Valued at $671.6 million in 2019, the global artificial intelligence (AI) in agriculture market is projected to reach $11,200.1 million in 2030, advancing at a CAGR of 30.5% during the forecast period (2020–2030). The service category under by type segment is expected to witness faster growth in the market, and this can be attributed to the growing adoption of AI solutions in the agriculture industry; demanding services; knowledge on proper installation, maintenance, and training from farmers; and other agriculture stakeholders.
The drone analytics category among various applications is expected to register the fastest growth in the AI in agriculture market during the forecast period. This can mainly be attributed to the increasing venture funding for the development of agricultural drones along with the rising demand for high-quality food crops to serve the growing global population. Also, rising demand for drones in the U.S., China, Germany, and other countries is expect to drive the market growth of drone analytics in the near future.
Growing Demand for Agricultural Production to Drive the Market
Growing demand for agricultural production is a key factor driving the AI in agriculture market. The demand for agricultural products is increasing around the world due to rising population. According to the United Nations (UN) report, the current world population of 7.7 billion and is projected to reach 8.6 billion by 2030. The demand for agricultural products is majorly driven from China, India, the U.S., and Brazil due to rising disposable income, rapid urbanization, and changing consumption habits of the populace. With rising demand for agricultural products, the major agricultural products-producing countries are focusing toward increasing the agriculture productivity by leveraging AI.
Developing Countries Posing Greater Opportunity for Market Players
Developing countries, such as India, Brazil, and South Africa, are posing huge opportunities for the AI in agriculture market. Currently, adoption rate of AI technology in the agricultural sector in these countries is at a nascent stage, and increasing government focus toward implementation of AI in agricultural sector is expected to create several opportunities for the market players during the forecast period.
For instance, in January 2019, the State Government of Maharashtra, India, signed a partnership with the World Economic Forum (WEF) to improve agricultural yields in the state by collecting insights about agricultural farms from drones. Further, the government is also focusing on advanced tools, such as AI and drones, to provide real-time information to the farmers and increase productivity of crops.
Segmentation Analysis of AI in Agriculture Market
Geographical Analysis of AI in Agriculture Market
Geographically, the North America and Europe cumulatively held more than 70% share in the AI in agriculture market in 2019. However, Asia-Pacific (APAC) is expected to register the fastest growth during the forecast period. The rate of adoption of smart agriculture techniques like drone analytics, agricultural robots, and precision farming is likely to grow at a higher pace in this region, mainly led by emerging countries, such as India and China, and countries in Southeast Asia like Indonesia and Thailand. China has been the major contributor to the market, owing to the rapid adoption of advanced agricultural techniques to detect weeds in crops, monitor soil condition, and assist in harvest processes.
Browse report overview with detailed TOC on "Artificial Intelligence (AI) in Agriculture Market Research Report: By Type (Product, Service), Technology (Machine Learning, Predictive Analytics, Computer Vision), Application (Precision Farming, Agriculture Robots, Livestock Monitoring, Drone Analytics) – Global Industry Analysis and Growth Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/artificial-intelligence-in-agriculture-market
Competitive Landscape of AI in Agriculture Market
The global AI in agriculture market is highly competitive with the presence of many global players in the market. These players are majorly focusing on mergers, acquisitions, and partnerships to improve their product portfolios. For example, in January 2019, Raven Industries Inc. announced that it has acquired all the assets of AgSync Inc., an agriculture logistics software company at an undisclosed amount. With this acquisition, the company aims to enhance its “Slingshot” platform by offering an improved logistics solution for custom applicators, agricultural retailers, and enterprise farms.
Some of the key players operating in the AI in agriculture market include IBM Corporation, Microsoft Corporation, Bayer AG, Deere & Company, A.A.A Taranis Visual Ltd., AgEagle Aerial Systems Inc., AGCO Corporation, Raven Industries, Ag Leader Technology, Trimble Inc., Google LLC, Gamaya SA, and Granular Inc.