AI in Agriculture Market Size, Share, Growth Insights and Forecast (2024-2031)

AI in Agriculture Market Size

Global AI in Agriculture Market reached US$ 1.7 billion in 2023 and is expected to reach US$ 8.97 billion by 2031, growing with a CAGR of 23.1% during the forecast period 2024-2031.

Increasing demand for precision farming techniques, which optimize resource use and enhance crop productivity, rising global food demand due to population growth, and the need for sustainable farming practices to address climate change and resource scarcity are propelling AI in the agriculture market.  Advancements in machine learning, IoT, and data analytics enable real-time monitoring, predictive analytics, and automated decision-making, boosting productivity and reducing costs. The integration of AI with drones and robotics enhances soil analysis, crop monitoring, and pest control. 

In April 2024, DJI, a global leader in civilian drones, launched the Agras T50 and T25 drones globally, catering to large-scale and small-scale farming needs. Both models integrate with the enhanced SmartFarm app for improved aerial crop management. Yuan Zhang, DJI Agriculture’s Head of Global Sales, emphasized their role in advancing precision agriculture with proven solutions for crop protection. DJI Agriculture drones have treated over 980 million acres in more than 100 countries, helping farmers boost yields, reduce costs, and minimize environmental impact. 

AI significantly contributes to agriculture in India, with around 1,000 agri-tech startups collaborating with the government as of March 2022. Initiatives like the National Agriculture Market (eNAM) and the National Sustainable Agriculture Mission leverage sustainable technologies to enhance agricultural productivity. The National e-Governance Plan prioritizes advanced technologies such as AI, blockchain, drones, and machine learning, enabling farmers to adopt GPS, GIS, and satellite imagery for precision farming. These tools improve irrigation, crop monitoring, and overall efficiency in the agricultural system.

Market Scope

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Market Dynamics

Technological Advancements

Technological advancements are significantly driving AI in the agricultural market by enhancing efficiency, precision, and sustainability. AI-powered systems enable farmers to monitor crop health, predict weather patterns, and optimize irrigation using real-time data. In April 2024, Cropin Technology launched 'Aksara,' a generative AI system for climate-smart agriculture, designed to help farmers optimize crop production under specific agro-climatic conditions. 

This open-source Micro Language Model (µ-LM), built on Mistral's foundation model, provides climate-smart agri-advisories and input recommendations for crops like rice and maize. Aksara aims to empower underserved farming communities in the Global South by overcoming knowledge barriers and enabling scalable, frugal AI solutions for the agriculture sector.

The growing food demand due to population expansion, urbanization, and changing dietary preferences is driving the need for more efficient agricultural practices. According to FAO, feeding a global population of 9.1 billion by 2050 necessitates a 70% increase in overall food production from 2005/07 levels, with nearly a 100% increase required in developing countries. This increasing demand is accelerating the adoption of AI in agriculture. By leveraging AI, farmers can meet the rising demand while addressing challenges such as climate change and resource scarcity. 

Government and Corporate Support

Government and corporate support play a pivotal role in driving the AI in agriculture market by fostering innovation, adoption, and scalability. Governments worldwide are introducing subsidies, grants, and policies to encourage the integration of AI in farming practices, addressing issues like food security and sustainable agriculture. Investments in research and development (R&D) are being directed toward creating AI-powered solutions tailored to regional agricultural needs. 
The AI-ENGAGE Initiative, a collaborative effort celebrated at the Quad Leaders Summit hosted by President Joseph Biden on September 21, 2024, in Wilmington, Delaware, unites the U.S. National Science Foundation, Japan Science and Technology Agency (JST), Indian Council of Agricultural Research (ICAR), and Australia's CSIRO. This partnership aims to enhance research collaboration among the Quad countries—U.S., Japan, India, and Australia—to advance critical technologies in agriculture. By fostering innovation, AI-ENGAGE seeks to create a significant positive impact on the people and economies of the Indo-Pacific region.

 Corporate entities are actively partnering with farmers and startups to develop and deploy AI technologies, ensuring improved efficiency and productivity. In 2024, Google launched initiatives to boost AI development in India, including training 10,000 startups through a partnership with MeitY Startup Hub. In agriculture, Google introduced the Agricultural Landscape Understanding (ALU) Research API, which uses AI and remote sensing technologies to provide data-driven insights at the farm field level. This aims to enhance farming efficiency and decision-making. 

High Initial Investment

High initial investment is a significant restraint for the AI in agriculture market, as the implementation of AI technologies requires substantial upfront costs. Farmers, especially those in small and medium-scale operations, face challenges in affording the technology, which includes purchasing advanced sensors, drones, software, and computing infrastructure. Additionally, the integration of AI systems with existing farming practices demands investments in training and upskilling workers to operate and maintain these systems. 

The high costs of installation, maintenance, and data management further discourage adoption. For farmers in developing regions or low-income areas, this financial barrier can prevent access to AI innovations. Furthermore, the return on investment (ROI) from AI may not be immediate, creating uncertainty about long-term profitability. This makes it harder for agricultural stakeholders to justify such investments, slowing down the overall adoption rate of AI in the sector.

