AgriTech Market Size: Growth Segments, Funding Cycles, and the 2030 Outlook

AgriTech Market Size: Setting the Baseline

AgriTech remains a mosaic of overlapping submarkets—from precision farming and IoT to robotics and controlled-environment agriculture—making a single top-line figure elusive. One widely used proxy is the smart agriculture category, which reached an estimated $18.1 billion in 2022 and is on track to hit roughly $43.4 billion by 2030, according to Grand View Research. That growth implies a robust double-digit CAGR as farms digitize operations and equipment OEMs standardize connected features.

At the same time, the sector’s potential value creation extends well beyond the device and software revenue counted in traditional market models. McKinsey estimates that connectivity and data-driven tools across the agricultural value chain could unlock up to $500 billion in additional global economic value by 2030, a signal that adoption curves are now tied to enterprise-wide outcomes such as input efficiency, labor productivity, and yield resilience, according to the consultancy’s analysis. This builds on broader AgriTech trends.

Crucially, the market is moving from bespoke deployments toward repeatable platforms—navigation and guidance stacks, data layers, and modular automation—that can scale across crops and regions. That evolution is starting to compress payback periods and clarify pricing models, firming up spend visibility for CFOs across the ag value chain.

Where the Growth Is: Segments and CAGRs

Within the stack, two categories are setting the pace. The IoT in agriculture market—encompassing sensors, connectivity, and analytics—is projected to grow from $11.4 billion in 2023 to $18.1 billion by 2028, at a 9.8% CAGR, MarketsandMarkets reports. Precision farming software and services, meanwhile, continue to benefit from upgrades in GNSS guidance, variable-rate application, and in-field telemetry, creating upsell paths from hardware to recurring analytics.

Adoption data underscores the shift from pilots to standard practice. The U.S. Department of Agriculture’s Economic Research Service notes that precision tools like GPS guidance, auto-steer, and yield monitors are now used on a majority of U.S. row-crop acres, with variable-rate technology gaining ground as input costs and sustainability metrics sharpen ROI, according to USDA ERS. As connectivity improves and open APIs proliferate, interoperability is nudging growers to consolidate data across equipment brands and input providers, increasing the addressable market for platform software.

Robotics and automation—such as autonomous sprayers, weeding robots, and harvest-assist systems—are progressing fastest where labor is most constrained and tasks are highly repeatable. While still a smaller base, the category’s growth prospects are amplified by AI-enabled perception and precision application, which reduce chemicals and diesel burn—two line items with immediate financial and regulatory relevance.

Enterprise Spend and the Competitive Landscape

The enterprise side of AgriTech is coalescing around a handful of models: equipment-anchored platforms, independent farm management software, input-linked decision tools, and data marketplaces. OEMs like Deere, CNH Industrial, and AGCO are bundling guidance, telematics, and application controls into premium tiers, then layering subscriptions for advanced autonomy and analytics. Independent platforms from Trimble and others are courting mixed fleets, while crop science leaders such as Bayer and Corteva continue to integrate agronomy services with digital advisories.

Across these models, recurring revenue is becoming the metric to watch. Hardware remains the on-ramp, but multi-year software contracts tied to acres, machines, or features are now central to valuation and forecasting. As open interfaces expand, expect more cross-licensing and OEM–startup partnerships that accelerate feature deployment without sacrificing the equipment makers’ installed-base advantage.

On the farmgate, buyers are getting more rigorous about ROI, pushing vendors to quantify yield protection, input reduction, and labor savings in season-long pilots. Transparent economics—plus better onboarding and support—are critical in converting trials into multi-year commitments across fleets and fields.

Capital Flows, Regions, and the 2030 Outlook

After a record boom, venture funding for agrifoodtech retrenched in 2023, dropping to about $15.6 billion globally amid a broader tech pullback, AgFunder’s 2024 report shows. The reset has narrowed the field, with capital concentrating in startups that demonstrate near-term cash returns—particularly in input optimization, automation, and climate-resilient agronomy. M&A activity by OEMs and input companies remains a key exit pathway as they fill capability gaps in autonomy, perception, and edge analytics.

Regional dynamics are sharpening the demand signal. North America leads in large-scale precision deployments, Europe is advancing through sustainability-linked incentives and compliance reporting, and Asia—especially India—is scaling digital advisory and fintech bundles for smallholders. As climate volatility intensifies, buyers are prioritizing tools that harden yields against weather shocks while meeting retailer and regulator traceability requirements.

The upshot: while label definitions vary, the core AgriTech stack is on a double-digit growth trajectory through 2030, anchored by IoT, precision applications, and analytics that demonstrably move the P&L. For portfolio managers and operators alike, the most resilient plays link hardware to outcome-based software, price against measurable savings, and integrate cleanly with mixed fleets. For more on related AgriTech developments.