How big is the agtech market?

This blog post has been written by the person who has mapped the AgTech market in a clean and beautiful presentation

The AgTech market is experiencing explosive growth, reaching USD 24.42 billion in 2024 with projections to hit USD 26.52 billion in 2025.

This sector represents one of the most compelling investment opportunities today, driven by sustainability mandates, digital transformation, and the urgent need to feed a growing global population. With funding exceeding USD 16 billion in 2024 and private companies trading at 5-8× revenue multiples, entrepreneurs and investors are discovering substantial opportunities across precision farming, vertical agriculture, and agricultural robotics.

And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

What was the total size of the global AgTech market in 2024 and how much did it grow compared to 2023?

The global AgTech market reached USD 24.42 billion in 2024, representing a solid 9.6% increase from USD 21.98 billion in 2023.

This growth trajectory reflects accelerating adoption of digital farming solutions, precision agriculture technologies, and sustainable farming practices. The nearly USD 2.5 billion increase year-over-year demonstrates the sector's resilience despite broader economic uncertainties and venture capital market corrections.

The 9.6% growth rate significantly outpaced traditional agriculture sectors, which typically grow at 2-4% annually. This performance was driven by escalating food security concerns, heightened interest in sustainable agriculture practices, and the continued digitization of farming operations across both developed and emerging markets.

Food security pressures from climate change and population growth created urgent demand for efficiency-enhancing technologies. Major agricultural producers accelerated investments in IoT sensors, data analytics platforms, and automated farming equipment to optimize yields while reducing environmental impact.

How is the AgTech market projected to grow in 2025 and what are the key drivers behind that growth?

The AgTech market is projected to reach USD 26.52 billion in 2025, representing an 8.6% growth rate that maintains strong momentum despite some deceleration from 2024's pace.

Five primary drivers are fueling this continued expansion. Sustainability imperatives top the list, as governments worldwide implement stricter environmental regulations and consumers demand reduced carbon footprints from food production. The European Union's Farm to Fork strategy and similar initiatives in North America are mandating adoption of precision agriculture technologies.

Technological advancements represent the second major catalyst, with AI-powered crop monitoring, autonomous robotics, and advanced biotechnology solutions reaching commercial viability. IoT sensor costs have dropped 40% since 2022, making precision farming accessible to mid-size operations that previously couldn't justify the investment.

Policy support provides critical momentum through subsidies and R&D grants. The US Farm Bill allocated USD 3.1 billion for digital agriculture initiatives, while China's 14th Five-Year Plan earmarked USD 15 billion for agricultural modernization. These programs reduce adoption barriers and accelerate technology deployment across diverse farming operations.

Digital farming platform adoption is accelerating as farmers recognize data-driven decision making delivers measurable ROI improvements of 15-25% on input costs.

If you want updated data about this market, you can download our latest market pitch deck here

What is the compound annual growth rate expected for the AgTech industry over the next 5 and 10 years?

The AgTech industry is projected to maintain a robust 14.4% CAGR over the next five years (2024-2029), with a slightly moderated but still impressive 12.2% CAGR expected over the 10-year horizon (2024-2034).

The 5-year projection reflects the sector's current high-growth phase, driven by rapid technology adoption, favorable policy environments, and urgent sustainability pressures. This 14.4% CAGR would result in a market size approaching USD 48 billion by 2029, representing a doubling of the current market within five years.

The 10-year CAGR of 12.2% suggests some natural market maturation as the sector scales, but still represents exceptional growth compared to traditional agriculture's typical 2-4% annual expansion. This sustained double-digit growth reflects the fundamental transformation occurring in global food production systems.

Market maturation factors contributing to the slight deceleration include increased competition as the sector attracts more players, technology standardization reducing premium pricing, and the natural slowing that occurs as markets reach larger absolute sizes. However, emerging opportunities in developing markets and breakthrough technologies like gene editing and autonomous farming systems should sustain strong growth throughout the decade.

