The global connected agriculture market size was valued at USD 19.43 billion in 2024 and is projected to reach from USD 21.45 billion in 2025 to USD 47.33 billion by 2033, growing at a CAGR of 10.4% during the forecast period (2025-2033).
Connected farming can be described as adopting innovative technology to enhance, manage, and control agricultural activities, leading to increased agricultural product production and quality. Digital technology advancements have made it feasible to capture and utilize vast quantities of data at low expense, which will help make farming operations more insight-driven and perhaps more productive and efficient. Connected agriculture aims to provide real-time data on soil conditions, humidity levels, and weather conditions and enable farmers, agribusinesses, fertilizer companies, and food and beverage companies to communicate with potential buyers, traders, and sellers, to optimize harvest planning. By integrating many connected agricultural solutions, farmers and companies can manage time and resources more efficiently on the farm.
Connected agriculture services help in increasing the yield rate of crop production. Several companies are providing connected agriculture services to enhance productivity in agriculture.
Due to population growth around the world, the need for food is expanding at a rapid rate. By 2050, the global population is projected to have increased exponentially to roughly 9.6 billion. Approximately 85 million people are added to the global population each year. According to the Food and Agriculture Organization (FAO), the production rate must double between 2014 and 2050 to keep up with population growth. The global demand for food is increasing at a rate of 2% per year; by 2050, it will be necessary to produce 70% more food than is currently produced. In addition to this challenge, farmers rely primarily on weather conditions for food production. Any unforeseen weather change harms crop productivity, causing farmers to incur losses. In many developing nations worldwide, food production and livestock rearing are hindered by environmental issues such as global warming, deforestation, etc.
Connected agricultural solutions enable farmers to use their limited resources, such as water, seeds, land area, and fertilizers, more efficiently to fulfill the rising demand for food. Connected agriculture technologies assist farmers in automating farm equipment, increasing farm produce, decreasing labor, enhancing productivity, and boosting operational efficiency. Connected agricultural technologies facilitate the optimization of farm activities to address the disparity between food production and consumption.
Currently, large capital investments are required to adopt linked agriculture techniques and solutions on farms. Globally, most farmers are marginal farmers or small landholders who find it difficult to invest in such costly equipment. Connected agriculture necessitates substantial initial expenditures, efficient agricultural equipment, and skilled and knowledgeable farmers, which discourages their adoption of this technology for data collection. Due to the high expense of technology, access to the latest innovations is primarily limited to large, industrialized farms. Farmers and producers must make substantial expenditures on drones, Geographic Information Systems (GIS), and Global Positioning Systems (GPS), among others, to collect input data, variable rate technology, and satellite devices. GPS-enabled systems are expensive for navigation and mapping applications and need substantial initial investments. This constraint significantly affects the markets of growing nations such as India, China, and Brazil. Most emerging nations purchase agricultural equipment from wealthy nations, contributing to the high product price. However, several nations have begun investing in the R&D of sophisticated agricultural solutions in response to the rising need for agricultural solutions that boost farm production. In the coming years, technological advances are anticipated to reduce the cost of connected agriculture solutions, reducing this aspect's impact on the connected agriculture market.
Mobile phones have enabled the agriculture industry to expand its reach to diverse regions of the country and the world. Mobile technology plays a crucial role in the worldwide adoption of connected agriculture systems. According to a survey conducted by Farm Journal Media in February 2015, more than sixty percent of farmers globally are currently utilizing smartphones and tablets. Since 2009, the number of farmers using cell phones has increased rapidly, and this trend is projected to continue in the future years. The smartphone has become a new agricultural tool for farmers worldwide due to its incorporation of much agriculture-related software (apps) that are user-friendly. Thanks to mobile technology, farmers and agriculture stakeholders now have timely access to pertinent information regarding crops, production, technology, production standards, and agriculture finance. Smartphones that provide exact climate data and weather variations allow farmers to plan which crops to plant, when to harvest, etc. Experts propose using smartphones for aerial imaging and record keeping, which may be accomplished with a smartphone. Depending on acres, growers can load field information into their mobile phones and then grid it.
Farmers and small and medium-sized agribusinesses in rural places have rapid access to the market because of mobile phones. Smartphones enable small-scale farmers to connect with previously inaccessible customers or agents, giving them a competitive edge in the marketplace. Farmers can obtain information regarding commodity availability and market price through mobile devices. The agriculture-specific mobile applications provide farmers with agricultural information, enabling them to make more informed decisions.
