Agritech Market Size & Share, Growth Report, Trends 2030

AGRITECH MARKET SIZE: TRENDS, DRIVERS, AND INSIGHTS

The agritech market size is rapidly evolving as agriculture faces increasing pressures to meet global food demands sustainably. In 2024, the global agritech market was valued at USD 24.42 billion and is projected to reach USD 48.98 billion by 2030, growing at a CAGR of 12.30% during this period. This growth is being driven by advancements in technology, rising food security concerns, and a growing global population expected to hit 9.7 billion by 2050.

Agritech Market Drivers

1. Technological Innovations Technologies such as artificial intelligence (AI), the Internet of Things (IoT), drones, robotics, and blockchain are transforming agriculture.
2. Precision farming is leading the charge, enabling higher productivity and lower environmental impact through IoT sensors and AI-driven analytics.
3. Major players such as John Deere and Trimble are driving innovation with advanced machinery and analytical tools.
4. Rising Demand for Sustainable Practices With climate change and resource depletion threatening traditional farming, sustainable solutions like vertical farming and controlled environment agriculture (CEA) are gaining traction. For example:
5. In 2023, Walmart partnered with Plenty Inc. to bring vertically farmed produce to 500 U.S. stores.
6. Bayer’s FieldView platform integrates AI for predictive crop performance analytics.
7. Government Initiatives Governments are accelerating agritech adoption through funding and subsidies. Examples include:
8. The European Union’s $1.5 billion subsidy program in 2023.
9. The U.S. Farm Bill allocates USD 500 million for precision agriculture technologies.

Market Trends

1. Vertical Farming and CEA: These innovations address limited arable land and unpredictable climates by leveraging AI and hydroponics to maximize yields while conserving resources.
2. Agri-Biotechnology: With investments exceeding USD 27 billion in 2023, this segment is revolutionizing agriculture with drought-resistant crops and bio-based fertilizers.
3. Smart Irrigation Systems: Solutions such as automated drip irrigation and weather-based controls optimize water usage in arid regions.

Challenges in the Agritech Market

Despite its promising growth, the agritech market faces barriers:

1. High Initial Costs Advanced systems like autonomous machinery and precision farming equipment often require investments exceeding USD 100,000, limiting access for small and medium-sized farms.
2. Limited Rural Connectivity Poor internet infrastructure and low digital literacy in rural areas hinder the adoption of smart technologies. Governments and companies are bridging this gap through training programs and rural broadband initiatives.

Notable Developments in Agritech

1. John Deere unveiled its autonomous 8R tractor in 2024, aiming to deploy 1,000 autonomous tractors by 2025.
2. Corteva expanded its eco-friendly product portfolio by acquiring Symborg in 2023, boosting its biological solutions.
3. Trimble partnered with Verizon in 2023 to integrate 5G into precision farming, enhancing data transmission speeds.
4. AGCO’s all-electric Fendt e100 Vario tractor was launched in 2024, reducing carbon footprints and operational costs.

Geographical Insights

1. North America
2. Accounts for over 35% of the global agritech market.
3. The adoption of advanced technologies like autonomous machinery and genetically modified seeds is widespread.
4. Asia-Pacific
5. Driven by the food demands of a population exceeding 4.7 billion, countries like China and India offering subsidies to boost agritech adoption.
6. Initiatives such as Japan’s Smart Agriculture Project are fostering innovation.
7. Europe
8. A mature market is driven by stringent environmental regulations.
9. The European Commission’s Horizon Europe program allocated €1.3 billion in 2023 for sustainable agricultural R&D.
10. Latin America and MEA
11. In Latin America, agritech adoption is fueled by urbanization and rising food demand.
12. In MEA, water-scarce nations like the UAE are embracing drone technology and vertical farming to boost food security.