Artificial Intelligence in Agriculture Market

Market Overview

AI is revolutionizing agriculture by providing farmers with real-time insights into their fields. It helps monitor soil quality, plant health and temperature, and can even automate irrigation and pesticide application. These advancements are enhancing the quality and accuracy of harvests. AI applications in agriculture include precision farming, livestock monitoring, drone analytics, agricultural robots and labor management. The use of deep learning technology to boost crop productivity is a major factor driving the growth of this market. The growing global population is increasing the demand for AI in agriculture. With limited arable land and the need for more food to ensure food security, there's a push for a green revolution supported by artificial intelligence, the Internet of Things (IoT) and big data. AI-powered tools are now used in agriculture for tasks such as predicting trends, recommending actions, identifying plant diseases, detecting pests and monitoring soil conditions. AI helps farmers and industry professionals use data-driven insights and smart decision-making to boost productivity, make better use of resources and solve various farming issues. AI allows for the gathering and analysis of large amounts of data from sources such as weather patterns, soil conditions, crop health and past farming records. By processing this information, AI systems give farmers valuable insights that help them make informed decisions, improve crop yields, reduce waste and lessen environmental impact. Additionally, AI enables the automation of routine tasks with smart machinery and robotics which ease labour shortages and allowing farmers to focus on strategic planning and management.

Artificial Intelligence in Agriculture Market Size

Report	Details
Market Size Value	USD 2.08 Billion in 2023
Market Size Value	USD 5.76 Billion by 2030
CAGR	22.55%
Forecast Period	2024-2032
Base Year	2023
Historic Data	2020
Segments Covered	The solution, Offering, Farming Type, Deployment, Application, End-User, and Region
Geographics Covered	North America, Latin America, Europe, Asia-Pacific, Middle East & Africa

Major vendors in the global artificial intelligence in agriculture market are The Climate Corporation (U.S.), Agribotix LLC (U.S.), Tule Technologies Inc (U.S.), Prospera Technologies (Israel), CropX inc. (Israel), Harvest CROO Robotics LLC. (U.S.) and FarmBot (U.S.), Microsoft (U.S.), Amazon Web Services Inc. (U.S.), Oracle (U.S.), Google LLC (U.S.), Broadcom (U.S.), Descartes Labs, Inc. (U.S.), Wipro Limited. (India), Deere & Company (U.S.), Granular, Inc. (U.S.), aWhere Inc. (U.S.), Hewlett Packard Enterprise Development LP (U.S.), Cisco Systems, Inc. (U.S.), IBM Corporation (U.S.) and Others.

Growing population and rising food demand

The Artificial Intelligence (AI) in Agriculture Market is experiencing rapid growth due to the increasing global population and the rising demand for food. As the world’s population expands, there is a pressing need to produce more food efficiently to ensure food security. Traditional farming methods often struggle to keep up with these demands due to limitations in resources and labor. AI technologies are transforming agriculture by providing advanced solutions to address these challenges. Tools such as machine learning, computer vision and data analytics are being used to optimize farming practices. For instance, AI can analyze vast amounts of data from sensors and drones to monitor soil health, crop conditions and weather patterns. This allows farmers to make informed decisions, improve crop yields and reduce resource waste. Precision farming driven by AI enables the targeted application of water, fertilizers and pesticides. This not only enhances productivity but also minimizes environmental impact. Additionally, AI-powered automation in agriculture such as robotics and autonomous machinery, helps tackle labor shortages and reduces the need for manual labor. Governments and agribusinesses are investing in AI technologies to advance agricultural practices which is making them more efficient and sustainable. This growing emphasis on technology is essential for meeting the food demands of a burgeoning population while addressing the challenges of resource management and environmental sustainability. As AI continues to evolve it is expected to play a crucial role in shaping the future of agriculture which ensure that we can meet global food needs effectively.

Market Dynamics

Drivers:

• Growing population and rising food demand
• Rising demand for top-quality agricultural products
• Government policies and initiatives are actively supporting the adoption of modern farming tools and techniques.

Opportunities:

• Rapidly growing use of drones on farms
• The need for improved productivity and efficiency
• Shortage of skilled workers

Rapidly growing use of drone on farms

The rapidly growing use of drones on farms is significantly impacting the Artificial Intelligence (AI) in Agriculture Market. Drones which are also known as unmanned aerial vehicles (UAVs), are becoming increasingly popular in farming due to their ability to provide valuable data and insights that enhance agricultural practices. Drones equipped with advanced sensors and cameras can capture high-resolution aerial images and data of crops, soil, and fields. This information is processed using AI technologies to monitor crop health, assess soil conditions and detect issues such as pest infestations or nutrient deficiencies. By providing real-time insights, drones help farmers make informed decisions about when to irrigate, fertilize or apply pesticides which ultimately improving crop yields and reducing resource waste. The rise in drone usage is driven by several factors. Firstly, drones provide a cost-effective solution for large-scale monitoring and data collection, reducing the need for manual labor and ground surveys. Secondly, advancements in drone technology and AI algorithms have enhanced the accuracy and efficiency of data analysis which makes these tools more accessible and valuable for farmers. Moreover, the integration of drones with AI allows for precision farming techniques, where interventions are tailored to specific areas of a field based on detailed aerial data. This targeted approach helps optimize resource use, minimize environmental impact and increase overall productivity. As the demand for high-quality food and efficient farming practices grows with that the role of drones in agriculture is expected to expand. They are poised to become a key component of modern farming which is driving innovation and improvements in agricultural productivity through advanced AI-driven insights.

