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3. Digital Agriculture Industry - Forthcoming Trends to Fuel the Global Growth

The global digital agriculture industry, which reached a value of USD 22.0 billion in 2023, is poised for significant expansion, expected to reach USD 36.0 billion by 2028. This growth is driven by a robust compound annual growth rate (CAGR) of 10.3% throughout the forecast period. One key factor fueling this growth is the increasing accessibility of digital agriculture tools to smallholder farmers, particularly in developing nations, thanks to the proliferation of mobile internet and cloud computing. This trend empowers farmers to enhance their livelihoods and participate more actively in the digital economy.

The digital agriculture industry is undergoing rapid evolution, driven by emerging trends and global forecasts.

Emerging trends in the global digital agriculture market are:

• Adoption of precision agriculture techniques
• Integration of Internet of Things (IoT) in farming practices
• Use of drones and satellite imagery for monitoring crops
• Integration of AI, robotics, sensors & communication networks for increased productivity & decision-making.
• Growth of farm management software and data analytics solutions
• Expansion of vertical farming and controlled environment agriculture
• Rise of blockchain technology for traceability and transparency in supply chains
• Increased emphasis on sustainability and regenerative agriculture practices. 
• Rapid tests enabling on-site analysis for swift decision-making on farms. 
• Focus on soil sample testing for precise nutrient management and sustainable practices. 

The global digital agriculture market is witnessing dynamic shifts driven by changing consumer preferences, technological advancements, and regulatory developments. Several emerging trends are shaping the trajectory of the digital agriculture industry:

To know about the assumptions considered for the study download the pdf brochure

• Adoption of Precision Agriculture Techniques: Precision agriculture involves the use of advanced technologies such as GPS, sensors, drones, and robotics to optimize farming processes. It enables farmers to precisely manage inputs like water, fertilizers, and pesticides, leading to improved yields and cost savings.
• Integration of Internet of Things (IoT) in Farming Practices: IoT devices are increasingly being deployed in agriculture to monitor and manage various aspects of crop production. These devices collect data on soil moisture levels, weather conditions, crop health, and equipment performance, allowing farmers to make data-driven decisions in real-time.
• Use of Drones and Satellite Imagery for Monitoring Crops: Drones equipped with cameras and sensors are being used to capture aerial imagery of farmland. This data, along with satellite imagery, provides valuable insights into crop health, pest infestations, and yield predictions. Farmers can use this information to identify problems early and take corrective actions.
• Implementation of Artificial Intelligence and Machine Learning: AI and machine learning algorithms are being employed to analyze large datasets generated by IoT devices, drones, and other sources. These technologies can detect patterns, predict outcomes, and provide recommendations to optimize farming operations. For example, AI-powered systems can identify optimal planting schedules, predict crop diseases, and optimize irrigation schedules.
• Growth of Farm Management Software and Data Analytics Solutions: There is a growing demand for farm management software platforms that integrate data from various sources and provide comprehensive insights for decision-making. These platforms offer features such as field mapping, inventory management, financial planning, and crop forecasting, helping farmers streamline their operations and maximize efficiency.
• Expansion of Vertical Farming and Controlled Environment Agriculture: Vertical farming, which involves growing crops indoors in stacked layers, and controlled environment agriculture (CEA), which creates optimized growing conditions using technology like LED lighting and hydroponic systems, are gaining popularity. These methods offer advantages such as year-round production, higher yields, and reduced water usage, making them appealing in urban areas and regions with limited arable land.
• Rise of Blockchain Technology for Traceability and Transparency: Blockchain technology is being explored to improve traceability and transparency in agricultural supply chains. By recording transactions in a tamper-proof and decentralized manner, blockchain can enhance food safety, facilitate provenance tracking, and reduce fraud in the agri-food sector.
• Increased Emphasis on Sustainability and Regenerative Agriculture Practices: With growing concerns about environmental degradation and climate change, there is a shift towards more sustainable and regenerative agriculture practices. This includes practices such as conservation tillage, cover cropping, agroforestry, and organic farming, which promote soil health, biodiversity, and carbon sequestration while minimizing chemical inputs and greenhouse gas emissions.

Digital Agriculture Market by Offering, Technology (Peripheral, Core), Operation (Farming & Feeding, Monitoring & Scouting, Marketing & Demand Generation) Type (Hardware, Software, Services), Region - Global Forecast to 2028