Global Digital Farming Market- Industry
Trends & Forecast Report 2027
The global digital
farming market has reached USD 4,770.8 million in 2020. It is further
projected to reach USD 10,702.3 million by 2027, at a CAGR
of 12.7% during the forecast period (2021-2027). Factors driving the market
include increased food demand due to rapid population growth, and increased
adoption of remote sensing technology, Variable Rate Technology (VRT), as well
as guidance technologies by farmers worldwide. Another factor driving the market
growth is substantial cost savings achieved by the use of modern agricultural
techniques and other methods.
Companies in the global
digital farming industry is heavily investing in the incorporation of
cutting-edge technology for various agricultural processes such as precision
farming, monitoring crop humidity, soil composition, and temperature, and
increasing yields by observing crop treatment and determining the optimal
amount of water or fertilizer to be used.
Global Digital Farming MarketOverview:
farming involves the process of applying the latest technological methods to
predict and influence the cultivation process. Digital farming develops an
operational system which provides real-time information about the soil and
plants’ temperature, humidity, water levels, fertilizer requirements, and nutrients
requirement. It helps farmers in optimizing various agricultural processes and
increasing crop yield. Digital farming also has the potential to revolutionize
agriculture and increase crop production with less investment. It often
shortens the crop's selling time and lengthens the fallow period. Farmers who
operate hundreds of hectares of farmland often struggle to keep an eye on every
nook and corner of their farms and as a result, crop production suffers.
Digital farming solves these issues with the help of sensors and smart devices.
Companies operating in the digital farming market are even trying to integrate
AI to further enhance the efficiency of the digital farming process.
Global Digital Farming MarketForecast and Trends
Increased food demand due to population
one of the most important aspects of survival. People work to earn something to
eat. As time progresses, the demand for food is growing exponentially. The
production of agricultural farms and fields has increased with the global
population in recent decades. Despite this, approximately 690 million people still
go hungry every day. According to the Food and Agriculture Organization (FAO)
and the United Nations, the agriculture sector will need to increase
productivity by nearly 50% by 2050 to meet the food demand of the increased
population. According to the United Nations, the world's population will crossthe
9.5 billion mark by 2050. The FAO has further estimated thatto meet increased
food demand, Sub-Saharan Africa and South Asia would need to more than double
their agricultural productivity by 2050, while the rest of the world will need
to increase agricultural productivity by more than one-third. Apart from this, the
FAO further reported that yields of wheat and rice in low-income countries are
currently about half those in high-income countries.
food demand expected to rise exponentially in the coming years, and crop
production showing little sign of improvement, farmers are increasingly using
fertilizers, which not only raises the cost of crop production but also
saturates the soil and harms the production of the next crop. Digital farming
with a fully integrated and operational system increases the crop production by
optimizing the farming process. It also provides real-time data on the supply
of essential soil and plant nutrients and regulates the quantity of fertilizers
to be used to meet the demand. Farmers all over the world are incorporating
digital farming to increase crop production, and with increasing food demand,
the number is expected to rise even further in the coming years. During the
forecast period, this is expected to act as a catalyst and contribute to the
global digital farming market's growth.
Increased adoption of variable rate technology (VRT), remote
sensing technology, and guidance technologies by worldwide farmers
around the globe are trying to encourage the adoption of digital farming
technologies like VRT, remote sensing technologies, guidance technologies, and
others. Moreover, digital farming is included in the EU's Popular Agricultural
Policy (CAP), which is the costliest EU initiative, with a budget of more than
EUR 50 billion per year.18 European countries have begun collaborating with the
EU to encourage digital agriculture and the implementation of relevant
technology in their respective countries. According to an FAO survey,
energy-intensive agricultural equipment controlled by monitoring systems
accounted for 70% of all agricultural equipment in Belarus in 2020, and the
government aims to cultivate 30% of total agricultural land using new
technologies. Additionally, according to Farm Computer Usage and Ownership
report by USDA, 52% of the American farms use desktop or laptop for farm
business in 2019 an increase of 8% from 44% in 2017.
