Smart Farming Surge Drives AI in Agriculture Market Growth

According to the latest market research study published by P&S Intelligence, the artificial intelligence (AI) in agriculture market is experiencing robust growth, with revenues reaching USD 1,643.7 million in 2023. Projections indicate a compound annual growth rate (CAGR) of 25.1% from 2024 to 2030, aiming for a market size of USD 7,854.1 million by 2030. This surge is primarily driven by the increasing integration of Internet of Things (IoT) technologies in farming, the rising demand for higher crop yields, and the growing emphasis on advanced crop management practices. Additionally, the widespread adoption of drones for pesticide spraying is contributing to market expansion.​

Labor shortages and escalating labor costs are further propelling the adoption of AI solutions in agriculture. For instance, the U.S. faces an estimated annual loss of USD 3.1 billion in crop production due to labor shortages, prompting a shift towards robotic and drone technologies to mitigate this challenge. The market's fragmented nature, coupled with the increasing need for precision farming, positions AI as a pivotal tool in modernizing agricultural practices.​

Key Insights

Offering Segmentation​

The product segment dominated the market in 2023, accounting for approximately 70% of the revenue, driven by the heightened demand for software solutions that control and guide agricultural devices.​

The service segment is anticipated to grow at a higher CAGR of 25.3% between 2024 and 2030, fueled by the increasing need for managed services that assist farmers in monitoring sensor operations and managing extensive crop health data.​

Technology Adoption​

Machine learning emerged as the leading technology in 2023, contributing around 50% of the market share, owing to its widespread adoption for enhancing crop productivity through data-driven insights.​

Predictive analytics is projected to experience the fastest growth, with a CAGR of 25.6% during the forecast period, as it enables real-time analysis of weather conditions, soil moisture, and plant health to optimize yield and crop quality.​

Application Areas​

Precision farming stands as the largest application segment, reflecting the industry's focus on optimizing resource utilization and improving crop yields through data-driven decision-making.​

The adoption of agricultural robots is on the rise, addressing labor shortages and enhancing efficiency in tasks such as planting, harvesting, and monitoring.​

Regional Dynamics​

North America led the market in 2023, with the U.S. contributing significantly due to the early adoption of advanced farming technologies and a substantial increase in planted areas, which grew from 310,407 acres in 2020 to 317,163 acres in 2022.​

The Asia-Pacific region is expected to witness the fastest growth, with a CAGR of 25.9% from 2024 to 2030, driven by the rapid adoption of smart farming techniques in countries like China and India.​

Competitive Landscape​

The market is characterized by intense competition, with key players focusing on mergers, acquisitions, and partnerships to enhance their product portfolios.​

Deere & Company holds a prominent position, leveraging its extensive dealer network and emphasis on precision agriculture to integrate advanced technologies into farming processes.​

Other notable companies include IBM Corporation, Raven Industries Inc., Ag Leader Technology, Farmers Edge Inc., Google LLC, Gamaya SA, AGCO Corporation, Microsoft Corporation, Bayer AG, and AgEagle Aerial Systems Inc.​

Emerging Opportunities​

The increasing use of AI-powered drones for pesticide spraying presents opportunities for enhancing efficiency and reducing environmental impact.​

The integration of AI in livestock monitoring is gaining traction, enabling real-time tracking of animal health and behavior to improve productivity and welfare.​

The development of AI-driven farm management software offers farmers comprehensive tools for decision-making, resource allocation, and operational planning.​

These insights underscore the transformative impact of AI in agriculture, highlighting its role in addressing contemporary challenges and driving sustainable growth in the sector.

Comments

Post a Comment

Popular posts from this blog

Speech Recognition Leads the Way in Automatic Content Recognition Technology

Image
The automatic content recognition (ACR) market generated revenue of $2,861.5 million in 2024 and is projected to grow to $5,961.6 million by 2030 , achieving a 13% CAGR by the decade's end. This growth is driven by the widespread adoption of smart devices like smartphones and tablets. ACR technology enables seamless data synchronization across devices, sharing details about the content being consumed. This functionality allows content creators and advertisers to analyze audience engagement and deliver tailored content, enhancing user experiences. Learn more: P&S Intelligence Key Market Insights Component Analysis : The solutions segment accounted for a dominant 70% market share, propelled by the increasing use of internet-connected video and audio streaming platforms. Hardware components such as smart TVs, smartphones, and laptops capture content like videos, audio, text, and images. Complementing this, software powered by AI and machine learning (ML) processes and stores insig...
Read more

What Is a Data Center? How Does a Data Center Operate

Image
In simple words, a data center is a physical capability that establishments utilize to house their vital applications and information. A data center's structure is based on a network of computing and storing resources that allow the distribution of shared apps and data. The major components of a data center design comprise switches, routers, storage systems, firewalls, servers, and application-delivery controllers. The data center market is witnessing growth and is projected to reach USD 602.76 billion by 2030. What Defines a Modern Data Center? Contemporary data centers are more diverse than they were just a short period ago. Infrastructure has shifted from old-style on-premises physical servers to computer-generated networks that help apps and workloads across pools of bodily infrastructure and into a multi-cloud atmosphere. In this world, information exists and is linked through several data centers, the edge, and private and public clouds. The data center should be capable of ...
Read more

How Will Rapid Industrialization Drive Hydraulic Equipment Demand?

Image
The Government of India completed the construction of 2,734 projects under the Smart City Mission till 2021. The government is currently working on the construction of 100 smart cities, 6 new ports and 14 coastal economic zones (CEZs). Likewise, Infrastructure Australia (IA) approved the construction of 44 new infrastructure projects in February 2021. The rising construction activities, on account of the booming population and mounting investments being made in the construction sector, will propel the need for hydraulic equipment in the coming years. Additionally, the rapid industrialization in developing countries will drive the hydraulic equipment market growth during 2021–2030. According to P&S Intelligence, the market generated a revenue of $37 billion in 2020. For instance, the United Nations Industrial Development Organization (UNIDO) aims to offer institutional support to special economic zones (SEZs) and industrial and technology parks in Brazil. The UNIDO will help Brazil...
Read more