AI in Agriculture Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030
Page: 215 | Report Code: ICTM24121701 | Research Suite: Report (PDF) & Market Data (Excel)
The global market value of AI in agriculture market was valued at USD 2.1 billion in 2023, and a CAGR of 24.2% is expected during the forecast period. Increasing demand for better crop yield and precision agriculture are driving significant growth in the market. Growing focus on enhanced crop management and increasing use of drones for pesticide spraying are the key factors in the market. Increasing demand for enhancing productivity, sustainability, and efficiency is the key reason behind the introduction of Artificial Intelligence in Agriculture.
Growing demand for food security is also a concern, and limited arable land necessitates efficient farming practices. Automation fills the gap caused by a decline in agricultural labor availability. Soil and crop monitoring is done efficiently by using AI and IoT sensors. Data Analytics is efficiently done for better resource utilization. Increasing demand for AI powered drones for better crop health assessment is driving the demand for artificial intelligence in the market. AI-driven system is used to enhance food traceability, and reduce waste.
Growth Drivers
Increasing demand for better crop yield in an efficient
manner is the key factor behind the introduction and contribution of AI in
agriculture. Growing focus on enhancing productivity and sustainability is
another key reason behind the market growth. Growing adoption of advanced
farming technologies, including machine learning and computer vision, is
spurring growth of the AI in agriculture market. Increasing agricultural
activities and rising need for real-time data by farmers are driving market
growth significantly. Increasing demand for high-tech tools by farmers is one
of the driving factors for the market. Use of drones for pesticide spraying is
one of the important factors. Government schemes are encouraging the adoption
of AI to manage small farms.
Though the high cost of AI-enabled products and solutions is
one of the key reasons behind the slow growth rate in the market significantly.
AI ensures optimal use of water, fertilizers, and other resources, reducing
waste and increasing yields. AI-powered IoT devices provide actionable insights
from sensor data in real time. Increasing demand for the accurate prediction of
weather patterns, which are indirectly connected with agriculture, is done by
AI in an efficient manner.
Segmentation
By Technology
·
Machine Learning
·
Predictive Analysis
·
Computer Vision
By Offering
·
Hardware
·
Software
·
AI-as-a-Service
·
Service
By Application
·
Agriculture Robots
·
Livestock Monitoring
·
Drone Analytics
·
Labor Management
·
Others
Regional Outlook
·
Asia Pacific
·
North America
·
Latin America
·
Europe
·
Middle East and Africa
AI in Agriculture Market by Application
Segmentation
On the basis of the application the AI in agriculture Market is segmented into Precision Farming, Agriculture Robots, Livestock Monitoring, Drone Analytics, Labor Management, and Others. The leading segment is Precision Farming. It utilizes AI for soil analysis, weather forecasting, irrigation management, and yield prediction, making it versatile for various crops.
Precision
farming heavily incorporate IoT devices, sensors, machine learning, and big
data analytics. Robotics is growing particularly in developed regions for
harvesting, and weeding. AI in livestock management is crucial for animal
health, feed efficiency, and behavior. Despite of high potential, drone
adoption is often limited by regulatory hurdles and high upfront costs
AI in Agriculture Market by Technology
Segmentation
On the basis of the technology, the AI in agriculture market is segmented into machine learning, predictive analysis, and computer vision. Machine learning is the leading segment and is expected to dominate during the forecast period due to its ability to analyze large datasets. It helps in crop health monitoring and precision farming by optimizing resources, using water, and fertilizers.
By detecting patterns for yield prediction and pest outbreak
anticipation. Predictive analysis plays a critical role in risk mitigation as
well as strategic planning. It leverages historical and real-time data in weather
forecasting and market trends for better pricing and supply chain management.
Weather forecasts play a crucial role in agriculture. Technology has helped in
ensuring better crop yield, and it is the reason behind being technology
dependent in modern-era farming. Increasing demand for technology for soil
analysis, weather forecasting, and precision farming is driving the growth in
the market. AI has changed the dynamics of modern-era agriculture.
Regional Outlook
On the basis of the regions, the AI in agriculture market is segmented into 5 regions: North America, Asia Pacific, Latin America, Europe, and the Middle East and Africa. North America is the leading market in AI in agriculture due to robust infrastructure for AI research and development, with leading tech giants like IBM, Google, and Microsoft driving innovation in the agriculture sector. The region is benefitted from extensive adoption of IoT devices, drones, robotics, and big data analytics.
Farmers in the United States
and Canada have widely adopted precision agriculture techniques, leveraging AI
to optimize resource use and boost the product yield. AI systems track animal
health behavior in an efficient manner, and increasing use of AI by
self-driving tractors and harvesters for efficient operations reduces labor
dependency. John Deere and IBM integrate AI in machinery for smart farming.
Increasing demand for sustainable farming in the region is driving the farmers
to use AI tools in agriculture. Asia Pacific is another leading region with the
presence of emerging economies like India, China, South Korea, and Japan.
Rapidly growing population and increasing technological advancement are the key
factors driving the market growth.
High demand for food security and shrinking farmlands in the Asia-Pacific region are the key factors behind the AI-driven precision farming to maximize production. Initiatives like India’s digital agricultural mission and China’s AI-powered smart farming pilots encourage AI adoption in farming. AI and IoT solutions address water scarcity issues, especially in regions with erratic rainfall patterns. Aging population in countries like Japan and South Korea lead to the automation. Frequent droughts, floods, and unpredicted weather patterns accelerate the demand for AI based predictive analytics, and climate -resilient solutions. Growing competition among AI providers has made solutions more affordable, increasing accessibility for small and medium scaled farmers.
Key Players
·
John Deere and Company
·
Microsoft
·
IBM
·
Farmers Edge Inc.
·
AgEagle Aerial Systems Inc.
·
Descartes Labs, Inc.
·
The Climate Corporation
· Other Players