an innovative technology that allows farmers to control the amount of input
they use at a particular location. Remote sensing technology enables crop yield
modeling and estimation of pests and disease infestation, soil sampling and
mapping, droughts monitoring, and water resources mapping, along with many
other applications. Guidance technologies, on the other hand, help farmers in identifying
insect and disease-affected areas in their farms, as well as providing
information about the amount of pesticides and insecticides to be used to get
rid of the insect and diseases. With time, farmers have started adopting
technology to make crop production easier and smart. As we move forward in
time, the adoption of technologies like VRT, remote sensing, and others is
expected to increase even more and is expected to contribute significantly
towards the growth of the global digital farming market during the forecast
High Capital Cost of Modern Agricultural
different types of equipment at various stages of a crop's life cycle, from
planting to harvesting. Farmers in North America and Europe are in better
financial condition than farmers in African and Asian countries who lack funds
to buy costly farming equipment. For example, Robovator, a robotic weeder by F.
Poulsen Engineering, costs between USD 125,000 and USD 160,000, including about
USD 15,000 in modifications.Tractors, one of the most essential farming
equipment, cost around USD 350,00, and harvesters cost around USD 25,000, and a
combine harvester cost around USD 24,500. A majority of the farmers cannot
afford such high-cost equipment. Aside from these, modern equipment and
innovations such as remote sensors, the Internet of Things (IoT), Software as a
Service (or SaaS), and Big Data technology are all costlier.Although the governments
of different countries provide subsidy to farmers for purchasing technologically
advanced farming equipment, the maintenance cost and operating cost of the
equipment still remains too high for farmers. Althoughcompanies and governments
are trying their best to make agricultural equipment affordable, high
maintenance and operating cost and high initial investment cost are likely to
act as a restraint for the growth of the global digital farming market during
the forecast period.
Global Digital Farming Market: By Components
Based on components, global
digital farming market is segmented into hardware, software, and others. The hardware
segment is the largest in the global digital farming market in 2020. It includes sensors, GPS devices, smart equipment, smart weeder and harvesters, and others,
while software includes AI, Software as a Services (SaaS), Big Data, and
others. Companies are actively searching for new ways to deliver innovative
products and services to consumers in the digital farming space. Some of the
companies operating in the digital farming market also provide robots for
Global Digital FarmingMarket: By Application
Based on application, the global digital farming is segmented into
precision farming, live-stock monitoring, greenhouse farming, and others.
Precision farming is the farming method where input received are used in a very
precise manner to enhance the yield of the crop production. Precision farming
require large fields and thus, is not very effective in India, where more than
58% of the farmers have less than one hectare of farming fields. Precision
farming provides exact data for the amount of water, fertilizer, and pesticide
required for the crop, thereby reducing the operational cost. Live-stock
monitoring includes equipment and software used for the smart monitoring of
live-stock and keeping heart rate, respiratory rate, blood pressure, digestion
level, and other vitals in check. Greenhouse farming is the method of growing
crops under a fully or partially covered environment to enhance productivity.
Greenhouse farming has been around for quite some time. It is widely used by
farmers all over the world. As the adoption of digital farming and smart
equipment is expected to increase during the forecast period, as a direct
result precision farming is also expected to show appreciable growth.
Impact of COVID-19 in the industry
onset of novel coronavirus has affected the global economy besides affecting
business operations. Due to the high infection rate and adverse impact on
public health systems, various countries had to enforce nationwide lockdowns.
Industry players are currently considering digital solutions and services to
serve thecommunity and provide newfangled opportunities to do business.
has also affected the global digital farming market negatively. The growth of
the market dipped in 2020 due to the adverse effect of the COVID-19 on the supply
chain of the digital farming market. Furthermore, everything was shut down and
borders were closed due to lockout restrictions. Companies were unable to meet
their consumers, limiting the market's growth.This prompted companies to start moving
towards production monitoring, crop health monitoring, field mapping,
irrigation scheduling, and harvesting management with the help of wireless
platforms to enable real-time decision-making. However, the market recovered
quickly towards the end of 2020 when lockdown restrictions were lifted. Consequently,
the global digital farming market is expected to grow even more in 2021.
