Digital Farming Market

Market Definition

Digital farming involves the integration of digital technologies into agricultural practices to optimize crop production, resource use, and overall farm management. It relies on tools such as sensors, drones, satellite imagery, and data analytics to provide actionable insights.

The market encompasses the development and adoption of precision agriculture solutions, farm management software, and automated machinery. It supports applications in crop monitoring, yield forecasting, soil health assessment, and input optimization across various farming systems.

Digital Farming Market Overview

The global digital farming market size was valued at USD 26.78 billion in 2024 and is projected to grow from USD 29.52 billion in 2025 to USD 62.02 billion by 2032, exhibiting a CAGR of 10.93% during the forecast period.

This growth is attributed to the rising adoption of data-driven agricultural practices that enhance productivity, resource efficiency, and decision-making. The increasing use of precision farming tools, Internet of Things-based monitoring systems, and satellite imagery is fueling the market.

Key Highlights

1. The digital farming industry size was valued at USD 26.78 billion in 2024.
2. The market is projected to grow at a CAGR of 10.93% from 2025 to 2032.
3. North America held a market share of 34.09% in 2024, valued at USD 9.13 billion.
4. The hardware segment garnered USD 10.30 billion in revenue in 2024.
5. The AI/ML/NLP segment is expected to reach USD 20.42 billion by 2032.
6. The weather forecasting segment is anticipated to register the fastest CAGR of 11.24% over the forecast period.
7. The market in Asia Pacific is anticipated to grow at a CAGR of 11.96% through the forecast period.

Major companies operating in the digital farming industry are Bayer AG, CNH Industrial N.V., AGCO Corporation, KUBOTA Corporation, Topcon, Deere & Company, Trimble Inc., Raven Industries, Inc., Yara, Ag Leader Technology, Iteris, Inc., Corteva, GAMAYA, AeroFarms, and Farmers Edge Inc.

Growing focus on sustainable agriculture, climate-resilient farming, and real-time crop health monitoring is accelerating the demand for digital farming solutions. Additionally, advancements in AI, integration of farm management software, and government support for agritech innovations are contributing to the market growth.

• In November 2023, Bayer showcased advanced digital technologies at Agritechnica to support regenerative agriculture, including AI-powered tools like Climate FieldView and “Magic” products for drone scouting, pest detection, and precision spraying. The company also introduced a large language model prototype using Microsoft Azure to simplify farm data interaction and enable data-driven, sustainable farming decisions.

Market Driver

Increased Adoption of Precision Agriculture Technologies

The digital farming market is driven by the increased adoption of precision agriculture technologies that enhance efficiency, productivity, and sustainability across modern farming operations. Farmers are leveraging tools such as GPS-guided machinery, variable rate application systems, and drone-based monitoring to manage fields at a micro level, reduce input waste, and improve yield outcomes. These technologies enable data-driven decision-making by offering real-time insights into soil health, crop conditions, and weather variability.

• In April 2023, Bosch BASF Smart Farming and AGCO Corporation partnered to integrate smart spraying technology into Fendt Rogator sprayers, combining advanced sensors with BASF’s weed identification tools to reduce herbicide use. The system, connected to xarvio digital platforms, will deliver precise application data and agronomic insights across the Americas and Europe.

The integration of AI, ML, and data analytics platforms is accelerating the shift toward smart farming practices. The rising demand for efficient resource utilization, cost-effective operations, and higher profitability is fueling the adoption of precision agriculture across both developed and emerging markets.

Market Challenge

Limited Digital Infrastructure in Rural Areas

Limited digital infrastructure in rural areas presents a critical challenge to the growth of the digital farming market, particularly in regions where agriculture remains the primary livelihood. Many remote farming locations lack reliable internet connectivity, consistent power supply, and access to advanced communication networks needed to support precision agriculture technologies and real-time data transmission. This infrastructure gap prevents farmers from fully utilizing digital tools such as IoT sensors, GPS-enabled machinery, and cloud-based farm management systems. As a result, the effectiveness and scalability of digital farming solutions are significantly reduced, especially among smallholder and resource-constrained farmers.

