Digital Agriculture Market Expected to Reach $51.3 Billion by 2033

According to a new report published by Allied Market Research, titled, “Digital Agriculture Market," The digital agriculture market was valued at $18.6 billion in 2023, and is estimated to reach $51.3 billion by 2033, growing at a CAGR of 10.5% from 2024 to 2033.

Digital agriculture refers to the application of advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), drones, big data analytics, and automation to enhance farming efficiency, productivity, and sustainability. It involves the use of smart sensors, satellite imagery, and data-driven decision-making tools to optimize resource allocation, monitor crop health, improve livestock management, and streamline supply chains. By integrating digital solutions into agricultural practices, farmers can reduce input costs, increase yields, and minimize environmental impact. Additionally, digital agriculture facilitates real-time monitoring, predictive analytics, and precision farming, enabling more efficient water and fertilizer use while mitigating risks associated with climate change and pest infestations.

The digital agriculture market size has witnessed substantial growth, with regional policies and technological advancements playing a crucial role in shaping its development. In North America, the United States Department of Agriculture (USDA) has introduced the Smart Agriculture Initiative, effective from January 2025. This initiative aims to promote the adoption of precision farming technologies, IoT-enabled monitoring systems, and AI-driven farm management solutions. It establishes guidelines for sustainable agricultural practices, data transparency, and funding opportunities for farmers implementing digital solutions. Additionally, the initiative encourages the use of digital tools to enhance crop productivity, optimize resource utilization, and mitigate climate-related risks.

Furthermore, on February 2025, the European Commission updated its Sustainable Agriculture Strategy, introducing incentives for farmers adopting digital solutions such as automated irrigation, AI-powered analytics, and blockchain-based supply chain tracking. This revision addresses challenges related to fragmented adoption rates, aiming to bridge the digital divide between large agribusinesses and small-scale farmers. By refining its policies, the European Commission seeks to enhance agricultural efficiency, reduce environmental impact, and strengthen food security.

On the basis of component, the hardware segment dominated the digital agriculture market size in 2023 and is expected to maintain its leadership in the coming years. The growing adoption of farm management hardware, AI-based predictive analytics, and blockchain-enabled traceability solutions is driving demand. The increasing reliance on real-time data for precision farming, financial decision-making, and supply chain optimization further strengthens the segment's growth. Innovations such as autonomous tractors, drones, and smart irrigation systems are also contributing to the hardware segment's dominance. These technologies enable farmers to monitor crops, manage resources, and automate labor-intensive tasks, significantly improving operational efficiency. Furthermore, the integration of IoT devices with hardware solutions is enhancing connectivity and data accuracy, making it easier for farmers to make informed decisions. As the agriculture sector continues to embrace digital transformation, the hardware segment is poised to remain at the forefront of this evolution.

North America held the largest share in the digital agriculture market in 2023, attributed to high technological adoption, strong government support for smart farming initiatives, and investments in agritech startups. The region's leadership in AI, IoT, and cloud-based farm management platforms has accelerated the transition toward data-driven agriculture. Additionally, favorable policies promoting sustainable farming, along with increased private sector participation, have positioned North America as a key player in the global digital agriculture market forecast. The presence of major agritech companies and research institutions in the region has further fueled innovation and adoption. For instance, the USDA's funding for precision agriculture projects and the proliferation of 5G networks in rural areas are enabling faster and more reliable connectivity. These factors, combined with a growing emphasis on reducing carbon footprints and improving food security, ensure that North America will continue to lead the digital farming market in the foreseeable future.

Key findings of the study

• By component, the hardware segment led the digital agriculture industry in terms of revenue in 2023.
• By application, the precision farming and farm management segment accounted for the highest digital agriculture market share in 2023.
• By technology, the IoT segment accounted for the highest digital agriculture industry share in 2023.
• By region, North America generated the highest revenue in 2023.

The report profiles the key players operating in the digital agriculture market analysis such as John Deere, Trimble Inc., AGCO Corporation, Bayer AG, Indigo Ag, Agreena ApS, ecoRobotix SA, IBM Corporation, Microsoft Corporation, Gamaya, AgEagle Aerial Systems Inc., CNH Industrial N.V., TOPCON CORPORATION, BASF Digital Farming GmbH, Digital Agriculture Services Pty Ltd, Bosch Global Software Technologies Pvt Ltd., Wipro, Yara International ASA, AGRIVI Ltd., and Small Robot Company. These players have adopted various strategies to increase their market penetration and strengthen their position in the digital farming market.