Digital Agriculture Market Size to Surpass USD 44.4 Billion by 2030, Driven by IoT Integration and AI-Enabled Crop Analytics

The digital agriculture market Size is projected to grow from an estimated USD 26 billion in 2025 to USD 44.4 billion by 2030, recording a healthy CAGR of 11.3% over the forecast period. This expansion reflects the sector's transition from pilot programs to integral farming infrastructure as falling hardware prices, labour shortages, climate adaptation needs, and sizeable government subsidies steer farmers towards data-driven practices. For example, the USDA's USD 10 billion Emergency Commodity Assistance in 2025 accelerated technology adoption among producers navigating volatile input costs. Meanwhile, regional trends show Asia-Pacific growing fastest, while North America retains the largest market share.

Report Overview: https://www.mordorintelligence.com/industry-reports/digital-agriculture-market?utm_source=openpr

Digital Agriculture Market Key Trends

IoT Sensors Lead Adoption

IoT sensors captured 38% of the digital agriculture market share in 2024, with declining costs and improved rural connectivity driving uptake across row-crop and specialty farms. For instance, a leading European agritech supplier invested USD 1.11 billion into smart-sensor integration in 2024, focusing on edge-processing chips that extend battery life. Partnerships such as CNH Industrial and Intelsat are expanding satellite internet coverage in regions like Brazil, where only 19% of farmland had high-speed connectivity in 2024. These sensors feed data on soil moisture, crop stress, and micro-climates into cloud dashboards, reportedly raising productivity by up to 40%.

AI Emerges as Fastest-Growing Segment

Artificial intelligence is projected to post the fastest growth at a CAGR of 22.7% through 2030. AI tools like Bayer's E.L.Y. model raise agronomist response accuracy by 40%, while Syngenta's Cropwise AI provides micro-zone seed prescriptions to boost profitability and meet sustainability metrics. IBM's SWAT VEXA integrates decades of soil-water research with AI to offer field-specific irrigation advice, illustrating AI's expanding role in yield optimization and input efficiency.

Falling Drone Hardware Prices Expand Access

Drone technology is becoming more accessible as prices fall below USD 5,000 from over USD 20,000 five years ago. DJI's agricultural drone fleet treated 500 million hectares by late 2024, saving 210 million metric tons of water. The affordability and operational efficiency of drones in aerial spraying and imagery analysis are attracting mid-sized farms, especially in countries like Brazil, the United States, and China.

Government Subsidies Boost Market Growth

Government funding is shifting from pilot grants to large-scale allocations supporting digital agriculture. In fiscal 2025, the USDA earmarked USD 7.7 billion for climate-smart practices, channelling USD 5.7 billion towards digital tools that verify sustainability outcomes. The European Union now mandates precision farming targets under its 2023-2027 Common Agricultural Policy, while India pledged Rs 6,000 crore (USD 720 million) to build farmer identity systems and sensor networks.

Digital Agriculture Market Segmentation

By Technology

- IoT Sensors hold the largest share of the market due to their critical role in real-time monitoring.

- Remote Sensing commands a 32% share, integrating satellite and drone imagery.

- GPS-based Guidance Systems hold 18.7%, facilitating precision seeding and spraying.

- Blockchain and Traceability are growing at a 19.8% CAGR as countries test cross-commodity data protocols.

- Artificial Intelligence is the fastest-growing segment, enabling predictive tools for input optimization.

By Solution

- Hardware leads with 47.5% of the market size, reflecting continued demand for capital equipment such as autonomous tractors and drones.

- Software follows with a 42.8% share, as cloud-based platforms transform raw data into actionable insights.

- Services represent the fastest-growing solution at an 18.4% CAGR, driven by analytics subscriptions, equipment health monitoring, and agronomic consulting.

By Application

- Crop Monitoring accounted for 35.2% of market share in 2024, relying on AI classifiers and multispectral imagery.

- Drone Analytics is projected to grow at a CAGR of 24.6%, with drones already reducing pesticide use significantly.

- Precision Spraying will advance at 19.3% annually, with camera-guided systems cutting herbicide use by up to 90%.

- Yield Mapping holds a 28.1% share, growing at 14.9%, while Soil Monitoring represents 18.8% of market size, advancing at 12.4%.

By Farm Size

- Large-scale farms (above 500 hectares) held 44% of the market share in 2024, leveraging scale for major tech investments.

- Medium-scale farms (100-500 hectares) accounted for 34%, growing steadily due to retrofit kits and targeted subsidies.

- Small-scale farms (under 100 hectares) are growing fastest at a 16.5% CAGR as cooperative models and affordable drone services broaden access.

By Geography

- North America led with 30% of market share in 2025, supported by equipment upgrades through federal aid.

- Asia-Pacific held 28% and is expected to overtake North America by 2030, driven by rural digitisation programs in China and India.

- Europe maintained a 23.1% share, advancing at a 9.4% CAGR under Common Agricultural Policy mandates.

- South America and Middle East & Africa remain smaller markets, expanding at 12.2% and ~11% CAGR respectively, with satellite connectivity initiatives addressing infrastructure gaps.

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Digital Agriculture Market Key Players

The digital agriculture sector remains moderately consolidated, with the top five vendors commanding 56.5% of global revenue in 2024.

- Deere & Company leads with a 22% market share, leveraging its See and Spray technology and Operations Center platform for integrated digital farming solutions.

- CNH Industrial follows at 11%, integrating autonomous tools through its Raven subsidiary and expanding satellite internet partnerships.

- Syngenta Group holds a 9.2% share, providing Cropwise decision-support tools calibrated for micro-zone management.

- AGCO Corporation commands 8.3%, focusing on its Fuse ecosystem and retrofit kits that enable older equipment to operate digitally.

- Bayer AG holds 6% market share, supported by Climate FieldView's data integration and advanced seed scripting solutions.

Mergers and acquisitions continue to shape the landscape, with AGCO acquiring 85% of Trimble Ag in 2025 to enhance retrofit autonomy capabilities. Cross-industry partnerships are rising, such as Bayer's alliance with Microsoft on data interoperability, and irrigation firms embedding plant-level sensors into smart drip systems to support real-time decision-making.

Conclusion

The digital agriculture market is positioned for strong growth, driven by the adoption of IoT sensors, AI-powered analytics, and falling costs of drone and satellite technologies. Government subsidies and sustainability mandates are accelerating uptake, while technological advances are helping farmers optimise inputs and yields efficiently. Leading companies are enhancing integrated platforms combining hardware, software, and services to create new revenue models and support scalable adoption. As the global food production imperative intensifies, digital agriculture will remain central to meeting future demands while ensuring operational resilience across farm sizes and geographies.

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