Artificial Intelligence (AI) in Agriculture Market Analysis and Opportunities by 2030

Artificial intelligence (AI) in agriculture market size was valued at US$ 1.63 billion in 2022 and is expected to reach US$ 7.97 billion by 2030; it is estimated to record a CAGR of 21.9% from 2022 to 2030. Robotics and automation in agriculture are likely to remain key trends in the market.

Artificial Intelligence (AI) in Agriculture Market Analysis

Shifting preference from traditional to AI-based farming methods, growing use of unmanned ariel vehicles (UAVs) in farming, and increasing need for real-time analytics in agriculture are driving the market. The market is anticipated to grow during the forecast period, due to the growing government support for implementation of AI solutions. Moreover, growing research and development activities to develop AI-based solutions and increasing smart farming are creating lucrative opportunities for the market.

Artificial Intelligence (AI) in Agriculture Market Overview

Artificial intelligence (AI) is revolutionizing agriculture industry. Predictive analytics, computer vision, machine learning, and data analytics are helping agriculture overcome obstacles and realize its full potential. The use of Al in agriculture allows for data collection and analysis from a variety of sources, including soil conditions, weather patterns, crop health, and historical data.

Al-based systems can provide farmers with valuable information for increasing yields, reducing waste, and minimizing environmental concerns. Farmers and stakeholders can employ data-driven insights and intelligent decision-making to boost productivity, optimize resource use, and deal with agronomic issues. Smart machinery and robotics can be used to automate monotonous tasks in agriculture. These advances help farms address workforce shortages and focus on strategic planning and management.

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Artificial Intelligence (AI) in Agriculture Market: Strategic Insights

Artificial Intelligence (AI) in Agriculture Market Drivers and Opportunities

Shifting Preference from Traditional to AI-based Farming Methods

Traditional potato growers across Canada have faced challenges in nutrient management, a crucial aspect of farming that directly impacts crop yields. The conventional methods of soil treatments and foliar feeding, while effective to a certain extent, have limitations, especially for nutrients required at later stages of potato growth. Thus, potato growers across Canada are deploying AI solutions to predict the nutritional needs of the potato plant. For example, in November 2023, with groundbreaking developments in the agricultural sector, Canadian potato growers are turning to AI to monitor and predict the nutritional needs of their crops in real-time. Thus, the adoption of AI by Canadian farmers propels the growth of AI in agriculture market.

Growing Research and Development Activities to Develop AI-based Solutions

The UK boasts world-class technology and research capabilities and is the global leader in the development of AI-enabled solutions. Moreover, UK researchers are using AI to revolutionize traditional industries such as farming. As per January 2024 data, researchers at Harper Adams University are trying to make farming more sustainable and productive with AI.

The UK government has also announced US$ 39.82 million in funding to support the development of artificial intelligence projects across diverse sectors such as farming, fashion, and emergency services. An additional US$ 5.38 million has been awarded to feasibility studies for 100 projects from small businesses, fostering innovative AI ideas to boost productivity across various sectors. Thus, such government support is projected to propel the growth of AI in agriculture market.

Artificial Intelligence (AI) in Agriculture Market Report Segmentation Analysis

Key segments that contributed to the derivation of artificial intelligence (AI) in agriculture market analysis are components and applications.

• Based on component, artificial intelligence (AI) in agriculture market is divided into hardware, software, and services. The hardware segment held a larger market share in 2022.
• In terms of application, the market is divided into precision farming, drone analytics, agriculture robots, livestock monitoring, and others. The precision farming segment held a larger market share in 2022.

Artificial Intelligence (AI) in Agriculture Market Share Analysis by Geography

The geographic scope of the artificial intelligence (AI) in agriculture market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

The market in Asia Pacific is projected to expand during the forecast period, due to the growing demand for technologically advanced solutions. In countries such as Australia, where the agricultural workforce is quickly aging, the demand for skilled labor is greater than ever. Farming, with its integration of cutting-edge technology such as Al and machine learning, holds the key to closing this gap and bringing agriculture into the contemporary era. Several Australian farmers are already witnessing the benefits of Al-powered systems. For example, in October 2023, the Sunray Strawberries at Wamuran deployed the DeepBerry automated monitoring system; the system uses both visual and infrared imaging to accurately detect ripeness, bruising, fungus, fruit size, shape, and foreign objects. It can process more than 7,000 gunnets per hour. Implementation of such automated systems propels the growth of Al in agriculture market.

Artificial Intelligence (AI) in Agriculture Market Regional Insights

The regional trends and factors influencing the Artificial Intelligence (AI) in Agriculture Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Artificial Intelligence (AI) in Agriculture Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Artificial Intelligence (AI) in Agriculture Market Report Scope

Artificial Intelligence (AI) in Agriculture Market Players Density: Understanding Its Impact on Business Dynamics

The Artificial Intelligence (AI) in Agriculture Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Artificial Intelligence (AI) in Agriculture Market News and Recent Developments

The artificial intelligence (AI) in agriculture market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the artificial intelligence (AI) in agriculture market are listed below:

• Chipotle Mexican Grill announced minority investments in Greenfield Robotics and Nitricity. The investment from Chipotle will help Greenfield Robotics expand its fleet and develop additional capabilities for its robots, such as micro-spraying, cover crop planting, and soil testing. (Source: Chipotle Mexican Grill, Company Website, December 2023).

Artificial Intelligence (AI) in Agriculture Market Report Coverage and Deliverables

The “Artificial Intelligence (AI) in Agriculture Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:

• Artificial intelligence (AI) in agriculture market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Artificial intelligence (AI) in agriculture market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Artificial intelligence (AI) in agriculture market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the artificial intelligence (AI) in agriculture market
• Detailed company profiles