Agritech Market - Global Outlook & Forecast 2025-2030

MARKET OUTLOOK

The global agritech market size was valued at USD 24.42 billion in 2024 and is expected to reach USD 48.98 billion by 2030, growing at a CAGR of 12.30% during the forecast period. The market is witnessing remarkable growth, driven by the increasing need for sustainable agricultural practices to address food security, climate change, and resource efficiency. The growing global population, anticipated to reach 9.7 billion by 2050, has intensified the demand for innovative solutions that optimize productivity while conserving resources. Furthermore, key technologies transforming the agritech market include artificial intelligence (AI), the Internet of Things (IoT), drones, robotics, and blockchain. Precision farming holds a significant market share, as it enhances productivity while reducing environmental impact. The integration of IoT sensors and AI-driven analytics is driving growth in this segment, with leading companies such as John Deere and Trimble at the forefront of innovation. Similarly, the farm management software segment is expanding and driven by the increasing need for real-time data analytics. IBM’s Watson Decision Platform for Agriculture is a prime example of how AI is revolutionizing predictive analytics and weather forecasting.

Recent advancements in the global agritech market further highlight its transformative potential. In 2023, Walmart partnered with Plenty Inc. to introduce vertically farmed produce across 500 stores in the U.S., emphasizing the growing importance of sustainable and space-efficient farming solutions. Similarly, Bayer’s launch of the FieldView platform in Europe integrated AI to offer predictive analytics for crop performance and pest management. Blockchain technology is also gaining traction, with IBM collaborating with Carrefour to enhance supply chain transparency and reduce food waste.

Despite this outlook, the agritech market faces challenges, including high initial investment costs, limited internet connectivity in rural areas, and a lack of technical expertise among farmers. Governments and private organizations are addressing these issues through subsidies and training programs. For example, the European Union introduced a USD 1.5 billion subsidy program in 2023 to encourage agritech adoption, while companies like Syngenta and BASF are running farmer training initiatives to improve digital literacy in agriculture. Furthermore, the global agritech market is undergoing a significant transformation, driven by technological advancements that are reshaping traditional farming methods. As investments in innovation continue to rise and barriers to adoption are addressed, agritech is set to play a critical role in achieving global food security and fostering environmental sustainability.

Recent Developments by Top Major Brands in the Global Agritech Market

1. In 2024, John Deere launched its autonomous 8R tractor, which can autonomously perform tasks such as planting and tilling. This move follows the company’s USD 305 million investment in autonomous farming technology. John Deere aims to deploy 1,000 autonomous tractors by 2025, addressing labor shortages and increasing operational efficiency.
2. Corteva expanded its biological portfolio in 2023 by acquiring Symborg, a leader in biological solutions for agriculture. The acquisition, valued at an undisclosed amount, enhances Corteva’s offerings in eco-friendly farming. Corteva's 2023 revenue was USD 18.2 billion, with biological products contributing significantly to growth.
3. Bayer CropScience enhanced its digital farming capabilities in 2023 by acquiring The Climate Corporation for USD 1.1 billion. This acquisition integrates weather data, satellite imagery, and analytics into Bayer’s platform, helping farmers optimize production. Bayer aims for USD 2.5 billion in digital revenue by 2025.
4. AG Leader launched the InCommand 1200 display system in 2024, designed to improve precision farming with real-time data analytics and automated machinery control. The system helps farmers monitor soil health and crop conditions. AG Leader’s parent company, Trimble, reported USD 3.5 billion in revenue in 2023, driven by demand for precision farming tools.
5. Trimble partnered with Verizon in 2023 to integrate its precision farming solutions with Verizon’s 5G network. This collaboration aims to provide faster, more reliable data transmission, enhancing real-time decision-making for farmers. Verizon’s 5G coverage in 80% of the US will help Trimble meet the growing demand for high-speed rural connectivity.
6. AGCO launched the Fendt e100 Vario, an all-electric tractor, in 2024. Priced at USD 230,000, the tractor aims to reduce farmers' carbon footprints and energy costs. AGCO’s USD 500 million investment in sustainable technologies is part of its strategy to offer electric farm machinery by 2030. The company’s 2023 revenue was USD 13.5 billion, with a growing share of sustainable products.