Global Digital Farming Market: Regional
global digital farming market is segmented into five regions: North America,
Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. The European
digital farming market accounts for the largest share in the global digital
farming market and is expected to lead the market in the forecast period as
Europe held the largest market shares in the global digital farming market in 2020 owing to
the strong financial condition of the farmers, availability of the latest
technology, strong infrastructure, and reinforced supply chain. In Europe, the
Netherlands has emerged to be a global leader in agricultural innovation, forging
new paths to fight hunger. Today, the Dutch country is the world’s second-largest
exporter of food by value, only behind the US. It is worth noting that the US
has 270 times the landmass of the Netherlands. Currently, the Netherlands accounts
for more than a third of all global vegetable seed trade. Integration of
green-house farming and precision farming has made the greatest contribution to
the rapid growth of the Dutch agriculture and digital farming industries.
On April 6, 2021,
Guardian Agriculture reported a USD 10.5 million investment to modernize crop
safety with eVTOL-powered precision. Guardian Agriculture has created the
world's first integrated eVTOL device for precision application, expanding
growers' reach, lowering environmental impact, and reducing product resistance.
It collects data produced during the crop protection process, acts
intelligently on it, and is provided to farmers as a service.
The global digital farming market is fragmented
in nature. Some of the key players operating in the market areGamaya SA, Cisco
Systems Inc., AGCO Corporation, Accenture PLC, Trimble Navigation Ltd., IBM
Corporation, Salt Mobile SA, Deere & Co., Epicor Software Corporation, Bayer
CropScience AG,Hexagone AB, and other prominent players. Acquisitions and
effective mergers are some of the strategies adopted by the key manufacturers.Some
of the major industry players' main strategies include new product releases and
an emphasis on continuous technological innovation.Additionally, the companies
are also trying to dominate the market by investing in research and
Various companies are striving to gain market
share by adopting competitive strategies such as joint ventures and research
market players compete based on product quality, conformance to standards and
performance, and cost-effective
manufacturing process, which in turn optimizes the process for better
Scope of the Report
Historical data – 2017-2020
Base Year – 2021
Forecast – 2022 – 2027
Revenue in USD Million
U.S, Canada, Germany, UK, France, Italy,
Spain, Brazil, Mexico, Japan, South Korea, China, India, Argentina, UAE,
South Africa, Saudi Arabia
By Application, By Region
Key players operating in the
market include Gamaya SA, AGCO Corporation, Trimble Navigation
Ltd., Cisco Systems Inc., Salt Mobile SA, Accenture PLC, Deere & Co., IBM
Corporation, Epicor Software Corporation, Hexagone AB, Bayer CropScience AG,
and others prominent players
Scope of the Report
& Africa (MEA)
is the current size of the global digital farming market?
Ans: Current size of the
global digital farming market is USD 4,770.8million in 2020.
are the major factors driving the growth of the global digital farming market?
Ans:High demand for
agricultural products due to population growth, growing acceptance
of remote sensing technology, increased adoption of VRT and guidance
technologies by farmers around the world, and significant cost savings
achieved by the use of modern agricultural techniques, are some of the
major drivers for the global digital farming in healthcare industry.
are the key players in the global digital farming market?
Ans: Gamaya SA, AGCO Corporation, Trimble Navigation
Ltd., Cisco Systems Inc., Salt Mobile SA, Accenture PLC, Deere & Co., IBM
Corporation, Epicor Software Corporation, Hexagone AB are some of the key
players inthe global digital farming market.
application segment accounted for the largest market share in the global digital
Ans: The precision
farming application segment accounted for the largest market share in the
global digital farming market.
region accounted for the largest market share in the global digital farming
Ans: Europe accounted
for the largest market share in the global digital farming market.