AI in Agriculture Market Size - By Component (Solution, Services), Application (Crop and Soil Monitoring, Livestock Health Monitoring, Intelligent Spraying, Precision Farming, Agriculture Robot, Weather Data and Forecast), Technology & Forecast, 2024 - 2032

AI in Agriculture Market Size - By Component (Solution, Services), Application (Crop and Soil Monitoring, Livestock Health Monitoring, Intelligent Spraying, Precision Farming, Agriculture Robot, Weather Data and Forecast), Technology & Forecast, 2024 - 2032

AI in Agriculture Market Size

AI in Agriculture Market size was valued at USD 2.1 billion in 2023 and is estimated to register a CAGR of over 24% between 2024 and 2032, attributed to the increasing demand for precision agriculture. The growing need to optimize agricultural processes and enhance productivity is driving the adoption of AI technologies in the agriculture market.

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Research results from the AgriTech Trends 2023 survey indicate a notable increase in digital transformation efforts within agribusinesses. However, many struggle to extract actionable insights from their data. Agribusinesses encounter both on-farm and off-farm challenges stemming from inaccurate yield predictions and data complexity. Survey respondents express a clear demand for advancements in digital technologies, including AI and automation, to facilitate more precise, data-informed decision-making throughout the agrifood supply chain.

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AI technologies, such as drones, sensors, and machine learning algorithms, enable precise monitoring, analysis, and management of agricultural operations. This enhances efficiency, resource allocation, and decision-making, contributing to the growth of the AI in agriculture market.

Continuous advancements in AI technologies, including computer vision, predictive modeling, and robotics, are making agriculture more data-driven and efficient. These innovations enable farmers to make informed decisions, optimize resource allocation, and mitigate risks, thereby driving the adoption of AI in agriculture.

Quoting an instance, in March 2024, a collaboration of UCF researchers unveiled plans to advance AI integration in agriculture by developing various AI-driven technologies aimed at enhancing field operations within the industry. This initiative is backed by a $2.74 million grant from the U.S. Department of Agriculture (USDA) – National Institute of Food and Agriculture (NIFA). The project, supported by NIFA's AI Institute for Transforming Workforce and Decision Support (AgAID), will specifically focus on enhancing agricultural applications. Professor Manoj Karkee from Washington State University serves as the principal collaborator of AgAID for this endeavor.

However, the initial investment required for implementing AI technologies, such as sensors, drones, and data analytics platforms, can be prohibitive for many farmers, especially those operating on smaller scales. Additionally, access to reliable internet connectivity and technical expertise may pose challenges in adopting and utilizing AI solutions effectively.

AI in Agriculture Market Trends

The adoption of personalized farming solutions will be an emerging trend in AI in agriculture industry. AI algorithms will increasingly offer personalized recommendations and solutions tailored to specific farm conditions, crop types, and management practices.

For instance, in March 2024, a joint effort involving Purdue University, Cornell University, and the Dale Bumpers National Rice Research Center resulted in the development of a machine-learning model. This model showcases the capability to forecast the impact of changing climate patterns on rice yields. Through variable analysis, including weather dynamics and genetic characteristics, the model offers valuable insights into the resilience of contemporary rice varieties in contrast to their older counterparts.

By leveraging machine learning models trained on large datasets, AI-powered platforms will provide farmers with customized insights, prescriptions, and strategies to maximize productivity and sustainability while minimizing resource inputs and environmental impact.

AI in Agriculture Market Analysis

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Based on the component, the market is divided into solutions and services. The solution segment is projected to exceed USD 11 billion by 2032, propelled by the pressing need for increased efficiency, sustainability, and productivity in food production. Farmers face challenges such as climate change, labor shortages, and resource constraints. AI technologies offer innovative solutions by providing real-time data analytics, predictive modeling, and autonomous machinery. These tools enable precision agriculture practices, optimized resource management, and proactive decision-making, ultimately enhancing crop yields, reducing environmental impact, and ensuring food security amidst evolving agricultural landscapes.

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Based on the technology, the AI in agriculture market is categorized into machine learning, computer vision and predictive analysis. The predictive analysis segment held a major market share of around 39% in 2023. The adoption of predictive analysis in agriculture is driven by the imperative to optimize farming practices and mitigate risks amidst fluctuating environmental conditions and market dynamics.
 