The market for artificial intelligence in agriculture market is dominated by North America.

By analysing the artificial intelligence in agriculture market globally across various country like North America, Europe, Asia-Pacific, and LAMEA in which North America holds the largest market share during the forecast period, driven by increasing disposable incomes, ongoing investments in automation, a strong focus on the Internet of Things (IoT), and government support for developing homegrown AI technology. The region benefits from various agricultural technology companies working on AI solutions. AI is set to revolutionize farming practices in North America with drones, robots and smart monitoring systems being tested and used in the field. Additionally, the rising adoption of AI-powered technologies and IoT devices in agriculture is expected to further drive market growth in the region.

The Asia-Pacific region is expected to see significant growth in the AI in agriculture market during the forecast period. This growth is driven by the increasing use of AI tools in farming. India and China are the fastest-growing economies globally, are incorporating AI technologies such as remote monitoring and predictive analysis into their food industries. Additionally, the demand for smart cities in these countries is pushing agribusinesses to adopt AI-powered solutions. In China, there's a notable rise in the use of AI in agriculture which is partly due to Alibaba Group's entry into the market with AI technology designed to support small farmers.

The precision farming segment is anticipated to hold the largest market share during the forecast period

The global market is categorized by application into weather tracking, precision farming, drone analytics, livestock monitoring and others in which precision farming segment held the largest market share. This growth is driven by the growing demand to maximize crop yields while using limited resources which helps lower production costs. AI-powered precision farming helps farmers use resources such as water, fertilizers and pesticides more effectively by making precise adjustments. By using AI technologies such as machine learning and satellite imagery, farmers can track crop health, soil conditions and weather patterns in real-time.

The drone analytics segment is anticipated with the highest growth rate during the forecast period. This growth is primarily fueled by the increased investment in drone development and a growing demand for high-quality food to support the expanding global population. Additionally, the use of commercial drones is rising across key sectors such as precision agriculture, power and utilities, and media and entertainment.

Segmentations analysis of artificial intelligence in agriculture market: -

• By Component:
  • Software
  • Hardware
  • Service
• By Deployment:
  • Cloud
  • On-premise
  • Hybrid
• By Application:
  • Weather Tracking
  • Precision Farming
  • Drone Analytics
  • Livestock Monitoring
  • Others
• By Technology:
  • Computer Vision
  • Predictive Analytics
  • Machine Learning
  • Others
• By Region
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
    • Chile
    • Peru
    • Rest of Latin America
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • U.K.
    • BENELUX
    • CIS & Russia
    • Nordics
    • Austria
    • Poland
    • Rest of Europe
  • Asia Pacific

• • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Indonesia
  • Malaysia
  • Vietnam
  • Australia & New Zealand
  • Rest of Asia Pacific

• • Middle East & Africa

• • Saudi Arabia
  • UAE
  • South Africa
  • Nigeria
  • Egypt
  • Israel
  • Turkey
  • Rest of MEA

 Recent Developments

• April 2023, IBM and Texas A&M AgriLife collaborated to give farmers insights into water usage. This collaboration focuses on increase agricultural productivity while reducing costs and environmental impact. They will roll out and expand Liquid Prep, a technology that helps farmers determine the best times to water their crops, especially in dry regions of the U.S.
• October 2022, Thermo Fisher Scientific Inc., the largest global provider of scientific instruments and services announced acquisition of The Binding Site Consortium, a leading company in specialty diagnostics. The deal is with an investor group led by Nordic Capital.
• May 2022, AGRA and Microsoft enhanced their collaboration to advance digital transformation in agriculture. They signed a Memorandum of Understanding (MoU) in Davos, with plans to work together through Microsoft's Africa Transformation Office. This new collaboration builds on their previous partnership which began in 2019 and resulted in the creation of Agri-Bot.

  Answers to following key questions:

• What will be the artificial intelligence in agriculture market’s trends & growth rate? What analysis has been done of the prices, sales, and volume of the top producers in the artificial intelligence in agriculture market?
• What are the main forces behind worldwide artificial intelligence in agriculture market? Which companies dominate artificial intelligence in agriculture market?
• Which companies dominate artificial intelligence in agriculture market? Which business possibilities, dangers, and tactics did they embrace in the market?
• What are the global insight engines industry's suppliers' opportunities and dangers in artificial intelligence in agriculture market?
• What is the insight engines industry's regional sales, income, and pricing analysis? In the artificial intelligence in agriculture market, who are the distributors, traders, and resellers?
• What are the main geographic areas for various trades that are anticipated to have astounding expansion over the artificial intelligence in agriculture market?
• What are the main geographical areas for various industries that are anticipated to observe astounding expansion for artificial intelligence in agriculture market?
• What are the dominant revenue-generating regions for artificial intelligence in agriculture market, as well as regional growth trends?
• By the end of the forecast period, what will the market size and growth rate be?
• What are the main artificial intelligence in agriculture market trends that are influencing the market's expansion?
• Which key product categories dominate artificial intelligence in agriculture market? What is artificial intelligence in agriculture market’s main applications?
• In the coming years, which artificial intelligence in agriculture market technology will dominate the market?