Agritech Market Size, Share Report, Analysis, Trends, Growth, 2030

Agritech Industry Prospective:

The global agritech market size was worth around USD 23.5 billion in 2022 and is predicted to grow to around USD 79.7 billion by 2030 with a compound annual growth rate (CAGR) of roughly 16.5% between 2023 and 2030.  

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Agritech Market: Overview

Agritech, often known as digital agriculture or sometimes called agtech, is the use of technology and digital instruments in farming. It includes a broad variety of technological applications, such as data analysis, information monitoring, automation, and biotechnology. Agritech has the potential to enhance productivity, raise yields, save expenses, and promote sustainability. With rising food consumption and climate change posing a constant threat to food security, its significance has grown in recent years. Agritech is used to both investigate novel approaches to agricultural work and enhance current methods. It can enhance predictions by using the data gathered from farming to automate the physical labor-intensive tasks associated with agriculture and farming.

Through the analysis of vast volumes of crop production data, data analytics and machine learning are utilized to enhance decision-making in the agricultural business. The field uses the generated insights to develop and improve automated procedures. The agritech market is being driven by several factors including a growing worldwide population, increasing emphasis on food security, climate change and environmental concerns, growing trend of precision agriculture, rising adoption of AI and Machine learning and rising government initiatives.

Key Insights

• As per the analysis shared by our research analyst, the global Agritech market is estimated to grow annually at a CAGR of around 16.5% over the forecast period (2023-2030).
• In terms of revenue, the global Agritech market size was valued at around USD 23.5 billion in 2022 and is projected to reach USD 79.7 billion, by 2030.
• The growing food demand along with the increasing population drives the agritech market growth.
• Based on the type, the Sensors and Connected Devices segment is expected to capture a prominent market share over the forecast period.
• Based on the application, the irrigation segment is expected to dominate the agritech market during the projected period.
• Based on region, North America is expected to dominate the market during the forecast period.

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Agritech Market: Growth Drivers

Population growth and food security drive market growth

The need for food is rising as the world's population continues to grow. Agritech solutions are crucial for raising yields and optimizing resource usage in agriculture, which will improve production and guarantee food security. For instance, according to the Food and Agriculture Organization, between 2009 and 2050, the world's population is predicted to increase by more than a third, or 2.3 billion people. Compared to the previous four decades, when it increased by 3.3 billion people or more than 90%, this is a far slower pace of expansion. This expansion is expected to occur almost exclusively in the developing world. Within the latter, East and Southeast Asia's population would increase at the slowest rate (+13%), while sub-Saharan Africa's would rise at the highest rate (+14%).

Additionally, based on forecasts, it would be necessary to increase global food production by around 70% between 2005/07 and 2050 to feed the 9.1 billion people that would inhabit the planet by then. It would be necessary for production in the developing nations to nearly quadruple. This suggests several important commodities will see notable output rises. To reach 470 million tonnes in total in 2050, about one billion tonnes more of cereal and over 200 million tonnes more of meat would need to be produced annually, with emerging nations accounting for 72% of the total, up from 58% currently.

Agritech Market: Restraints

High cost and lack of knowledge hamper market growth

The high cost of agricultural equipment and a lack of awareness about the applications of agricultural technology are expected to impede the growth of the global agritech industry. Low productivity and poor supply chain visibility are further factors affecting the agritech sector. Numerous firms are utilizing artificial intelligence and blockchain technologies to solve these issues.

Agritech Market: Opportunities

Growing utilization of precision agriculture offers a lucrative opportunity for market growth

The primary factor propelling this industry and anticipated to support the growth of the global agritech market is the extensive implementation of precision farming in various applications. One of the most crucial elements of online technology is data management. Massive amounts of data and information are generated by internet-connected devices, and they must be examined. However, the Internet of Things fundamental security gateway poses several security and privacy risks. Proper harvesting is made possible by robotic and IoT devices with the help of sensors for crop monitoring.

For instance, John Deere has been working on connected, next-generation agricultural technology. After more than three years of testing, including on real farms, the firm just presented its first tractor that is entirely driverless.