MARKET TREND & DRIVERS

Rise of Vertical Farming and Controlled Environment Agriculture (CEA)

The adoption of vertical farming and Controlled Environment Agriculture (CEA) is revolutionizing the global agritech market, addressing challenges like limited arable land and climate change. Vertical farming leverages hydroponics and AI-driven systems to enhance productivity, while CEA ensures precise environmental control, enabling year-round, resource-efficient cultivation. These advancements, supported by substantial investments and government initiatives, are reshaping sustainable food production worldwide.

Increased Investments in Agri-Biotechnology and Sustainable Practices

The global agritech market is witnessing unprecedented growth, driven by advancements in agri-biotechnology, precision agriculture, and sustainable farming practices. Investments surpassed USD 27 billion in 2023, marking a 19% rise from 2022, as governments and private enterprises prioritize technological solutions to address challenges like food security and climate change. Innovations such as drought-resistant crops, precision irrigation, and autonomous machinery are revolutionizing agriculture, enabling higher yields and resource efficiency.

Government Support and Initiatives

The global agritech market is experiencing rapid growth, driven by government initiatives targeting critical issues such as food security and climate change. Substantial funding programs, such as the EU's $10 billion Horizon Europe initiative and the US Farm Bill's $500 million allocation for precision agriculture, are accelerating technology adoption. These efforts have enhanced productivity and sustainability, with emerging markets in Asia and Africa leading the democratization of agritech solutions. Moreover, governments are also promoting agritech adoption through tax incentives and startup-friendly policies. For instance, in North America, the United States and Canada have introduced tax credits for agritech investments, encouraging farmers and corporations to adopt sustainable technologies.

Population Growth and Food Security

The global agritech market is experiencing significant growth, driven by rising food demand as the population approaches 9.7 billion by 2050. Advanced technologies like precision agriculture, AI, and vertical farming are transforming agricultural practices, enhancing productivity while minimizing environmental impact. Vertical farming is a key area of growth in the agritech sector, with companies like AeroFarms and Plenty leading the charge. These companies are developing state-of-the-art indoor farms that use minimal water, land, and energy to produce crops in urban settings. For example, AeroFarms’ vertical farming systems use aeroponics and LED lighting to grow leafy greens and herbs without soil, using 95% less water than traditional farming methods. This not only increases food availability in urban areas but also reduces the carbon footprint associated with food production and transportation.

INDUSTRY RESTRAINTS

Limited Digital Literacy in Rural Areas

The global agritech market faces significant barriers due to limited digital literacy and infrastructure in rural areas, particularly in emerging economies. Farmers often lack the skills and resources to adopt innovative technologies, which restricts agritech adoption and stifles growth. Collaborative efforts among governments, NGOs, and agritech companies are crucial to bridging this gap and unlocking the sector's full potential.

High Initial Investment Costs

High initial investment costs pose a significant barrier to agritech adoption, particularly in regions with limited financing access. Technologies like precision farming and autonomous machinery require substantial capital, often exceeding USD 100,000, making them unaffordable for small and medium-sized farms in both emerging and developed markets.

SEGMENTATION INSIGHTS

INSIGHTS BY TYPE

The global agritech market by type is segmented into biotechnology & biochemicals, big data analytics, sensors & connected devices, and mobility. The biotechnology & biochemicals segment is driven by increasing demand for sustainable farming practices, supported by government policies favoring bio-based solutions. In 2024, this segment accounted for a substantial portion of the market and is projected to grow at a CAGR exceeding 12.7% during the forecast period. Furthermore, Big Data analytics is transforming agriculture by providing farmers with actionable insights derived from real-time and historical data. The adoption of IoT devices in farming and the rising demand for predictive analytics are significant drivers for this segment. Recent advancements include AI and machine learning applications that enhance yield prediction and optimize resource allocation.

