The application of cutting-edge technologies in agriculture to boost yield and profitability is known as agritech or agriculture technology. Drones, satellite photography, IOT-based sensors, biotechnology, artificial intelligence, big data, and blockchain are a few of the key technologies employed in agriculture today. The development of these new technologies aids the agricultural sector in addressing issues such as resource depletion, climate change, and biodiversity loss.
The Market’s Evolving Landscape in Agricultural Technology
At a compound annual growth rate of 12.1%, the size of the global agritech market is estimated to reach US$ 41.1 billion by 2030 from US$ 17.4 billion in 2021.
The increasing focus on improving agricultural yield and cultivation, combined with the ongoing worldwide integration of various technologies, has resulted in the global agritech market becoming more mainstream. Additionally, in order to gauge their level of production and assess the soil's quality, farmers are increasingly seeking a variety of services from agritech vendors.
The demand for the AgriTech industry will indirectly increase over the future years as a result of various governments consistently focusing on a sustainable farming model to generate maximum revenues. For instance, the Government of India has introduced a number of incentive programs, including ASPIRE, the NSTEDB start-up programs, and other initiatives, to support agricultural start-ups. All of these activities will entice entrepreneurs to establish new startups that will develop agricultural technology.
The inclination of consumers for personalized and on-demand products has undergone a fundamental change as a result of growing health and sustainability awareness. Furthermore, there is a severe urgency to increase yield production to fulfill the global demand due to the world population's rapid growth, particularly the undernourished population. They are being prompted to choose cutting-edge technologies to increase yield efficiency of the complexity of the yield manufacturing process. Over the upcoming years, these factors are anticipated to generate a number of potential for market growth.
Rise in Agritech Platform Usage and High Smartphone Penetration Aids Farmers in Monitoring Field Conditions
Agritech platforms provide farmers with access to agricultural inputs including planting materials, seeds, fertilizer, and equipment while also seeking to educate them on the value and best practices of the products they buy.
Agriculture is facing a number of challenges on a global scale. Farmers in developing countries struggle with unpredictability, low crop yields, a lack of reliable information, and volatile market dynamics, making them helpless and vulnerable. In contrast, access to better tools, timely and accurate information, and sincere services is necessary for farmers, in order to engage in better farming practices that will boost output, achieve market-based economic growth, and advance toward sustainable development.
With the rise of agritech, efficiency, connectivity, and knowledge sharing have all improved, and many important as well as supporting operations are now clickable. With just a few screen taps, all the relevant information is available. In an era dominated by technology, information, and analytics, smartphone adoption surged rapidly across industries. A number of mobile-based applications that are available to farmers have empowered them today.
Unlocking New Opportunities Through Agriculture Automation
Drones, watering cans, and intelligent tractors are just a few examples of automated machinery that are replacing repetitive jobs and procedures today. As a result, labor is being optimized as efficiently as possible during harvest, fruit picking, spraying, planting, seeding, and weeding.
Agricultural technology advances go beyond only automating manual work. Additionally, they handle the automation of processes and the quick response to certain data-driven revelations. Consider remotely operated, GPS-guided harvesting vehicles as an illustration. One operator may oversee and control dozens of these vehicles simultaneously. Total production increases when the likelihood of human error declines over time.
The Agritech Market: Where Giants Compete and Innovate
By introducing new services, forming alliances, and improving existing services with other key market players, vendors of agritech platforms are concentrating on enlarging their regional and global networks.
CropX announced a partnership with John Deere Operations Center in August 2022. Customers of CropX who have an Operations Center account can transmit data back and forth between the two platforms through this interface, as well as access near real-time soil sensor monitoring data and analytics from the CropX platform within Operations Center. Customers can also import field data from the Operations Center to make setting up fields in the CropX platform easier.
Arable, a leader in agricultural field intelligence, declared in July 2022 that it had raised $40 million in a series C funding. The company intends to use this funding to enhance climate resilience in agriculture by accelerating product development, offering customers new services, and expanding its global footprint.
AeroFarms stated in April 2020 that it would invest $100 million to develop the largest indoor vertical farm in the world, measuring 90,000 square feet, in Abu Dhabi, United Arab Emirates.
Is the Agritech Market in North America Surpassing Europe As Market Leader?
The market value of agricultural technology (agritech) in North America in 2021 was estimated to be over 6.2 billion USD, making it the most lucrative region in the world. North America is predicted to surpass Europe as the market leader for agritech platforms globally in terms of revenue. During the projected period of 2022–2030, it is expected that the North American agritech market will grow 2.4X.
The region has seen an increase in the number of agriculture-related startups during the last five years. As a result, the region's market share for agritech platforms has grown. The US-based company Indigo, one of the suppliers in this industry, develops technologies to improve milling quality, increase output potential, and protect plants from environmental pressures.
Additionally, it offers certified crops, online grains, and a market for agrochemicals. It offers grain testing services, microbiome therapy, and support for maximizing regenerative techniques to crop growers.
Final Thoughts on the Booming Agritech Industry
The agritech market is experiencing tremendous growth and development, with numerous players entering the market and competing for dominance. The widespread adoption of technology, especially smartphones, is opening up new opportunities for farmers to monitor their fields and implement scientific techniques, leading to increased efficiency and productivity. The competitive landscape in the agritech market is highly dynamic, with companies vying for a share of the market through innovation and partnerships. As the market continues to grow, it is important for players to stay abreast of the latest trends and developments in order to remain competitive and meet the evolving needs of farmers.