Global Digital Agriculture Market - 2022-2029

Global Digital Agriculture Market - 2022-2029

Market Overview

Farmers are using digital agriculture tools to track the progress of crops in real time, such as sensors that record the soil condition and temperature when placed on the fields, computer applications such as climate field view, and a tool that is programmed to create farming maps and yield maps, and other similar applications.

The use of digital technology in agriculture helps in the dissemination of information from suppliers to workers and vice versa. Farmers are under constant pressure to produce more food and animal feed while using fewer chemicals. Simultaneously, it is critical to use less energy and labour while improving environmental land and water management. Thus, with the fast-growing population, it is becoming increasingly difficult to feed the growing population, putting increased strain on agricultural production and all these factors enabling manufacturers to use digital agriculture method.

The global digital agriculture market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 9.85% during the forecast period (2022-2029).

Market Dynamics: Growing population and increased demand for food is driving the growth of the market

It is becoming increasingly difficult to feed the growing population, with fast growing population as that is putting increased strain on agricultural production. As the world's population grows, ultimately the demand for food is increases, which results in better productivity at a lower cost in a limited resource environment. For instance, according to the World Bank, the global population is expected to expand by 1.075 percent in 2019, reaching roughly 82 million people.

In addition, the increasing awareness about the benefits of digital agriculture in optimizing agricultural production has resulted in a great boom in the agriculture market. Furthermore, the growing food demand, owing to the increasing population, the adoption of digital agriculture tools is inevitable for farmers.

Moreover, the strategic policymaking for precision farming by the countries is expected to encourage farmers to adopt the related technologies which ultimately increase the productivity. Farm advisory services are bridging the gap between science and practice. These services help farmers in adopting new innovative technologies, which is the latest trend in the market, thus being more efficient in utilizing the resources, cost-effective, and helping in facing the challenges and fulfilling the increasing food demand. For instance, in Novemebr 2020, TELUS Agriculture, has released a novel business unit, which will be used to provide innovative and advanced solutions to enhance that agriculture industry with digitalized and connected technology.

Market Segmentation: Crop monitoring stands for the highest share in global digital agriculture market

In 2021, the crop monitoring segment had the highest revenue share of YY percent. Crop monitoring is becoming increasingly important as geospatial technologies and site-specific crop management strategies become more widely used. In several nations, remote sensing technology is being utilized to acquire information for crop monitoring and acreage and production predictions in order to make policy decisions about food security. In addition, the current remote sensing applications are still in the experimental stage, with crop acreage forecasting accuracy ranging from 70 to 90 percent, depending on the type of crop and its dispersion across the terrain.

Furthermore, the remote sensing has a variety of characteristics that make it ideal for monitoring crop health. Remote sensing photography also provides the spatial picture of the land that is required. Thus, these benefits increase the demand for crop monitoring in the market which adds to the growth of the market.

Geographical Penetration: Asia-Pacific is the dominating region during the forecast period

In 2021, Asia-Pacific had the highest revenue share of almost YY percent. Asia-Pacific has wide agriculture industry and people now-a-days managing it through digitalization to get easy, fast and accurate results. The Chinese agricultural sector has undergone a revolution with respect to the adoption of smart farming practices in recent years. Although the advent of sensor-based technologies, such as Internet of Things (IoT) cellular devices, gear tooth sensor-based irrigation and fertilization equipment, and valve position sensors, among others, is relatively new in the domain, the country & the region has been witnessing a new-found demand for sensors, primarily due to the increased rate of mechanization and smart agricultural practices adopted by the farmers. For instance, in 2019, china witnessed a rise from 48.0% in 2005 to 59.2%. Similarly, according to the Ministry of Agriculture, the rate of mechanization in crop cultivation and harvest rose exponentially from 32.5% in 2003 to 70.0% in 2019. Furthermore, Indian agriculture has been traditionally rain-dependent, and climate change has made farmers extremely vulnerable to crop loss. Hence, insights from artificial intelligence through the agriculture life cycle will help reduce uncertainty and risk in agriculture operations. Thus, the rise in technology-driven agricultural equipment availability and an increase in government funding for the establishment of tech firms have driven the digital agriculture market in the Asia-Pacific region.

Competitive Landscape:

The global digital agriculture market is competitive and comprises players such as BASF SE, Farmers Edge Inc., Farmers Business Network, Eurofins Scientific, AgriWebb, Monsanto Company, Bayer AG, Deere & Company (US), Accenture and Syngenta AG among others. The manufacturers focus on market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. These factors help the company to grow which adds to the growth of the market.

For instance,
• In 2020, IBM India collaborated with various stakeholders and Watson Weaher and Media, the team launched various agriculture services such as “HDNDVI”, “Crop Identification and Acreage Estimation”, “High Definition Soil Moisture”, “Farm Level Yield Estimation”, and “Automated Field Boundary Identification.”

COVID-19 Impact: Negative impact on global digital agriculture market

The COVID-19 pandemic has adversely affected the economies of various countries due to lockdowns, business close, and travel bans. Agriculture, food are among the major industries suffered from intense disruptions such as restrictions on the supply chain and the shutdown of warehouse plants. In addition, the outbreak of coronavirus has critically impacted the digital agriculture market. The market has witnessed a slight decline in 2020 as a result of the COVID-19 pandemic, as movement restrictions and lockdowns have caused supply chain disruptions and a shortage of equipment. However, the use of digital applications such as remote sensing and farm management software tools could lead to higher adoption during the post-COVID-19 period. COVID-19 has thrown a wrench in the digital agriculture supply chain, and corporations are experimenting with new ways to communicate with growers and farmers through technology.

Furthermore, like other sectors farming has gone more digital during the pandemic. The COVID-19 pandemic accelerated the investment and innovation in digital agriculture that can protect the world's meager farmers from some of the worst effects of the current crisis. Thus, the increased dependence on digitalization improved the lives of many farmers across the world, which would further result in market growth.

The global digital agriculture market report would provide an access to approximately 69 market data tables, 62 figures and 175 pages