Published: December 2022 | Report Code: 10828 | Available Format: PDF
The global AI in agriculture market size stood at $1,254.6 million in 2022, and it is expected to advance at a compound annual growth rate of 26.7% during 2022–2030, to reach $8,308.5 million by 2030. This is primarily ascribed to the increasing penetration of the internet of things (IoT) in the farming sector, the rising demand for high crop yield, the growing focus on enhanced crop management, and the surging utilization of drones for pesticide spraying.
Moreover, the labor shortage and rising labor costs are other factors contributing to the growth of the market. For instance, the decrease in crop production in the U.S. due to labor shortage is approximately $3.1 billion a year. This has increased the use of robots and drones in the agriculture sector for various purposes.
North America has the leading position in the AI in agriculture market, and it will hold the same position till 2030, with a value of around $4 billion. This is attributed to the high adoption of advanced technologies in the farming sector for yielding maximum productivity and major players are offering services to regional consumers by engaging in partnerships with other leading players. The emergence of advanced technologies like IoT and ML in combination with computer vision in the agricultural space is used for various applications like precision farming, livestock management, greenhouse management, and soil management.
In North America, the U.S. market holds the leading position, and it will grow at a CAGR of over 20% in the coming years. This is ascribed to the surging adoption of farming technologies, the presence of major industry players, and the increasing planted and harvested area every year in the country. For instance, in 2022, the planted area stood at 317,163 acres, as compared to 310,407 acres in 2020.
On the other hand, the APAC market is expected to record the fastest growth in the coming years. This can be because of the surging adoption of smart farming techniques, such as drone analytics, agronomic robots, and precision farming. In APAC, China has been the major contributor to the regional industry, owing to the rapid adoption of advanced techniques in its huge agricultural sector.
The service category is projected to record faster growth in the forecast period, due to the increasing demand for managed services by farmers for tracking operations and activities of sensors and managing large data sets related to crop health. Whereas, the product category dominates the market, owing to the surging need for software to control and guide devices installed in an agronomical environment for performing various advanced cultivation practices.
The machine learning category accounted for the largest revenue share, around 60%, in 2022. This is due to the increasing adoption of this technology by various organizations and farmers across the globe, to enhance crop productivity, with a combination of agronomic sciences and data technologies. It will also hold the same position during the forecast period, owing to its rising deployment in agriculture applications, such as field conditions management and crop management. Moreover, ML has been largely deployed in North America and Europe, owing to its high adoption in applications areas, such as precision farming and agricultural robots.
Precision farming accounted for the largest revenue share, around 35%, in 2022. This is due to the increasing need for optimum yield production with limited available resources, resulting in reduced cost of crop production. Also, the rapid use of IoT in the agriculture industry is driving the precision farming market. Farm producers and managers are leveraging the abilities of IoT devices, such as GPS and global navigation satellite system (GNSS) systems, sensors, and automated steering devices, for irrigation management, field mapping, and others.
The drone analytics category is projected to register the highest CAGR, over 25%, during the forecast period. This can mainly be attributed to the increasing venture funding for the development of drones, along with the rising demand for high-quality food crops to serve the growing global population. Moreover, the deployment of commercial drones for major application areas, including precision agriculture, power & utilities, and media & entertainment, is increasing.
The rising adoption of IoT is a major factor driving the demand. With the improving use of mobile devices and cloud computing, and the various benefits offered by IoT such as the ability to handle a large amount of structured and unstructured data, the demand for IoT in agriculture is increasing. For instance, IoT sensors in agricultural practices are used to provide farmers with critical information about rainfall, crop yields, soil nutrition, and pest infestation, among others. Such type of information is valuable for the enhancement of the production of crops and offers precise data that can be used to improve farming techniques and product quality.
Additionally, with the rising population, the demand for advanced technologies in agricultural practices for improving crop production is escalating around the globe. Hence, to meet the requirement for more food, agricultural companies and farmers are rapidly turning to the benefits of IoT for crop analytics and greater production capabilities. Thus, with the surging demand for smart agriculture and precision farming, there is greater use of IoT technology in farming applications, thereby driving the AI in agriculture market.
Report Attribute | Details |
Historical Years |
2017-2022 |
Forecast Years |
2023-2030 |
Market Size in 2022 |
$1,254.6 Million |
Revenue Forecast in 2030 |
$8,308.5 Million |
Growth Rate |
26.7% CAGR |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Segments Covered |
By Offering Type; By Technology; By Application; By Region |
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The rising use of robots in agriculture is a major trend observed in the industry. With expanding implementation of technology in agriculture, farming practices are increasingly becoming more modernized and sophisticated. Further, with the growing global population, lack of availability of farm workers, and automation in the agriculture industry, there is a rise in the use of agricultural robots around the world.
Moreover, the focus of agriculture stakeholders is primarily on refining the output productivity using advanced farming practices and reducing the extent of carbon footprints in the entire process. Due to this, the demand for robots is increasing. Also, robotic companies are introducing offerings that are equipped with AI to operate in dynamic and unstructured agricultural environments.
Robots have been active in the industrial world for decades, and with the advancements in technology, their applications have now expanded to several sectors including transportation, manufacturing, healthcare, and agriculture, in recent times. Also, robots have gained a vital role in reducing food scarcity to some extent.
Additionally, robotic systems are used in dairy farms for milking. According to an EU foresight study, by 2025, around 50% of all European herds would be milked by robots. For instance, in May 2022, Fullwood Paco launched a batch milking setup, with a starting size of six robots for 150–300 cows to cater to changing cow needs and production demands.
Moreover, the rising use of smart sensors in such practices is also a key trend observed in the market. With a rise in precision agricultural practices, there has been an increasing use of sensors in related fields. Precision farming allows maximizing yields using minimal resources such as seeds, fertilizers, and water; enables farmers to know about the growth of crops at the micro-scale; and helps in conserving valuable and costly resources, as well as assists in reducing the overall impact on the environment.
The report analyzes the impact of the major drivers and restraints on the market, to offer accurate market estimations for 2017–2030.
Based on Type
Based on Technology
Based on Application
Geographical Analysis
The AI in agriculture market size stood at $1,254.6 million in 2022.
During 2022–2030, the growth rate of the AI in agriculture market will be 26.7%.
Product is the largest offering type in the AI in agriculture market.
The major drivers of the AI in agriculture market include the increasing demand for high agricultural production, the surging focus on the utilization of internet of things (IoT), the rising need for real-time livestock monitoring, and the growing adoption of drones in farms.
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