Governments, agritech companies, and infrastructure providers are working to expand rural broadband coverage, invest in smart farming hubs, and introduce affordable digital tools. These efforts are essential to enable widespread adoption of digital agriculture and ensure inclusive growth across global farming communities.

Market Trend

Integration of Artificial Intelligence and Machine Learning

The integration of AI and ML is shaping the digital farming market by enabling highly data-driven and adaptive agricultural practices. These technologies analyze large volumes of real-time data from sensors, drones, and satellite imagery to provide predictive insights on crop health, weather variability, soil conditions, and pest outbreaks. Unlike traditional farming methods, AI and ML systems support dynamic decision-making, allowing for timely interventions and optimized resource allocation. This results in improved yield quality, reduced input costs, and more sustainable farming operations across diverse crop and climatic conditions. Moreover, continuous advancements in algorithm accuracy, edge computing capabilities, and user-friendly platforms are making these solutions more accessible to farmers of all scales, further accelerating their adoption in precision agriculture.

• In May 2025, Ceres AI and Bayer’s Climate FieldView partnered to integrate Ceres’s AI-powered analytics into FieldView, creating a unified data ecosystem that delivers risk intelligence to farmers, insurers, and investors. This collaboration connects farm operations data with financial stakeholders, improving underwriting precision, enabling parametric insurance, and supporting smarter investment strategies.

Digital Farming Market Report Snapshot

Segmentation	Details
By Component	Hardware, Software, and Services
By Technology	AI/ML/NLP, IoT, Blockchain, and Big Data & Analytics
By Application	Yield Monitoring and Mapping, Smart Crop Monitoring, Soil & Fertilizer Management, Smart Irrigation Monitoring System, Weather Forecasting, and Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

 Market Segmentation

• By Component (Hardware, Software, and Services): The hardware segment earned USD 10.30 billion in 2024, due to the widespread adoption of sensors, drones, GPS-enabled devices, and automated machinery that support real-time monitoring and precision agriculture.
• By Technology (AI/ML/NLP, IoT, Blockchain, and Big Data & Analytics): The AI/ML/NLP segment held a market share of 33.24% in 2024, due to its ability to enable real-time insights, predictive analytics, and automation in farming operations.
• By Application (Yield Monitoring and Mapping, Smart Crop Monitoring, Soil & Fertilizer Management, Smart Irrigation Monitoring System, Weather Forecasting, and Others): The yield monitoring and mapping segment is projected to reach USD 18.57 billion by 2032, owing to its critical role in evaluating crop performance, optimizing input use, and enhancing overall farm productivity.

Digital Farming Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America accounted for a digital farming market share of around 34.09% in 2024, valued at USD 9.13 billion. This market dominance is reinforced by the widespread adoption of precision agriculture technologies, well-developed digital infrastructure, and strong institutional support for innovation in farming practices. The region’s early integration of AI, IoT, and satellite imaging solutions, coupled with extensive use of data analytics platforms, is streamlining farm management and improving decision-making efficiency.

Significant government funding, research collaboration, and public-private partnerships are accelerating the deployment of smart farming systems across large-scale agricultural operations. The increasing focus on sustainable farming, climate resilience, and food security is further driving the uptake of digital agriculture solutions. Moreover, continuous advancements in sensor technology, edge computing, and cloud-based platforms are enabling scalable, data-driven farming models and contributing to long-term market growth.

The digital farming industry in Asia Pacific is set to grow at a CAGR of 11.96% over the forecast period. This growth is attributed to increasing food demand, limited arable land, and the urgent need for resource-efficient farming practices to ensure long-term agricultural sustainability. The region's expanding population, rising rural digitization, and growing awareness of precision agriculture benefits are driving the adoption of smart farming technologies across both smallholder and commercial farms.

