AI in Agriculture Market: Growth, Trends & Forecasts

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Artificial Intelligence in Agriculture 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."

Artificial Intelligence in Agriculture Market Size & Forecast

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Introduction

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.

Artificial Intelligence in Agriculture Market Trends:

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

Artificial Intelligence in Agriculture Market Dynamics

Artificial intelligence in agriculture market drivers:

Increasing population and food demand – The growth in the population leads to rise in the demand for food production. According to UNO, the global population will increase from 8 billion people to around 9.7 billion by 2050’s and could peak at nearly 10.4 billion in the mid-2080s. AI technologies help farmers to maximize productivity and efficiency, making it easier to meet the demands.
Innovation in farming techniques – According to WEF, AI in agriculture market is projected to grow from $1.7 billion in 2023 to $4.7 billion by 2028. AI provides sophisticated analytics and prediction capabilities innovating the farming techniques, empowering farmers to maximize crop yields, predict the weather patterns, soil health and plant conditions from a large number of agricultural datasets.

Artificial intelligence in agriculture market challenges:

High implementation costs – The initial capital investment can significantly become a barrier to AI based agricultural practices as these AI applications needs costly hardware, software and infrastructure, which may be a restraint for some farmers.
Technical expertise – Another limitation is lack of awareness of technical skills. Skilled labour shortage is a barrier, with most farmers not having the technical skills required to operate AI technologies due to their complexity.
Data quality and availability – AI applications are dependent on data for training and learning. Absence of complete and accurate data hinders AI models to train properly, which can result in wrong predictions and weak decision-making. In agriculture, data is gathered through various sources like satellites, drones, and human input, which may result in noisy or incomplete data due to the environmental factors.

Artificial Intelligence in Agriculture Market Segments' Analysis

Technology Insights

"Machine learning segment accounted for the largest market share."

The market is segmented into Machine Learning, Computer Vision, Predictive Analytics. 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

"Software segment accounted for the largest market share."

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 segment accounted for the largest market share."

The market is segmented into Precision Farming, Livestock Monitoring, Drone Analytics, Agriculture Robots, Labor Management. Precision farming application of AI in agriculture will account for a significant share over the forecast period. Precision farming and automation in food production are critical priorities for food growers in the current situation, and AI is fueling these gains.

Regional Insights

"North America accounted for the largest market share."

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.

Artificial Intelligence in Agriculture Market by 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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Recent Developments of Artificial Intelligence in Agriculture Market

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.

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?

Key questions this report answers	Relevant contents in the report
How big is the sales opportunity?	In-depth analysis of the Artificial Intelligence in Agriculture Market
How lucrative is the future?	Market forecast and trend data and emerging trends
Which regions offer the best sales opportunities?	Global, regional and country level historical data and forecasts
Which are the most attractive market segments?	Market segment analysis and forecast
Which are the top players and their market positioning?	Competitive landscape analysis, Market share analysis
How complex is the business environment?	Porter’s five forces analysis, PEST analysis, Life cycle analysis
What are the factors affecting the market?	Drivers & challenges
Will I get the information on my specific requirement?	10% free customization

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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Frequently Asked Questions (FAQs)

What is artificial intelligence in agriculture?

AI in agriculture involves using advanced technologies and machine learning algorithms to improve the efficiency, productivity, and sustainability of agricultural practices. By collecting and analyzing data from sensors, drones, and satellites, AI can help farmers make informed decisions on planting, harvesting, and crop management. AI can also assist in predicting weather patterns and climate changes, reducing waste, and conserving natural resources.

What will be the size of the artificial intelligence in agriculture market?

The artificial intelligence in agriculture market size is estimated to grow from USD 1.32 billion in 2022 to USD 4.79 billion by 2029.

Who are the key players in the artificial intelligence in agriculture market?

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.