The sensors & connected devices segment, including soil sensors, weather stations, and connected irrigation systems, has been instrumental in resource optimization and efficient water management. Recent innovations in IoT technology have revolutionized farm interactions, enabling growers and advisors to enhance productivity through real-time data and automation. Lastly, the mobility segment, which includes software and mobile applications, is bridging the digital divide in rural areas by providing farmers with remote access to critical information. High smartphone penetration and the demand for real-time farm monitoring have fueled growth in this segment. For instance, applications like AgroTIC leverage machine learning and mobile platforms to connect farmers with agronomists and merchants.

The agritech market is poised for exponential growth across all segments, driven by technological advancements and the increasing need for sustainable farming solutions. Recent innovations, such as AI-driven analytics, IoT integration, and bio-based agricultural inputs, highlight the sector's potential to address modern agricultural challenges effectively. This trajectory underscores the critical role of agritech in shaping the future of global agriculture.

INSIGHTS BY APPLICATION

The global agritech market by application is segmented into production and maintenance, irrigation, supply chain, and marketplace. The production and maintenance segment leads the agritech market, focusing on enhancing crop production and farm maintenance through technologies like IoT, AI, and robotics. The adoption of precision farming and automated equipment has resulted in increased yields and cost reductions. For example, AI-powered pest management solutions and automated soil monitoring systems are increasingly utilized by large-scale farmers. According to USDA, over half of agribusinesses plan to invest in on-farm robotics or autonomous systems within the next two years, underscoring the growing importance of automation in agriculture. Furthermore, efficient water management is crucial, and smart irrigation systems utilizing sensors and data analytics are minimizing water wastage while maximizing efficiency. Innovations such as automated drip irrigation and weather-based watering controls are gaining traction, particularly in water-scarce regions. The increasing awareness of sustainable agricultural practices and government subsidies for modern irrigation equipment are propelling growth in this segment. The global agritech market, encompassing irrigation technologies, is expected to cross USD 12 billion by 2030.

The supply chain segment addresses the need for transparency and efficiency in the movement of agricultural products. The demand for supply chain transparency is rising, with technologies enabling farmers to predict crucial farming operations and measure sustainability. Furthermore, digital marketplace platforms are revolutionizing how farmers sell their produce and access resources. The adoption of e-commerce in agriculture has seen exponential growth, particularly in emerging economies, where smallholder farmers are leveraging mobile applications for market access. For instance, in India, space data is fueling farming innovation, enabling farmers to access optimal sowing times and improved irrigation practices.

The global agritech market is poised for substantial growth across all application segments. Production and maintenance continue to lead with advanced tools optimizing yield, while irrigation and supply chain segments evolve with sustainable and efficient solutions. The marketplace segment, driven by digital innovation, is bridging gaps between farmers and buyers, creating a holistic ecosystem for modern agriculture. The integration of cutting-edge technologies across these segments ensures continued growth and adaptation to the dynamic needs of the agricultural sector.

GEOGRAPHICAL ANALYSIS

North America holds the most significant share of the global agritech market, accounting for over 35% in 2024. The region's growth is fueled by high adoption of precision farming technologies, robust investment in agricultural R&D, and government incentives for sustainable practices. Also, government funding is a significant driver, with the USDA allocating over USD 500 million in 2023 to promote technologies like IoT and autonomous machinery. This has spurred innovation among startups and established firms. Furthermore, advancements in biotechnology, such as CRISPR-based gene editing, are enhancing crop resilience. In 2023, genetically modified seeds accounted for 80% of corn and soybean crops in the United States.