Government initiatives promoting digital agriculture, climate resilience, and food security, along with increasing investments in agri-tech innovation, are accelerating technology integration. Additionally, partnerships between agritech startups, research institutions, and public agencies, supported by advancements in IoT, AI, and low-cost sensor solutions, are enhancing scalability and accessibility, supporting the market in the region.

• In October 2023, the International Fund for Agricultural Development (IFAD) and Grow Asia launched the SEEDS initiative to support smallholder farmers in Cambodia, the Philippines, and Vietnam with digital and ICT tools. This project, funded by Korea’s Ministry for Agriculture, Food and Rural Affairs, aims to modernize farming practices, improve rural livelihoods, and increase productivity through locally adapted digital solutions.

Regulatory Frameworks

• In the European Union (EU), the Common Agricultural Policy (CAP) regulates agricultural activities, including digital farming. It provides funding and guidelines to encourage the adoption of precision agriculture, data-driven technologies, and climate-smart practices to improve sustainability and food security.
• In the U.S., the Precision Agriculture Connectivity Act (PACA) of 2018 regulates digital farming infrastructure. It mandates the development of broadband infrastructure to support precision agriculture technologies in underserved rural areas.
• In India, the Digital Agriculture Mission 2021–2025 regulates the promotion and integration of digital farming tools. It aims to use advanced technologies such as AI, ML, blockchain, and drones to enhance agricultural productivity and farmer welfare.
• In China, the National Digital Agriculture and Rural Development Plan (2019–2025) regulates the implementation of digital technologies in agriculture. It supports the development of smart farming systems, digital rural infrastructure, and data-driven agricultural services.

Competitive Landscape

Companies operating in the digital farming market are actively expanding their market footprint through technological innovation, strategic partnerships, and diversification of their solution portfolios. Key market players are investing significantly in research and development to improve data analytics capabilities, enhance interoperability across platforms, and integrate advanced technologies such as AI, ML, and IoT. They are also focusing on developing comprehensive digital ecosystems that combine hardware, software, and advisory services to deliver end-to-end precision agriculture solutions tailored to diverse farming needs. Additionally, firms are collaborating with governments, agricultural institutions, and agri-tech startups to pilot scalable projects, secure public funding, and penetrate underserved markets, thereby strengthening their presence in both developed and emerging economies.

• In March 2023, Regrow Ag and BASF’s xarvio digital farming solutions initiated a collaboration to integrate Regrow’s MRV (Measurement, Reporting & Verification) software into xarvio, enabling farmers to quantify GHG-reduction and carbon sequestration in field activities. Pilot projects launched in South America and Europe aim to support climate-smart, regenerative farming through science-based carbon monitoring and certification.

List of Key Companies in Digital Farming Market: 

• Bayer AG
• CNH Industrial N.V.
• AGCO Corporation
• KUBOTA Corporation
• Topcon
• Deere & Company
• Trimble Inc.
• Raven Industries, Inc.
• Yara
• Ag Leader Technology
• Iteris, Inc.
• Corteva
• GAMAYA
• AeroFarms
• Farmers Edge Inc.

Recent Developments (Partnerships/Expansions/Launches)

• In April 2025, Orbia Netafim expanded its digital farming capabilities through a partnership with Treetoscope, integrating real-time plant-sensing technology into the GrowSphere platform. This collaboration enables precise irrigation decisions using sap flow data, helping tree and orchard growers enhance water use efficiency and boost crop performance across varied growing conditions.
• In February 2025, Yamaha Motor launched Yamaha Agriculture, Inc., combining its recent acquisitions of Robotics Plus and The Yield to deliver autonomous field equipment and AI-driven digital crop management solutions. The company integrates robotics for spraying and weeding with advanced analytics to help specialty crop growers improve sustainability, reduce input costs, and enhance productivity across North America, Australia, and New Zealand.
• In May 2024, Planet Labs PBC and BASF Digital Farming expanded their strategic partnership to enhance smart farming solutions using satellite data. The collaboration aims to deliver advanced, space-based agricultural insights to support more precise and sustainable farm management.