The Global Agritech Market Size is projected to exceed USD 75,872.5 million by 2032, growing at a CAGR of 13.1% from 2022 to 2032.
Agritech defines a wide range of technology utilised in numerous agricultural applications. Agriculture technology generally focuses on the integration and use of extremely cutting-edge technologies with the ultimate goal of greatly increasing the yield and increasing profitability rates. Since it efficiently reduces higher human-generated hazards and faults that are shown in cases of traditional agricultural equipment and goods, agriculture technology has grown in favor.
There are several uses for agritech, including various agricultural and technological advancements. But the objective of all of these agritech systems is the same: producing more food on the same amount of land or with less input. The practice of growing food for commercial purposes in urban settings, such as cities, on building rooftops, or underground, is known as urban farming. Although there are many other types of urban farming, urban and vertical farming are the most popular. By automating processes and replacing the majority of the labor necessary in a farming operation—which is typically the most expensive input—agritech also saves farmers money and time.
COVID-19 Impact:
The outbreak of COVID-19 impacted negatively on the global agritech market. The industries all throughout the world are being impacted by the COVID-19 pandemic. The outbreak has impacted agricultural businesses and suppliers around the world. The distribution of good quality of fruits and vegetables are also hampered due to COVID-19 pandemic’s slowing of the worldwide agritech market growth.
Growth Drivers:
Rising Number of Precision Farming in Different Applications
The widespread use of precision farming in several applications is the main reason driving this market, and it is expected to fuel the expansion of the global agritech market. Data management is one of the most important aspects of internet technology. Devices that are connected to the internet generate enormous volumes of data and information that must be analyzed. On the other side, there are numerous security and privacy issues with the internet of things basic security gateway. With the aid of crop monitoring sensors, the robotic and IoT devices make proper harvesting possible. For instance, John Deere has been developing connected, next-generation agricultural technologies, and the company recently unveiled its first completely autonomous tractor after more than three years of testing, including on actual farms.
Surging Urbanization and Industrialization Around the World
Due to more effective connectivity among farmers brought about by digitalization, farmers that employ cutting-edge technology like IoT and cloud are more inclined to adopt new agricultural ecosystems. Ag Some of the elements offered by agritech include agribusiness marketplaces, biotechnology, bioenergy & biomaterials, sensing & IoT, farm management software, farm robotics, midstream technologies, and novel agricultural methods, mechanization & equipment. A few of the well-known technologies that are receiving a lot of investment in the farm tech sector are agricultural biotechnology, new farming and farm management systems, sensing devices, and internet of things (IoT) gadgets. An increase in the number of agritech businesses and greater adoption of sensor-based technology are two additional variables driving these technology expenditures and, consequently, having an impact on factor growth.
Restraints
Concerns Pertaining to Limited Awareness of Agritech
The less knowledge about agricultural technology applications and the high price of agricultural machinery are anticipated to restrain the expansion of the global agritech market. Another aspect that has an impact on the agritech industry is low productivity and lack of visibility in the supply chain. Blockchain technology and artificial intelligence are being used by many startups to address these problems.
Agritech: Segmentation
Type Outlook
The biotechnology and biochemical segment is expected to dominate the market share in 2020 of global agritech market owing to the rising adoption of agritech solutions among the farmers across the world.
The sensors and connected devices segment is anticipated to register a significant growth rate over the forecast period owing to prominent rise in the number of connected devices that produce enormous volumes of data.
Sector Outlook
Based on the sector, the global agritech market is classified into agriculture, smart agriculture, precision farming, agrochemicals, biotechnology, indoor farming and others. Among these, the smart agriculture segment is expected to grow at the fastest pace in the global agritech market over the forecast period. Smart agriculture refers to the application of modern technologies, such as Internet of Things (IoT), sensors, drones, and data analytics, to enhance agricultural productivity and efficiency. It involves the use of real-time data and automation to monitor and manage farming operations effectively.
Global Agritech Market: Competitive Landscape
The market share for agritech is moderately concentrated and made up of several businesses including ARSR Tech, AeroFarms, Apollo Agriculture, Crofarm Agriproducts Pvt Ltd, Conservis, Indigo Ag, Inc., LettUs Grow Ltd., Pivot Bio, AgBiome, Inc., Ceres Imaging, AgWorld, Hortau, Harvest Automation, Farmers Business Network, amongst others. Significant company expansion and alliance tactics have adopted by major players in this market to close the supply and demand gap. Major players are coordinating their product portfolio to offer distinctive and cutting-edge goods in response to the rise in awareness of and demand for agritech around the world.