Digital Agriculture in South Korea Trends and Forecast
The future of the digital agriculture market in South Korea looks promising with opportunities in the advisory service, precision agriculture & farm management, quality management & traceability, digital procurement, agri e-commerce, and financial service markets. The global digital agriculture market is expected to reach an estimated $37.8 billion by 2031 with a CAGR of 10.8% from 2025 to 2031. The digital agriculture market in South Korea is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the increasing awareness of digital agriculture and helping to increase adoption is a strategic government policy, advances in technology, minimising waste and efficient use of resources, and the reducing wastage and efficient use of resources.
• Lucintel forecasts that, within the operation category, monitoring & scouting is expected to witness the highest growth over the forecast period due to farmers and other stakeholders can remotely record any disruption in farm work through scouting and monitoring.
• Within the service category, advisory services are expected to witness the highest growth due to most tasks are handled by service providers, who also advise farmers on how to increase output.
Emerging Trends in the Digital Agriculture Market in South Korea
South Korea’s digital agriculture landscape is evolving rapidly with strong governmental backing and a national focus on food security and aging rural demographics. The country is integrating advanced technologies such as robotics, AI, and smart greenhouses to increase farm productivity and sustainability. With limited arable land and high-tech capabilities, South Korea is uniquely positioned to lead innovations in vertical farming, autonomous systems, and digital marketplaces. These trends are redefining farming methods and drawing younger generations into agriculture through technologically enhanced, scalable, and profitable operations.
• Smart Vertical Farming Expansion: Urban population density and limited farmland have fueled South Korea’s investment in vertical farming. These farms use IoT, sensors, and automation to optimize yield per square meter. Controlled environments reduce pesticide use and allow year-round production of leafy greens. This trend is helping urban food self-sufficiency and promoting sustainable agriculture near consumption centers. It also aligns with national goals to reduce carbon footprints from imported produce.
• AI-Powered Crop Monitoring Systems: AI algorithms are increasingly used for real-time crop monitoring through image recognition and predictive analytics. These systems detect early signs of disease, nutrient deficiencies, or pest threats, enabling timely intervention. The trend enhances precision agriculture, reduces losses, and improves crop quality. AI-supported platforms are also being integrated with automated irrigation and fertilization systems, ensuring optimized resource usage and lower input costs.
• Autonomous Farming Robots and Machinery: South Korea is pioneering robotic farming solutions to address rural labor shortages. Autonomous tractors, weeding bots, and harvesters are being deployed in pilot regions. These machines reduce human workload and enhance efficiency during peak seasons. With an aging farmer population, the adoption of autonomous tools ensures continuity in food production and makes agriculture more attractive to tech-savvy youth.
• Blockchain-Integrated Agricultural Logistics: Blockchain is being utilized to secure the agri-food supply chain, particularly for high-value crops like ginseng and strawberries. From origin verification to temperature logging during transport, blockchain ensures transparency and builds consumer trust. This trend supports traceability, combats counterfeit products, and strengthens South Korea’s global competitiveness in premium food exports, especially to markets in Japan and China.
• AR/VR Agricultural Training Programs: To address the digital skills gap among new and aging farmers, institutions in South Korea are deploying AR/VR tools for virtual training in equipment use, disease detection, and farm management. These immersive experiences accelerate knowledge transfer and encourage the adoption of digital tools. This trend supports lifelong learning in agriculture and helps bridge generational divides in technology adoption.
The digital agriculture market in South Korea is shifting toward a high-tech, urban-integrated, and knowledge-intensive model. From smart vertical farms and AI-driven monitoring to blockchain and robotic systems, these trends reflect South Korea’s push to modernize food production. The emphasis on automation, transparency, and smart education ensures that digital agriculture becomes a cornerstone of sustainable farming and rural revitalization in the country.
