AgTech Market Overview 

AgTech, short for agricultural technology, denotes the application of technology in farming and agriculture to enhance the efficiency, productivity, and sustainability of food production. The AgTech market is experiencing swift expansion due to factors such as population growth, heightened food demand, concerns related to climate change, and issues surrounding water scarcity. AgTech Market is expected to achieve a robust CAGR of 12.00%, projecting its value to soar to USD 52.4 billion by 2032.

Segment Analysis

The global AgTech market has been segmented based on the application.

Based on the application, the market is segmented into Precision agriculture, livestock monitoring and management, indoor farming, aquaculture, and Other Agtech segments. The precision agriculture segment was attributed to holding the largest market share in 2022.  By 2030, precision farming is anticipated to emerge as the predominant trend in agriculture, surpassing other advancements. Real-time information about equipment is facilitated through mobile apps using remote sensing and ground communication outlets. Variable-rate technologies (VRTs) empower farmers to make tailored land management decisions, optimizing the utilization of inputs like seeds, fertilizers, and pesticides under variable in-field conditions.

Regional Analysis

The global AgTech Market, based on region, has been divided into North America, Europe, Asia-Pacific, and Rest of the World. North America consists of the US and Canada. The European AgTech Market comprises Germany, France, the UK, Italy, Spain, and the rest of Europe. The AgTech Market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World AgTech Market comprises of Middle East, Africa, and Latin America. 

The largest market share for the AgTech Market was maintained by the North American regional sector. North America, known for its early adoption of technology, demonstrates a significant uptake of various innovative technologies employed in precision farming. The region stands out as a substantial user of the Internet of Things (IoT), big data, drones, and robotics within the agricultural sector. However, it's important to note that the global trend is mirrored in North America, indicating that the adoption curves of diverse technologies can vary by region due to differences in infrastructure and the availability of service providers. For example, in the United States, McFadden and Schimmelpfenning noted that precision agriculture companies are headquartered in at least 38 states, yet they show geographic concentrations. Additionally, adoption trends are influenced by factors such as the type and number of service providers in a given area.

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Moreover, the Europe market has been persistently growing over the forecast period. The post-2022 reform of the Common Agricultural Policy (CAP) presents an opportunity for public funding to support the adoption of precision farming (PA) by farmers in the European Union. While the National CAP Strategic Plans for 2023-2027 are currently in the developmental stage, it is anticipated that precision farming will receive backing through diverse interventions such as rural development investments (including machinery), farm advisory services and training, and eco-scheme payments.

The Asia-Pacific region is poised for substantial growth in the foreseeable future in the analyzed market, driven mainly by government initiatives in developing nations aimed at promoting the adoption of advanced precision farming technologies to enhance productivity. In 2022, the Indian government announced plans to introduce Kisan Drones for tasks such as crop assessment, digitizing land records, and applying insecticides and nutrients. As per IBEF, India experienced a notable surge in agricultural and processed food product exports, reaching USD 9,598 million in FY23 (April-July 2022), marking a significant year-on-year increase of 30%.

Furthermore, the rest of the world's AgTech Market is divided into the Middle East, Africa, and Latin America. The AgTech market is being propelled by significant factors such as shifting climate patterns, heightened food demand, widespread adoption of smart technologies in the global agriculture sector, and government initiatives aimed at improving farmers' efficiency through the integration of new technologies.

Key Findings of the Study

• The global AgTech Market Size is expected to reach USD 18.9 billion by 2032, at a CAGR of 12.00% during the forecast period.

• The Asia-Pacific region accounted for the fastest-growing global market because of the application of advanced analytics, increasing adoption of technologies such as the Internet of Things, data analytics, etc., in the agriculture sector coupled with an increase in government initiatives for the adoption of modern agriculture technologies.

• Based on application, the precision agriculture segment was attributed to holding the largest market in 2022, with an approximate market share of 55–60%.

• Cargill (US), ADM (US), Bayer (Germany), AgroStar (India), Topcon Agriculture (US), DeLaval (UK), Trimble (US), Apollo Agriculture (Kenya), Benson Hill (US), and Bowery Farming (US).

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