Digital Agriculture Market Analysis

Digital Agriculture Market Analysis

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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.

• The market for digital agriculture is significantly shaped by the cloud and on-premises segments, which provide a range of possibilities for the deployment of agricultural technology solutions. Scalability, affordability, and accessibility are features of cloud-based solutions that enable farmers to remotely access data, analytics, and apps from any internet-connected device. Across agricultural operations, this flexibility promotes cooperation, data exchange, and real-time decision-making.

   

• Farmers with certain regulatory requirements or privacy concerns find on-premise solutions appealing as they provide increased control, security, and customization choices. The availability of cloud and on-premise options meets a range of needs & preferences of farmers, encouraging the adoption of digital technologies and broadening the application of digital agricultural solutions in modern farming methods.

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.

• Utilizing techniques, such as variable-rate fertilization, real-time monitoring & precision irrigation, farmers may maximize yield, reduce environmental impact, and optimize resource utilization. By using digital technologies, such as sensors, drones, and data analytics platforms, these methods provide farmers with useful information for making decisions.

   

• Crop planning, inventory management, and administrative activities can be streamlined by farm management software & platforms, boosting operational profitability and efficiency. The development and use of digital solutions are fueled by the increasing demand for efficiency & precision in agricultural methods, which in turn, are driving the market expansion.

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.