AgTech Market Forecast

Digital agriculture market seen reaching $51.3 billion by 2033

Allied Market Research Projects 10.5% CAGR as Precision Farming and IoT Broaden On-Farm Adoption

According to a specialized tracking report by Allied Market Research, the global digital agriculture market seen reaching $51.3 billion by 2033, climbing from an evaluated valuation of $18.6 billion in 2023. Operating at a steady 10.5% compound annual growth rate, this market acceleration is driven by rising global food security demands, climate pressures, and automated resource management. Hardware installations—spanning GPS machinery, IoT smart sensors, and remote-sensing drones—secured the highest revenue segment share, while North America maintained regional leadership through early commercial investments. As farm operators transition from localized tools to centralized, cloud-based data networks, integrated analytics are shifting the sector away from traditional standalone equipment toward automated, predictive production systems.

Allied Market Research says the global digital agriculture market was valued at $18.6 billion in 2023 and is projected to hit $51.3 billion by 2033, driven by precision farming, AI, IoT and automation. North America led the market in 2023, while hardware and precision farming applications held the largest shares.

Why it matters:

• Digital agriculture is moving from a niche upgrade to a core farm-management tool.
• The market forecast points to steady demand for technologies that can raise yields, cut input costs and improve water and soil management.
• The shift matters most as food security, climate pressure and labor efficiency become bigger priorities for growers and agribusinesses.

What happened:

Allied Market Research released a report on the global digital agriculture market covering components, applications and technologies. The report is titled, “Digital Agriculture Market by Component (Hardware, Software, and Service), Application (Precision Farming and Farm Management, Livestock Monitoring, Supply Chain Management, Financial Management, and Others), and Technology (AI, Drones, IoT, Automation, and Others): Global Opportunity Analysis and Industry Forecast, 2024-2033”. It tracks the global market expanding from $18.6 billion in 2023 to $51.3 billion by 2033, operating under a 10.5% compound annual growth rate.

The details:

• The hardware segment held the largest market share in 2023, driven by GPS receivers, sensors, drones, automated machinery, smart irrigation systems, and yield monitoring devices.
• The precision farming and farm management segment led applications, with growers leveraging GPS-guided machinery, IoT sensors, and AI analytics to optimize resource utilization and monitor crop yields.
• The IoT segment led by technology, supporting real-time monitoring of soil, weather, and crop conditions to reduce operating costs.
• North America held the highest regional market share due to early adoption, strong infrastructure, high precision-farming investment, and active government subsidies.
• The report lists leading market players including John Deere, Trimble, AGCO, Bayer, Indigo Ag, Agreena, ecoRobotix, IBM, Microsoft, Gamaya, AgEagle Aerial Systems, CNH Industrial, Topcon, BASF, Digital Agriculture Services, Bosch Global Software Technologies, Wipro, Yara, AGRIVI, and Small Robot Company.

Between the lines & What’s next:

The report suggests digital agriculture is broadening beyond field equipment into a software- and data-heavy operating model. IoT and AI remain central because they connect sensing, analysis, and automated action across the farm. The concentration of large industrial, software, and agtech players signals a market where partnerships and integration matter as much as standalone products.

Growth is expected to continue as farmers adopt more cloud-based management tools, automation, and remote monitoring systems. Climate stress and resource constraints will likely sustain global demand for precision tools that improve efficiency and sustainability.

Allied Market Research – Agribusiness Intelligence Division

Wilmington, Delaware | Global Opportunity Analysis & Market Forecast | June 2026