According to a research report by MarketsandMarkets, "Global Agriculture Industry Outlook 2029 - A Look Ahead at The Industry Landscape," from 2024 to 2029, the top 10 agriculture markets will grow at a YOY increase Of 8.9%.

The value of the market was $148.4 Billion in 2024

The Agriculture Industry Outlook covers vertical farming, plant breeding, precision farming, regenerative agriculture, blockchain in agriculture, smart irrigation, connected agriculture, drones, and agricultural biological markets.

The report says this period promises unprecedented innovation and heightened competition as companies strive to meet evolving technology integration and embrace ethical organic farming. 

North America leads as Asia Pacific surges

North America is currently the largest market due to its well-established infrastructure, government support for large-scale farms, and robust agribusiness sector. The U.S. leads within the region, leveraging its vast fertile land, diverse climate, and heavy investments in research and development.

However, the report shows that the Asia Pacific region is rapidly rising as an agricultural powerhouse. Soaring populations, particularly in China and India, are creating an immense and ever-growing demand for food.

Many Asian governments strategically invest in agricultural modernization through infrastructure development, irrigation projects, and technology adoption. AgTech solutions like precision agriculture and vertical farming are gaining traction as they promise improved yields and resource management. 

China and India are leading the charge in this region, with China being a major producer of rice, wheat, and vegetables and India a significant producer of rice, wheat, and cotton. Countries like Vietnam, Thailand, and Indonesia are also experiencing significant agricultural growth.

Investment is pouring into both regions but with distinct focuses. North America is looking to maintain and expand its existing edge through further production optimization with advanced technologies and infrastructure. In contrast, Asia Pacific is directing its investments towards building modern infrastructure, developing cold chain logistics to reduce spoilage, and promoting the adoption of AgTech solutions.

Sustainability is also becoming a growing concern, with investments flowing towards practices that minimize environmental impact.

Industry developments at work

In 2024, the agriculture industry experienced significant developments, marked by the rise of sustainable practices, increased adoption of advanced technologies, and strategic initiatives by key players.

The growing population, increasing demand for food, widespread implementation of technology in agriculture, and a surge in demand for organic and sustainable agriculture are primary demand drivers.

The report says several trends are poised to shape the industry's trajectory as we look ahead to 2029.

Integrating advanced technologies like AI and automation will continue redefining production processes while competition among industry leaders will intensify. High-tech and organic approaches are both driving sustainable agriculture.

Additionally, precision agriculture and biotechnologies optimize yields and resource use, while organic practices prioritize ecological balance.

In 2029, the emphasis on automated farm machinery, agriculture biotechnology, novel farming systems, and organic and non-GMO seeds will accelerate the agriculture industry's growth. The industry is grappling with a perfect storm of challenges, including increasingly extreme weather, rising costs for essentials like fertilizer and seeds, unpredictable economic conditions, and a shrinking pool of skilled workers.

Agricultural companies are actively seeking solutions to navigate these complex issues and ensure the sector's long-term viability.