Agriculture AI Market Growth, Size, Share, Trends, and Forecast 2030

Agriculture AI Industry Prospective:

The global Agriculture AI market size was worth around USD 1.4 billion in 2022 and is predicted to grow to around USD 7.1 billion by 2030 with a compound annual growth rate (CAGR) of roughly 22.5% between 2023 and 2030.

Request Free Sample

Agriculture AI Market: Overview

Artificial intelligence is the science and engineering of creating intelligent computer systems capable of replicating or exhibiting human-like intelligence (natural intelligence) and directly executing tasks such as analyzing and making judgments and decisions without human intervention. Artificial intelligence may be found in digital speech assistants in our smartphones or smart speakers, customer service chatbots, and industrial robots. Rising globalization and increased use of new sophisticated agriculture technology will emerge as important market growth driving factors. Growing demand for high-quality agricultural produce, supporting government policies and measures to encourage advanced farming tools and practices, and broad industrialization will exacerbate market value even more. Increased spending on research and development capabilities, as well as increased use of drones in agricultural fields, will pave the path for market expansion.

Key Insights

• As per the analysis shared by our research analyst, the global Agriculture AI market is estimated to grow annually at a CAGR of around 22.5% over the forecast period (2023-2030).
• In terms of revenue, the global Agriculture AI market size was valued at around USD 1.4 billion in 2022 and is projected to reach USD 7.1 billion, by 2030.
• The growing collaboration is expected to propel the agriculture AI industry over the forecast period.
• Based on the component, the software segment is expected to capture a significant market share over the forecast period.
• Based on the technology, the Predictive Analytics segment is expected to dominate the market over the projected period.
• Based on region, North America is expected to dominate the market during the forecast period.

Request Free Sample

Agriculture AI Market: Growth Drivers

Increasing robots’ application in agriculture drives market growth

An important trend in the industry is the increasing application of robots in agriculture. As technology is being used in agriculture more and more, farming methods are becoming more sophisticated and advanced. Due to factors including the growing global population, a shortage of farm workers, and the automation of the agricultural industry, the use of agricultural robots is growing on a global scale. Agribusiness stakeholders are also primarily concerned with reducing their total carbon impact and increasing output productivity through creative agricultural methods. As a result, robotics companies are offering services that are compatible with artificial intelligence.

Agriculture AI Market: Restraints

Lack of knowledge hampers market growth

An extensive grasp of technology is required for one sort of farming known as precision agriculture. Nevertheless, there is a gap between the understanding and application of precision farming concepts due to a lack of knowledge regarding the use of cutting-edge technologies. A significant number of farmers are still unreachable even though governments and market partners across the world are working on initiatives to offer farmers training and consulting services on precision farming practices. The lack of technical proficiency among farmers in emerging nations is a significant barrier for Agriculture AI market participants.

Agriculture AI Market: Opportunities

Growing collaboration provides a lucrative opportunity for market growth

The growing collaboration is expected to provide a lucrative opportunity for the agriculture AI industry over the projected period. For instance, in December 2023, leading global professional services company Aon plc announced a novel partnership with Africa's top development finance organization, the African Development Bank (AfDB), and Amini, a pioneer in space technology and artificial intelligence (AI) to boost crop insurance capacity throughout Africa, bolster the resilience of smallholder farmers, and quicken the adoption of nature-positive practices. Additional expected benefits include new prospects for the extension of global agricultural value chains and a decrease in supply chain hazards for the food and beverage industry.

To support Aon's support of the Africa Climate Risk Insurance Facility for Adaptation of the African Development Bank, the partnership will make use of unique farm-level data generated by Amini. This will allow Aon to develop creative de-risking solutions and increase its capacity to evaluate and track the evolving risk environment throughout the continent. The data would then be used by farmers to make more educated decisions that would increase yield and resilience. Additionally, the partnership aims to support Aon clients in better managing the complex effects of climate risk, particularly those with broad supply chains or balance sheet exposure to agriculture.

Agriculture AI Market: Challenges

Technical complexity in the development of artificial intelligence poses a major challenge to market growth

Deep learning and other AI-based technologies need vast amounts of data to be analyzed in real time so that their knowledge base may be used to make decisions. This data is acquired through a tedious and maybe immoral approach. Additionally, smaller start-ups with an emphasis on artificial intelligence could have more technological know-how than big, global corporations like Google or Microsoft, but they might not have the resources to gather the required data. Instead of working on various tasks with a reprogrammable configuration, AI can execute and adapt effectively to every condition it may meet while doing a single pre-programmed function.