Recent Developments in the Digital Agriculture Market in South Korea
South Korea is making significant strides in digitizing agriculture, supported by strategic government initiatives and private tech collaborations. The country is leveraging its leadership in electronics, robotics, and broadband to modernize its farms. Recent developments include pilot programs for AI-controlled greenhouses, 5G-enabled rural connectivity, and automation trials. These innovations not only enhance productivity but also mitigate labor shortages and ensure long-term sustainability. The digital agriculture roadmap is central to South Korea’s food security and smart farm vision for the 2030s.
• Government Launch of the Smart Farm Innovation Valley: South Korea has established multiple “Smart Farm Innovation Valleys,” combining R&D, training centers, and smart farm clusters. These hubs serve as incubators for digital agriculture startups and offer support for commercial trials. The initiative accelerates innovation, strengthens the agri-tech ecosystem, and ensures farmers have access to cutting-edge solutions.
• Deployment of 5G-Connected Smart Farm Networks: The integration of 5G into smart farms has enabled real-time data transmission for environmental monitoring, machinery coordination, and remote diagnostics. This advancement enhances the precision of automated systems and allows faster responsiveness to climate or system changes. It also lays the groundwork for scalable autonomous farming operations.
• AI Greenhouse Climate Control Programs: New AI-based programs are now regulating temperature, humidity, CO₂, and light in greenhouses for optimal plant growth. These systems learn from historical patterns to fine-tune crop environments automatically. The development helps farmers maintain consistency and quality in output while lowering energy consumption and resource waste.
• Robotic Fruit Harvesting Pilots in Orchards: Robotic harvesting is being tested in apple and pear orchards to address the shortage of seasonal labor. These robots use computer vision and soft-touch gripping arms to pick fruit without bruising. Early trials show promising results in reducing labor costs and improving harvest timing, essential for premium-grade fruit exports.
• Digital Farming Grants and Youth Incentives: To attract young talent to agriculture, the government is offering grants for digital farm setups, tech training, and startup funding. These incentives support generational renewal in the farming workforce and drive faster adoption of smart farming tools. They reflect South Korea’s vision of agriculture as a tech-enabled, future-facing profession.
South Korea’s digital agriculture market is advancing through strategic developments in infrastructure, automation, and training. These initiatives are creating a data-rich, connected, and tech-savvy agricultural sector. With strong government support and growing private investment, South Korea is setting benchmarks in transforming agriculture into a high-tech, efficient, and sustainable industry poised for long-term global competitiveness.
Strategic Growth Opportunities for Digital Agriculture Market in South Korea
South Korea is investing heavily in smart farming to combat an aging farming population, labor shortages, and land constraints. With strong ICT infrastructure, robotics capabilities, and policy backing under its Smart Farm initiative, the country is well‑positioned to scale technologies in greenhouses, crop fields, livestock, and supply chains. These digital innovations enhance yield, resource efficiency, and traceability in compact yet high-output farming models. Tailored solutions for controlled-environment systems, field monitoring, livestock analytics, marketplaces, and agronomic automation offer significant growth potential across South Korea’s diversified rural landscape.
• Smart Greenhouse and Vertical Farming Platforms: Urban zones in South Korea are experiencing rapid growth in greenhouses and vertical farms equipped with sensors, climate control, and nutrient automation. These systems allow year-round production of leafy vegetables and herbs in high-density areas. Data analytics optimize growth cycles, reduce energy use, and improve yields per square meter. Robotics support seeding and harvesting in compact structures. Providers offering turnkey systems with remote monitoring and modular scalability are capturing high demand. These platforms align with urban food security goals and offer sustainable intensification in limited spaces.
• Field Crop Monitoring with Drones and IoT: Drones and in-field sensors are being deployed for surveillance of soil moisture, pest outbreaks, and nutrient levels on rice paddies and vegetable fields. Real-time alerts guide the precision application of water and inputs. High-cost fixed assets are avoided via service models and shared platforms. Companies offering analytics dashboards and API integration with farm management systems are gaining traction among commercial farmers. This approach improves decision-making, sustains yield, and minimizes environmental load, supporting South Korea’s push towards precision agronomy.
