US Digital Agriculture Market Size to Attain USD 22.08 Billion by 2034

The US digital agriculture market size surpassed USD 8.7 billion in 2024 and is predicted to reach around USD 22.08 billion by 2034, registering a CAGR of 9.76% from 2025 to 2034.

Highlights of the US Digital Agriculture Market

• By offering, the precision agriculture & farm management segment underwent notable growth in the market during 2024.
• By offering, the financial services  segment is likely to experience a favorable growth trend during the forecast period between 2025 and 2034.
• By technology, the core technology segment experienced significant expansion in the market.
• By technology, the peripheral technology segment is expected to emerge with notable growth during the forecast period.
• By operation, the farming & feeding segment saw strong growth during the studied period.
• By Type, the hardware segment showed substantial gains in the U.S. digital agriculture market.

Industry Valuation and Growth Rate Projection

Digital agriculture provides tools, hardware, and software for farmers to use, utilizing technologies like GPS, drones, sensors, and data software so they can optimize farming decisions. Digital agriculture tools will help farmers produce more crops, optimize water use, and minimize waste. The U.S. digital agriculture market consists of precision farming (including planting and application equipment), smart tractors, and mobile tools that provide farmers with important weather and soil information.

Both established and start-up companies continue to invest in the digital agriculture market to provide farmers with modern agricultural management solutions. Farmers across the United States are using digital agriculture tools to improve their food production capabilities in the capital-intensive producers' environment. Digital agriculture solutions could provide options for food producers to grow food for the increasing demand at the same time while climate change disruption from capital-intensive farming is evident.

What Are the Market Trends in the U.S. Digital Agriculture Market?

The market trends in the U.S. digital agriculture market are characterized by increasing use of precision agriculture, growth of agri-tech startups, increased use of IoT-based smart farms, and government support for smart farming.

• Farmers are leveraging sensor-driven and GPS-based agricultural tools to more precisely seed and fertilize.
• New companies in the United States are building drones, software, and app-based tools to help farmers work more efficiently.
• Farms are now using IoT tools to monitor crops, soil, and machinery in real-time.
• The United States government offers funding and program support for digital tools that increase crop yield and improve efficiency.

What Are the Restraints in the U.S. Digital Agriculture Market?

The growth of the U.S. digital agriculture market faces restraints such as costly digital tools, poor internet coverage in rural areas, farmers ' tech skills, and data theft or misuse by someone.

• Many high-end agriculture technology tools, such as drones, sensors, and offerings from ag-tech software businesses, are prohibitively expensive to be practical for most small farms in the U.S.
• The lack of connectivity in isolated and sparsely populated areas of the U.S. limits the potential use of agricultural digital tools and apps in any time-sensitive manner.
• Some farmers (likely older farmers or farmers in general with inadequate training in technology) simply do not understand or want to employ digital agriculture technologies.
• Some farmers are worried that someone (a company generally or hackers) will steal or misuse their farm data.

What Are the Opportunities in the U.S. Digital Agriculture Market?

Opportunities emerging in the U.S. digital agriculture market stem from the growing need for food production, training programs for farmers, 5G expansion in rural areas, and a focus on sustainable and climate-smart farming.

• As the U.S. population continues to grow, smart farming will help produce more food using fewer resources.
• US workshops and online training programs will help farmers easily learn how to use digital tools.
• Improved internet performance through 5G networks will help rural U.S. farmers use digital tools more effectively.
• Digital agriculture can help U.S. farmers use less water, reduce energy use, and produce crops in better, more ecological ways.

Recent Developments in the U.S. Digital Agriculture Market:

• In April 2025, A new report shows AI-based tools, drones, and smart hardware have disrupted digital agriculture. They have made possible better crop yields, higher efficiencies, waste reduction, and data-driven decision-making, and have led the global digital agriculture market toward rapid development and adoption.
• In February 2025, U.S. Senators Thune and Warnock reintroduced the "Promoting Precision Agriculture Act," which intended to make voluntary standards, improve system interoperable, and further cybersecurity for farm data. The proposed act required the USDA, NIST, and FCC to develop protocols for the interconnectivity of modern precision farming.