Agritech Market Size, Trends and Growth Analysis by 2027

The global agritech market was valued at approximately US$ 17,442.7 million in 2019 and is anticipated to reach around US$ 41,172.5 million by 2027. This indicates a projected compound annual growth rate (CAGR) of 12.1% from 2020 to 2027.

Nevertheless, the outbreak of COVID-19 had a detrimental impact on the growth trajectory of the global agritech sector in 2020. The pandemic led to a decrease in revenue growth for companies within the industry and a drop in consumer demand, resulting in a year-over-year decline in growth rates for that year. However, it is expected that growth will stabilize starting in 2021, with the market anticipated to expand steadily throughout the forecast period from 2020 to 2027.

Agriculture is a vital component of economic development in several of the world's largest economies, including the United States, China, India, France, Spain, Brazil, and Russia, among others. As the global population continues to rise, so does the demand for agricultural products, prompting significant investments in agricultural technology solutions worldwide.

Key technologies making inroads into the agricultural sector include data analytics, artificial intelligence, the Internet of Things (IoT), machine learning, automation systems, and software as a service (SaaS) solutions, among others. Furthermore, the evolution of business and revenue models within the agriculture sector, market consolidation through larger companies acquiring smaller firms to achieve economies of scale and vertical integration, the trend towards precision farming, and increasing investments in agritech startups are significant factors propelling the growth of the global agritech market.

Key growth areas driving technology adoption in the agricultural sector include agricultural inputs, precision agriculture, farm management software, supply chain technology, and quality management and traceability.

Currently, approximately 37% of the global land area is designated as agricultural land, and this figure is expected to rise by 2050, primarily due to the anticipated increase in the global population to 10 billion. To enhance production levels, the adoption of advanced technologies such as IoT, robotics, ground sensors, data intelligence, vertical farming, and precision farming is on the rise. Precision farming alone has the potential to boost farming yields by around 30%. Countries like the United States, France, China, and India are leading the way in the adoption of precision farming techniques.

The proliferation of smartphones has made the concept of precision farming increasingly prevalent in agriculture. This approach empowers farmers with rapid communication capabilities, swift data collection and analysis, and real-time decision-making. Consequently, the advantages offered by precision farming are drawing the interest of a significant number of farmers, particularly in nations such as the United States.

The overall size of the agritech market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the agritech market across various segments and regions. Additionally, numerous primary interviews were conducted with industry participants and commentators to validate the data and gain deeper analytical insights into the subject matter. Participants in this process included industry experts such as Vice Presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the agritech sector.

Key market players profiled in this study include ARSR Tech, AeroFarms, Apollo Agriculture, Crofarm Agriproducts Pvt Ltd, Conservis, Indigo Ag, Inc., LettUs Grow Ltd., Pivot Bio, AgBiome, Inc., and Ceres Imaging.