Our need for food is growing, so the need for agricultural innovation grows accordingly. It is important however to keep a clear overview of how different subsectors are developing. To say it with the words of Bill Gates: “We need a double green revolution, where we will have to think of lowering the environmental impact of farming as well as doubling productivity”.
To say the least, the agricultural market is big. With an estimated market size of $11,287.56 million, it shows that this sector is one of the cornerstones of our economy. The sector is still growing, with a compound annual growth rate (CAGR) of 10.7%.
A rather small part of the agricultural market is AgTech, or Agricultural Technology. Technologies used in agriculture are of course great in numbers, yet this sector aims to innovate the way we do agriculture itself, rather than facilitating traditional agriculture through technology. The AgTech market is currently valued around $9 billion, with a CAGR of 20%. Notice the higher growth rate?
A subset of AgTech is the Vertical Farming market. This sector aims to revolutionize agriculture by growing crops in vertically stacked layers, and further improving production through technological innovation. Currently the market is valued at $3.09 billion, with a CAGR of 23.5%. At this rate, the sector is set to become a large part of agriculture in the future.