Agriculture AI Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.20 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Agriculture AI Market Analysis
The global artificial intelligence in agriculture market is projected to register a CAGR of 4.2% during the forecast period.
- Artificial intelligence techniques for agriculture help boost productivity and yield. Consequently, agribusiness corporations adopt artificial intelligence technologies in terms of predictive analytics-based resolutions.
- AI-based applications and techniques can maximize crop yields, driving the market. According to the United Nations (UN), the global population is projected to reach 9.8 billion by 2050. And limited arable land availability and the need for increased food production for food security drive a green revolution fuelled by the Internet of Things (IoT), artificial intelligence, and big data.
- Moreover, an increase in the adoption of cattle face recognition technology is driving the market. By applying advanced metrics, including cattle facial recognition programs and image classification incorporated with body condition scores and feeding patterns, dairy farms can now monitor all behavioral aspects in a group of cattle individually.
- However, the need for more data collection and sharing standardization is restraining the market growth. Machine learning, artificial intelligence, and algorithm designs have advanced fast, but collecting well-tagged, meaningful agricultural data needs to catch up. This holds back the market's growth during the forecast period.
Agriculture AI Market Trends
This section covers the major market trends shaping the Artificial Intelligence in Agriculture Market according to our research experts:
Labor Shortage and Increasing Costs of Labor to Drive the Artificial Intelligence Market
- The agriculture labor force has decreased in recent years due to the decreased interest in farming and the aging farmer population. As the population of farm laborers continues to decline, farmers are feeling pressure to keep up with production for the growing demand for fresh produce.
- Moreover, the downward trend of labor is translating into higher labor wages. A massive workforce decline is being observed worldwide for many reasons. A lack of skilled labor, aging farmers, and younger generations finding farming an unattractive profession contribute to this decline. Thus, encouraging trends for artificial intelligence in agriculture are increasing.
- According to the Food and Agriculture Organization Corporate Statistical Database (FAOSTAT)(2017-20) report, the agriculture sector's contribution to employment declined from 896.34 thousand people in 2017 to 873.75 thousand people in 2020.
- Furthermore, the agricultural industry in the United States and the United Kingdom, among other countries, depend on laborers, and a similar trend is seen across other developed countries as well. On a similar note, Asia-Pacific, where agriculture occupies a significant part of the economy, is witnessing a massive decline in the workforce, nearly a decline of 618,147 thousand people in 2017 to 589,103 thousand people in 2020.
- The labor shortage has become a global problem, with an aging farmer population that further limits the supply of manual labor. Thus, the decline in the agricultural workforce is encouraging governments and private organizations to focus on automating operations by adopting artificial intelligence technologies in the agricultural sector. Owing to the above factors, the market for artificial intelligence in the agricultural sector is likely to boom in the years to come.
North America Dominants the Market
- In North America, artificial intelligence solutions are anticipated to witness exponential growth in the coming years, owing to the region's leading industrial automation industry and the adoption of artificial intelligence solutions. North America is characterized by the improved purchasing power of the population, considerable investments in IIoT, continuous investments in automation, and increasing focus from governments on in-house AI equipment production.
- For instance, in 2021, the US Department of Agriculture's National Institute of Food and Agriculture (USDA-NIFA) and the US National Science Foundation (NSF) announced a $220 million investment in 11 new NSF-led Artificial Intelligence Research Institutes.
- The market also benefits from the presence of numerous agricultural technology providers exploring artificial intelligence solutions, including IBM Corporation, AGCO Corporation, Deere & Company, Microsoft, Granular, Inc., and The Climate Corporation. In 2020, AGCO Corporation introduced the Momentum planter in the crop production market in North America.
- The product is developed to help tackle North challenges in planting conditions. Moreover, it is integrated with Smart Frame technology, which is used for automated vertical contour toolbar, and smart &configuration capabilities. Thus, increasing innovations in the North America AI sector are likely to further boost the adoption of AI in the agricultural sector in the coming future.
Agriculture AI Industry Overview
The AI in agriculture market is fragmented, as a number of players are supplying the same product at a lower cost, which makes market competition stiff. Also, technological advancements by players and the presence of local and regional players pose a major threat in the price-sensitive market. Key players are Microsoft Corp., IBM Corp. (NITI Aayog), Agribotix LLC, etc.
Agriculture AI Market Leaders
Microsoft Corporation
IBM corporation
Granular, Inc.
aWhere, Inc.
Prospera Technologies Ltd.
*Disclaimer: Major Players sorted in no particular order
Agriculture AI Market News
- May 2022: AGCO acquired JCA Industries to increase engineering and software development capabilities and to accelerate the development of highly automated and autonomous machines.
- April 2022: Deere & Company and GUSS Automation formed a joint venture with an LLC in Kingsburg, Calif. Global Unmanned Spray System (GUSS) is a pioneer in semi-autonomous sprayers for orchards and vineyards.
- March 2022: As demand for industry-leading Ag Tech accelerates, Raven's facilities expansions in Arizona and South Dakota are likely to enhance the development in AI, autonomy, Machine Learning, and core technology.
Agriculture AI Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Application
5.1.1 Weather Tracking
5.1.2 Precision Farming
5.1.3 Drone Analytics
5.2 Deployment
5.2.1 Cloud
5.2.2 On-premise
5.2.3 Hybrid
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 Italy
5.3.2.4 Spain
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Africa
5.3.5.1 South Africa
5.3.5.2 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Microsoft Corporation
6.3.2 IBM Corporation
6.3.3 Granular, Inc.
6.3.4 aWhere, Inc.
6.3.5 Prospera Technologies Ltd.
6.3.6 Gamaya SA
6.3.7 ec2ce
6.3.8 PrecisionHawk Inc.
6.3.9 Cainthus Corp.
6.3.10 Tule Technologies Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Agriculture AI Industry Segmentation
Artificial intelligence technology supports the agriculture sector in boosting productivity and efficiency by reducing negative impacts on the environment.
The global artificial intelligence in agriculture market report has been segmented by application (weather tracking, precision farming, and drone analytics), deployment (cloud, on-premise, and hybrid), and geography (North America, Europe, Asia-Pacific, South America, and Africa).
The report offers market sizing and forecasts in terms of Value (USD Thousand).
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| Precision Farming | |
| Drone Analytics |
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| Cloud | |
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Agriculture AI Market Research FAQs
What is the current Artificial Intelligence in Agriculture Market size?
The Artificial Intelligence in Agriculture Market is projected to register a CAGR of 4.20% during the forecast period (2024-2029)
Who are the key players in Artificial Intelligence in Agriculture Market?
Microsoft Corporation, IBM corporation, Granular, Inc., aWhere, Inc. and Prospera Technologies Ltd. are the major companies operating in the Artificial Intelligence in Agriculture Market.
Which is the fastest growing region in Artificial Intelligence in Agriculture Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Artificial Intelligence in Agriculture Market?
In 2024, the North America accounts for the largest market share in Artificial Intelligence in Agriculture Market.
What years does this Artificial Intelligence in Agriculture Market cover?
The report covers the Artificial Intelligence in Agriculture Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Artificial Intelligence in Agriculture Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
AI in Agriculture Industry Report
Statistics for the 2024 AI in Agriculture market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. AI in Agriculture analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