Looking for growth forecasts without reading 60-page PDFs? Our slides give you just the essentials—beautifully presented.

Which sub-segments of AgTech are currently the largest and fastest growing?

Precision farming commands the largest individual sub-segment at 16% market share, while biotechnology and biochemicals dominate with a combined 25% of total market revenue.

Which geographic markets are showing the strongest adoption and growth rates in AgTech?

North America maintains dominance with 62.9% market share, but Asia-Pacific is experiencing the most dynamic growth at 13.2% CAGR, driven by government modernization programs and demographic pressures.

North America's leadership stems from established agricultural infrastructure, large-scale farming operations, and early technology adoption. The region benefits from sophisticated distribution networks, advanced research institutions, and farmers with capital to invest in cutting-edge equipment. John Deere, Trimble, and other major AgTech companies originated here and maintain their strongest presence in this market.

Asia-Pacific's rapid 13.2% growth reflects urgent food security needs across densely populated countries like China, India, and Southeast Asian nations. Government initiatives play a crucial role, with China's agricultural modernization programs and India's digital farming initiatives driving adoption among both large commercial operations and smallholder farmers through mobile-based solutions.

Europe holds 26% market share with 12.3% growth, propelled by the EU's sustainability targets and precision agriculture incentives. The region's focus on environmental compliance creates strong demand for technologies that reduce chemical inputs and optimize resource usage.

Africa and the Middle East show explosive 17.6% growth despite small absolute market size, driven by climate resilience needs and international development funding supporting agricultural modernization projects.

How much venture capital and private equity funding went into AgTech startups in 2024, and how is 2025 tracking?

Global AgrifoodTech investment reached USD 16 billion in 2024, recovering from the 2022-2023 venture capital downturn that affected most technology sectors.

This USD 16 billion represents a significant rebound from lower funding levels in 2022 and 2023, when higher interest rates and economic uncertainty reduced venture capital activity across all sectors. The recovery demonstrates investor confidence in AgTech's fundamental growth prospects and defensive characteristics during economic volatility.

2025 is tracking toward approximately USD 18 billion in total funding based on Q1 performance. The first quarter saw USD 1.8 billion invested across 162 deals, suggesting an average quarterly run rate that would produce USD 7.2 billion for the year. However, venture funding typically shows seasonal patterns with stronger activity in Q2 and Q4, supporting projections for USD 18 billion annually.

Deal sizes are increasing as the sector matures, with Series B and C rounds becoming more common. The average deal size reached USD 12 million in Q1 2025, up from USD 9 million in 2023, indicating growing investor confidence in scaling AgTech companies and their ability to achieve meaningful revenue milestones.

Private equity activity is also intensifying as more AgTech companies reach the revenue scale and market maturity that attracts buyout firms focused on operational improvement and consolidation opportunities.

If you want clear information about this market, you can download our latest market pitch deck here

What is the average revenue or valuation multiple for AgTech companies in private and public markets?

Private AgTech companies command revenue multiples ranging from 5.2× for smaller firms to 8.5× for larger, more established operations, while public companies trade at more conservative 0.9-3.2× EV/Revenue ratios.

The private market premium reflects investor optimism about AgTech's growth prospects and the scarcity of quality investment opportunities in this specialized sector. Companies generating USD 1-5 million in annual revenue typically attract 5.2× multiples, while those achieving USD 10-75 million command up to 8.5× revenue multiples for strong SaaS-based business models.

Public market valuations appear more conservative due to greater scrutiny of profitability timelines and competitive positioning. Established players like Trimble, AGCO, and CNH Industrial trade within the 0.9-3.2× EV/Revenue range, reflecting their mature market positions but also regulatory and commodity price exposures that private investors can largely ignore.

SaaS-focused AgTech companies command premium valuations in both markets, with recurring revenue models and high switching costs driving multiples toward the upper end of these ranges. Hardware-heavy businesses typically trade at lower multiples due to manufacturing complexities and inventory requirements.

