Industry Overview
The Global Modern Farming Market size was valued at USD 8.6 billion in 2023. It is likely to grow up to USD 23.3 billion by 2030 at a CAGR of 11.5% during the forecast period ranging between 2025 and 2030.
The growth of the market is subject to the rising demand for better farming practices like precision farming and hydroponics to facilitate farming in urban regions especially where arable landand water sources are limited. Following modern farming practices ensures steady production of crop throughout the year in controlled environments in urban regions. The governments all over the world are promoting such sustainable farming practices by offering lucrative incentives thereby increasing its adoption and market growth.
Modern farming basically refers to the integration of technology and advanced equipment for farming and agricultural practices. In addition, a lot of different data is analyzed to ascertain different aspects of agricultural processes and outcomes. Furthermore, it includes several sustainable practices and techniques that will enhance the production of crops, help maintain the quality and health of the produce, and increase both the efficacy of farming and productivity with minimal use of labor and increased health of soil.
In addition to automation especially in irrigation, various other technologies are used to ensure precision agriculture and eco-friendly farming practices. This includes monitoring of crops with the help of AI tools and software, drones, and IoT sensors. Productivity of crop is also increased by the use of hydroponics and vertical farming techniques. All these technologies and processes reduce wastage of resources, water, fertilizer, and other necessities of farming.
Modern farming practices are extensively followed in Asia-Pacific region, mainly in India and China as well as in the USA and Europe. It is highly effective for precision and vertical farming, organic farming practices, greenhouse agriculture and smart irrigation. Overall, it helps in improving food security and reducing food scarcity.
Global Modern Farming Industry Dynamics
Global Modern Farming Market Trends/Growth Drivers:
Rising preference for smart farming practices and growing need for precision agriculture
The steady growth of the global modern farming market can be attributed to the growing preference and need for smart and precision farming, which needs adopting advanced technologies like drones, IoT sensors, and other tools for efficient operation. These technologies have revolutionizing farming and reduces water and fertilizer usage as well as pesticide applicationwhile still improving crop yield. Other factors that promote the market growth include lower costs, higher investments by governments and private organizations in smart farming, growing demand for pesticide-free and organic food worldwide, unpredictable weather conditions, and developments in Agri-fintech and management tools.
Global Modern Farming Market Report Coverage
|
Report Metric
|
Details
|
|
Historical Period
|
2018 - 2023
|
|
Base Year Considered
|
2024
|
|
Forecast Period
|
2025 - 2030
|
|
Market Size in 2024
|
U.S.D. 8.6 Billion
|
|
Revenue Forecast in 2030
|
U.S.D. 23.3 Billion
|
|
Growth Rate
|
11.5%
|
|
Segments Covered in the Report
|
By Technology, By Component and By Farm Size
|
|
Report Scope
|
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
|
|
Regions Covered in the Report
|
North America, Europe, Asia Pacific and Rest of the World
|
Global Modern Farming Market Challenges
High Initial cost of technology and equipment set up
The cost of equipment and technology required for modern farming practices is pretty high which prevents widespread adoption and growth of the global modern farming market. It especially deters the small and medium-scale farmers who receive little financial support. Furthermore, these machines need regular maintenance which also adds to the cost of operations significantly. Other factors that challenge the market growth and penetration include unreliable power supply and internet connectivity in rural sectors, limited knowledge of operating these advanced machines, extreme weather conditions, and strict regulations and lack of standard policies.
Global Modern Farming Market Opportunities
Rising preference for smart farming solutions and growth of Agri-Tech
A vast opportunity for the growth of the global modern farming market is createdby the rising preference for smart farming solutions such as IoT sensors and automation. Novel growth opportunities are also created by the development of smart solutions for irrigation, crop monitoring, and precision farming. Furthermore, rising investments by governments and private parties to boost innovation, efforts to reduce cost of equipment, rising awareness and demand for organic farming among consumers, growth in agricultural exports, and AI analytics that help in precise decision making presents new growth opportunities.
Global Modern Farming Market Segmentation
VynZ Research provides an analysis of the key trends in each segment of the global modern farming market report, along with forecasts at the regional and country levels from 2025-2030. Our report has categorized the market based on Technology, Component and Farm Size.
Insight by Technology
- Precision Farming
- Vertical Farming
- Automated Machinery
- Smart Irrigation
- Drones
- Hydroponics
The precision farming and vertical farming segments dominate due to higher demand
Different technologies used in the global modern farming landscape divides the global market into several categories,namely, Precision Farming, Vertical Farming, Automated Machinery, Smart Irrigation, Drones, and Hydroponics. Among all of these major categories, it is the precision and vertical farming segments that dominate the market and will grow steadily during the projected period due to rising demand, higher adoption of smart techniques and lower availability of arable land in the urban localities in particular.
Insight by Component
The hardware segment dominates due to growing demand
According to the components, the global modern farming market is divided into Hardware, Software, and Services segments. The hardware segment among these three is expected to dominate the market in the study period due to growing demand for sensors and other components for drones, robotics equipment and automatic irrigation systems.
Insight by Farm Size
- Small-
- Medium-
- Large-sized farms
The large farms dominate due to higher adoption
The difference in the sizes of farms also divides the global modern farming market into small-, medium-, and large-sized farms, where the large-sized farms segment leads the market due to their greater affordability and need to adopt automated and smart farming techniques.
Global Modern Farming Market: Geographic Overview
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Vietnam
- Thailand
- Malaysia
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
North America dominates other regions in the global modern farming market due to higher adoption rate of vertical and smart farming. It is also attributed to advanced infrastructure that supports Agri-tech and advanced analytics.
Europe is growing steadily in the global modern farming market for higher initiatives to promote sustainability and greater preference for organic farming. Also, strict environmental regulations fuel market growth.
The Asia-Pacific region of the market shows higher growth promises during the projected period, which is due to large area of agricultural land available. Also, growing government support through incentives and subsidies in countries like Japan, India, and China to promote adoption of automated and precision farming promises growth.
Global Modern Farming Market: Major Players
Global Modern Farming Market: Recent Developments
Cargill Incorporated was awarded two innovations award from Business Intelligence Group, (BIG) to recognize its development efforts in modern farming and winter crop.
Deere & Company launched autonomous machines with sophisticated technology at CES 2025 that will improve agricultural productivity.
