The global digital agriculture marketplace market size was estimated to be worth $11.4 billion in 2021, and it is expected to reach $34.99 billion by 2030, expanding at a CAGR of 15.05% from 2021 to 2030. Farmers and other stakeholders al, through the agricultural value chain will be able to improve their food production via the use of new and sophisticated technology that are integrated into a single system through the practise of digital agriculture. Growers and livestock farmers are better able to connect with resources including machinery, finance, marketing, and sales thanks to the support of a digital platform in the agriculture industry. In addition to this, it is useful for everything from the management of distribution and logistics to the purchasing of seeds and the provision of financial loans to farmers.
Multiple unicorns may be found in various parts of the world, and they get significant amounts of financing; this highlights the significance of agriculture that is driven by technology. Because of this, it is probable that in the year ahead we will see digital agriculture marketplaces fighting with one another for global dominance as businesses grow outside their own home markets.
"The introduction of a digital agriculture marketplace has the potential to completely transform the agricultural sector on a worldwide scale. By implementing digital technology in the agricultural industry, suppliers have a greater chance of expanding their customer base on global platforms, and countries all over the world will be better able to meet the rising need for food "
During the pandemic, agriculture has followed the trend of other industries (such as business and education) and become increasingly digital. The epidemic caused by COVID-19 sped up investments and innovations in digital agriculture, which have the potential to shield the world's poor farmers from some of the most devastating repercussions of the present economic crisis. The greater dependence on digitization brought to improvements in the quality of life for many farmers all over the globe, which in turn contributed to the expansion of the market.
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Increasing Awareness about Digital Agriculture’s Benefits
The rise in public understanding of the ways in which digital agriculture might improve crop yields has contributed to an important expansion in the global market for agricultural goods and services. Farmers are going to have no choice but to start using digital agricultural technologies in order to meet the increasing demand for food that is a direct result of the growing global population.
It is anticipated that the formulation of strategic policies by governments in regard to precision farming will encourage farmers to use the associated technology. Farm advice services are helping to close the knowledge gap between academia and industry. These services assist farmers in embracing new and creative technology, which is the most recent trend in the industry. As a result, the farmers are able to make better use of the resources they have, reduce their costs, and get a leg up on the competition.
Farmers are able to increase their production while minimising their losses and making more effective use of resources thanks to the developments and innovations that have been made in technology, which is one of the primary drivers that is driving the market for digital agriculture.
Increasing Demand for Increased Productivity and Better Crop Health
The farmers are under continual pressure to increase their production of food and animal feed while reducing the quantity of pesticides they use. At the same time, it is very necessary to reduce the amount of energy and labour that is used while simultaneously enhancing environmental land and water management. Because of the fast rate at which the population is expanding, it is becoming increasingly difficult to feed the growing population, which results in is producing a great deal of pressure to enhance agricultural production. The utilisation of software like precision farming in conjunction with the many tools offered by the Internet of Things (IoT) provide a solution to all of these prerequisites.
According to the data provided by the FAO, the yield for major crops such as wheat, barley, corn, and other grains experienced a significant decrease in 2018. The yield for wheat dropped from 35,377.0 hg/ha in 2017 to 34,222.0 hg/ha in 2018, and a similar downward trend was observed for barley and other coarse grains. Through the use of precision farming techniques, farmers are better able to determine the kind of seeds that need to be planted, the amount of fertiliser that should be used, the optimal time to harvest the crops, and the yield that can be anticipated from the crops.
Poor access to internet due to remote locations where the farmers reside is a restraint that affects the growth of the Digital agricultural market.
Precision Agricultural Equipment Is Expensive
The high prices that are connected with precision farming equipment are one of the most significant reasons that are negatively impacting the growth of the market. Precision farming makes use of high-end technology and expensive equipment, such as smart sensors, drones, VRT, GPS, GNSS, guiding tools, and receivers. These technologies and instruments are extremely effective but also quite pricey. In addition, qualified employees are essential for the installation of and operation of precision agricultural equipment. Growers in developing nations like India, China, and Brazil, which have little resources for agricultural techniques, often choose traditional farming over farming that is based on new technology because the latter requires a greater commitment of time and money.
More and More Ai-Based Solutions Are Being Used In Precision Farming
The use of applications and tools based on AI assists farmers in carrying out controlled and accurate farming by supplying them with the necessary information or guidance regarding the use of fertilisers, water management, crop rotation, and pest control, type of crop to be grown according to soil, optimal planting, and nutrition management. Tools based on AI are used to manage pests in agricultural settings. They check to see whether any insects have landed on the farm as well as the species of insects that have done so by utilising satellite photography and comparing it with the previous data using AI algorithms. Additionally, AI is utilised in weather forecasting to assist farmers in making decisions on the sort of crop to be cultivated as well as monitoring the quality of the soil and the nutrient level. Techniques for precision farming that are based on artificial intelligence enable farmers monitor the health of their crops, which leads to a harvest of superior quality.