The Asia Pacific agritech market is growing rapidly due to rising food demand driven by a population of over 4.7 billion. Governments in countries like China and India are offering subsidies to boost precision farming and modern agricultural technologies. Furthermore, government initiatives like Japan’s Smart Agriculture Project and Australia’s “Ag2030” plan are driving innovation. These programs aim to enhance productivity and sustainability through robotics and digital technologies. Moreover, sustainability concerns are accelerating the adoption of Agritech solutions like smart irrigation and precision fertilizers. Pilot projects in Southeast Asia have reduced resource consumption by up to 30%, aligning with environmental goals.

Europe represents another mature agritech market, driven by stringent environmental regulations and the adoption of sustainable agricultural practices. Government support is a key driver, with the European Commission allocating €1.3 billion under Horizon Europe for sustainable agricultural R&D in 2023. This funding fosters the development of data-driven solutions and promotes innovation in the sector. Also, the rising demand for organic produce is pushing the use of Agritech tools for better crop management and reduced resource consumption. Companies like BASF launched digital platforms in 2024 to help farmers meet environmental regulations. Furthermore, labor shortages are leading to increased use of robotics and automation in agriculture, with over 25% of farms in Northern Europe integrating robotic systems by late 2023. These systems are helping reduce operational costs by up to 40%.

The Latin American Agritech market is growing due to rising food demand, driven by a growing population and urbanization. By 2030, the region’s population is projected to increase by 8%, boosting the need for sustainable agricultural solutions. Government policies in countries like Brazil are accelerating Agritech adoption, with investments in digital farming and precision agriculture. The focus on sustainability is reshaping the sector, as Latin American farmers adopt technologies to reduce resource usage and waste. This is attracting investment and fostering partnerships between startups and major agricultural companies.

The Middle East and Africa (MEA) region is witnessing a gradual adoption of Agritech, primarily in water-scarce countries like Israel, the UAE, and South Africa. For example, the UAE's "Food Security Strategy 2051" promotes sustainable farming practices and drone technology. Also, government support is crucial for the adoption of agritech solutions. The South African government’s "Agriculture and Agro-processing Master Plan," launched in 2020, aims to integrate technology into farming. Furthermore, venture capital investments in agritech startups are growing. In 2023, Egypt's agritech company "Greenhouse" raised USD 1.5 million to expand its operations, focusing on vertical farming and efficient water use.

VENDORS LANDSCAPE

The global agritech market is experiencing robust growth, driven by the increasing demand for sustainable agricultural practices, technological advancements, and supportive government policies. Key technologies, including precision agriculture, AI-based analytics, IoT-enabled devices, robotics, and smart farming solutions, are transforming the sector. Major players have secured significant market shares by focusing on innovation and expanding their global presence. The key players in the global agritech market include AGCO Corporation, Bayer Crop Science, CNH Industrial, Corteva Agriscience, John Deere, Kubota Corporation, Syngenta, and Trimble Inc.

John Deere (Deere & Company) leads the market with a share of approximately 15%-18%, offering advanced solutions such as autonomous tractors and the John Deere Operations Center. Trimble Inc. follows John Deere, known for its GPS technologies and field analytics. Bayer CropScience holds 8%-10% of the market through its Climate FieldView platform, which integrates data analytics with on-field applications. AGCO Corporation contributes 7%-9% via its Fendt, Massey Ferguson, and Valtra brands, integrating IoT and telemetry into its machinery. CNH Industrial, with its New Holland and Case IH brands, accounts for a significant agritech market share, providing telematics and data-driven solutions.

Other players, such as Corteva Agriscience, Kubota Corporation, Indigo Ag, and Yara International, focus on digital agronomy, seed technology, and sustainable solutions. Emerging startups like Farmers Edge and CropX are gaining traction with niche innovations in AI, drones, and blockchain. The agritech market is poised for continued expansion, with sustainability and digital transformation at the forefront of competitive strategies.