Artificial Intelligence In Agriculture Market Report

Market Insights

"The global artificial intelligence in agriculture market is expected to grow from USD 1.32 billion in 2022 to USD 4.79 billion by 2029 at a CAGR of 20.2% during the forecast period."

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The utilization of artificial intelligence (AI) in agriculture is transforming farming methods and providing creative ways to improve resource management, sustainability, and productivity. This rapidly growing industry uses modern innovations like computer vision, machine learning, and predictive analytics to tackle major issues with food security and production. Precision farming, automated machinery, predictive yield modeling, smart irrigation systems, and crop and soil monitoring are just a few of the many applications of AI in agriculture.

Market Trends for Artificial Intelligence in Agriculture:

1. Increased adoption of precision farming techniques
2. Integration of AI with IoT devices for real-time data collection
3. Machine learning for crop yield prediction and optimization
4. AI-powered drones for crop monitoring and spraying
5. Automated farm equipment and robotics
6. Smart irrigation systems using AI algorithms
7. AI-driven pest and disease detection
8. The rise of "digital twins" in agriculture, creating virtual representations of farms for simulation and optimization.

Market Dynamics

Increasing need for real-time data by growers to take preventive measures

The market for AI in agriculture is being driven by the increase in agricultural activities and the growing demand for real-time data. The availability of real-time data from agricultural farms enables prompt decision-making regarding preventive measures. To gather data on soil moisture and nutrient levels across their fields, farmers from North America, South America, and Europe are utilizing sensors, drones, guidance technologies, and soil sampling techniques.

High-tech tools for data collection and analysis are becoming increasingly popular among farmers and growers in the US, Canada, Brazil, and most Western European countries. Among these tools, drone-enabled scouting is one of the most convenient methods for collecting farm data.

Government programs encouraging the adoption of AI solutions to manage small farms

Currently, there are more than 570 million farms globally, and the majority with 95% are smallholder farms with less than 5 hectares of land. AI solutions are primarily being adopted on farms of 100 hectares or more of land probably because the costs involved in the adoption of such solutions are very high at the initial stage. Small-scale farmers may not be able to afford expensive technologies such as AI, but those who own large tracts of land extending to over 100 hectares can afford to use the AI technology on their farms as well as in other activities.

However, due to the fact that governments of various countries emphasize the utilization of artificial intelligence for agricultural goals and offer help to farmers who own small farms, there is a chance for solution providers to concentrate on farmers with a land area of not more than 5 hectares. For instance, in the USA, the Department of Agriculture presents programs that offer small and medium producers with competence to avail easy loans and also increase their technical skills to help out in employing the right technology in farming.

Segment Analysis

Technology Insights

"Machine learning enabled AI in agriculture accounted for the largest market share."

Agricultural organizations and farmers worldwide are increasingly adopting machine learning-enabled solutions to enhance farm productivity and gain a competitive edge in their business operations. The major driving factors for the growth of the AI in agriculture market include technological advancements and the proliferation of farm data generation. With the use of machine learning, farmers can capture various factors such as soil quality, seed quality, fertilizer application, environmental variables, and irrigation to optimize their agricultural processes.

"The market for computer vision technology-based AI products is to grow at the highest CAGR over the forecasted period."

The AI in agriculture market has been segmented based on technology into machine learning, computer vision, and predictive analytics. The market for computer vision technology-based AI products is expected to grow at the highest CAGR during the forecast period.

This high growth rate is attributed to the rising need for continuous monitoring and analysis of crop health and the increasing use of computer vision technology in agricultural applications, such as sorting produce according to weight, color, size, and ripeness, and identifying defects in agricultural produce.

Offering Insights

"AI in the agriculture market for the software segment will account for the largest market share during the forecast period."

The AI in agriculture market has been segmented based on offerings into hardware, software, AI-as-a-service, and service. The software segment is expected to hold the largest market share throughout the forecast period. This is because the software integrated into a computer system is responsible for carrying out complex operations. It synthesizes the data received from the hardware and processes it in the AI system to generate an intelligent response.

Moreover, the software segment is further segmented into AI platform and AI solution. In an AI platform, data is combined with a decision-making algorithm to enable developers to create a business solution.

Application Insights

"Precision farming application of AI in agriculture will account for a significant share over the forecast period."

This segment is expected to continue to hold the second-largest market share in the coming years due to the high adoption rate of AI technologies for precision farming applications. Precision farming and automation in food production are critical priorities for food growers in the current situation, and AI is fueling these gains.

Regional Trends

"North America is expected to hold the largest share of the market during the forecast period."

North America held the largest market share during the forecast period in the AI in agriculture market. The market in this region has been segmented into the US, Canada, and Mexico. Large-scale agriculture players in North America are already using AI technology to significantly improve the speed and accuracy of their planting and crop management techniques. The demand for advanced agricultural solutions is expected to drive the growth of the AI in agriculture market in this region.

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Key Players

The major players operating in the global artificial intelligence in agriculture market are:

• Microsoft
• IBM
• Deere & Company
• Farmers Edge Inc.
• The Climate Corporation
• Ageagle Aerial Systems Inc.
• Granular Inc.
• Descartes Labs, Inc.
• Prospera Technologies, Inc.
• Cropin Technology Solutions Private Limited
• Taranis
• Gamaya
• EC2CE
• Precision Hawk
• Vineview
• Ever.Ag
• Tule Technologies
• Resson Aerospace Inc.
• Connecterra B.V.
• Vision Robotics Corporation
• Farmbot
• Harvest Croo Robotics Llc
• Progressive Environmental & Agricultural Technologies (Peat)
• Trace Genomics
• Cropx Inc.

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

What deliverables will you get in this report?

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s artificial intelligence in agriculture market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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Recent News & Developments

• In January 2023, Taranis, an AI-powered crop intelligence solution provider, launched AcreForward, a new offering to help agriculture retailers drive more value from every acre. It delivers unprecedented leaf-level insights into growers' crops at higher frequency throughout the season and extracts opportunities in every acre that includes new insights into soil health and carbon sequestration.
• In June 2022, Cropin launched a purpose-built industry cloud for agriculture, namely, Cropin Cloud. Cropin Cloud aims to advance technology to solve critical planet-scale challenges such as climate-resilient agriculture, food security, and reducing the environmental impact of farming.
• In March 2022, Sway AI, a No-code artificial intelligence (AI) applications provider, partnered with Trilogy Networks, an edge computing innovator, to bring AI and edge innovation to precision farming.