North America Agritech Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Type and Application

The agritech market in North America is expected to grow from US$ 6,731.3 million in 2019 to US$ 16,005.2 million by 2027; it is estimated to grow at a CAGR of 12.2% from 2020 to 2027. With the increase in effective connection between farmers owing to digitalization, the use of state-of-the-art technologies such as IoT and cloud would encourage farmers to adopt advanced agricultural ecosystem. Below mentioned are some of the features provided by agritech- Ag Biotechnology, agribusiness marketplaces, bioenergy & biomaterials, farm management software, sensing & IoT, farm robotics, mechanization & equipment, midstream technologies, and novel farming systems. Agricultural biotechnology, novel farming and farm management systems, and sensing and IoT products are a few prominent technologies attracting massive farm tech investments. Surge in the number of agritech startups and increasing penetration of sensor-based technologies are among the other factors leading to the rise in these tech investments. Midstream technologies, farm-2-consumer eGrocery, and novel farming systems are key categories experiencing median size deals at a scale. The median deals are relatively high with ~40% of deals valued at more than US$ 3 million. Plenty Inc., Ynsec, Infarm, AeroFarms, AppHarvest, Sunens, and Bowery Farming Inc. are among the top 20 players that have signed deals in novel farming systems. On the other hand, Inscripta, Inc, Inari, Provivi, PlantResponse Biotech, M2I Life Sciences, and Greenlight Biosciences are the players that have inked deals in the field of biotechnology. DNA Script, M2I Life Sciences, and Afyren are French farm tech startups that attracted large funds in 2019. The US is known for having largest deals, which includes ProducePay’s US$ 205 Mn debt deal and SoftBank-backed indoor ag player Plenty landing US$ 175 Mn. Therefore, the rise in such high-value investments in sophisticated agriculture technologies is driving the agritech market. Additionally, Various countries witnessing rise in agriculture sector is the major factor is among the other factors expected to fuel the demand for agritechs in North America.

Based on type, the biotechnology and biochemicals segment led the North America agritech market in 2019. Biotechnological techniques such as fermentation involve the use of microbes to produce bread, wine, beer, cheese, and yogurt. The agritech biotechnology industry includes genomics technology providers such as next-generation sequencing (NGS), genome editing, and microarray companies; plant feedstock developers; biotech trait companies; major seed companies; synthetic biology tools companies; and agricultural biological providers. Several biotechnological and biochemical tools - such as NGS, RNA interference, synthetic biology tools, biochips, and genome editing tools - are being used across the agriculture sector for gaining higher crop yields and other desirable traits in the crops. Several agritech biotechnology and biochemical tools are being used worldwide to boost crop yields, such as next-generation DNA sequencing, RNA interference, synthetic biology tools, biochips, and genome editing tools. Some A few of the well-established players providing such biotechnological products and biochemicals as a part of agritech offerings are AgBiome, Apeel Sciences, Concentric Ag Corporation, Ginkgo Bioworks, Pairwise Plants, SafeTraces, and Phytelligence, among others.

COVID-19 is having a very devastating impact over the North America region. North America is an important market for the growth of agritech products owing to the presence of developed countries such as the US and Canada in this region. The high number of COVID cases have resulted in a negative impact on country’s and region’s economy and there has been a decline business activities and growth of various industries operating in the region. The COVID-19 pandemic has been a major for all the farmers in the region, threatening access to agricultural labor and complexing worldwide supply chains. However, for indoor farming, it has offered an opportunity. In vertical farming, the batches of crops can be watered individually and ignited with the help of smart agriculture products, enabling them to be grown year-round with less resource. Nevertheless, the factory and business shutdowns across the US, Canada, and Mexico negatively impacted the sales of agritech products, such as sensors, agribots, and many more. COVID-19 has had a severe impact on logistics operations, transportation, and trade activity. North America is home to a large number of manufacturing and technology companies. Thus, the coronavirus outbreak's impact is anticipated to be quite severe in the year 2020 and likely in 2021. However, the impact of COVID-19 is short-term; it is likely to decrease in the coming years.

The overall North America agritech market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the North America agritech market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the North America agritech market. AeroFarms; AgBiome, Inc.; ARSR Tech; Ceres Imaging; Conservis; Indigo Ag, Inc.; Pivot Bioare are among the key players operating in the North America agritech market.