• Livestock Health Analytics and Automation: Smart livestock systems using wearable sensors, thermo-sensing cameras, and mobile dashboards are improving animal welfare on poultry and cattle farms. These tools track health, feeding, and reproduction in real time and generate automatic alerts for anomalies. Remote monitoring helps smaller producers and aged farmers maintain productivity. Companies offering integrated advisory services and veterinary network links are growing. This application reduces labor pressure, improves disease prevention, and aligns with biosecurity standards for domestic consumption and export.
• Digital Marketplaces and Farm-to-Home Platforms: South Korea’s digital ecosystems are expanding with platforms connecting farms to local consumers, restaurants, and retailers. Services include online storefronts, logistics coordination, and integrated payment. Traceability features reassure urban consumers about origin and quality. Providers partnering with co-ops and high-touch delivery networks are accelerating farm-level adoption. This channel boosts farmer revenue, reduces middlemen, and supports direct-to-consumer models which are well-suited to South Korean dietary and market preferences.
• Automated Agronomic Machinery and Robotics: Compact autonomous tractors, robotic planters, and weeding machines are being introduced to alleviate labor shortages in rural areas. These vehicles can operate in rice paddies and steep areas unsuitable for traditional equipment. Remote-control and GPS enable multi-field management. Leasing schemes and cooperative ownership models reduce upfront costs. Technology providers integrating robotics with analytics and field mapping solutions are finding acceptance among aging farmer cohorts. Automation is enabling efficient production despite demographic constraints and expanding farm resilience.
South Korea’s digital agriculture market is evolving with smart greenhouses, field monitoring, livestock analytics, digital marketplaces, and agricultural robotics. These innovations address land scarcity, labor gaps, and sustainability needs. Adoption will be driven by scalable platforms, leasing and service models, and integrated support systems. With robust ICT infrastructure and policy focus, South Korea is poised to lead the future of compact, high-tech, and sustainable farming.
Digital Agriculture Market in South Korea Driver and Challenges
South Korea’s digital agriculture trajectory is shaped by its advanced technological environment, demographic trends, and government directives. Drivers include strong ICT infrastructure, robotics R&D, and midsize farm modernization under public initiatives. The need to optimize limited land and replace retiring farmers also accelerates digital uptake. However, challenges such as high implementation costs, fragmented smallholder plots, and regulatory barriers around data use pose adoption risks. Understanding these factors helps define future progress and the intervention strategies required to realize digital farming at scale.
The factors responsible for driving the digital agriculture market in South Korea include:
• ICT Infrastructure and Tech Leadership: South Korea has some of the world’s fastest internet speeds, nationwide 5G rollout, and global robotics expertise. These strengths allow real-time IoT systems, remote monitoring, and data-driven decision-making on farms. Digital platforms gain stronger penetration thanks to pervasive connectivity. High-tech environments enable rural areas to adopt solutions similar to urban industries, accelerating the shift to streamlined production.
• Smart Farm Initiative and Policy Support: The government has committed significant funding to the Smart Farm initiative since 2015, promoting smart farm deployments, training centers, and R&D collaborations. Subsidies for greenhouse and precision systems reduce investor risk. Public-private testbeds support commercialization. The policy-driven ecosystem eases market entry and accelerates farmer trust in new technologies.
• Labor Scarcity and Aging Farmer Demographics: Urban migration and low birth rates have led to acute labor shortages in rural areas. The average farmer age exceeds 65, creating pressing needs for automated solutions. Digital tools reduce reliance on manual labor and lower physical demands. Technologies such as robotics and remote sensing enable productivity despite workforce decline.
• Growing Consumer Demand for Quality and Traceability: Health-conscious consumers in urban centers increasingly demand safe, traceable produce. QR-based traceability systems and farm-to-home platforms respond to this trend. Compliance with safety standards benefits farmers and supports direct-to-consumer models, reinforcing the value of digital investment.
