Noida, India, April 13, 2021 (GLOBE NEWSWIRE) -- A study recently conducted by the strategic consulting and market research firm, BlueWeave Consulting revealed that the global digital farming market was worth USD 4,770.8 million in 2020 and is further projected to reach USD 10,702.3 million by 2027, at a CAGR of 12.7% during the forecast period (2021-2027). Factors driving the market include increased food demand due to population growth, increasing usage of VRT (Variable Rate Technology), and the growing prevalence of remote sensing technology, as well as guidance technologies by global farmers. Additionally, significant cost savings achieved through the implementation of modern agricultural techniques is another factor driving the market growth.
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Substantial Cost Savings were achieved by the implementation of modern techniques to drive the global digital farming market during the forecast period
Farming is a cost-intensive process. From seeds to soil preparation to fertilizers to pesticides and crop cutting, farming requires a lot of investment. Fertilizers and pesticides consume a substantial portion of farm investment. Fertilizer spending in the United States rose from USD 8.6 billion to USD 23.5 billion between 1985 and 2016. The ERS (Economic Research Services) by USDA conducted research and concluded that farmers using yield mapping individually or in collaboration with VRT (variable-rate technology) can save USD 25 per acre, while farmers who use GPS with soil mapping can save up to USD 13 per acre. VRT combined with yield mapping has the potential to save USD 22 per acre. The ERS further states that that yield mapping saves 4.5% of the cost per acre, GPS soil mapping saves 2.4%, guidance systems save 2.7%, and VRT saves between 3.7 and 3.9%. These high-cost savings with the implementation of digital farming can help farmers manage their finances well and are expected to drive the growth of the global digital farming marking during the forecast period.
Reduction in greenhouse gas emission with the use of digital farming techniques
Agriculture has been a significant profession for as long as humans have existed on the planet. At the same time, agricultural production is the major source of CO2 pollution in the global food system, which contributes negatively to climate change. According to the Consultative Group on International Agricultural Research (CGIAR), the global food system, including fertilizer manufacture to food storage and packaging, contributes more than one-third of global greenhouse gas (GHG) emissions. According to International Energy Agency, India accounted for 7% of global greenhouse gas emissions in 2018 with agriculture and livestock contributing around 18% of total national GHG emissions. The World Economic Forum has estimated that if only 15-20% of farms around the globe adopted precision farming by 2030, yield could increase by 10-15% with GHG emissions and water use reduced by 10% and 20% respectively. These factors are contributing largely towards the growing acceptance of digital farming techniques and are expected to drive the market during the forecast period.
Lack of awareness and understanding is expected to hamper the growth of the global digital farming market during the forecast period.
The most significant challenge associated with digital farming is the lack of awareness and understanding of the technology. To understand the working of new technologies and to see how things will change, an imaginative approach is required. A lot of farmers don’t have any idea how digital farming works. This lack of awareness and understanding along with the high cost of advanced equipment and technology is expected to impede the growth of the global digital farming market during the forecast period.
Greenhouse farming accounted for the largest share in the global digital farming market in 2020
Based on application, greenhouse farming segment held the largest share in the global digital farming market in 2020. Greenhouse farming refers to the growing of crops under a large structure, covered fully or partially with a transparent material. Greenhouse farming has been in use for centuries now. People use greenhouse farming to grow all kinds of crops with tomatoes, cucumbers, peppers, and melons being the most popular ones. Greenhouse farming is also used to grow fruits such as grapes, cherry, Japanese persimmon, fig, loquats, lemon, and mangoes along with a variety of flowers. World’s biggest green-house farming project, the Eden project holds more than 100,000 plants from over 5,000 species. Greenhouse farming’s ability to grow diversified crops outside their natural habitat contributed largely towards the largest market share of the segment in the global digital farming market based on application.
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Global Digital Farming Market: Regional insights
The global digital farming market is divided into the Asia-Pacific (APAC), North America, Europe, Latin America, and the Middle East & Africa regions. Europe dominated the global digital farming market in 2020, closely followed by North America. Additionally, the Netherlands in Europe is a global leader in agricultural innovation with the integration of green-house farming and precision farming. The Netherlands holds over one-third of the global vegetable seed trade and is the world's largest exporter of onions and potatoes. Wageningen University & Research (WUR), widely recognized as the world's leading agricultural research institute, is the driving force behind the Dutch country's rapid growth in the digital farming industry. European Commission is also supporting the adoption of digital farming in European countries with its USD 90 billion Horizon program. All these factors, combined with the availability of the latest technology, strong infrastructure, reinforced supply chain, and robust financials are leading to Europe's significant market share in the global digital farming market in 2020.
COVID-19 Impact on Global Digital Farming Market
A majority of the industries have been affected negatively by COVID-19. While some have started to recover, others are still trying to figure a way out. The demand for food and agriculture products skyrocketed with the commencement of lockdown. As a result, farmers faced numerous challenges in meeting increased demand, with the supply chain badly disrupted. The COVID-19 pandemic also disrupted the global digital farming market. As a result, the companies started to focus more on wireless real-time decision-making technology based on the data received from digital farming technology. The sector recovered quickly towards the end of the year as lockdown restrictions were gradually lifted. As things returned to normal, the global digital farming market is expected to expand.
The Leading Players operating in the market are Cisco Systems Inc., Gamaya SA, Trimble Navigation Ltd., Accenture PLC, Epicor Software Corporation, AGCO Corporation, Salt Mobile SA, Deere & Co., IBM Corporation, Hexagone AB, Bayer CropScience AG, and others are the key players operating in the global digital farming market.
To gain a larger market share, key market players are forming alliances, forming partnerships, and participating in mergers and acquisitions. Furthermore, market participants are focused on enhancing product quality in order to gain a competitive advantage over other competitors.
On April 6, 2021, Guardian Agriculture launched a USD 10.5 million to streamline crop protection with eVTOL-powered precision. Guardian Agriculture has launched a first-ever integrated eVTOL system for precision application, extending growers’ reach, minimizing environmental impact, and curtailing product resistance. It accumulates the data produced during the crop protection process, acts intelligently on it. Guardian Agriculture, which provides data-driven crop security as a service, assists farmers in growing sustainably and profitably.
On April 2, 2021, the Malaysia Digital Economy Corporation (MDEC) and CIMB Islamic Bank Berhad (CIMB Islamic) signed a memorandum of understanding (MoU) to catalyze Digital Agriculture Technology (Digital Agtech) in Malaysia. The MoU also extends an extensive micro-financing program with an allocation of USD 2.42 million as an initial funding package
On March 23, 2021, Ghana’s end-to-end digital farming platform, Complete Farmer, secured an undisclosed amount of funding from Ingressive Capital to extend its footprint in other markets. Complete Farmer, founded in 2017, has implemented a crowd-farming model with a total of 7,200 acres of production serving resources to Asia, Europe, and the rest of the world.
Scope of the Report
By Component
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- Hardware
- Software
- Others
By Application
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- Precision Farming
- Live-Stock Monitoring
- Greenhouse Farming
- Others
By Region
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- North America
- Europe
- Asia-Pacific (APAC)
- Latin America (LATAM)
- Middle-East & Africa (MEA)
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