The global AI in agriculture market is expected to reach $4.0 billion by 2024, registering a CAGR of 38.3% during the forecast period. The major factors stimulating the market growth include growing demand for agricultural production, rising adoption of internet of things (IoT), and increasing demand for livestock monitoring, according to P&S Intelligence
Insights into the market segments
Based on type, the market is categorized into product and service. Between the two categories, product category held the larger market share in 2018. Within the product category, the market is further split into hardware and software. Increasing use of software powered by AI would drive the market growth for the product category during the forecast period. However, service category is expected to be the faster-growing category during the forecast period. This can mainly be attributed to the growing adoption of AI solutions in the agriculture industry, demanding services and knowledge on proper installation, maintenance, and training for farmers, and other agriculture stakeholders.
Based on service, the market is further classified into professional and managed. Among these, managed service category accounted for a larger share in the market in 2018. This is due to growing demand for managed services by farmers for monitoring, data upload, and download, and manage large data sets related to crop health. In global AI managed service market, North America and Europe registered significant revenue share in 2018. However, the market for professional services is projected to be the faster-growing category over the forecast period. This can be attributed to the increasing demand for support, maintenance, and training services by farmers, deploying AI technology solutions.
Browse Detailed Report 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), Geographical Outlook (U.S., Canada, Germany, U.K., France, Russia, Italy, The Netherlands, China, Japan, India, Australia, Brazil, Mexico, Argentina, Turkey, Nigeria, South Africa, Saudi Arabia) – Global Industry Analysis and Growth Forecast to 2024" at : https://www.psmarketresearch.com/market-analysis/artificial-intelligence-in-agriculture-market
Developing countries posing greater opportunity for market players
Developing countries such as India, Brazil, and South Africa are posing an opportunity for 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 opportunities for the market players during the forecast period. For instance, the government of Maharashtra, India is focusing on digitalizing agriculture processes from sowing to harvesting. The government is also focusing on tools such as AI and drones to provide real time information to the farmers and increase productivity of crops.
Additionally, in June 2019, Microsoft Corporation registered a suite of application to increase efficiency in agriculture sector of Brazil. By using this application, the company aims to use IoT, AI, and drones to improve productivity in agriculture. Hence, increasing investments in AI by the developing countries toward improving productivity in agriculture sector is creating opportunities for the market players around the globe.
Growing demand for drones in agricultural farms to drive the market
Drones are increasingly being used in crop production for monitoring the health and growth of crops. Drones are used for scanning soil health, assisting in irrigation schedules, estimating yield data, and for applying fertilizers. Due to various government initiatives toward the adoption of drones for modernizing agricultural practices, the market for drones in agriculture is growing year-over-year (Y-o-Y). 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.
Moreover, in Xinjiang region of China, there is an increasing demand for drones for spraying cotton fields with pesticides. By using drones, more than 2,485 square miles of the cotton fields are sprayed with pesticides in the region, which in turn reduces the time required in spraying pesticides on the fields, and thus improves the agricultural output. As a result, due to various benefits such as improved crop yields, and better irrigation scheduling offered by drones, there is an increasing demand for drones in agriculture fields around the world, which is driving the AI in agriculture market.
AI in Agriculture Market Competitive Landscape
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. 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, agriculture 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 Ssytems Inc., AGCO Corporation, Raven Industries, Ag Leader Technology, Trimble Inc., Google LLC, Gamaya SA, and Granular Inc.
Market Segmentation by Type
Market Segmentation by Technology
Market Segmentation by Application
Market Segmentation by Region