• Agri-Tech Startup and Innovation Ecosystem: South Korea’s growing agri-tech startup landscape is supported by accelerators, governmental funding, and educational institutes. Collaborations with global agribusinesses and universities accelerate the development of farm-level tech. These ventures create solutions tailored to local contexts, accelerating adoption and improvement cycles.
Challenges in the digital agriculture market in South Korea are:
• High Implementation Costs: Advanced technologies such as robotics, sensor networks, and climate-control systems require substantial capital investment. High upfront costs deter smallholders despite subsidies. Leasing models, shared acquisition, and cooperative approaches are vital to lowering financial barriers and encouraging adoption.
• Land Fragmentation and Scale Limitations: South Korean farms are typically small and fragmented, making large-scale deployment of machinery and infrastructure inefficient. Digital solutions must be adaptable to varied terrain and field sizes. Cooperative ownership models and shared platforms help overcome scale limitations.
• Data Privacy and Interoperability Regulations: Data collection and analysis are central to digital agriculture, but farmers and firms face uncertainty around data ownership and cross-platform compatibility. Lack of unified data standards hinders innovation. Clear guidelines and secure data-sharing frameworks are essential to build trust and enabling integrated platforms that benefit multiple stakeholders.
South Korea’s digital agriculture market benefits from robust ICT infrastructure, policy backing, and demographic drivers. To realize its full potential, challenges around cost, scale, and data governance must be addressed. With supportive frameworks and adaptive, shared solutions, South Korea can transition its agriculture into a smart, sustainable, and efficient sector capable of meeting future domestic demands.
List of Digital Agriculture Market in South Korea Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, digital agriculture companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the digital agriculture companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Digital Agriculture Market in South Korea by Segment
The study includes a forecast for the digital agriculture market in South Korea by type, operation, offering, and technology.
Digital Agriculture Market in South Korea by Type [Analysis by Value from 2019 to 2031]:
• Hardware
• Software
• Service
Digital Agriculture Market in South Korea by Operation [Analysis by Value from 2019 to 2031]:
• Farming & Feeding
• Monitoring & Scouting
• Marketing & Demand Generation
Digital Agriculture Market in South Korea by Offering [Analysis by Value from 2019 to 2031]:
• Advisory Services
• Precision Agriculture & Farm Management
• Quality Management & Traceability
• Digital Procurement
• Agri E-commerce
• Financial Services
Digital Agriculture Market in South Korea by Technology [Analysis by Value from 2019 to 2031]:
• Peripheral Technologies
• Core Technologies
Features of the Digital Agriculture Market in South Korea
Market Size Estimates: Digital agriculture in South Korea market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Digital agriculture in South Korea market size by type, operation, offering, and technology in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different type, operation, offering, and technology for the digital agriculture in South Korea.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the digital agriculture in South Korea.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the digital agriculture market in South Korea?
Answer: The major drivers for this market are the increasing awareness of digital agriculture and helping to increase adoption is a strategic government policy, advances in technology, minimising waste and efficient use of resources, and the reducing wastage and efficient use of resources.
Q2. What are the major segments for digital agriculture market in South Korea?
Answer: The future of the digital agriculture market in South Korea looks promising with opportunities in the advisory service, precision agriculture & farm management, quality management & traceability, digital procurement, agri e-commerce, and financial service markets.
Q3. Which digital agriculture market segment in South Korea will be the largest in future?
Answer: Lucintel forecasts that, with in the operation category, monitoring & scouting is expected to witness the highest growth over the forecast period due to farmers and other stakeholders can remotely record any disruption in farm work through scouting and monitoring.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the digital agriculture market in South Korea by type (hardware, software, and service), operation (farming & feeding, monitoring & scouting, and marketing & demand generation), offering (advisory services, precision agriculture & farm management, quality management & traceability, digital procurement, agri e-commerce, and financial services), and technology (peripheral technologies and core technologies)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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