Digital Agriculture Market Size

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.

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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.