IoT In Agriculture Market Size, Growth, Global Trends, Forecast 2034

IoT In Agriculture Industry Prospective:

The global IoT in agriculture market size was worth around USD 15.42 billion in 2024 and is predicted to grow to around USD 48.34 billion by 2034, with a compound annual growth rate (CAGR) of roughly 12.10% between 2025 and 2034.

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IoT In Agriculture Market: Overview

Internet of Things (IoT) in agriculture involves the use of next-generation technologies to improve agricultural activities. It is also known as smart farming, leveraging smart sensors and other connected technologies to deliver higher-quality crop yields. Smart farming uses modern engineering solutions to gather critical information regarding the environment, crop requirements, and other parameters, enabling informed decisions related to agriculture. Smart farming has found applications in livestock management, aquaculture, forestry, and crop farming. Some of the critical uses of IoT in agriculture include crop management, greenhouse automation, monitoring climate change, precision farming, and cattle management & monitoring.

During the forecast period, demand for IoT in agriculture is projected to reach new growth heights driven by the increasing impact of climate change on crop yields. Moreover, rising awareness and improved support from governments and state officials encourage the use of agriculture-based technologies, which will escalate the market growth rate. A key growth barrier for industry leaders may emerge in the form of the high cost of technology and resistance toward change in farming techniques.

Key Insights:

• As per the analysis shared by our research analyst, the global IoT in agriculture market is estimated to grow annually at a CAGR of around 12.10% over the forecast period (2025-2034)
• In terms of revenue, the global IoT in agriculture market size was valued at around USD 15.42 billion in 2024 and is projected to reach USD 48.34 billion by 2034.
• The IoT in agriculture market is projected to grow at a significant rate due to the growing impact of changing environmental and climate conditions.
• Based on the hardware type, the precision farming hardware segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the farm production planning stage, the production planning segment is anticipated to command the largest market share.
• Based on region, Europe is projected to dominate the global market during the forecast period.

IoT In Agriculture Market: Growth Drivers

Growing impact of changing environmental and climate conditions to drive market revenue

The global IoT in agriculture market is projected to be driven by the rising impact of changing environmental and climate conditions on crop yield and quality. According to a recent study by the National Aeronautics and Space Administration (NASA), climate change is expected to affect wheat and maize production as early as 2030. Furthermore, industry research indicates that India lost more than 4.9 million hectares of crops in 2021 due to sudden climate changes.

Similar statistics have been reported across the globe in the last few years. Changing environmental conditions, including soil quality, temperature, humidity, and other factors, pose risks to crop quality and production. As per official data published by the Food and Agriculture Organization (FAO), more than 80% of agricultural soils contain harmful pesticide residues. It not only impacts the quality of the crop but also poses a serious threat to the biological ecosystem.

Farmers and agricultural landowners are actively seeking solutions to mitigate the impact of climate change and the deterioration of environmental factors. Internet of Things technologies can prove beneficial to farmers in predicting climate change and changing their agricultural strategy.

Cattle management and monitoring to propel the market expansion rate in the coming years

IoT for agriculture has shown effective applications in cattle monitoring and management. IoT sensors, predictive analysis tools, and other technologies are increasingly being applied to monitor the overall health of livestock, especially on farms with a higher number of animals.

Furthermore, IoT tools are used for monitoring humidity, air quality, and other parameters in livestock shelters to improve their living conditions. The technological solutions promote data-driven decision-making among livestock owners, allowing them to detect any anomaly in animal behavior, feed, and overall well-being. The global IoT in agriculture market is expected to gain more revenue as applications in livestock management continue to grow.

IoT In Agriculture Market: Restraints

High cost of equipment and infrastructure development will impact market revenue

The global IoT in agriculture industry is projected to be restricted by the high cost of the devices. For instance, the average cost of an IoT soil water content monitoring device can range between USD 50 and USD 200, depending on the features offered. Similarly, other devices can be more expensive. The cost associated with infrastructure development for smooth operation and integration of advanced IoT technologies may also impact industry revenue.

IoT In Agriculture Market: Opportunities

Continuous technological innovation in the market generates growth opportunities for market players

The global IoT in agriculture market is expected to generate growth opportunities due to the surging rate of technological innovation in the industry. In March 2025, Lauritz Knudsen Electrical and Automation, a leading IoT-based solutions provider, announced the launch of a new range of Internet of Things solutions for the Indian agricultural sector. During the development of novel solutions, the company has focused on the efficiency and sustainability of the equipment.