The valuation gap between private and public markets suggests potential opportunities for strategic acquirers to access high-growth AgTech assets at relatively attractive prices through public market transactions.

What are the major regulatory or policy trends affecting AgTech adoption globally?

Four major regulatory trends are reshaping AgTech adoption: expanded subsidy programs for digital agriculture, stricter data privacy frameworks for farm information, sustainability mandates with carbon credit incentives, and government-sponsored extension services promoting AI and IoT adoption.

Subsidy and grant programs represent the most significant positive driver, with governments recognizing AgTech's strategic importance for food security and environmental goals. The US allocated USD 3.1 billion through the Farm Bill for digital agriculture initiatives, while the EU's Common Agricultural Policy reserves 25% of direct payments for farmers adopting precision agriculture technologies.

Data privacy laws are creating new compliance requirements as farm data becomes increasingly valuable. The EU's GDPR framework now extends to agricultural data management, while several US states are considering "farm data privacy" legislation that would regulate how AgTech companies collect, store, and share farming information.

Sustainability mandates are accelerating adoption of technologies that reduce chemical inputs and optimize resource usage. Carbon credit programs in California, Australia, and the EU create direct financial incentives for farmers to adopt precision agriculture systems that demonstrate measurable emission reductions.

Government extension services are expanding beyond traditional agricultural advice to include digital technology training, helping bridge the adoption gap among smaller operations that lack technical expertise to implement complex AgTech solutions independently.

Need a clear, elegant overview of a market? Browse our structured slide decks for a quick, visual deep dive.

Who are the top players in AgTech and how much market share do they control?

Five major players collectively control approximately 56% of the global AgTech market, with John Deere leading at 15-18% market share followed by Trimble, Bayer, AGCO, and CNH Industrial.

If you want to grasp this market fast, you can download our latest market pitch deck here

What are the primary pain points in traditional agriculture that AgTech is solving with the highest ROI?

AgTech delivers the highest ROI by addressing four critical inefficiencies: input overuse through precision dosing, yield variability via data-driven decisions, labor constraints with automation, and supply chain losses through monitoring systems.

Input optimization generates the most immediate returns, with precision agriculture systems reducing fertilizer usage by 15-20%, pesticide application by 25-30%, and water consumption by 20-25% while maintaining or improving yields. These savings directly impact profit margins since inputs represent 40-60% of total farming costs for most crop operations.

Yield variability reduction through data-driven decision making improves uniformity and predictability, enabling better planning and marketing strategies. Farmers using comprehensive farm management platforms report 10-15% yield improvements and reduced crop loss rates, translating to substantial revenue increases on large operations.

Labor constraint solutions address a critical shortage affecting agricultural operations globally. Autonomous tractors, robotic harvesters, and automated irrigation systems reduce labor requirements by 30-50% for specific tasks while improving consistency and enabling 24-hour operations during critical periods like planting and harvest.

Supply chain optimization through cold-chain monitoring, traceability systems, and logistics platforms cuts post-harvest losses by 15-25%, a particularly valuable improvement given that food waste represents a significant economic and environmental challenge across global agricultural systems.

How does AgTech adoption vary by type of agricultural producer and how is this evolving?

Industrial farms maintain very high adoption rates due to capital availability and scale advantages, while smallholder farmers are rapidly embracing mobile-based solutions that require minimal upfront investment.

Industrial operations with 1,000+ acres typically achieve 70-80% adoption rates for precision agriculture technologies, driven by their ability to justify substantial capital expenditures through economies of scale. These large farms often have dedicated technical staff and established relationships with equipment dealers that facilitate technology integration.

Mid-size farms (100-1,000 acres) show moderate to high adoption at 45-60% penetration, increasingly accessing AgTech through cooperative purchasing programs, equipment sharing arrangements, and leasing options that reduce individual capital requirements. Many agricultural cooperatives now offer shared precision agriculture services to their member farmers.