Market Segment Analysis

The global AI in agriculture market is segmented based on deployment, technology, offering, application, farm size end-user, and region.

Rising Demand For  Advanced Tools for Data Analysis, Decision-Making, and Automation

Software holds a significant share in the AI in agriculture market due to its essential role in enabling precision farming, crop management, and farm optimization. AI-powered software applications provide farmers with real-time data, predictive analytics, and decision-making tools, helping optimize resource usage, improve yields, and reduce costs. These platforms integrate various technologies like machine learning, computer vision, and data analytics to monitor crop health, soil conditions, and weather patterns. 

Drones equipped with AI sensors capture high-resolution images for precise crop analysis, pest detection, and irrigation management. Hence, companies are responding to the growing demand for AI in agriculture by offering various software solutions designed to cater to different applications. For instance, in March 2023, Passenger Drone Research Private Limited, launched AeroGCS Green, an indigenous software for drones in agriculture. The software enables farmers to map fields, avoid unnecessary spraying, and specify pesticide quantities. This type of innovation is driving the market’s expansion, promoting the adoption of smart farming technologies.

Market Geographical Share

Asia-Pacific's Large Agricultural Base, Increasing Adoption of Advanced Technologies, and Government Initiatives 

Asia-Pacific holds a significant share in the AI in agriculture market due to its large agricultural sector and rapid technology adoption. The region's vast farmland, especially in countries like China, India, and Japan, drives the need for efficient farming solutions to increase crop yields and sustainability. AI technologies, including machine learning, computer vision, and data analytics, are being utilized to optimize farming practices such as precision farming, crop monitoring, and pest management.

Government initiatives, smart agriculture investments, and awareness of AI's benefits further accelerate market growth. For instance in India, on August 15, 2024, the Union Government launched the AI-based National Pest Surveillance System (NPSS) to help farmers connect with agriculture scientists for pest management. Agriculture Minister Shivraj Singh Chouhan emphasized that the initiative aims to reduce farmers' reliance on pesticide retailers and promote a scientific approach to pest control. NPSS will use AI tools to analyze pest data and assist in effective management. 

Similarly in Japan, in March 2024, NEC and Sumitomo Corp. partnered to launch an agricultural support service using artificial intelligence to analyze data, improve crop yields, and optimize resource usage in response to extreme weather events caused by climate change. 

 Additionally, the region's expanding tech infrastructure and increasing demand for automation contribute to AI adoption. Rising labor costs and the need for sustainable farming practices also push farmers toward AI-driven solutions. The availability of AI-powered tools, like drones and robots, supports operational efficiency in farming.

Sustainability Analysis

The AI in agriculture market is increasingly seen as a sustainable solution to address challenges like food security, climate change, and resource management. AI technologies help optimize crop yields, reduce water usage, and minimize the need for pesticides by using precision agriculture tools.  Integrating AI in agriculture can cut water usage by 25% through smart irrigation systems. This technology optimizes water distribution based on real-time data, reducing waste and promoting efficiency.

As AI adoption grows, its ability to improve sustainability through smarter farming techniques is expected to support global food production while mitigating negative environmental impacts.  Using computer vision, weeding robotics achieve high precision, leading to a 90% reduction in pesticide usage. This technology targets weeds directly, minimizing chemical use and promoting more sustainable farming practices.

Major Global Players

The major global players in the market include Microsoft, IBM, Granular Inc., AgEagle Aerial Systems Inc., Google LLC, Deere & Company, Cropin Technology Solutions Private Limited, Bayer AG, KissanAI, and Niqo Robotics.

Market Segmentation

By Deployment

• Cloud
• On-Premise

By Technology

• Machine Learning
• Predictive Analytics
• Computer Vision
• Others

By Offering

• Software
• Hardware
• Service

By Application

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

By Farm Size

• Small (Less Than 5 Hectare)
• Medium (5 -10 Hectare)
• Large (Above 10 Hectare)

By End-User

• Farmers
• Agribusinesses
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In September 2024, Niqo Robotics, a leader in AI-powered agricultural technology, expanded into North America with the launch of the Niqo RoboThinner. This innovative spot-sprayer automates lettuce thinning, providing farmers with a precise and efficient solution to enhance crop uniformity.
• In July 2024, Taranis, a global leader in crop intelligence, unveiled its groundbreaking Ag Assistant, an AI-powered tool designed for agriculture retailers and producers. The Ag Assistant integrates data from images, text, and audio, offering advanced insights through a deep understanding of agronomy. This innovative technology marks a significant leap in AI-driven solutions for the agricultural sector.
• In July 2024, India-based Cropin Technology launched Sage, the world’s first real-time agri-intelligence solution powered by Google Gemini. Sage transforms global agricultural data into a proprietary grid-based map, offering insights at various scales, from 3x3 meters to 5x5 kilometers. The platform empowers stakeholders across the agriculture sector to make data-driven decisions on cultivation, climate, and more, helping businesses future-proof their production and supply chains.

Why Purchase the Report?

• To visualize the global AI in agriculture market segmentation based on deployment, technology, offering, application, farm size,  end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of AI in agriculture market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global AI in agriculture market report would provide approximately 86 tables, 85 figures and 210 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies