turnover for agricultural technology in 2023 in Germany
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Key Facts
The Digital Farming Industry in Numbers
- The global smart farming market value is forecast to rise to USD 34 billion by 2026. Worldwide, the largest digital farming technology segments are the Internet of Things (IoT), robotics and artificial intelligence. According to forecasts, the global IoT agricultural market is set to grow by more than 90 percent to around USD 7 billion by 2025 – with Europe and North America representing the largest markets.
- One in six companies in Germany expects to invest in digitalization in the immediate future according to digital association bitkom. Around four in five companies also see digitalization as an opportunity. Artificial intelligence and big data solution uptake currently remains low (around 14 percent), allowing innovative SMEs and start-ups alike to capitalize from the future demand from almost 60 percent of companies intending to implement such solutions in the near future.
- In 2023, around EUR 5.6 billion was generated in German domestic production of agricultural and forestry machinery. Foreign sales amounted to almost EUR 13 billion.
- Global market volume of agricultural robots is forecast to grow from the 2020 level of six billion units to almost 36 billion units in 2030. Germany ranks second internationally in terms of production of service robots for professional use according to the International Federation of Robotics (IFR). As such, it can be assumed that German suppliers provide most of the agricultural robots currently in use.
- Agriculture in Germany is undergoing a structural transformation. The absolute number of farms and labor force has fallen as agricultural product demand has increased. In 2022, Germany was Europe’s second-biggest agricultural production nation with production value of more than EUR 74 billion.
- Nearly half – 16.6 million hectares – of domestic land mass is used for agricultural purposes. Arable farming accounts for over 70 percent of land used. Livestock husbandry is focused in the areas of beef, pork and poultry production.
Opportunities
Germany provides a plethora of exciting market opportunities to companies active in the field of digital agriculture.
Agricultural machinery manufacturers meet digital product and service providers
Germany is the world’s third biggest producer of agricultural machinery and EUR 5.6 billion was generated in German domestic production in 2023. Agricultural machinery manufacturers diversifying into autonomous farming, alternative powertrains and ICT solutions require cooperation with digital product and service providers.
Commercializing autonomous field robots
Global market volume for agricultural robotics is expected to grow to almost 36 billion units by 2030 according to an Agricultural Robots Market study. Small-machine autonomous field robots (AFRs) represent one promising solution to chemically treat crop and plant diseases with pesticide microdoses. Autonomous field robots could enter into commercial production as early as 2030.
Artificial intelligence and precision farming
The implementation of AI and software precision farming solutions frees up resources and improves product quality. The Federal Ministry of Food and Agriculture is providing EUR 44 million in funding to 36 collaborative AI research projects. Of these projects, 24 are crop production related, with a further four projects investigating the use of AI in animal welfare.
On the investment agenda: sensor technologies
Sensor technologies for animal husbandry and crop production are currently high on the investment agenda of companies in the sector, with almost half of all domestic farms planning future investment according to bitkom.
Digital solutions for organic farming
Germany is Europe’s largest organic food market. European Union and German federal regulations restrict the use of herbicides and promote the use of sustainable livestock husbandry. Demand for organic and sustainably farmed produce creates new opportunities for companies providing digital solutions.
Business Environment
Research & Development
Germany’s world-class R&D institutes and universities are helping shape the future of smart farming. Working closely with industry and the farming community, institutes like Fraunhofer-Gesellschaft and Leibniz Association are bringing innovations to market. The three federal research institutes Julius Kühn Institut, Thünen Institut and Friedrich-Löffler-Institut also conduct research in the field of smart farming and the Federal Ministry of Food and Agriculture currently supports 14 digital trial fields to help research digital techniques for crop production and animal husbandry as well as to test their practical suitability. The German Research Center for Artificial Intelligence investigates the use of AI in agriculture.
Funding options
Germany supports digitalization in agriculture through a number of initiatives and programs. Specialized R&D funding programs have been created to promote the development of digital agriculture technologies. Research and development programs can provide up to 70 percent of eligible costs subject to company size and area of research activity.
Clusters and industry associations
International companies active in the digital farming sector enjoy ready access to agricultural technology clusters where farmers, machinery manufacturers, agrotech start-ups, universities, and research institutes work together. Stakeholders are organized in regional networks including the Agrotech Valley in northwestern Germany, Agronym in Saxony, and Competence Network Digital Agriculture Bavaria in Bavaria.
Our smart farming map provides you with an overview of important actors across Germany:
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