Smallholder farmers historically showed low adoption due to cost barriers, but this is changing rapidly through mobile-first platforms. In Asia-Pacific and Latin America, smartphone-based crop advisory services, micro-lending for technology purchases, and NGO-supported programs are enabling smallholders to access previously unavailable technologies.

The adoption gap is narrowing as AgTech companies develop solutions specifically for smaller operations, including subscription-based software services, simplified equipment interfaces, and technologies that provide immediate visible benefits without extensive technical training requirements.

Wondering who's shaping this fast-moving industry? Our slides map out the top players and challengers in seconds.

What are the biggest barriers to growth in AgTech over the next 3-5 years?

Four primary barriers threaten AgTech growth: high capital expenditure requirements, fragmented data standards creating interoperability challenges, limited rural internet connectivity, and extended ROI timelines in biotechnology applications.

• High CapEx Requirements: Many AgTech solutions require substantial upfront investments that strain farming operations already operating on thin margins. Autonomous tractors cost USD 400,000-600,000, while comprehensive precision agriculture systems can require USD 50,000-100,000 initial investments per farm.
• Interoperability Challenges: Fragmented data standards prevent seamless integration between different AgTech platforms, forcing farmers to manage multiple systems that don't communicate effectively. This creates operational inefficiencies and reduces the overall value proposition of technology adoption.
• Rural Connectivity Limitations: Reliable internet access remains inconsistent in many agricultural areas, limiting the effectiveness of cloud-based AgTech solutions and real-time data analytics that require consistent connectivity for optimal performance.
• Extended Biotechnology ROI: Gene editing and advanced biotechnology applications often require 5-10 years to demonstrate clear returns, making it difficult for investors and farmers to justify initial investments despite long-term potential benefits.

What are the most promising breakthroughs or innovations expected to overcome growth barriers?

Four breakthrough technologies are positioned to eliminate major growth barriers: AI-driven computer vision for real-time crop analytics, CRISPR gene editing for climate-resilient varieties, autonomous robotics for labor-intensive tasks, and satellite-based monitoring for large-scale operations.

AI and computer vision systems are dramatically reducing the complexity and cost of crop monitoring by automating tasks that previously required extensive manual labor or expensive specialized equipment. Machine learning algorithms can now identify pest infestations, nutrient deficiencies, and disease symptoms from smartphone photos, making sophisticated crop management accessible to operations of any size.

CRISPR gene editing is accelerating the development of climate-resilient crop varieties that can withstand drought, extreme temperatures, and changing precipitation patterns. Unlike traditional breeding programs that require 10-15 years, CRISPR-edited crops can reach market in 3-5 years, providing faster responses to evolving environmental challenges.

Autonomous robotics are approaching cost-effectiveness for labor-intensive tasks like fruit picking, weeding, and precision spraying. Next-generation robots priced at USD 50,000-100,000 can replace 3-5 seasonal workers while operating 24 hours daily during critical periods, addressing both labor shortages and cost pressures.

Satellite-based monitoring systems are becoming more affordable and precise, with commercial providers offering sub-meter resolution imagery at prices that make regular monitoring economically viable for mid-size operations. These systems provide consistent data regardless of local internet connectivity, solving a major barrier for rural farming operations.

Planning your next move in this new space? Start with a clean visual breakdown of market size, models, and momentum.

Conclusion

Sources

1. DoiT Software - AgTech Market Size
2. Business Wire - Global Agritech Market Report 2024
3. Exploding Topics - AgTech Market
4. MarketsandMarkets - Smart Agriculture Market
5. EOS - Agritech Market Overview and Trends
6. iGrow News - PitchBook Latest News
7. Precision Farming Dealer - Global Agritech Market
8. Grand View Research - Smart Agriculture Market Size
9. AgFunder News - Global AgrifoodTech Funding 2024
10. Global AgTech Initiative - Q1 2025 Investment Round-up
11. First Page Sage - SaaS Valuation Multiples
12. Multiples.vc - Agriculture Valuation Multiples