AgriTech: Revolutionizing Agriculture with the Use of Advanced Technologies

Published Date : 17 September 2025

Posted by : Ipseeta Dash

In the times of a rapidly growing global population, dwindling natural resources, and climate change, the agriculture industry is undergoing a much-needed transformation. At the heart of this change lies AgriTech, short for Agricultural Technology, a dynamic sector that merges advanced technologies with traditional farming practices to increase productivity, sustainability, and profitability. AgriTech is steadily becoming the backbone of a new era in food production. From AI-powered analytics to precision farming using drones and IoT, this technology-driven transformation is reconstructing how food is grown, harvested, and delivered.

Why is AgriTech Gaining Popularity

1. Meeting the World’s Rising Food Demand: According to the United Nations, the population worldwide is estimated to surpass 9.8 billion by 2050. Thus, to fulfill the rising food demands of this huge population, food supply requirements need to rise by at least 60%. However, the traditional farming methods simply cannot meet this demand sustainably. To cater to this issue, several farm owners across the globe are shifting towards Agritech solutions and enhancing their crop production capabilities.
2. Battling Climate Change: Severe weather events, shifting rainfall patterns, and increased pest pressure are some key factors disturbing conventional agriculture. AgriTech offers tools to predict, monitor, and adapt to these challenges fast and with precision.
3. Lowering Environmental Impact

Agriculture accounts for about 10% of global greenhouse gas emissions. It offers ways to reduce emissions, optimize the use of water and fertilizers, and promote sustainable land use.

AgriTech In India

India, recognized globally for its rich agro-ecological diversity, stands as a leading agricultural powerhouse with the sector contributing nearly 18% to the national GDP and employing 45% of the workforce. Despite this, India’s agritech sector remains largely untapped, with just 0.8-1.5% market penetration against a USD 24 billion opportunity, according to a study by Research Nester. The potential is vast, fully developed, and the ecosystem could boost farmers’ incomes by 25-35% and contribute up to USD 95 billion to the GDP through improved productivity, input optimization, and digital financial access. As India’s agriculture sector grows at a steady 4.6% annually, over 1300 agritech startups are emerging, particularly in Karnataka, Maharashtra, and NCR. Innovations in agri-fintech, supply chain digitization, and tech-driven marketplaces are transforming the traditional farm-to-fork model. With the agritech market projected to surge from USD 5 billion in 2022 to USD 35 billion by 2027, the sector is poised to become a cornerstone of sustainable and inclusive growth, provided digital infrastructure and policy support continue to advance.

The agritech sector in India has witnessed a significant surge in funding over the past few years, signaling growing investor confidence and momentum toward agricultural digital transformation. Despite macroeconomic challenges and a global funding slowdown, the sector attracted over USD 2.5 billion across 134 deals in 2022, up from USD 1.4 billion in 2019, showcasing a compound interest in scalable agri-innovation. Government support has played a pivotal role in enabling this growth. Initiatives such as the creation of over 10,000 Farmer-Producer Organizations (FPOs) with USD 750 million in funding, the development of a centralized Agri Stack for personalized service delivery, and the implementation of digital soil health cards are laying the groundwork for precision farming and tailored agritech solutions.

Additionally, schemes like digitally enabled fertilizer subsidies, the eNAM national marketplace, and the newly announced Agricultural Accelerator Fund aim to enhance market access, transparency, and innovation. These initiatives not only help agritech startups reach India’s 86% small and marginal farmers who face persistent challenges like limited landholding and resource constraints, but also prepare the country to address global concerns around food security and resource scarcity. With the government’s push for open digital infrastructure and private capital continuing to flow, India’s agritech ecosystem is poised for transformative, inclusive growth.

Key Observations:

• The total agritech GMV is projected to grow from US$5 billion in 2022 to US$35 billion by 2027.
• The food crop segment is the primary driver, expanding from US$3B to US$25B, accounting for nearly 74% of the projected 2027 market.
• Other segments, poultry farming grew from US$ 0.2 billion to US$ 2B and dairy farming from US$ 0.3 billion to US$ 3B also show substantial growth.
• Smaller segments such as fiber crop and aquaculture are expected to reach US$1.5B each by 2027.

Source- IBEF

The graph underscores India's rapidly expanding agritech landscape, driven predominantly by advancements and investments in the food crop sector. While food crop remains the largest segment, diversification across other sub-sectors like poultry, dairy, and aquaculture signifies holistic growth in rural digitization and technology-driven agriculture solutions.

