Digital Agriculture Market Size & Share 2024 to 2032
Market Size by Technology (Core technology, Peripheral Technology), by Operation (Farming & Feeding, Monitoring & Scouting, Marketing & Demand Generation), by Component (Hardware, Software, Services), by Offering, by Region.
Report ID: GMI8092
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Published Date: February 2024
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Digital Agriculture Market Size
Digital Agriculture Market size was valued at over USD 22 billion in 2023 and is estimated to register a CAGR of over 11% between 2024 & 2032. The growing need for increased agriculture productivity and the rising demand for precision farming & crop monitoring are significantly driving the market growth.
Digital Agriculture Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Digital agriculture makes use of data analytics and digital technologies to improve farming methods. To feed the world's expanding population, which is expected to reach 9.7 billion by 2050, food production must rise by over 70%. Despite this growing demand, climate change and a workforce deficit are impeding the farming sector. Digital farming can aid farmers across the globe in facing these challenges. Information technology is used in smart farming, also known as digital farming, or farming 4.0, to change agricultural operations.
For instance, farmers can now gather data using the Internet of Things (IoT) technology to enhance their overall production procedures, increase efficiency, and be prepared for unforeseen events. By using this data, farmers can also identify the operations that can be automated. This information can be used to develop methods to collaborate and form partnerships with other farms, which will increase production by concentrating resources on the areas that most require it.
Digital agriculture is essential for modern farming practices to meet sustainability requirements. It helps farmers adapt to and mitigate the negative effects of extreme weather and an unpredictable environment such as lower output & damage from unseasonably high temperatures, excessive rains, and runoff. The use of digital agriculture can significantly reduce the utilization of numerous chemicals derived from petroleum. Farms can also meet customer needs for sustainability by using data to manage the overall farm operations, nurture healthier crops, potentially save energy, and increase production while lowering overall farm-level operating expenses.
The market for digital agriculture is severely constrained by the large upfront costs associated with implementing cutting-edge technologies such as IoT & Artificial Intelligence (AI) as well as the requirement for substantial infrastructure and training. Small- & medium-sized farmers are frequently discouraged from adopting digital solutions due to financial hurdles.
The intricacy of these technologies also presents a problem as many farmers lack the digital literacy and technical know-how necessary for successful adoption. The potential advantages of digital agriculture, such as increased productivity and sustainability, might not materialize without sufficient assistance & education, restricting its wide acceptance and influence on the agriculture industry.
Digital Agriculture Market Trends
The growing demand for precision farming is one of the dominant trends in the digital agriculture industry. Precision agriculture is a cutting-edge farming method that maximizes crop yield while lowering input expenses. This technique uses sensors, GPS units, and drones to gather information on temperature, nutrient levels, soil moisture content & other important parameters. Using this data, farmers can manage their fields, monitor crop development, and apply pesticides & fertilizers more effectively.
Farmers face a serious problem with water scarcity across the globe, especially during the dry season. An emerging solution to this problem is smart irrigation systems. By utilizing sensors to gather information on soil moisture, humidity & other variables, these systems automatically modify water usage to maximize crop development. Small-scale farmers without access to complex irrigation infrastructure can benefit from this approach.
Digital Agriculture Market Analysis
Based on component, the market is divided into hardware, software, and services. The software segment is further sub-segmented into cloud, on-premises, and AI & data analytics. The software segment is expected to register a CAGR of over 12% during the forecast period.
Based on offering, the digital agriculture market is divided into precision agriculture & farm management, advisory services, quality management & traceability, digital procurement, and agri e-commerce. The precision agriculture & farm management segment dominated the global market with a share of over 30% in 2023.
Asia Pacific is expected to register the largest CAGR of over 12% during the forecast period. The region is experiencing rapid growth in the agriculture sector, along with the rising adoption of advanced technologies, leading to increased demand for digital agriculture solutions. China and India are the largest contributors to the market in Asia Pacific. Increasing government initiatives are also spurring digital agriculture market growth.
For example, Karnataka, one of India's most productive agricultural states, has been at the forefront of adopting digital agriculture to develop farming techniques, boost crop yields, and improve farmer lifestyles. The state’s agricultural department has been collaborating closely with agriculturalists, researchers, and technology companies to create digital solutions that enhance farming methods. The government has also made significant investments in infrastructure and training to help farmers adopt digital technologies.
The Indian government is promoting the use of intelligent farming techniques. The India Digital Ecosystem of Agriculture (IDEA), Farmers Database, Unified Farmers Service Interface (UFSI), Funding to the States on the New Technology (NeGPA), Redesign of the Mahalanobis National Crop Forecast Centre (MNCFC), Soil Health, Fertility, and Profile Mapping are all components of the government's Digital Agriculture Mission (DAM). Under the NeGPA program, state governments receive funding for digital agriculture projects that make use of leading-edge technologies such as blockchain, IoT, and AI/ML.
Digital Agriculture Market Share
Deere & Company offers tractors and other equipment (with data-driven capabilities) integrated with precision agriculture technologies. Through its main platform, John Deere Operations Center, farmers can optimize operations and maximize yields by gaining analytics & real-time field data. Deere's digital solutions support informed decision-making throughout the planting & harvesting processes, increasing farm productivity, efficiency, and ultimately profitability. The use of digitization makes it a significant force in creating a more intelligent and sustainable future for agriculture.
Trimble Inc. is a leading provider of location and navigation technology used in digital agriculture. With its Connected Farm platform, which offers a variety of precision farming tools, agricultural equipment and sensors can be effortlessly integrated. To maximize yield and optimize operations, farmers can use data on fleet management, planting, irrigation, and other topics. With Trimble’s precision guidance systems, farmers can accomplish activities such as harvesting & seeding with accuracy down to a centimeter.
Digital Agriculture Market Companies
Major players operating in the digital agriculture industry are:
Digital Agriculture Industry News
The digital agriculture market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:
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Market, By Technology, 2018 – 2032
Market, By Operation, 2018 – 2032
Market, By Component, 2018 – 2032
Market, By Offering, 2018 - 2032
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →