Market Size
Global Internet of Things (IoT) in Agriculture Market reached US$ 40.11 billion in 2025 and is expected to reach US$ 107.40 billion by 2033, growing with a CAGR of 13.1% during the forecast period 2026-2033.
The agriculture industry has been receiving immense attention in its continuous development due to increasing demand for agri-produce to meet the rising global demand. Producers are willing to adopt updated technologies to increase the yield. Among agritech submarkets, 21% of farmers have adopted farm-management software.
Following closely, 15% of farmers have utilized remote-sensing and precision agriculture hardware. Around 4% of farmers intended to adopt farm-management software, precision-agriculture hardware, remote-sensing solutions, or sustainability-related technologies, while 2.5% accounted for additional automation and robotics adoption.
North America dominates the global market with a greater contribution of agriculture in region growth gaining better attention in its development. The agriculture, food, and related industries played a significant role in contributing to United States' gross domestic product. These industries contributed approximately $1.530 trillion, equivalent to a 5.6% share of the GDP. The output of American farms, on the other hand, contributed $203.5 billion, making up around 0.7% of the total GDP.
Market Scope
| Metrics | Details |
| CAGR | 13.1% |
| Size Available for Years | 2026-2033 |
| Forecast Period | 2026-2033 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Component, Application and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Benefits Associated with IoT Technologies
IoT technologies are revolutionizing farming practices by providing real-time data and insights to optimize crop management, irrigation, fertilization and pest control. This allows farmers to make data-driven decisions and improve farming efficiency, minimizing resource wastage, maximizing crop yields, and reducing operational costs. IoT sensors, drones, and smart devices collect data on various aspects like soil moisture levels, crop health, and weather conditions.
Drone technology, smart irrigation systems and livestock monitoring sensors are widely used in precision farming. Precision agriculture with the help of IoT empowers farmers to become more efficient and sustainable, leading to increased food production, reduced environmental impact, and improved farm profitability. Remote monitoring and management along with crop health monitoring and disease detection provide a greater support system for the farmers in in their predictive analytics.
Increasing Demand for Food Traceability and Safety
Consumer demand for transparency and accountability in the food supply chain is driving the need for IoT solutions that enable traceability, monitoring and quality control throughout the agricultural value chain. IoT sensors can track food from farm to fork, allowing early detection of potential contamination issues and faster, more targeted product recalls.
IoT data can provide valuable insights into optimal storage conditions, weak links in the supply chain, and factors like temperature and humidity that affect food quality. By ensuring food safety and traceability, IoT in agriculture benefits consumers, farmers and retailers. Integration of IoT with blockchain can enhance traceability and consumer trust, increasing its adoption and utilization globally.
High Costs of Internet of Things in Agriculture
Adopting IoT technology in agriculture requires a significant upfront investment in hardware, sensors, connectivity infrastructure, software platforms and implementation services. However, for small-scale or resource-constrained farmers, the initial cost of IoT adoption can be a major hampering factor to adopt.
In addition, the ongoing costs associated with maintenance, data management, and others also add to the financial burden. The high cost of entry may discourage farmers from adopting IoT solutions, especially in regions with limited access to financing or government support programs. These cost considerations remain a significant obstacle to widespread IoT adoption in agriculture, hindering market growth and technology penetration.
Segment Analysis
The global internet of things (IoT) in the agriculture market is segmented based on type, component, application and region.
Enhanced Efficiency and Resource Optimization of Precision Agriculture
The global internet of things (IoT) in the agriculture market is segmented based on application into precision aquaculture, precision farming, precision livestock, precision forestry and others. The precision farming segment accounted for the largest share of the global market. The adoption of IoT solutions in precision agriculture techniques optimizes productivity, reduces input costs and improves operational efficiency.
Precision farming uses IoT technologies to collect data on soil conditions, crop health, and weather patterns to make informed decisions about planting, irrigation, fertilization, and pest management. By optimizing input use, it can lower production costs and increase profitability while promoting environmental sustainability. It's scalable, adaptable and data-driven, enabling farmers to monitor crop performance, mitigate risks and achieve better outcomes.
Geographical Penetration
Greater New Technology Adoption in North America
North America dominated global agriculture market. The regional countries including United States, Canada, and Mexico have a long history of agricultural innovation and are early adopters of new technology solutions. The region has many leading IoT technology companies, research institutions, and agricultural enterprises that drive advancements in precision agriculture and IoT solutions have a high degree of technology adoption like various automation, control & sensing systems and others.
According to Farmers’ Global Insights Survey, McKinsey, In North America about 61% of farm-management software most popular use-case., North America led in adopting global ag-tech with about 61% currently using or planning to adopt it in the next 2 years. The rising adoption of agricultural technology has contributed highest growth of the regional market.
Governments in North America, including United States and Canada, provide support and incentives to promote the adoption of IoT in agriculture. Financial assistance and loan programs from USDA support the adoption of precision agricultural technology. , The USDA and the National Science Foundation allocated nearly $200 million in funding towards precision agriculture research and development, with a focus on partnerships for AI research institutes.
Competitive Landscape
The major global players in the market include IBM Corporation, Groupe X-TELIA Inc., Arable, Fujitsu Limited, BASF SE, Murata Manufacturing Co., Ltd., Avanijal Agri Automation Pvt. Ltd, Cropin Technology Solutions Pvt Ltd, SAP SE and Semios.
Key Developments
March 2026: Lauritz Knudsen launched SMARTCOMM IoT irrigation system with mobile app control for precision water/fertilizer management based on soil and weather data. Achieves 20-30% resource savings and productivity gains across 120,000+ hectares globally. Solar-powered design supports sustainable scaling in diverse agricultural regions.
December 2025: ANBR highlighted 2026 precision ag trends integrating IoT sensors with AI analytics, drones, and robotic systems for optimized global farming. Enables climate-resilient yield improvements through data-driven resource allocation and predictive insights. Positions IoT infrastructure as foundational for next-gen agricultural transformation.
Why Purchase the Report?
- To visualize the global internet of things (IoT) in agriculture market segmentation-based type, component, application 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 the global internet of things (IoT) 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 internet of things (IoT) in agriculture market report would provide approximately 62 tables, 53 figures and 228 pages.
Target Audience
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
