Digital Agriculture on the Rise: Market Set to Reach USD 39.8 Billion by 2029

The global digital agriculture market is experiencing rapid transformation, projected to grow from USD 24.2 billion in 2024 to USD 39.8 billion by 2029, with an impressive CAGR of 10.4%. The market's momentum is being driven by cutting-edge innovations in precision farming, automation, connectivity, and mobile technology  all revolutionizing how food is produced and farms are managed.

Precision Farming and Smart Technologies Are Reshaping Global Agriculture

Digital agriculture integrates precision tools such as GPS/GNSS, sensors, and mobile connectivity to help farmers monitor and manage every aspect of their farms with accuracy. These advancements not only increase productivity but also reduce environmental impact by optimizing resource usage. Technologies like remote sensing and real-time analytics support better decision-making, enabling farmers to produce more with less and make agriculture more sustainable and efficient.

Widespread Use of Smartphone Farming Apps Is Creating Huge Market Potential

An important opportunity fueling market growth is the growing use of agricultural software through smartphones. Modern farmers now rely on easy-to-use mobile apps that provide instant access to crop data, weather updates, soil health, and pest alerts. UAVs (drones), when paired with smartphones, deliver aerial imagery and data directly to the farmer, simplifying field monitoring. These apps are often low-cost and accessible, making them especially beneficial for small and medium-scale farmers.

Hardware Segment Takes the Lead as Farmers Embrace Digital Equipment

The hardware component of digital agriculture holds the largest market share and continues to expand. This includes automation and control systems, sensors, and monitoring equipment, which play a vital role in improving crop quality, optimizing irrigation, and reducing waste. Farmers are increasingly investing in field intelligence systems that allow for timely harvesting, targeted pesticide application, and precision monitoring of crops, soil, and environmental conditions.

United States Continues to Dominate the North American Digital Agriculture Landscape

The United States is at the forefront of the digital agriculture movement, thanks to strong R&D, large-scale adoption of technology, and advanced farm infrastructure. As per the USDA February 2023 report, the adoption of technologies like automated guidance, yield maps, soil maps, and VRT (Variable Rate Technology) is rapidly expanding across major crops such as corn, cotton, soybeans, and wheat. Automated guidance systems alone are now used on over 50% of the acreage for key crops, reflecting the country's push toward data-driven, high-efficiency farming.

Automation and Control Systems Are Set to Drive the Next Wave of Agricultural Innovation

Among all segments, automation and control systems are forecasted to experience the highest CAGR. These systems integrate hardware and software to power robotic machinery, real-time sensors, and smart irrigation tools. The result is a farming ecosystem that operates with precision, efficiency, and minimal human error — reducing labor costs and increasing output. This shift is transforming agriculture into a high-tech industry capable of supporting global food security and environmental goals.

Digital Agriculture Needs Robust Connectivity Infrastructure to Thrive

To support high-tech solutions like AI, machine vision, quantum computing, and real-time analytics, farms need strong digital infrastructure. Precision Agriculture Connectivity Infrastructure — including cloud platforms, 5G networks, and satellite coverage — forms the essential foundation for deploying next-gen agricultural technologies. This infrastructure ensures secure data transmission, supports smart farming platforms, and bridges the connectivity gap in rural and remote areas.

Strategic Collaborations and Tech Ventures Are Accelerating Market Expansion

Recent partnerships and technological developments are shaping the future of the digital agriculture market:

1. AGCO & Trimble (April 2024): Formed “PTx Trimble” to deliver precision ag solutions for mixed-fleet farming systems.
2. Deere & Delaval (Oct 2023): Introduced the Milk Sustainability Center, focusing on sustainable dairy farming through precision data.
3. CNH & Intelsat (May 2024): Teamed up to deliver satellite internet for remote farming operations, beginning in Brazil and expanding to the U.S. and Australia.
4. AKVA Group (Aug 2023): Strengthened its digital capabilities by acquiring a majority stake in Submerged AS.

Global Industry Leaders Are Powering the Digital Agriculture Revolution

A number of global tech giants and agri-tech innovators are driving this market forward. Leading companies include:

1. Cisco Systems, Inc. (US)
2. IBM Corporation (US)
3. Microsoft (US)
4. Accenture (Ireland)
5. AGCO Corporation (US)
6. Deere & Company (US)
7. Topcon Corporation (Japan)
8. Kubota Corporation (Japan)

These companies are pioneering solutions that blend software intelligence with real-world agricultural operations.

Unlock new business potential in precision farming—see what's fueling market growth to 2029.

A Connected, Sustainable, and Profitable Future for Agriculture

The digital agriculture market is more than just a technology trend — it's a global shift toward sustainable, efficient, and future-ready farming. By combining data, automation, and connectivity, farmers can grow more food with fewer resources while improving profitability and resilience.

As innovation continues, and adoption expands across both developed and emerging regions, digital agriculture is set to become the cornerstone of the global agri-food system in the years ahead.