizers, which helps them plan, plant, and harvest. Due to its convenience usage and affordability, the demand for the same will surge in the global digital agriculture market.

Challenges: The high cost of devices and software impacts the adoption among small-scale farmers.

The high cost of devices and software systems is a significant barrier to adoption for small-scale farmers in the digital agriculture market. This challenge hinders their ability to benefit from the potential of technology to improve their yields, optimize resource use, and increase profitability. By developing innovative and affordable solutions, providing financial support, and promoting knowledge sharing, we can create a more inclusive digital agriculture market that empowers small-scale farmers to thrive and contribute to sustainable food production.

The advanced technologies and equipment help farmers cover a large area of land in significantly less time with high efficiency. An autopilot tractor can cost up to USD 100,000 and often does not provide sufficient RoI for small farmers and provides lesser penetration. These farms lack technical knowledge with the introduction of more specialized and expensive software systems. This issue is particularly widespread in developing countries, such as India, China, and Brazil, as there is a lack of skill and technical awareness among farmers the farmlands are fragmented, and the number of marginal farmers is high.

Market Ecosystem

Advisory Services Are One Of The Fastest Growing Offering Segments During The Forecast Period

The advisory services are constantly evolving with the integration of new technologies like AI-powered chatbots, virtual assistants, and augmented reality. These tools offer greater convenience, 24/7 access, and personalized recommendations, further driving the growth of the segment. Farmers are increasingly aware of the potential of data and analytics to optimize their operations. Advisory services leverage these tools to provide customized recommendations on crop selection, pest control, irrigation, and more, leading to improved yields, efficiency, and profitability.

Many farmers, especially smallholders, lack access to expert knowledge and resources. Digital advisory services fill this gap by providing accessible and affordable expertise through various channels like mobile apps, online platforms, and in-field consultations. For instance, the Global Framework on Climate Services Adaptation Programme for Africa was a multipartner initiative to reduce vulnerability to climate change. A food security component, led by the World Food Programme (WFP) and the CGIAR Research Program on Climate Change, Agriculture and Food Security (CCFAS), focused on helping food-insecure communities access relevant information to manage climate variability and change. This enabled improved decision-making based on seasonal and subseasonal weather forecasts and agricultural advice, including livestock, nutrition, and health information. (Source: The Global Commission on Adaptation, July 2021).

Advancements in mobile technology and internet penetration have made it easier for farmers to access advisory services even in remote areas. This has spurred the growth of scalable and geographically widespread services. This segment's dominance is poised to persist as it harmonizes with the emergence of new business models, solidifying its position in the global digital agriculture market.

India Is One Of The Fastest Growing Markets For Digital Agriculture In Asia Pacific

India, the world's second-largest food producer and top producer of pulses, rice, and wheat, faces the challenge of feeding 1.3 billion people. To meet this demand and ensure food security, digitalization is playing a crucial role in transforming agriculture. Digital Agricultural tools like AI, robotics, sensors, and communication networks are being integrated into farms, leading to increased productivity & yields, improved efficiency & accuracy, and enhanced decision-making.  The Indian government has actively promoted the digitalization of agriculture through various initiatives like the "Digital Agriculture Mission", which aims to leverage technology for improving farm productivity, market access, and farmer income. Several state governments have also implemented e-choupal platforms and other digital services for farmers. Additionally, rapidly increasing smartphone penetration, particularly in rural areas, has facilitated the reach and accessibility of digital agricultural solutions. Farmers can now access weather updates, market information, and extension services easily through their phones.

Key Market Players

The key players in this market include Key players in this market include Cisco Systems, Inc. (US), IBM Corporation (US), Accenture (Ireland), Trimble Inc. (US), Deere & Company (US), Epicor Software Corporation (US), Hexagon AB (Sweden), Bayer AG (Germany), AGCO Corporation (US), and Vodafone Group PLC (UK).

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Scope of the Report

This research report categorizes the digital agriculture market, based on offering, type, technology, operation, and region.