Core Technologies Driving AgriTech

The agricultural sector is undergoing a technological renaissance, driven by powerful innovations that are reshaping how food is grown, managed, and delivered. From data-driven decisions to autonomous machines, AgriTech is making farming more precise, productive, and sustainable. Below is a closer look at the key technologies fueling this transformation, backed by market data and performance insights that illustrate their growing global impact.

• Precision Agriculture: Precision agriculture has become the cornerstone of modern farming, especially in developed economies. By integrating GPS, satellite imagery, and data analytics, farmers can now manage their fields with pinpoint accuracy, applying water, fertilizer, and pesticides only where needed. This targeted approach not only improves crop health but also minimizes environmental impact. The global precision agriculture market was valued at USD 9.3 billion in 2022 and is projected to reach USD 21.9 billion by 2030, growing at a CAGR of 11.2%. Studies show that precision farming can reduce water usage by up to 20%, fertilizer use by 15%, and pesticide use by 10%, while boosting crop yields by 5–30%, depending on the specific conditions. In the U.S. alone, over 70% of large farms have adopted tools like GPS-guided tractors and variable-rate technology, setting a precedent for scalable efficiency.
• Internet of Things (IoT) and Smart Sensors: The integration of IoT and smart sensors enables real-time decision-making on farms worldwide. These technologies collect critical data from soil, weather, livestock, and equipment, transforming traditional agriculture into an intelligent and responsive system. The global smart agriculture market, which encompasses IoT, was valued at USD 18.1 billion in 2021 and is expected to reach USD 34.9 billion by 2027, at a CAGR of 11.3%. In regions like Europe and North America, more than 50% of farms larger than 500 acres now use soil moisture and climate sensors. The benefits are significant—smart irrigation systems alone can reduce water consumption by up to 35%. Meanwhile, wearable sensors used for livestock monitoring have helped lower animal mortality by 15–20% and boost milk production by 12–15%, demonstrating the tangible value of connected farming.
• Artificial Intelligence and Machine Learning: AI and machine learning are revolutionizing agriculture by processing vast amounts of data to detect patterns, forecast outcomes, and automate decision-making. Whether it’s identifying plant diseases, predicting yields, or optimizing supply chains, these technologies are becoming indispensable tools for modern farmers. The AI in agriculture market stood at USD 1.1 billion in 2021 and is projected to grow to USD 4.2 billion by 2026, with a rapid CAGR of 30.5%. AI-driven mobile apps can diagnose crop diseases with over 90% accuracy, empowering farmers with real-time interventions. Yield prediction models built on AI are now 20–30% more accurate, aiding agribusinesses and governments in planning and risk mitigation. Additionally, AI-powered automation systems are reducing labor requirements on large farms by as much as 40%, dramatically lowering operational costs and increasing scalability.
• Drones and Aerial Imaging: Drones have become essential tools in precision agriculture, providing high-resolution imagery and multispectral data to help monitor crop health, detect early signs of stress, and optimize input use. These aerial systems enable rapid coverage of large areas with minimal labor. The agricultural drone market was valued at USD 1.3 billion in 2022 and is expected to soar to USD 6.5 billion by 2030, with a CAGR of 22.4%. Drones can cut scouting time by up to 90%, enabling quicker identification of issues like pest infestations or water stress. Most users report a return on investment within just one or two growing seasons, thanks to improved yields and reduced costs. A single drone is capable of surveying up to 100 hectares in one flight—data that would otherwise take days to collect manually.
• Robotics and Automation: As labor shortages continue to challenge the agricultural sector, robotics and automation are stepping in to fill the gap. From autonomous tractors to robotic milking machines and automated sorters, these technologies are streamlining farming operations and improving efficiency at every stage. In advanced markets like North America and Europe, nearly 30% of new tractors sold already come with autonomous or semi-autonomous capabilities. In the Netherlands, over 35% of dairy farms rely on robotic milking systems, which reduce labor costs by 25–30% while enhancing herd health and milk quality. Post-harvest automation systems, such as robotic graders and sorters, have improved warehouse productivity by up to 40%, minimizing spoilage and human error.

These core technologies, precision agriculture, IoT, AI, drones, and robotics, are more than just innovations; they are reshaping the agricultural landscape at scale. Backed by robust market growth and proven efficiency gains, AgriTech offers a sustainable path forward to meet the world's growing food demands while conserving resources. As investment accelerates and adoption widens, these tools will continue to empower farmers, improve food security, and strengthen global agri-value chains.