Study Period | 2021-2033 | CAGR | 10.4% |
Historical Period | 2021-2023 | Forecast Period | 2025-2033 |
Base Year | 2024 | Base Year Market Size | USD 19.43 Billion |
Forecast Year | 2033 | Forecast Year Market Size | USD 47.33 Billion |
Largest Market | North America | Fastest Growing Market | Asia Pacific |
North America accounted for the most significant regional revenue contribution to the globally connected agriculture market in 2021. The market for connected agriculture systems in North America is anticipated to continue to be driven by the region's modern agricultural infrastructure. It is anticipated that advancements in digital technologies within the agriculture industry will boost the efficacy of farming operations in the region's nations. Increasing adoption of cutting-edge technologies such as The Internet of Things (IoT), Artificial Intelligence (AI), big data, predictive analytics, and data analytics is driving the linked agricultural market in North America. Increasing investment in the development of more advanced connected agriculture solutions by significant players in the region, such as IBM, Microsoft, AT&T, Deere & Company, Cisco Systems, Inc., Oracle Corporation, Iteris, Inc., and Trimble Navigation, has led to an increase in demand for connected agriculture solutions. Increasing government measures about implementing sustainable farming methods to reduce environmental degradation caused by water loss, chemical run-off, and CO2 emissions are significant elements in the region's increasing use of connected agriculture solutions.
During the projected period, the connected agriculture market in Asia-Pacific is anticipated to record a quick increase in revenue. During the forecast period, the market for connected agriculture in the region is anticipated to expand due to the increasing demand to boost agricultural output to feed the region's expanding population. Countries like the Philippines, Japan, China, and India, are implementing connected agriculture solutions to enhance agricultural practices, crop productivity, and quality. Increasing public-private partnerships to promote the adoption of sustainable agriculture projects to enhance food security, agricultural process efficiency, and productivity also contributes to the region's market's revenue growth. In addition, rising initiatives by governments to make digital solutions more accessible to agricultural stakeholders and farmers will continue to boost the adoption of digital agriculture services in the region's countries in the future.
Agriculture is one of the European Union's primary pillars. Europe's agricultural production is technologically advanced. The digital revolution disrupts Europe's agricultural business, enabling farmers to be more accurate, efficient, productive, and sustainable while remaining competitive. The demand for food in Africa has increased. The region's food business is anticipated to reach $1 trillion by 2031. Using Africa's current technology, the objective appears distant. In such a setting, connected agriculture provides the optimal answer for meeting food demand. African farmers will need improved yields and market access to modern equipment and techniques.
Most economies of the Middle East are entirely dependent on oil exports, making them prone to price fluctuations. Rural poverty persists in the region, with 70% of the Middle East's poor population living in rural areas. To tackle these challenges, several countries are focusing on digitalizing the agriculture sector to improve the country's economic growth. Latin America is one of the greatest exporters of foods and commodities, including coffee from Brazil and Colombia, beef from Argentina, and bananas from Ecuador. The region accounts for more than 16% of global food and commodities exports. Besides, the region is one of the few parts of the world with significant land resources in countries such as Brazil and Argentina. This indicates the region's growth prospects in the connected agriculture market from 2023 to 2031.
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports
The connected agricultural market is categorized by component into services, solutions, and platforms. In revenue, the platforms segment dominated the connected agricultural market in 2021. The platforms category covers device management, application enablement, and connection management. Increasing adoption of IoT platforms to boost efficacy and production in the agriculture industry is anticipated to drive the segment's revenue growth. Demand for device management platforms is anticipated to be driven by the rising need to monitor and remotely operate linked agriculture systems' intelligent agriculture equipment. Increasing investment by leading players in developing enhanced platforms for managing Internet of Things (IoT) devices in agriculture is anticipated to fuel the linked agriculture market. The rising need to monitor, enhance, and control farming activities and the growing need for access via connected devices are essential drivers driving the expansion of the platforms market sector. Platforms for device management give immediate notifications in the event of faults, remotely debug and resolve software problems, and display live sensor information. During the projected period, demand for connectivity management solutions is anticipated to be driven by the rising need for proper connectivity across farms to adopt linked agriculture technologies more effectively.
The connected agricultural market is categorized based on application into pre-production planning and management, in-production planning and management, and post-production planning and management. During the forecast period, it is anticipated that the segment revenue growth rate for pre-production planning and management will increase sharply. Regarding revenue share, the pre-production planning and management sector dominated the connected agricultural market in 2021. The pre-production planning and management segment consists of field mapping, crop planning, yield monitoring, weather tracking and forecasts, farm labor management, and equipment monitoring and maintenance. The increasing adoption of IoT-based technologies in agriculture to aid in weather surveillance and forecasting has been spurred by severe weather conditions in certain nations. Utilization of pre-production planning and management is driven by the desire to reduce pest and disease outbreaks and planting inefficiencies. Increasing the use of connected agriculture solutions to automate and improve the profitability of farm operations is driving market expansion. Utilization of crop planning and yield monitoring equipment and maintenance solutions is increasing due to the rising need to increase agricultural productivity to meet the rising food demand of a rapidly expanding global population, as well as to continuously monitor and remotely control intelligent agriculture devices and equipment.