Agrotechnology: global market value
The global agrotechnology market size is estimated to reach $15.88 billion in 2022, according to Research and Markets‘ April 2022 Smart Agriculture Market report.
Likewise, agritech will maintain a compound annual growth rate of 10.8%, to more than double to $35.98 billion by 2030, according to forecasts from the same source.
In particular, Keen Vision Acquisition Corporation highlights that agritech has played, and will continue to play, a crucial role in safe, efficient and sustainable food production, in ways ranging from the use of artificial intelligence to monitor crops and livestock so that precise hourly changes can be made to their environment to optimize growth and prevent contamination and disease, to companies taking climate and gender-specific considerations into account in the design of agricultural machinery to better serve their target markets.
The company expects agricultural sectors such as agrotechnology to experience rapid growth and increased government support over the next decade, especially in geographic markets such as North America and Asia, and sees the agricultural market as currently fragmented with limited financing options and access to capital.
In addition, accelerating climate change is also seen as a potential catalyst for agri-tech growth as food production in the most food insecure regions of the world experience continued setbacks, further contributing to global income disparity.
FAO‘s November 2022 Food Outlook has forecast that global food import costs would reach an all-time high of $1.94 trillion by the end of 2022, a 10% increase over the record level of 2021.
Agricultural input costs comprise a sizable share, up nearly 50% from 2021 to $424 billion this year, or about 112% over 2020, driven largely by higher imported energy and fertilizer costs.
Meanwhile, the FAO’s Food Price Index (FPI), which tracks the prices of the five major global food commodities weighted by the average global export shares of each of the groups, averaged 135.7 points in November 2022.
This was virtually unchanged from the previous month and only slightly higher (0.3%) than the same period last year.