The digital agriculture marketplace market has been segmented into the following categories: offering, product type, technology, application and region.
On the basis of offering the market is segmented into the following: Hardware, Software and Services. Due to the widespread application of automation and control systems in precision farming, which includes GPS receivers, guidance and steering devices, and variable-rate technology (VRT) devices, it is anticipated that these products will account for an important portion of the market for hardware related to precision farming during the period covered by the forecast. The increased use of automation and control devices in the agricultural sector, such as drones and unmanned aerial vehicles (UAVs), global positioning systems (GPS), irrigation controllers, guidance and steering systems, yield monitors, and sensors, may be credited with the expansion of the market.
Based on Product type the market is divided into the following: Perishables, Non-perishables, Agri raw materials. The market for perishable goods is now leading the pack in the global digital agricultural sector. Foods like dairy products, fresh fruits and vegetables, meat and poultry, seafood, and fresh fish are examples of perishable foods. The refrigerator is the typical storage location for goods that may spoil quickly. Despite this, there are many fresh fruits and vegetables that may be kept without the use of a refrigerator so long as they are kept in a cool environment.
Based on technology the market is classified into: guidance technology, remote sensing technology, variable rate application. The variable rate technology is anticipated to experience the greatest compound annual growth rate (CAGR) over the period covered by the projection. It is possible that the early adoption of this technology by farmers was the driving force behind the rise of the business. Producers may save money on fuel, labour, time, and soil compaction by using auto-guidance technology that is based on GPS. This technology helps growers to limit the overlapping of equipment and tractor passes.
On application basis the market is divided into: Yield Monitoring, Crop Scouting, Field Mapping, Variable Rate Application, Weather Tracking and Forecasting, Inventory Management, Farm Labor Management, Financial Management, Others (demand forecasting, customer management, payables and receivables). Within the precision farming industry, the yield monitoring sector represented the greatest proportion of the market by application. The advantages of climate service programmes that help farmers to successfully cope with climate-related disasters and enhance food security and decision-making in agriculture may be credited to the expansion of the market. These initiatives have enabled the market to flourish.
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The Asia-Pacific region is anticipated to have the largest share of the worldwide digital agriculture marketplace market. It is anticipated that the strong agricultural growth, in conjunction with the growing emphasis on the use of digitalization in agriculture, will foster the establishment of the digital agriculture marketplace in these regions.
In the market for digital agriculture marketplaces in Asia and the Pacific Ocean, India is a key player. The digital agricultural marketplace in India is controlled by a number of different firms, such as Ninjacart Platform (63Ideas Infolabs Pvt. Ltd.), Diatoz Solutions, Agrostar, and DeHaat, amongst others.
Main source of income is Agriculture for around 58 percent of India's total population, according to the Indian Brand Equity Foundation. The sales of agricultural products are the greatest in the Asia-Pacific region, and India has the potential to become a massive market for online agricultural marketplaces in the years to come.
Deere & Company (US), AGCO Corporation (US), Raven Industries (US), AgJunction (US), and Trimble (US), Twiga Foods Limited, COFCO International, Cranswick PLC, Crofarm Agriproduct Pvt. Ltd., Tanihub, Eden Farm, WayCool Foods and Products Pvt Ltd., Agrofy, Kaset Thai Hitech Co., Ltd., Agri Marketplace, among others, are developing end-use products by joining hands with various companies offering creative and advanced technologies, products, and others.
Deere & Company released JDLINK, an information management tool, in July 2021. Connectivity services are included in the package at no additional cost. Customers may rely on them to connect their computers.
In October 2019, Deere & Company bought Unimil, a supplier of sugarcane harvester aftermarket components. With this purchase, the firm will be able to assist customers in Brazil in lowering the cost of sugarcane production.
Trimble will release the Trimble R12i GNSS receiver in September 2020. It has tilt adjustment based on inertial measurement units, which provides 30% better performance in demanding settings than conventional receivers.
In July 2021, AGCO Corporation debuted a prototype model of its Precision Ag Line (PAL) initiative, a tool aimed to expedite support services for farmers with mixed-fleet operations who use AGCO's solutions. Farmers may access precision farming knowledge from AGCO companies including Challenger, Fendt, Gleaner, Massey Ferguson, and Precision Planting through PAL.
Raven Industries announced the introduction of their new autonomous product brand "OMNI" in May 2021. This logo emphasises the company's ability to provide autonomous solutions.
Raven and other companies cooperated with AGCO, an agricultural machinery producer, in May 2021. The goal is to assess spraying technique in order to improve the effectiveness and efficiency of crop protection product application.