Target Audience

• Digital agriculture manufacturers, formulators, and blenders
• Digital agriculture traders, suppliers, distributors, importers, and exporters
• Government Agricultural Authorities
• Digital agriculture manufacturers
• Commercial research & development (R&D) organizations and financial institutions
• Government agricultural departments and regulatory bodies such as the US Department of Agriculture (USDA), The Indian Council of Agriculture Research (ICAR), Ministry of Farmers Welfare & Farmers Welfare (MoA & FW), International Fund for Agricultural Development (IFAD), United States Agency for International Development (USAID).

Report Scope:

Digital Agriculture Market:

By Offering

• Advisory Services
• Precision Agriculture & Farm Management
• Quality Management & Traceability
• Digital Procurement
• Agri e-Commerce
• Financial Services

By Technology

• Peripheral Technology
  • Platforms
  • Apps
• Core Technology
  • Automation
  • Drones
  • Robotics
  • AI/ML

By Operation

• Farming & Feeding
  • Precision Agriculture
  • Precision Animal Rearing & Feeding
  • Precision Aquaculture
  • Precision Forestry
  • Smart Greenhouse
• Monitoring & Scouting
• Marketing & Demand Generation

By Type

• Hardware
  • Automation & Control Systems
    • Drones/UAVs
    • Irrigation Controllers
    • GPS/GNSS
    • Flow & Application Control Devices
    • Guidance & Steering
    • Handheld Mobile Device/Handheld Computers
    • Displays
    • Harvesters & Forwarders
    • Variable Rate Controllers
    • Control Systems
    • Robotic Hardware
    • HVAC Systems
    • LED Grow Lights
    • Other Automation & Control Systems
  • Sensing & Monitoring Devices
    • Yield Monitors
    • Soil Sensors
    • Water Sensors
    • Climate Sensors
    • Camera Systems
    • RFID & Sensors for Precision Forestry
    • Temperature & Environment Monitoring Sensors
    • pH & Dissolved Oxygen Sensors
    • EC Sensors
    • RFID Tags & Readers for Livestock Monitoring
    • Sensors for Livestock Monitoring
    • Sensors for Smart Greenhouse
    • Other Sensing & Monitoring Devices
• Software
  • On-cloud
  • On-premises
  • AI & Data Analytics
• Services
  • System Integration & Consulting
  • Data Collection & Analytical Services
  • Connectivity Services
  • Assistant Professional Services
  • Maintenance & Support Services

By Region:

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In November 2023, Deere & Company announced a substantial investment of R$180 million in the construction of the Brazil Technology Development Center. The project aims to foster collaboration among various research and development teams dedicated to designing and validating innovative products and technologies for key production systems, including grain, sugarcane, and special crops. The facility will facilitate the conception and testing of products considering local variables such as soil, climate, and connectivity levels, ensuring quicker delivery of solutions to local customers and enhancing the productivity, profitability, and sustainability of small, medium, and large Brazilian producers.
• In October 2022, Trimble Inc., launched two new precision agriculture displays, the Trimble GFX-1060 and GFX-1260 displays. These next-generation displays are designed to enhance in-field operations for farmers by providing real-time mapping and monitoring of field information with precision.
• In June 2021, Raven Industries revealed the Driverless Ag Technology. Through Raven, existing tractors could be converted into driverless machines. It was a self-propelled power platform that helped perform multiple farm operations at once.
• In December 2020, Cisco Systems, Inc., partnered with The/Nudge Centre for Social Innovation and Cisco Systems, Inc., in association with the Government of India, announced the ‘Cisco Agri Challenge,’ aimed at mobilizing agri-tech startups to innovate solutions that have the potential to positively impact at least 10 million small farmers.
• In September 2019, Cisco Systems, Inc., and KSITM agreed to provide digital technology and data science to the farming communities in Kerala. With this agreement, Cisco built an Agri-Digital Infrastructure (ADI) platform set up village knowledge centers (VKCs) for knowledge delivery, and provided access to eLearning and advisory services to farming communities in Kannur, Kerala, India.

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