Global Digital Farming Market Definition
Digital farming is the application of technologies, services, and products to gather analyzed data and offer farmers the necessary guidance on managing their ground, water, and nutrition. By supporting farmers also with precise and timely application of their crops, the solution aids in the improvement of agricultural solutions as an entire. It offers the optimal fertilization program for certain fields, enabling them to specify how much fertilizer to apply and adjust for variations in various fields' zones. Digital farming, in a nutshell, is the use of digital technology in agriculture. It mainly involves the use of integrated machines, and other digital technologies, to enhance yield.
Global Digital Farming Market: Key Insights
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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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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.
Global Digital Farming Market: Growth Drivers and Challenges
Growth Drivers
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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.
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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.
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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.
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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.
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Massively Increasing Worldwide Population – As per the World Bank, the world’s total population has touched the figure of 7.84 billion by 2021.
Challenges
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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.
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Lack of Awareness Regarding Digital Farming
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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.
Market Segmentation
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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Top Featured Companies Dominating the Global Digital Farming Market
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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
