Report : Agritech Market Forecast to 2027 - COVID-19 Impact and Global Analysis By Type (Biotechnology and Biochemicals, Big Data and Analytics, Sensors and Connected Devices, Mobility, and Other Types) and Application (Irrigation, Production and Maintenance, Supply Chain, and
According to our latest market study on “Agritech Market Forecast to 2027 – COVID-19 Impact and Global Analysis – by Type (Biotechnology and Biochemicals, Big Data and Analytics, Sensors and Connected Devices, Mobility, and Other Types) and Application (Irrigation, Production and Maintenance, Supply Chain, and Marketplace), the market was valued at US$ 17,442.7 million in 2019 and is projected to reach US$ 41,172.5 million by 2027; it is expected to grow at a CAGR of 12.1% from 2020 to 2027.
North America led the agritech market with 38.59% revenue share in 2019, followed by APAC and Europe. Increasing organic and inorganic strategic developments—such as product launches, and mergers and acquisitions—among the market players support the Agritech market growth in North America. The North America agritech market has been analyzed on the basis of trends prevailing in the US, Canada, and Mexico. Continuous contribution of tech-giants to technological advancements has created a stir in the competitive market across the region. Population in this region is more inclined toward technological developments due to high spending power. The companies in this region are continuously enhancing their overall business processes to efficiently meet the customer demand for high-quality products and services.
In 2019, APAC stood second in the Agritech market with a share of 29.68%, and it is anticipated to witness a steady CAGR from 2020 to 2027. The agri-food industry in Asia, which is valued at ~US$ 5 trillion, is undergoing technological revolution, which is projected to broaden the scope of agritech business. Increasing population in countries such as China, India, Indonesia, Japan, the Philippines, and Vietnam, and rising demand for higher yields are the prime enablers of the agriculture sector in this region. The abovementioned countries are experiencing significant investments in agritech. For instance, after the US, India has recorded the second-highest number of deals in agritech. The country witnessed the increase in total deal value from US$ 133 million in 2018 to US$ 249 million in 2019, which is 87% year-on-year total funding growth. During 2015–2017, the Government of India allocated 100 million Soil Health Cards (SHCs) giving crop-wise recommendations of fertilizers and nutrients, along with offering a soil health mobile app. In addition, the country had also introduced Pradhan Mantri Krishi Sinchai Yojana by making an investment of US$ 7.7 billion for promoting irrigation sources. Such huge government initiatives are boosting the agritech market growth.
Impact of COVID-19 Pandemic on North America Agritech Market
The COVID-19 pandemic has been a major setback for all the farmers in the North America region, threatening access to agricultural labor and complexing worldwide supply chains. However, for indoor farming, it has offered an opportunity. In vertical farming, the batches of crops can be watered individually and ignited with the help of smart agriculture products, enabling them to be grown year-round with less resource. Nevertheless, the factory and business shutdowns across the US, Canada, and Mexico negatively impacted the sales of agritech products, such as sensors, agribots, and many more. COVID-19 has had a severe impact on logistics operations, transportation, and trade activity. North America is home to a large number of manufacturing and technology companies. Thus, the coronavirus outbreak's impact is anticipated to be quite severe in the year 2020 and likely in 2021. However, the impact of COVID-19 is short-term; it is likely to decrease in the coming years.
Agritech Market — Geographic Breakdown, 2019 (%)
The global Agritech market has been segmented as follows:
Agritech Market – by Type
Agritech Market – by Application
Agritech Market- by Region