The Global Artificial Intelligence in Agriculture Market size is expected to reach $4.9 billion by 2028, rising at a market growth of 24.1% CAGR during the forecast period.
Farmers can benefit from real-time insights into their fields, monitoring of plant health, soil quality, temperature, automation of irrigation, and pesticide application processes, all of which increase the overall quality and accuracy of the crop. Precision farming, drone analytics, agriculture robots, livestock monitoring, and labor management are just a few of the applications of AI in agriculture that strive to maximize crop production efficiency. Adoption of deep learning technology is boosting crop productivity, fueling the market's expansion.
Farming with artificial intelligence approaches results in higher productivity and yield. Because of this, agricultural firms embrace artificial intelligence technologies for solutions based on predictive analytics. AI-based tools and methods assist with pest management, healthier crop production, soil monitoring, and jobs related to agriculture throughout the entire supply chain. Furthermore, since it assists in the analysis of farm data, artificial intelligence is increasingly being utilized by agriculture businesses to enhance harvest quality and accuracy.
The need for AI in the agriculture sector is driven by the world's rapidly expanding population. In addition, the demand for a green revolution powered by artificial intelligence, the Internet of Things (IoT), and big data is driven by the scarcity of arable land and the requirement for greater food production for food security. Several aspects of the agriculture sector are catered by AI-enabled apps, including predictive and recommendation analytics, plant disease detection, pest infestation detection, and soil monitoring.
Aside from that, automation in agriculture assists in allocating resources like water and fertilizer, choosing the best time to plant crops, and identifying weeds, which increases the demand for artificial intelligence technologies. Using previous long-term weather forecasts, production data, commodity pricing forecasts, and seed information, among other inputs, it also assists in recommending how many seeds should be sown. Several IT juggernauts and start-ups are developing IoT-enabled devices to implement AI applications for agriculture on a wide scale due to the numerous advantages of these applications.
Using remote sensing and farm management software technologies resulted in greater uptake after COVID-19. As a result, businesses have already started to put more of a focus on wireless platforms to enable in-the-moment decisions in areas like crop health monitoring, yield monitoring, irrigation scheduling, field mapping, and harvesting management. Also, due to the spread of the pandemic, people worldwide have become conscious of the quality of food they are consuming. This has made it even more crucial to keep track of the health of yields. As a result, the adoption of AI technologies in agriculture has surged, profiting the market.
Demand is mostly driven by the growing deployment of IoT. The demand for IoT in agriculture is rising due to the expanding usage of mobile devices and cloud computing, as well as the numerous advantages offered by IoT, including the capacity to manage massive amounts of structured and unstructured data. For example, IoT sensors are utilized in agricultural practices to give farmers crucial information regarding rainfall, soil nutrition, crop yields, and pest infestation, among other things. Such data provides accurate information that can be used to promote crop production and can be used to raise the caliber of both farming practices and agricultural output. These elements would support the growth of the regional market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
A key development in the market is the growing use of robotics in agriculture. Farming techniques are advancing in sophistication and modernity due to the rising use of technology in agriculture. The usage of agricultural robots is expanding globally due to the expanding world population, the scarcity of farm employees, and the automation of the agricultural sector. Agribusiness stakeholders are also largely focused on improving output productivity through innovative farming techniques and minimizing the overall carbon footprint. Thus, robotics businesses are providing services that are AI-equipped to function in them.
Precision agriculture is a type of farming that necessitates an in-depth understanding of technology. However, owing to a lack of awareness of the implementation of cutting-edge technology, a gap exists between the comprehension and deployment of precision farming principles. Despite governments and market partners worldwide undertaking projects to provide farmers with training & consulting services on precision farming techniques, a significant percentage of farmers remain inaccessible. So far, farmers in developing nations lack technological competence, providing a substantial challenge for market players.
Based on technology, the artificial intelligence in agriculture market is segmented into machine learning, computer vision and predictive analytics. The computer vision segment garnered a substantial revenue share in the artificial intelligence in agriculture market in 2021. The increased usage of computer vision algorithms in agricultural applications, including sorting the food per weight, color, size, and ripeness and recognizing flaws in agricultural goods, is attributed to this high growth rate.
On the basis of offering, the artificial intelligence in agriculture market is classified into hardware, software, AI-as-a-service and services. The hardware segment projected a prominent revenue share in the artificial intelligence in agriculture market in 2021. Modern devices combine strong multicore CPUs to solve the parallel processing issue. Graphics Processor Units (GPU) and Field-Processing Gate Arrays are the most widely utilized, specialized, and often available hardware in AI systems developed on workstations (FPGA). An image-processing GPU is a chip designed to speed up the processing of multidimensional data.
By application, the artificial intelligence in agriculture market is bifurcated into precision farming, agriculture robots, livestock monitoring, drone analytics, labor management, and others. The drone analytics segment dominated the artificial intelligence in the agriculture market with maximum revenue share in 2021. This is primarily due to the rise in venture capital funding for drone development and the increased need for high-quality food crops to feed the expanding world population. Also, there is an increase in the use of commercial drones in key application areas such as precision agriculture.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 1.1 Billion |
| Market size forecast in 2028 | USD 4.9 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 24.1% from 2022 to 2028 |
| Number of Pages | 255 |
| Number of Table | 394 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Companies Strategic Developments, Company Profiling |
| Segments covered | Technology, Application, Offering, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the artificial intelligence in agriculture market is analyzed across North America, Europe, Asia Pacific and LAMEA. In 2021, the North America region led the artificial intelligence in agriculture market by generating the highest revenue share. Large-scale agricultural players in North America are already adopting AI technology to greatly speed up and enhance the precision of their planting or crop management procedures. The market for AI in agriculture is anticipated to expand in this region due to the desire for cutting-edge agricultural solutions.
Free Valuable Insights: Global Artificial Intelligence in Agriculture Market size to reach USD 4.9 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Deere & Company, IBM Corporation, Microsoft Corporation, Climate LLC (Bayer AG), Farmers Edge Inc, AgEagle Aerial Systems, Inc., Prospera Technologies, Inc. (Valmont Industries, Inc.), A.A.A Taranis Visual Ltd., CropIn Technology Solutions Private Limited, and Corteva, Inc. (Dow AgroSciences LLC).
By Technology
By Application
By Offering
By Geography
The global Artificial Intelligence in Agriculture Market size is expected to reach $4.9 billion by 2028.
Growing acceptance of IoT driving market expansion are driving the market in coming years, however, Less technical knowledge among farmers restraints the growth of the market.
Deere & Company, IBM Corporation, Microsoft Corporation, Climate LLC (Bayer AG), Farmers Edge Inc, AgEagle Aerial Systems, Inc., Prospera Technologies, Inc. (Valmont Industries, Inc.), A.A.A Taranis Visual Ltd., CropIn Technology Solutions Private Limited, and Corteva, Inc. (Dow AgroSciences LLC).
The Machine Learning segment acquired maximum revenue share in the Global Artificial Intelligence in Agriculture Market by Technology in 2021 thereby, achieving a market value of $2.3 billion by 2028.
The Software segment is leading the Global Artificial Intelligence in Agriculture Market by Offering in 2021 thereby, achieving a market value of $1.9 villion by 2028.
The North America market dominated the Global Artificial Intelligence in Agriculture Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $1.8 billion by 2028.
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