According to official reports, the new range of IoT devices is expected to reduce water consumption by 30% and increase overall yield by 20%. SMARTCOMM Irrigation Management System (IMS) is the latest offering, and it allows farmers to remotely monitor and control their farming lands.

In May 2025, TIM Group, under which major IoT firm Olivetti operates, launched a new digital tool called Smartbio Pragas, developed by SmartBreeder. The solution leverages Artificial Intelligence (AI), IoT devices, and data mining to help field managers make informed and data-backed decisions. The platform will deliver integrated information collected from weather stations and agricultural Enterprise Resource Planning (ERP) to deliver its key functions.

IoT In Agriculture Market: Challenges

Resistance among crop cultivators against technology adoption to challenge market growth

The global IoT in agriculture market is expected to be challenged by the increasing reports of resistance among crop cultivators against the adoption of technologies. A lack of sufficient knowledge about the advantages of IoT and its usage may increase resistance among potential end-users of IoT in agriculture. Such incidents are expected to be more common in underdeveloped or emerging nations.

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IoT In Agriculture Market: Report Scope

IoT In Agriculture Market: Segmentation

The global IoT in agriculture market is segmented based on hardware type, farm type, farm production planning stage, and region.

Based on the hardware type, the global market segments are smart greenhouse hardware, precision aquaculture hardware, precision farming hardware, precision forestry hardware, precision livestock hardware, and others. In 2024, the highest revenue was generated by the precision farming hardware segment. The rising investments in updating infrastructure supporting precision farming will aid segmental expansion. According to industry research, efficient use of precision farming solutions can improve crop yield by 30%.

Based on farm type, the global IoT in agriculture industry is divided into large farms, mid-scale farms, and small farms.

Based on the farm production planning stage, the global market is segmented into post-production planning, production planning, and pre-production planning. In 2024, the highest revenue was generated by the production planning stage. It involves the real-time use of IoT in the field to assess weather conditions, monitor livestock health, and automate irrigation systems. The use of IoT in the planning stage can reduce pesticide applications by 25,000 to 30,000 tons.

IoT In Agriculture Market: Regional Analysis

Europe to lead the market growth trends during the forecast period

The global IoT in agriculture market is expected to be led by Europe during the forecast period. Countries such as Germany, the Netherlands, France, and Spain are home to some of the strongest agricultural infrastructures. In 2023, Artificial Intelligence in the Netherlands’ agricultural industry was valued at over USD 100 million and is expected to deliver more revenue during the forecast period. The regional governments are encouraging higher adoption of IoT in the agricultural sector to generate improved crop yields.

In May 2025, Rootcode, a leading software product engineering company, announced a strategic partnership with the City of Porto in Portugal. The new collaboration aims to develop AI-powered solutions for the faster implementation of smart farming in the region.

Furthermore, Europe is expected to register a CAGR of nearly 29% in the Data-as-a-Service (DaaS) sector as sustainability measures in the region’s agricultural sector are on the rise. Increasing the use of sensor-equipped drones and interconnected IoT devices to monitor crop health and farm conditions will further encourage regional market expansion. The adoption of IoT in livestock management across European nations will be critical to the region’s final revenue by the end of the projection period.

IoT In Agriculture Market: Competitive Analysis

The global IoT in agriculture market is led by players like:

• Raven Industries
• John Deere
• Topcon Positioning Systems
• CropX
• eFishery
• Teralytic
• AGCO Corporation
• Farmers Edge
• Eruvaka Technologies
• Stellapps
• AG Leader Technology
• Dryad Networks
• Trimble Inc.
• Climate Corporation (a subsidiary of Bayer)
• Afimilk Ltd.

The global IoT in agriculture market is segmented as follows:

By Hardware Type

• Smart Greenhouse Hardware
• Precision Aquaculture Hardware
• Precision Farming Hardware
• Precision Forestry Hardware
• Precision Livestock Hardware
• Others

By Farm type

• Large Farms
• Mid-Scale Farms
• Small Farms

By Farm Production Planning Stage

• Post-Production Planning
• Production Planning
• Pre-Production Planning

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa