Digital Agriculture Market to Reach Valuation of USD 22.1 Billion by 2028 - Need for Increasing Crop Productivity and Growing Initiatives by Government Organization are Key factors that are Expected to Generate Revenue from the Digital Agriculture Market

Vantage Market Research

Jul 22, 2022

In terms of revenue, the Global Digital Agriculture Market is expected to reach USD 22.1 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 9.6% from 2022 to 2028.

Recently, there have been major developments in the field of digital agricultural technology. Lower costs, automated data collection, and others show huge potential for the development of the market. Digital agriculture provides lower production costs, inhabits soil erosion, and uplifts the socio-economic nature of farmers. Digital agriculture also provides sustainability and helps farmers grow productivity. Subsidies offered by a government organization are the major factor boosting the Digital Agriculture Market.

Key Highlights from Report:

  • The Hardware sub-segment of the Offering segment is anticipated to dominate the Digital Agriculture Market. This segment offers such as GPS receivers, guidance steering devices, and variable-rate technology (VRT) devices, which benefit farmers gain productivity.

  • The Yield Monitoring sub-segment of the End-Use Application segment accounted for the largest market share in 2021 for the Digital Agriculture Market. The market’s growth can be attributed to the benefits of climate service initiatives that enable farmers to effectively deal with climate-related disasters and improve food security and decision-making in agriculture.

  • North America is the largest regional segment. This surge is attributed to the rising demand for digital agriculture in developing economies such as India, China, and Indonesia. The rising technological advancements along with increasing government support to promote this system are the major factors driving the market growth.

Market Dynamics:

Advancements in Technology

The recent evolution of digital technology in farming is accelerating growth by ensuring higher crop yields and enhancing sustainability by reducing water consumption and the use of agrochemicals. Digital technologies, such as artificial intelligence (AI) and machine learning (ML), remote sensing, big data, blockchain, and IoT, are transforming agricultural value chains and modernizing operations. This, in turn, will boost the market expansion for Digital Agriculture Market during the forecast period. According to the Economic Survey 2020-21, GDP contribution by the agriculture sector is likely to be 19.9% in 2020-21, increasing from 17.8% recorded in 2019-20.