The global digital agriculture market is expected to grow at a CAGR of 11.04% and is likely to reach the market size of US$23.998 billion in 2026, rising from an initial value of US$11.527 billion in 2019. Digital agriculture is known as the use of novel, advanced and innovative technologies, integrated into one specific system or software, to allow various stakeholders such as farmers, researchers, and others, that are working within the agriculture system or a value chain, to enhance their crop yield and food production. The market is expected to grow during the forecast period owing to a significant rise in the concerns towards food security and nutritional values as these are expected to pave the way for an ample number of opportunities for market growth in the coming years. Moreover, a significant number of investments are being made in the sector owing to the rising consumer demands. For instance, according to the US government's global food security strategy report, United States is anticipated to invest a significant share in facilitating the ecosystem for future foods. As more of the consumer insights are developed towards “fresh-from-farm-to-table”, the availability of freshly harvested vegetables across retail outlets is expected to increase in the United States market. Similarly, the United Kingdom's government in its industrial strategy has put AI at the heart of its growing productivity aims. The country has committed to boosting R&D spending to 2.4% of GDP by 2027.
Rising concerns towards increased crop productivity and increasing pressure towards increasing crop health
The market for digital agriculture is expected to be driven by the rise in the concerns attributed to increased crop productivity and improving crop health. This is due to a significant rise in the awareness amongst the end consumers for healthier alternatives. This has resulted in a rise in the pressure amongst the farmers to more and healthier food and animal feed whilst consuming a lesser amount of chemicals. With the population growing rapidly, it is becoming very difficult to feed the increasing population, thereby, creating high pressure to increase agricultural productivity. The use of software such as precision farming along with the Internet of Things (IoT) tools is a solution to all these requirements. IoT will play an imperative role in the growth of the digital agriculture market as it provides a finer method to control and measure growth factors such as soil and water conservation, irrigation, and proper usage of fertilizers and pesticides on a farm and agricultural land. Certain IoT tools are registering a significant demand in the market. GPS devices on tractors are gradually becoming popular in the digital market space, as they enable farmers to plant and cultivate crops in an efficient manner and it also saves and analyses travel time between different fields, which helps in the conservation of fuel and time. According to the FAO data, the yield for major crops like wheat, barley, and grains reduced considerably from 35,397.0 hg/ha in 2017 to 34,228.0 hg/ha in 2018 for wheat, and a similar reduced trend for barley and other coarse grains was observed. Precision farming helps farmers to know seeds, which have to be planted, the number of fertilizers, which need to be applied, the best time to harvest the crops as well as the expected output from the crops.
INCREASING USAGE OF Crop monitoring
The crop monitoring system is a system that allows farmers to perform real-time crop vegetation index monitoring by analyzing satellite images of different crops and fields so as to determine both negative and positive development of the crops. By getting the different vegetation indexes of a farm over a period of time, the farmer is able to determine whether there is an improvement in the farm or whether there is a deterioration in the farm. From this analysis, the farmer is able to take any corrective measures that may be needed on the farm. The crop monitoring system allows a user to monitor crops that are in different fields, regions, and areas. After monitoring, the system performs an analysis on the different fields monitored and also an interpretation of the analyzed data for various users. The key advantage of crop monitoring through satellites is that its data is at different spectral, spatial, and temporal resolutions for crop assessment, crop health, agriculture, crop change detection, irrigated landscape mapping, environmental analysis, yield determination, and soils analysis. Moreover, performing crop monitoring through satellites is found to be reliable since it accommodates regular revisit rates, produces consistent and accurate data, and also offers wide land coverage.
The UNITED STATES to have a major share
The United States agriculture sector stretches beyond the farm-related business to include a plethora of farm-related industries. According to the report given by the United States Department of Agriculture in the year 2019, agriculture, food, and other related industries contributed approx. US$1.109 trillion to the country’s gross domestic product, a total of approx. 5.2% share. The United States government has been spending a significant sum of capital on research and development related to precision and digital agriculture. In September 2020, the National Science Foundation and other government organizations announced that it would provide US$140 million to around seven NSF- led artificial intelligence institutes, intending to focus on precision and digital farming, and other critical industries. Major companies have been investing a significant sum of capital into the United States digital agriculture market. For instance, in July 2020, Netafim USA, a subsidiary of Netafim Ltd, announced a partnership with Sentek Technologies, intending to distribute Sentek's line of soil moisture sensors. The agreement would help Netafim to equip American growers with complete digital farming solutions. IBM is also making significant developments in the market. The company provides agricultural data and weather API solutions to farmers in the United States. By the combination of IoT, artificial intelligence, and predictive analysis, the stakeholders across the agriculture and farming business in the United States, could gain insights into potential problems and expected crop yields.
|Market size value in 2019||US$11.527 billion|
|Market size value in 2026||US$23.998 billion|
|Growth Rate||CAGR of 11.04% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||IBM Corporation, Microsoft Corporation, HummingBird Technologies, AGCO Corporation, Gamaya SA, Bayer CropScience AG, Deere & Company, Easytosee Agtech, Small Robot Company, Raven Industries|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the digital agriculture market size by 2026?
A1. The global digital agriculture market is expected to reach a market size of US$23.998 billion in 2026.
Q2. What is the size of global digital agriculture market?
A2. Digital Agriculture Market was valued at US$11.527 billion in 2019.
Q3. What are the growth prospects for the digital agriculture market?
A3. The global digital agriculture market is expected to grow at a CAGR of 11.04% over the forecast period.
Q4. Which region holds the maximum market share of the digital agriculture market?
A4. The UNITED STATES to have a major share of the digital agriculture market.
Q5. What factors are anticipated to drive the digital agriculture market growth?
A5. The digital agriculture market is expected to grow during the forecast period owing to a significant rise in the concerns towards food security and nutritional values.