The total market value for the agricultural technology (agtech) sector is expected to skyrocket to $22.5 billion (€18.9 billion) by 2025, according to the latest report released by Juniper Research.
The 'Agtech: Market Outlook, Emerging Opportunities & Forecasts 2020-2025' identifies agricultural sensors and supply chain management as the key revenue-generating services that will stimulate the next five years of growth. These two sectors alone are expected to account for 67% of the sector's market value by 2025 owing to cost reductions that enable low-cost data collections and agricultural analysis.
The report collected data from 19 different countries across 8 key regions and analysed forecasts based on the following key metrics:
- Agricultural Management & Sensors
- Agricultural Weather Services
- GPS Services & Field Mapping
- Microfarming
- Supply Chain & Inventory Management
In total, the sector will bloom from a $9 billion (€7.5 billion) share and will see an average annual growth rate of 150% over the next five years.
The agricultural technology sector primarily covers areas such as agricultural sensors for crop management, GPS field mapping and supply chain management.
The data suggests that low-power connectivity solutions are key to future market growth by offering affordable options that provide a clear return-on-investment to stakeholders already operating in an industry with tight profit margins.
The research hints the need to automate data collection processes will drive the number of monitoring sensors to 436 million by 2025, four times 2020 levels enabling the monitoring of climate, hydration and soil pH against operational inefficiencies.
The data also shows that microfarming - the process of small-scale farming by leveraging connectivity technologies - will exceed $6.7 billion (€5.64 billion) of the total market share by 2025, up from $2.7 billion (€2.27 billion) in 2020. This growth will primarily be driven by the development of innovative agtech services such as vertical farming and automated crop management.
Sam Barker, co-author of the research paper said: "By 2025, 75% of microfarming's market value will attributable to platform speed. We suggest Agtech platforms focus on automation software as a key differentiation point to attract high-spending Agtech users."
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