Digital Farming Market

Analysis by Component (Hardware, Software, and Others); by Technology (Artificial Intelligence, IoT, NLP, Big Data & Analytics, and Blockchain); and by Application (Yield Monitoring & Mapping, Smart Crop Monitoring, Smart Irrigation Monitoring, Soil & Fertilizer Management, Livestock Monitoring, Green House Farming, Weather Forecasting, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033

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Report ID: 440 | Published On: Feb 13, 2023
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Global Digital Farming Market Size, Forecast, and Trend Highlights Over 2023 - 2033

The global digital farming market is estimated to garner a revenue of USD 55 Billion by the end of 2033 by growing at a CAGR of ~17% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 21 Billion in the year 2022. The growth of the market is primarily attributed to the worldwide intensifying stances of crop failure and scarcity of natural resources. According to the data provided by the World Bank, the worldwide total natural resources rents ratio was 1.6% of GDP in 2020, whereas, the same was 2.5% of GDP in 2018.

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Digital farming or digital agriculture is the use of IT in agriculture to enhance the cultivation process. It involves applications of connected machinery and other digital agriculture technologies. Digital farming is used to improve overall farm production, improve financial performance, and help farmers to boost their farm’s productivity using advanced digital technology. Further, the involvement of digital technology in farming is an evolution in the agriculture sector and has positively impacted the efficiency and sustainability of farms. Digital farming deals with the use of technology in the form of devices and sensors to help farmers to do precise farming. For instance, mechanical soil sensors analyze soil structure. The sensors employ a detector that penetrates the soil and measures resistive forces via load cells or strain gauges. On large tractors, a similar form of this innovation is used to forecast pulling prerequisites for ground-engaging equipment. Tensiometers are very useful for irrigation interventions as they detect the force used by the roots in water absorption.

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Global Digital Farming Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

~ USD 21 Billion

Forecast Year Market Size (2033)

~ USD 55 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Global Digital Farming Market: Growth Drivers and Challenges

Growth Drivers

  • Rapidly Escalating Hunger Rate Across the Globe - Significantly increasing population, and rising income ratio in developed countries are immensely pushing up worldwide demand for food, which is surging the hunger ratio on a larger scale. Therefore, farmers are in dire need of increasing yield production by adopting innovative methods such as digital farming. According to the Food and Agricultural Organization of the United Nations (FAO), in 2020, the global hunger rate affected between 720 to 811 million people.

  • Spike in Intense Water Scarcity – For instance, approximately two-thirds of the world's population faces intense water scarcity within a month. Furthermore, by 2030, nearly 690 million people are expected to be relocated as a result of severe water scarcity.

  • Upsurge in Smart Farming Through Technology Integration - The deployment of IoT devices in agricultural production surpassed around 78 million by the end of 2020, expanding at the rate of nearly 22% per year.

  • Globally Increasing Food Demand – For instance, it is estimated that to feed the world's 9 billion people in 2050, the world’s total food production needs to boost by 72% between 2007 to 2050.

  • Massively Increasing Worldwide Population – As per the World Bank, the world’s total population has touched the figure of 7.84 billion by 2021.


  • High Cost of Digital Farming Solutions - The price of producing cotton is already rising. In 2018, China's cotton production costs were 3.4 times higher compared to those in the US and 4.3 times higher than that of India. The cost of labor, something that accounts for 55.9% of the total cost of producing cotton and is increasing at an average annual growth rate of 7.9%, was the highest among these costs, followed by service fees and the price of agricultural inputs besides chemical fertilizer and pesticides, that together accounted for 31.2% of the total cost.

  • Lack of Awareness Regarding Digital Farming

  • High Primary Investment in Digital Farming

The digital farming market is segmented and analyzed for demand and supply by application segment into yield monitoring & mapping, smart crop monitoring, smart irrigation monitoring, soil & fertilizer management, livestock monitoring, greenhouse farming, weather forecasting, and others. Out of these, the smart crop monitoring segment is expected to hold the highest growth over the forecast period owing to the surge in lack of natural resources, increasing ratio of crop failure, intensifying water shortage, and rise in soil degradation across the globe. According to a report by the Food and Agricultural Organization of the United Nations, over 90% of Earth's soil is estimated to be degraded by 2050, up from the current 33% degradation rate.

Global Digital Farming Market Regional Synopsis

The North America digital farming market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033 backed by the presence of some major players in digital farming, high investment in research and development of advanced agriculture techniques, significant deployment of technology and automation in agriculture, and increasing government initiatives to enhance the agriculture sector. As per the U.S Department of Agriculture, The USDA intends to invest up to USD 300 million in a new organic transition initiative to provide farmers with substantial support as they shift towards organic production. Furthermore, it is estimated that up to USD 75 million are estimated to invested to support urban agriculture. Apart from this, the USDA is going to invest USD 40 million in cooperative agreements with organizations to support accessibility and training for urban farmers.

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Market Segmentation

Our in-depth analysis of the global digital farming market includes the following segments:

        By Component

  • Hardware
  • Software
  • Others

        By Technology

  • Artificial Intelligence
  • IoT
  • NLP
  • Big Data & Analytics
  • Blockchain


         By Application

  • Yield Monitoring & Mapping
  • Smart Crop Monitoring
  • Smart Irrigation Monitoring
  • Soil & Fertilizer Management
  • Livestock Monitoring
  • Green House Farming
  • Weather Forecasting
  • Others

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Top Featured Companies Dominating the Global Digital Farming Market

    • Deere & Company

      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Hexagon AB
    • Epicor Software Corporation
    • Trimble Inc.
    • CropX Technologies Ltd.
    • CNH Industrial N.V.
    • AGCO Corporation
    • IBM Corporation
    • Kubota Corporation
    • Syngenta Crop Protection AG

In The News

  • April 2022: IBSRELA the first and only NHE3 inhibitor for the treatment of irritable bowel syndrome with constipation (IBS-C) in adults, has been made available by the biopharmaceutical company Ardelyx. The first Ardelyx product to receive approval from the US Food and Drug Administration is IBSRELA.
  • March 2022: Indegene a provider of technology-driven healthcare solutions, & meta Me Health, a maker of Regulora and a Prescription Digital Therapeutics (PDT) business, teamed up to offer Regulora as a remedy for irritable bowel syndrome-related stomach pain (IBS).

Global Economic Impact

Request Insights
Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the digital farming market?

Ans: Rapidly escalating hunger rate across the globe, spike in water scarcity, and upsurge in smart farming through technology integration are some major factors driving the growth of the market.

2) What would be the CAGR of digital farming market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~17% over the forecast period, i.e., 2023 – 2033.

3) What are the challenges affecting the digital farming market growth?

Ans: High cost of digital farming solutions, lack of awareness regarding digital farming, and high primary investment are estimated to hamper the market growth.

4) Which region will provide more business opportunities for growth of digital farming market in future?

Ans: The market in North America is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.

5) Who are the major players dominating the digital farming market?

Ans: The major players in the market are Deere & Company, Hexagon AB, Epicor Software Corporation, Trimble Inc., CropX Technologies Ltd., CNH Industrial N.V., AGCO Corporation, and others.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the digital farming market?

Ans: The market is segmented by component, technology, application, and by region.

8) Which segment captures the largest market size in application segment in the digital farming market?

Ans: The smart crop monitoring segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.

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