AI in Agriculture Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

AI in Agriculture Market Trends & Growth Drivers

Surging Use of Robots Is Key Trend

• The rising use of robots in agriculture is a major trend observed in the industry. With the expanding implementation of this technology in agriculture, farming practices are increasingly becoming more modern 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.
• The focus of agriculture stakeholders is primarily on refining the output and reducing the extent of carbon footprints in the entire process, using advanced farming practices. Additionally, robotics 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. They have gained a vital role in reducing food scarcity to some extent.
• 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. In May 2022, Fullwood Paco launched a batch milking setup with a starting size of six robots for 150–300 cows, to cater to the rising production demands.
• 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 for 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 assisting in reducing the overall impact on the environment.

Rising Adoption of IoT Propelling Industry

• The rising adoption of IoT is a major factor driving the demand for AI solutions in the farming sector. With the augmenting use of mobile devices and 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.
• IoT sensors in agricultural practices are used to provide farmers with critical information about rainfall, crop yields, soil nutrition, and pest infestation.
• 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.
• With the surging demand for smart agriculture and precision farming, there is a greater use of the IoT technology in farming applications, thereby driving the AI in agriculture market.

Lack of Awareness and High Cost of AI Solutions Are Key Restraints for Market

• The lack of familiarity with AI technologies, such as machine learning, (NLP), among farmers, coupled with their high costs, is a major factor hindering the growth of the market.
• Financial expense is one of the roadblocks that the AI in agriculture market is facing because farmers in developing countries mostly have small practices, which do not yield as much money. Setting up a new and complex technology system within an operational environment requires huge time commitment, which, in turn, leads to the loss of continuity in businesses.
• Because the AI technology has to gain information and learn from it, its successful deployment cannot be completed without devoting ample time and resources to help the machine learn and acquire accurate knowledge for performing tasks. Doing so means deploying professionals and skilled labor in the entire process.
• Professionals skilled in data analytics and AI technology demand high wages, and they are also not easily available in many developing countries. Owing to this, the overall cost associated with the deployment of AI solutions in these countries are rather high.

AI in Agriculture Market Industry Outlook

Offering Type Insights

• The service category is projected to grow at the higher CAGR, of 25.3%, during 2024–2030. This is due to the increasing demand for managed services by farmers for tracking the operations and activities of sensors and managing large data sets related to crop health.
• The product category held the larger market share, of around 70%, in 2023. This was due to the surging need for software to control and guide the devices installed in an agronomical environment for performing various advanced cultivation practices.

During the study, we have analyzed two types of offerings in the report:

• Product (Larger Category)
• Service (Faster-Growing Category)

Technology Analysis

• The machine learning category accounted for the largest revenue share, of around 50%, in 2023. 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 the rising deployment of ML in field conditions management and crop management.
• ML has been widely deployed in North America and Europe for precision farming and agricultural robots.
• The predictive analytics category is expected to register the highest CAGR, of 25.6%, during the forecast period. This can be ascribed to the increasing demand for advanced analytics from agricultural companies, as this technology analyzes real-time weather conditions, soil moisture, and plant health and assists farmers by providing strong insights, to improve yield and crop quality.

Below are the technologies covered in the report:

• Machine Learning (Largest Category)
• Computer Vision
• Predictive Analytics (Fastest-Growing Category)

Application Insights

• Precision farming accounted for the largest revenue share, of around 40%, in 2023. This is due to the increasing need for optimum yield production with limited available resources, ultimately, to reduce the cost of crop production.
• The rapid use of IoT in the agriculture industry is driving the precision farming market. Growers and farm 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 other functions.
• The drone analytics category is projected to register the highest CAGR, of over 25.7%, 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 following application are included in the report:

• Agricultural Robots
• Precision Farming (Largest Category)
• Drone Analytics (Fastest-Growing Category)
• Livestock Monitoring
• Others

North America Is Largest Market

• Geographically, North America held the largest market share, of 45%, in 2023. This is attributed to the high adoption of advanced technologies in the farming sector for maximum productivity. Thus, major players are offering services to regional consumers by engaging in partnerships with other leading players.
• Advanced technologies, such as IoT and ML, are used in agricultural in combination with computer vision for various applications, including 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 25.5% in the coming years. This is ascribed to the surging adoption of advanced 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.
• APAC is the fastest-growing market, advancing at a CAGR of 25.9% during 2024–2030. This can be ascribed to 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 regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

AI in Agriculture Market Share

The global AI in agriculture market is highly competitive, with the presence of many global players in the market. The major players in the market are mainly focusing on mergers and acquisitions and partnerships to improve their product portfolios. Among the various market players, Deere & Company is the largest globally. The company is primarily involved in heavy equipment manufacturing for the agriculture industry and has a robust dealer network, primarily in the U.S. and Canada. It is focusing on precision agriculture for incorporating technologies into farming processes that would increase yield and productivity in agriculture farms.

AI in Agriculture Industry News

• In April 2023, IBM and Texas A&M AgriLife joined forces to offer farmers water consumption insights, aiming to enhance agricultural productivity, while reducing economic and environmental costs. Texas A&M AgriLife and IBM will implement and expand Liquid Prep, a technology solution that assists farmers in determining the optimal timing for watering in arid regions of the United States.
• In May 2022, the Alliance for a Green Revolution in Africa (AGRA) and Microsoft proclaimed the expansion of their partnership, which is aimed at promoting digital agricultural transformation in Africa to enhance food security. This collaboration will assist governments, farmers, and small and medium-sized enterprises (SMEs) in developing food systems across the region, by utilizing Microsoft's digital tools.
• In February 2022, Farmers Edge and Deere & Company signed an agreement enabling FarmCommand users to integrate their data with their John Deere Operations Center account. This integration will provide users with insights to make decisions that enhance yields and profits.
• In March 2021, Climate LLC, a subsidiary of Bayer Crop Science Digital, introduced its cutting-edge digital farming platform, Climate FieldView, in South Africa. This launch in the African region aims to assist farmers in efficiently managing risk, enhancing productivity, and simplifying their operations.