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Growing Need For Sustainable Agriculture Drives Growth In Digital Farming Software Market: Core Growth Enabler in the Digital Farming Software Market, 2025
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.What Will the Digital Farming Software Industry Market Size Be by 2025?
In recent years, there has been a swift escalation in the size of the digital farming software market. It's projected to increase from $7.02 billion in 2024 to $8.2 billion in 2025, with a compound annual growth rate (CAGR) of 16.9%. The expansion during the historical period is due to factors such as the rise in demand for food security, the urgent need for sustainable agriculture, the drive for increased food production, challenges arising from climate change, and the necessity for sustainable agricultural practices.
What's the Long-Term Growth Forecast for the Digital Farming Software Market Size Through 2029?
Expectations are high for a rapid expansion of the digital farming software market in the coming years, with predictions of it growing to a staggering $15.09 billion in 2029, reflecting a compound annual growth rate (CAGR) of 16.5%. The anticipated growth in the study period is credited to factors such as government backing and initiatives, cost reduction, improved profitability, the emergence of agritech businesses, and increased concerns regarding agricultural sustainability. Added to these are the escalating demand for worldwide food security resultant from population surge and urbanization. Prominent trends in the projected period comprise of the adoption of cloud-based platforms, the incorporation of AI and machine learning tools to maximize farm management procedures, the creation of mobile applications, integration of robust big data analytics, and advancements in sensor and IoT technologies.
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What Are the Key Growth Drivers Fueling the Digital Farming Software Market Expansion?
The expansion of the digital farming software market is anticipated to be fuelled by the increasing necessity for sustainable farming. Sustainable farming embodies strategies that aim to satisfy current food requirements while not jeopardising the capacity of future generations to fulfil their own. This approach encompasses organic farming, which evades artificial inputs to enhance environmental health and biodiversity. The surge for sustainable farming arises from the escalating consciousness over environmental implications, consumer predilections for healthier and ethically sourced food, as well as the urgency to alleviate climate change and conserve natural resources. Digital farming software supports sustainable farming by maximizing resource utilization, overseeing crops, and gauging soil health on a real-time basis, promoting precision farming methods such as focused irrigation and fertilizer distribution, and offering data-driven knowledge for informed decision making. For example, a report from the Research Institute of Organic Agriculture, a research institute in Switzerland, revealed that in February 2024, Africa had upwards of 2.7 million hectares of verified organic agricultural territory in 2022, representing a remarkable 4.9% growth of nearly 128,000 hectares from the prior year. Thus, the escalating need for sustainable farming paves the way for the progression of digital farming software.
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What Are the Key Trends Driving Digital Farming Software Market Growth?
Key players in the digital farming software sector are concentrating on creating innovative solutions such as AI-infused agri-intelligence to refine precision farming methods and boost crop yields. These AI-enhanced agri-intelligence solutions utilize artificial intelligence in the farming sector to decipher data, providing decisive insights into improving agricultural processes and productivity. For example, in June 2022, Cropin, a US tech firm specializing in agtech, introduced Cropin Cloud, the inaugural agriculture-specific industry cloud. The platform combines AI-driven agri-intelligence with accessible data resources to bring digitalization to agriculture. It provides reliable options on a scalable and secure system for agribusiness and governmental entities by improving decision-making processes through unblemished data delivery systems and verified machine learning algorithms. The platform is versatile, secure and capacious, driving the digital revolution in agribusiness, development organizations, governments and associated sectors. It amalgamates different apps to digitalize operations, guarantee spotless and contextual data transmission, and improve the decision-making process with sophisticated data analytics.
How Is the Digital Farming Software Market Segmented?
The digital farming software market covered in this report is segmented -
1) By Components: Software, Services
2) By Technology: Remote Sensing, Guidance Technology, Variable Rate Technology, Machine Learning, Wireless Connectivity, Other Technologies
3) By Applications: Drone Analytics, Precision Farming, Agriculture Robots, Livestock Monitoring, Greenhouse Management, Supply Chain Management, Financial Management, Other Applications
Subsegments:
1) By Software: Farm Management Software, Precision Agriculture Software, Livestock Management Software, Irrigation Management Software, Crop Monitoring And Forecasting Software
2) By Services: Consulting Services, Installation And Integration Services, Training And Support Services, Data Analytics And Cloud Services
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Which Companies Are Leading the Charge in Digital Farming Software Market Innovation?
Major companies operating in the digital farming software market are Bayer AG, Deere & Company, Yara International ASA, Granular Inc., AGCO Corporation, CropX Inc., Trimble Inc., Topcon Positioning Systems Inc., Raven Industries Inc., Iteris Inc., Ag Leader Technology Inc., Taranis Visual Ltd., FarmWise Labs Inc., Farmers Edge Inc., Agworld Pty Ltd, FieldIn Ltd., Agrian Inc., Farmobile LLC, FarmLogs Inc., AgJunction Inc., AgriWebb Pty Ltd., Prospera Technologies Ltd., SST Software, Arable labs Inc., Gamaya SA, VanderSat B.V., Farmwave LLC, CropIn Technology Solutions Pvt Ltd., FluroSat Pty Ltd
Which Regions Are Leading the Global Digital Farming Software Market in Revenue?
North America was the largest region in the digital farming software market in 2023. The regions covered in the digital farming software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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