Market study: The Swedish market for agritech

The purpose of this study is to describe the Swedish AgriTech market and, ultimately, identify where opportunities exist for external service providers. While the Swedish AgriTech innovation ecosystem and key actors provide relevant context, the primary objective of this study is to identify where demand is emerging, what gaps exist in current offerings, and which segments present the strongest commercial potential for new entrants.

AgriTech in Sweden is driven by the need to address structural challenges such as limited arable land, fragmented production and environmental constraints.

Less than 10 per cent of Sweden’s total land area is used for agriculture, and nearly half of that faces natural constraints such as poor soil quality or short growing seasons. In contrast, about 70 per cent of the country is covered by forests. This scarcity drives the need for technologies that maximise productivity per hectare, such as precision farming, controlled-environment agriculture and advanced crop monitoring systems.

Swedish agriculture is highly fragmented, with approximately 59,000 farms spread across vast rural areas, mainly in southern Sweden. Many are small-scale or specialised in niche crops, while others focus on large-scale dairy or livestock. This fragmentation creates logistical inefficiencies, long transport distances and challenges in achieving economies of scale. It also complicates digitalisation and data integration across the value chain.

Smart farming technologies, such as Internet of Things (IoT)-enabled platforms, cooperative data-sharing systems and automation tools are essential to connect dispersed producers, streamline operations and enable sustainable, data-driven farming practices