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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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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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~17% |
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Base Year Market Size (2022) |
~ USD 21 Billion |
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Forecast Year Market Size (2033) |
~ USD 55 Billion |
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Regional Scope |
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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.
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.
Our in-depth analysis of the global digital farming market includes the following segments:
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By Component |
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By Technology |
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By Application |
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Deere & Company
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.
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.
Ans: The market is anticipated to attain a CAGR of ~17% over the forecast period, i.e., 2023 – 2033.
Ans: High cost of digital farming solutions, lack of awareness regarding digital farming, and high primary investment are estimated to hamper the market growth.
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.
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.
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.
Ans: The market is segmented by component, technology, application, and by region.
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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