Digital Agriculture Market to Grow Three Fold by 2028
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global digital agriculture market was worth USD 10.7 billion in the year 2021. The market is projected to grow at a CAGR of 16.8% during the forecast period (2022-2028), earning revenues of around USD 31.8 billion by the end of 2028.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global digital agriculture market was worth USD 10.7 billion in the year 2021. The market is projected to grow at a CAGR of 16.8% during the forecast period (2022-2028), earning revenues of around USD 31.8 billion by the end of 2028. The demand for higher crop health and production, growing labor scarcity in agriculture, and rising concern about food security and nutrition are the main reasons propelling the market for digital agriculture. A better environment for agriculture is created by the continuous income and higher standard of living without having to labor in the fields. This has led to urbanization and the use of technology on farms for day-to-day operations, which will aid in enhancing productivity at a cheap cost.
Digital agriculture provides substantial advantages for farmers in addition to wider social advantages elsewhere in the world. Additionally, it enables firms to share information beyond traditional industry borders, creating new, disruptive potential. The development of the digital era is pushing people everywhere to adopt new work practices. Technology enhances agriculture industry capabilities. The rise in demand for the creation of novel technologies without compromising productivity or the environment, the installation of software systems for waste reduction detection, and the growth in manufacturer profits are all factors that are anticipated to increase total market demand. The usage of mobile phones for digital farming hastens this trend. Increasing internet and digital connection have positive effects in underdeveloped nations. Over the course of the forecast period, these factors are predicted to fuel the expansion of the global digital agriculture market.
Lack of Workforce and Rising Food Demand are the Two Main Factors Boosting the Growth of the Global Digital Agriculture Industry
Global population growth causes a rise in food demand, which in turn causes productivity to improve while using less resources. The need for digital agricultural solutions is also being augmented by the rising labor scarcity in agriculture as a result of urbanization and the need for reliable sources of income. Furthermore, the need for digital agriculture is growing due to the decreasing availability of natural resources like water and the effects of climate change such as the greenhouse effect. The lack of technical expertise among people, however, may prevent the industry from expanding.
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Digital Agriculture Market is Anticipated to Witness Potential Growth Owing to Rising Technological Advancements in the Asia-Pacific Region
During the forecast period, the Asia-Pacific region is anticipated to register highest growth rate in the digital agriculture market due to increasing awareness about new technologies related to agriculture and adopting favorable government policies to promote digitization in the agriculture sector. With the increase in urbanization and the growing need for improving food security, the demand for digital agriculture is expected to increase in this region. APAC is expanding rapidly as a result of a number of reasons, including local corporate expansion and governmental initiatives supporting cutting-edge technical advancements. Some countries in the region, including China and Japan, have embraced, and are quickly deploying digital agriculture technologies. However, the vast development potential is still largely unrealized in the majority of Asia-Pacific markets.
New farming technology, such as precision farming, can help in using agricultural inputs in precise quantities to increase average yields as compared to traditional cultivation approaches. It is projected that the United States would contribute significantly to supporting the ecology for future foods. In the United States market, it is anticipated that there would be an increase in the availability of recently produced veggies across retail channels as more consumer insights into fresh-from-farm-to-table food are created. The UK government has placed AI at the center of its expanding productivity goals in its industrial policy. Growing worries about nutrition and food security are predicted to create a variety of new chances for the business to flourish.
Impact of COVID-19 on the Global Digital Agriculture Market
The impact of COVID-19 resulted in significant and widespread increase in the global food insecurity, impacting vulnerable households in virtually every nation, and the effects are anticipated to last through 2022. Even before COVID-19, reduced wages and disrupted supply chains, chronic and acute hunger were on the rise for a variety of causes, including conflict, socioeconomic conditions, natural catastrophes, climate change, and pests. The consequences of COVID-19 on vulnerable households have led in considerable and widespread increases in global food insecurity. These effects are expected to persist through 2022.
Although the forecast for important grain production globally is still favorable, increased prices are a result of the strong demand, weather-related issues, macroeconomic variables, and supply disruptions brought on by COVID-19. Retail food prices are rising significantly in several countries, which points to supply disruptions brought on by COVID-19 social distancing policies, currency devaluations, and other factors. Individuals in low- and middle-income countries are more impacted by rising food prices than people in high-income countries as they spend a larger percentage of their income on food. Due to the restrictions, consumers were forced to prepare their own meals at home. Furthermore, individuals are staying away from marketplaces and supermarkets due to the possibility of getting COVID-19 virus. In addition to producers, distributors, and consumers, labor-intensive food processing industries have also been impacted by supply chain interruptions.
The existence of several regional and local suppliers is what defines the global digital agricultural market. The digital agriculture market is competitive with domestic, regional, and international companies are all competing for a sizeable piece of the market share. Some of the prominent player in the global digital agriculture market includes Agrellus, Inc., Agri Marketplace, Agrofy, Agrostar, COFCO International, Crofarm Agriproducts Pvt. Ltd., DeHaat, Eden Farm, Farmcrowdy, Kaset Thai Hitech Co., Ltd., Ninjacart Platform (63Ideas Infolabs Pvt. Ltd.), Tanihub, WayCool Foods and Products Pvt Ltd.
By expanding their service offerings and introducing better consumer packages and discounts, the companies continue to lead the industry. In addition to producers, distributors, and consumers, labor-intensive food processing industries have also been impacted by supply chain interruptions. A variety of tactics are used, including signing agreements, mergers, and strategic alliances. For instance, for the purpose of offering an international precision agricultural solution, IBM teamed up with Solinftec. Unparalleled IBM climate-based information is combined with Solinftec's artificial intelligence and powerful algorithms to offer real-time decision-making solutions to improve operation efficiency, usage of inputs, and agricultural compliance, which reduces environmental impact.
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