However, AI is currently unable to multitask. This is due to the inability of the present neural network system to manage several tasks at once. Therefore, further innovation is needed to improve its functionality. There are ongoing projects to create progressive neural networks, which will enable several deep learning systems to connect and communicate with one another to transfer new knowledge and avoid the need for reprogramming.

Agriculture AI Market: Segmentation

The Global Agriculture AI industry is segmented based on the component, technology, application, and region.

Based on the component, the global Agriculture AI market is bifurcated into Software, Hardware and Service. The software segment is expected to capture a significant market share over the forecast period. For the agriculture sector, major firms including IBM, Microsoft, and Deere & Company provide AI-based solutions. AI-based software uses computer vision and prediction-based analytics to increase crop output and productivity. Additionally, the software market is growing faster as predictive analytics-based software becomes more widely used. Notable examples of predictive analytics-driven software are IBM Corporation's Watson Decision Platform, Microsoft's AI Sowing App, and Deere & Company's See and Spray herbicide and pesticide distribution systems. Farmers can monitor agricultural productivity, identify crop diseases, choose the best times to plant crops and calculate how much land, fertilizer, water, and pesticides are needed with the use of artificial intelligence technologies. The benefits of AI-enabled software for prospective application domains like drone analytics and precision farming are what propel the software segment's expansion in the agricultural AI market.

Based on the technology, the global Agriculture AI industry is categorized into Predictive Analytics, Machine Learning & Deep Learning and Computer Vision. The Predictive Analytics segment is expected to dominate the market over the projected period. In precision agriculture, where data from sensors, satellites, and other sources is utilized to make informed choices on crop management, artificial intelligence (AI) and predictive analytics are frequently employed. This involves using real-time data to optimize pest management, fertilization, and irrigation.

Based on the application, the global Agriculture AI industry is segmented into Agriculture Robots, Precision Farming, Livestock Monitoring, Drone Analytics and Others.

Agriculture AI Market: Report Scope

Agriculture AI Market: Regional Analysis

North America is expected to dominate the Agriculture AI market during the forecast period

North America is expected to dominate the Agriculture AI industry during the forecast period. The market is anticipated to grow significantly in the coming years due to the agriculture sector's rising embrace of AI technology. The demand for greater production, the growing necessity for precise agricultural methods, and the accessibility of cutting-edge infrastructure are some of the factors driving market expansion. AI is being embraced by farmers and agricultural enterprises in North America to increase productivity, optimize resource allocation, and improve decision-making. Predictive analytics, automated farming systems, crop monitoring, remote sensing, precision agriculture, and automated farming are some of the AI applications used in the region's agriculture sector. These technologies assist farmers in lowering expenses, mitigating risks, increasing yields, and making data-driven decisions.

Furthermore, North American governments are putting supporting laws and efforts into place as a result of their recognition of AI's promise in agriculture. Regulatory frameworks, financing initiatives, and research grants are a few of these that support AI innovation and implementation in the agriculture industry. Such programs support the development of resilient and sustainable agriculture practices while creating an atmosphere that is favorable to the expansion of the AI market. The United States and the European Union formed a partnership in January 2023 to apply artificial intelligence (AI) to enhance emergency response, agriculture, climate forecasting, and the electric grid. The executive branch of the 27-member European Union, the White House, and the European Commission are now cooperating.

Agriculture AI Market: Competitive Analysis

The global Agriculture AI market is dominated by players like:

• The Climate Corporation
• IBM Corporation
• Microsoft
• AgEagle Aerial Systems Inc.
• Deere & Company
• Granular Inc.
• Descartes Labs Inc.
• aWhere Inc.
• Prospera Technologies
• Taranis
• GAMAYA
• PrecisionHawk
• ec2ce
• VineView
• Tule Technologies Inc.

The global Agriculture AI market is segmented as follows:

By Component

• Software
• Hardware
• Service

By Technology

• Predictive Analytics
• Machine Learning & Deep Learning
• Computer Vision

By Application

• Agriculture Robots
• Precision Farming
• Livestock Monitoring
• Drone Analytics
• Others

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