The value of the global agtech (agricultural technology) market is set to reach €18bn by 2025.

The market, currently valued at €7.4 billion, is expected to grow at an average rate of 150% over the next five years.

The figures were published in a new study by Juniper Research released this week.

The agtech market is comprised of services such as agricultural sensors for crop management, GPS field mapping, and supply chain management, with the ultimate goal of increasing yields and reducing costs through connectivity and data insights.

Growth

The study identified agricultural sensors and supply chain management as key revenue-generating services over the next five years.

These two services are anticipated to account for 67% of market value by 2025. This will be as a result of emerging solutions that enable low-cost data collection and analysis on agriculture operations.

Microfarming market value to reach €5.5bn

Microfarming describes the process of utilising small geographical areas for agriculture and often uses connectivity technologies to monitor and manage small-scale crop production.

The report predicts that microfarming services will exceed €5.5bn by 2025, growing from €2.2bn in 2020.

This will be driven by the development of innovative agtech services, such as vertical farming and automated crop management.