AI in Precision Agriculture Market Size, Share, Analysis, Trends, Growth, Forecasts, 2032

AI in Precision Agriculture Industry Prospective:

The global AI in precision agriculture market size was evaluated at $1.64 billion in 2023 and is slated to hit $11.14 billion by the end of 2032 with a CAGR of nearly 21% between 2024 and 2032.

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AI in Precision Agriculture Market: Overview

Artificial intelligence has brought a paradigm shift in precision farming activities for increasing the efficiency of farming operations. Currently, AI offers new solutions in agriculture for improving output and sustenance in farming. Moreover, an increase in the use of AI in precision farming activities such as crop monitoring, autonomous equipment, predictive analytics, supply chain activities, and soil health activities to embellish the expansion of the market globally.         

Key Insights

• As per the analysis shared by our research analyst, the global AI in precision agriculture market is projected to expand annually at the annual growth rate of around 21% over the forecast timespan (2024-2032)
• In terms of revenue, the global AI in precision agriculture market size was evaluated at nearly $1.64 billion in 2023 and is expected to reach $11.14 billion by 2032.
• The global AI in precision agriculture market is anticipated to grow rapidly over the forecast timespan owing to supportive government policies and a surge in the allocation of funds in research activities related to AI usage in precision farming activities.
• In terms of technology, the machine learning segment is slated to register the highest CAGR over the forecast period.
• Based on offering, the software segment is predicted to contribute majorly towards the global industry growth in the upcoming years.
• Based on application, the precision farming segment is predicted to lead the segmental landscape in the forecasting timeline.
• Region-wise, the European AI in precision agriculture industry is projected to register the fastest CAGR during the projected timespan.

AI in Precision Agriculture Market: Growth Factors

Escalating food demand globally to boost the growth of the market surge over the forecast period

Huge food demand for the rising population globally along with climatic changes will favorably impact the expansion of the global AI in precision agriculture market in the coming years. Furthermore, escalating prices of pesticides and fertilizers are projected to translate into humungous demand for AI in precision farming activities. Supportive government policies and a surge in the allocation of funds to research activities related to AI usage in precision farming activities will prop up the global market expansion. Growing consciousness about sustainable farming activities is anticipated to spur the growth of the market across the globe. Low availability of labor can prop up the global market expansion.

AI in Precision Agriculture Market: Restraints

Immense preliminary prices can obstruct the market expansion over forthcoming years

Huge initial investment costs including costs of using new technologies along with the need for upgrading web connection & power supplies will obstruct the expansion of the AI in precision agriculture industry. Growing data privacy concerns and cyber-security risks can put brakes on the global industry surge in the coming years.

AI in Precision Agriculture Market: Opportunities

Escalating demand for minimizing fertilizer waste to open new growth avenues for the global market  

The growing need to reduce fertilizer and water wastage and provide them in appropriate quantities to increase crop quality and yield will open new growth avenues for the global AI in precision agriculture market. Moreover, the need to increase farmer earnings will steer the penetration of AI in precision farming activities in the coming decade.

AI in Precision Agriculture Market: Challenges

Less access to experts can challenge the expansion of the industry globally over 2024-2032

Lack of availability of skilled personnel and strict laws governing the use of AI in precision agricultural activities are likely to challenge the expansion of global AI in precision agriculture industry. Complexities involved in the implementation of laws monitoring the use of AI in farming activities can restrict the growth of the industry across the globe.

AI in Precision Agriculture Market: Segmentation

The global AI in precision agriculture market is divided into technology, offering, application, and region.                                          

In terms of technology, AI in precision agriculture market across the globe is segmented into machine learning, deep learning, predictive analytics, and computer vision segments. Apparently, the machine learning segment, which accumulated nearly 60% of the global market share in 2023, is anticipated to register the fastest annual growth rate during the next few years as a result of its ability in assessing a huge proportion of farming data, valuable insights, and aiding the decision-making process for farmers.

Based on the offering, the global AI in precision agriculture industry is segmented into hardware, services, software, and AI-as-a-service segments. Apparently, the software segment, which dominated the global industry share in 2023, is predicted to account markedly toward the expansion of the industry globally in the ensuing years. This can be due to a surge in the use of software in data processing, analytics, and effective farming operations.  

On the basis of application, the global AI in precision agriculture market is bifurcated into drone analytics, precision farming, weather tracking, field mapping, livestock farming, yield & soil monitoring, agriculture robots, and crop scouting segments. Moreover, the precision farming segment, which led the segmental expansion in 2023, is projected to contribute notably towards the segmental space in the ensuing years. The growth of the segment can be credited to the use of AI in precision farming activities for improving the use of resources such as pesticides, water, and fertilizers.

AI in Precision Agriculture Market: Report Scope

AI in Precision Agriculture Market: Regional Insights

North America is forecast to maintain leadership status in the global market over the stipulated timeline

North America, which contributed about half of the global AI in precision agriculture market share in 2023, is expected to establish a number one position in the global market in the coming few years. In addition to this, the regional market upsurge in the coming eight years can be credited to technological breakthroughs, investment in automation activities, and large-scale focus of the government in AI use in farming activities. Furthermore, the need for taking huge crop yields and improving resource allocation will prop up the regional market demand. Presence of key firms in the AI business will steer the expansion of the market in the region.

The European AI in precision agriculture industry is slated to register the highest gains annually in the coming eight years. The expansion of the industry in the European zone can be subject to a rise in the use of new systems such as machine learning, IoT, and computer vision in farming activities in various European countries. Escalating demand for food security and focusing on research activities will proliferate the expansion of the industry in Europe.  

AI in Precision Agriculture Market: Competitive Space

The global AI in precision agriculture market profiles key players such as:

• IBM Corporation
• AgEagle Aerial Systems Inc.
• John Deere
• Microsoft Corporation
• Raven Industries Inc.
• The Climate Corporation
• Granular Inc.
• AGCO Corporation
• Descartes Labs Inc.
• Gamaya SA.

The global AI in precision agriculture market is segmented as follows:

By Technology

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

By Offering

• Hardware
• Services
• Software
• AI-as-a-Service

By Application

• Drone Analytics
• Precision Farming
• Weather Tracking
• Field Mapping
• Livestock Farming
• Yield & Soil Monitoring
• Agriculture Robots
• Crop Scouting

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