By harnessing historical and real-time data, predictive analytics empower farmers to anticipate and respond to various challenges, such as weather fluctuations, pest outbreaks, and market demand shifts. This proactive approach enables informed decision-making, precise resource allocation, and timely interventions, ultimately enhancing crop yields, minimizing losses, and improving overall farm profitability and sustainability in an increasingly uncertain agricultural landscape.

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North America AI in Agriculture market accounted for 53% of the revenue share in 2023, due to the region's advanced technological infrastructure and a robust research ecosystem, facilitating innovation and development in AI applications tailored to agriculture. Additionally, the region faces significant agricultural challenges such as labor shortages, climate variability, and the need for sustainable farming practices, driving the demand for AI solutions. Moreover, supportive government policies, investment initiatives, and collaborations between academia, industry, and government further accelerate the adoption and integration of AI technologies, positioning North America as a global leader in AI-driven agricultural innovation and productivity.

AI in Agriculture Market Share

Microsoft and Corteva hold a significant market share of over 28% in the AI in agriculture industry. Players in the market focus on R&D to enhance AI algorithms and solutions tailored to agricultural needs. Collaborations with research institutions and agricultural organizations facilitate innovation and technology transfer. Additionally, strategic partnerships with agribusinesses and technology providers enable access to complementary expertise and resources, fostering product development and market expansion.

Investing in data analytics capabilities and cloud infrastructure enhances data processing and scalability. Moreover, companies prioritize customer engagement and support, offering personalized solutions, training programs, and ongoing technical assistance to maximize user adoption and satisfaction. These strategies collectively strengthen their foothold by driving innovation, market penetration, and customer loyalty in the dynamic AI in agriculture landscape.

AI in Agriculture Market Companies

Major companies operating in the AI in agriculture industry are

• Climate LLC
• Corteva
• Descartes Labs, Inc
• ec2ce
• Gamaya
• IBM
• Microsoft
• PrecisionHawk Inc
• Taranis
• Valmont Industries

AI in Agriculture Industry News

• In March 2024, Agroz Group Sdn Bhd, a Malaysian agriculture technology firm, is developing its Agroz Copilot for Farmers and Agroz Farm Operating System with the support of Microsoft AI and cloud solutions. By integrating a range of advanced technologies such as IoT sensors, AI, data analytics, automation, environmental control systems, and water management solutions, Agroz aims to create highly digitalized and automated operations for its indoor vertical farms. These farms produce nutrient-rich, pesticide-free, clean vegetables daily, leveraging expertise in agronomy and plant science alongside cutting-edge technology, including edge computing and 5G communications.
• In January 2024, Scheduled for release in the first wave of 2024 from April 1st to September 30th, Microsoft unveiled its plan to enhance its Industry Clouds with innovative generative artificial intelligence features. This update is a response to valuable input from customers and partners. The additions will encompass a range of new capabilities across various sectors, including Microsoft Cloud for Retail, Azure Data Manager for Agriculture, Microsoft Cloud for Financial Services, Microsoft Cloud for Sustainability, Microsoft Cloud for Healthcare, Microsoft Cloud for Nonprofit, and Microsoft Cloud for Sovereignty.

The AI in agriculture market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments

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Market, By Component

• Solution
• Service

Market, By Technology

• Machine learning
• Computer vision
• Predictive analysis

Market, By Application

• Crop and soil monitoring
• Livestock health monitoring
• Intelligent spraying
• Precision farming
• Agriculture robot
• Weather data and forecast
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  •  France
  • Italy
  • Netherlands
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Singapore
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • Iran
  • Morocco
  • Yemen
  • Egypt
  • South Africa
  • Rest of MEA

Frequently Asked Questions (FAQ)

How big is the AI in agriculture market?

The market size of AI in agriculture reached USD 2.1 billion in 2023 and is set to witness 24% CAGR between 2024 and 2032, attributed to the increasing demand for precision agriculture.

Why is the demand for AI in agriculture solutions growing?

The solution segment is poised to cross USD 11 billion by 2032, led by the need for increased efficiency, sustainability, and productivity in food production.

What is the size of the North America AI in agriculture industry?

North America market accounted for 53% revenue share in 2023, owing to the advanced technological infrastructure and the robust research ecosystem, facilitating innovation and development in AI applications.

Mention the key players involved in AI in agriculture market?

Climate LLC, Corteva, Descartes Labs, Inc, ec2ce, Gamaya, IBM, Microsoft, PrecisionHawk Inc, Taranis and Valmont Industries.