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Smart Farming Industry in Europe growing with the CAGR of 18.7%; Hardware segment holds 28% market share | DataM Intelligence
Smart Farming market
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smart farming market moves in 2025
⇥ Netafim's new digital farming system:
New version of its GrowSphere digital farming platform, specifically tailored for smallholder farmers, scheduled for commercial rollout in Q2 2026 (product launch/expansion).
⇥ AgroStar funding:
AgroStar raised about $30 million in equity financing led by climate-focused investor Just Climate, with participation from existing investors (investment).
⇥ UK Climate-Smart Agriculture Partnership:
UK "Farming Innovation Programme: Small R&D Partnership Projects Round 4" offering up to £7.8 million in funding for climate smart agriculture collaborations (partnership/funding program).
⇥ Australia Climate-Smart Agriculture Program:
Government funding under the Climate-Smart Agriculture Program, including a Capacity Building Round 2 with up to around AUD 16.6 million available for projects (investment/funding support).
⇥ World Bank climate-smart agriculture scale-up: Expanded investments in climate-smart agriculture projects globally under its Climate Change Action Plan 2021-2025 (investment/financing support).
Segmentation analys
-►By Type:
⇥ Hardware (sensors, robotics, drones, guidance systems, IoT devices, smart irrigation, greenhouse equipment): Approximately 58% market share, dominant as it represents the capital-intensive layer enabling core operations such as field monitoring, variable-rate application, automated irrigation and greenhouse climate control.
⇥ Software (farm management platforms, analytics, decision-support, AI/ML tools): Around 28% market share, growing at the highest CAGR as farms shift from pure equipment adoption to data-driven optimization, subscription platforms and integrated decision-support tools.
⇥ Services (advisory, connectivity, integration, maintenance, data services): Roughly 24% market share, expanding steadily as cooperatives, OEMs and ag-tech providers bundle installation, connectivity, remote monitoring, and agronomic advisory around smart farming systems.
By Agriculture Type
-►By Agriculture Type:
⇥ Precision Farming / Precision Agriculture (field crops): Leading segment with approximately 55% market share, driven by broad adoption of GPS-guided machinery, variable-rate technologies, soil and crop sensing, and yield monitoring across arable crops in Western and Northern Europe.
⇥ Livestock Monitoring and Management: Holds around 24% share, supported by investments in connected milking systems, animal health wearables, feeding automation and environmental monitoring in dairy and intensive livestock operations.
⇥ Smart Greenhouse: Accounts for roughly 18% share, but growing faster than broadacre due to climate-controlled horticulture, vertical farming and intensive greenhouse vegetable and floriculture production, especially in the Netherlands, Spain and Southern Europe.
⇥ Precision Aquaculture: Smaller niche with about 8% share, focused on sensor-based water quality monitoring, automated feeding, and stock tracking in Nordic and coastal markets.
⇥ Precision Forestry / Others: Remaining 5% share, including digital tools for forestry operations, orchards and specialty crops, expected to grow gradually with wider IoT and remote sensing penetration.
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Regional insights:-
⇥ Europe holds a significant global market share, valued at approximately USD 3.98 billion in 2024 and projected to grow to USD 22.19 billion by 2034, at a strong CAGR of 18.7%. This growth is driven by stringent EU regulations promoting sustainability, government incentives for digital tools, high consumer demand for quality produce, and increased investment in advanced technologies like IoT, AI, and robotics.
⇥ Germany is the leading national market within Europe in terms of current size, with a robust agricultural machinery sector and high adoption rates; over 85% of farmers use digital technologies. The focus here is on automation, R&D in robotics, and solutions that support the large organic food market.
⇥ France is expected to register the highest growth rate (CAGR) among European countries, with its market projected to reach USD 2.9 billion by 2030. The country's strong and diverse agricultural sector is rapidly integrating robotics and AI to boost productivity and sustainability.
⇥ The UK, the Netherlands, Italy, and Spain are also key markets, with the Netherlands excelling in smart greenhouse and precision farming technologies. The broader trend across the continent is a shift toward data-driven decision-making and efficient resource management to meet environmental goals.
Key Players and Competitor Mentions:
Major companies shaping the market include:
⇥ Deere & Company (John Deere): A dominant force in precision agriculture technology and autonomous machinery.
⇥ AGCO Corporation: Focuses on precision agriculture and recently reiterated long-term growth through its PTx Trimble collaboration.
⇥ CNH Industrial N.V.: Another significant player in agricultural machinery and smart farming solutions.
⇥ Bayer AG (Climate LLC/xarvio): A major provider of digital farming software, including the Climate FieldView platform and xarvio Field Manager app.
⇥ Trimble Inc.: Specializes in GPS-guided equipment and data analytics platforms.
⇥ Syngenta Crop Protection AG: Involved in digital farming solutions and recently renewed a satellite-imagery agreement to enhance crop monitoring.
⇥ Topcon Positioning Systems: A key provider of precision farming technology and hardware.
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key market Drivers:-
Better farm management information leading to simplified work and increased profitability.
Growing awareness and adoption among business-oriented farmers.
Government incentives and research efforts aimed at reducing environmental impact.
Use of automation, drones, GPS, and smart irrigation to enhance yield and sustainability.
Increasing focus on climate change adaptation and sustainable farming practices.
Collaboration across tech companies, agricultural producers, and research institutions in Europe.
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About DataM Intelligence
DataM Intelligence is a renowned provider of market research, delivering deep insightsthrough pricing analysis, market share breakdowns, and competitive intelligence. Thecompany specializes in strategic reports that guide businesses in high-growth sectors suchas nutraceuticals and AI-driven health innovations.
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