Agritech Market: Challenges

Concern over data security and technology integration poses a major challenge to market growth

Data security and privacy are issues that are brought up by the gathering and usage of data in agritech. Without definite guarantees of data privacy, farmers could be reluctant to employ technologies that require exchanging sensitive information. Furthermore, it can be difficult to incorporate different agritech solutions into current farming methods. To fully utilize and optimize these technologies, farmers may encounter difficulties. Therefore, the concern over data security and technology integration poses a major challenge for the agritech industry over the forecast period.

Agritech Market: Segmentation

The Global Agritech industry is segmented based on the type, application, sector and region.

Based on the type, the global Agritech market is bifurcated into Big Data and Analytics, Biotechnology and Biochemical, Mobility, Sensors and Connected Devices and Others. The Sensors and Connected Devices segment is expected to capture a prominent market share over the forecast period. Agritech's use of sensors and connected devices is revolutionizing conventional agricultural methods by providing traditionally unseen levels of sustainability, efficiency, and precision. Further developments in sensor technologies and their agricultural applications are anticipated in the agritech sector as technology progresses. Sensors are essential to precision agriculture because they gather data on temperature, nutrient levels, and soil moisture in real-time. Drones and tractors with GPS and sensors are examples of connected technologies that allow for accurate input application and optimal resource use. Thereby, driving the segment growth.

Based on the application, the global Agritech industry is categorized into Production and Maintenance, Irrigation, Supply Chain, Marketplace and Others. The irrigation segment is expected to dominate the agritech market during the projected period. Agritech's use of irrigation technology is essential for tackling the problems associated with water scarcity, increasing crop yields, and advancing environmentally friendly farming methods. Innovations in irrigation technology are anticipated to make a substantial contribution to the overall resilience and efficiency of the agricultural sector as the agritech industry develops. For instance, water utilization is maximized via precision irrigation technology, which provides water precisely where and when it is required. This comprises soil moisture monitors, sprinkler systems, and drip irrigation, which let farmers adjust irrigation techniques to meet the demands of certain crops.

Based on the sector, the global Agritech market is segmented into Precision Farming, Agriculture, Agrochemicals, Smart Agriculture, Biotechnology, Indoor Farming and Others.

Agritech Market: Report Scope

Regional Analysis

North America is expected to dominate the Agritech market during the forecast period

North America is expected to dominate the Agritech industry during the forecast period. The regional market growth is attributed to precision agriculture adoption. Precision agricultural technology, including drones, sensor-based systems, and GPS-guided tractors, has been widely adopted in North America. Utilizing this technology allows farmers to maximize crop yields while cutting input costs and improving overall farm productivity.

Besides, the Asia Pacific is expected to grow at the highest CAGR during the forecast period. The main driver of the regional increase may be attributed to government programs in emerging nations that promote the adoption of contemporary precision agricultural technology, to optimize production. The Indian government intended to introduce Kisan Drones in 2022 for a variety of purposes, including fertilizer and pesticide spraying, land record digitalization, and crop evaluation. India's exports of agricultural and processed food products were USD 9,598 million in FY23 (April–July 2022), rising 30% over the previous year, according to IBEF.

Agritech Market: Competitive Analysis

The global Agritech market is dominated by players like:

• WayCool
• Mankind Agritech
• Ken Agritech
• Chifu Agritech Private Limited
• ARSR Tech
• AeroFarms
• Apollo Agriculture
• Crofarm Agriproducts Pvt Ltd
• Conservis
• Indigo Ag Inc.
• LettUs Grow Ltd.
• Pivot Bio
• AgBiome Inc.
• Ceres Imaging
• AgWorld
• Hortau
• Harvest Automation and Farmers Business Network

The global Agritech market is segmented as follows:

By Type

• Big Data and Analytics
• Biotechnology and Biochemical
• Mobility
• Sensors and Connected Devices
• Others

By Application

• Production and Maintenance
• Irrigation
• Supply Chain
• Marketplace
• Others

By Sector

• Precision Farming
• Agriculture
• Agrochemicals
• Smart Agriculture
• Biotechnology
• Indoor Farming
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa