AI in Agriculture Market

AI in Agriculture Market Size

The global AI in agriculture market size was valued at USD 4.7 billion in 2024 and is estimated to register a CAGR of 26.3% between 2025 and 2034.

Precision agriculture pursues maximizing yields and optimizes the use of resources using data-driven knowledge which has driven the use of AI technology in agriculture. Farmers are turning to AI-enabled solutions such as soil sensors, satellite imagery, and variable-rate application equipment to track field conditions and adjust inputs accordingly. It reduces waste, increases productivity, and improves sustainability, as the demand for food increases and farmland decreases, precision and efficiency are paramount. AI enables this by analyzing immense amounts of data and giving real-time advice, making it a key driver of the agricultural tech revolution.

Although the most urgent challenge in agriculture everywhere is the lack of qualified labor, mainly in areas with aging farm populations. Autonomous tractors, harvest robots and smart drones are being put into use by using AI technology to bridge the gap, technology decreases manual labor dependency but boosts operational effectiveness.

AI-powered equipment can drive for longer durations, execute monotonous functions with accuracy, and adjust based on real-time field information, with increasing labor costs and decreasing workforce availability, the implementation of AI-based automation becomes an imperative measure, contributing significantly to the expansion of AI in agriculture in large- and medium-scale farms.

Governments around the globe are actively encouraging the application of AI in agriculture with grants, subsidies and pilot projects. They aim at reorganizing the old fashion farming, enhancing food security, as well as advocating for the protection of small-scale farmers. Government aid lowers both technical and cost constraints in accessing AI as well as motivating creativity, thereby acting as an immense driver towards widening the agriculture sector using AI market.

For instance, in Sep 2024 the government in India has initiated the Digital Agriculture Mission and AI-based Agri-tech initiatives. Smart farming is subsidized in the European Union by Common Agricultural Policy (CAP) while American AI research investments are provided via USDA and DARPA.

Climate change is a significant threat to agriculture resulting in unstable weather conditions, soil erosion, and rising pest pressures. AI technologies help farmers in avoiding these risks by providing predictive analytics for weather forecasting, disease outbreaks, and crop failure situations. With machine learning models trained on past and real-time data, AI can assist in optimizing planting schedules, irrigation requirements and input applications. This forward-looking risk management is increasingly becoming essential to maintain food security and minimize crop losses. As climate pressures mount, the need for AI solutions that increase resilience and sustainability in agriculture is likely to increase rapidly.

AI in Agriculture Market Trends

• The adoption of personalized farming solutions will be an emerging trend in AI in the agriculture industry. AI algorithms will offer personalized recommendations and solutions tailored to specific farm conditions, crop types, and management practices.
  
• For instance, in March 2024, a joint effort involving Purdue University, Cornell University, and the Dale Bumpers National Rice Research Center resulted in the development of a machine-learning model. This model showcases the capability to forecast the impact of changing climate patterns on rice yields, through variable analysis, including weather dynamics and genetic characteristics, the model offers valuable insights into the resilience of contemporary rice varieties in contrast to their older counterparts.
  
• The key trend is the use of AI with Internet of Things (IoT) devices, Intelligent sensors gather real-time information on soil conditions, crop health, and climate which is seen by AI algorithms to provide actionable insights. This makes continuous monitoring, predictive maintenance and targeted interventions, mainly enhancing efficiency. Farmers are now able to take data-driven irrigation, fertilization, and harvest decisions. Interplay among AI, IoT, and geospatial technologies is transforming precision farming, enabling more intelligent, scalable, and automation-intensive farm operations.
  
• The adoption of AI-as-a-Service (AIaaS) is a game-changer in agriculture, particularly for medium and small-size farms. Existing agri-tech companies and startup companies now provide cloud-based platforms for AI under a subscription or pay-per-use basis. Such services offer capabilities such as crop disease analysis, yield prediction, and precision spraying without needing farmers to invest in heavy hardware or on-premises analytics.
  
• This makes the playing field for access to sophisticated technology, reducing entry barriers and enhancing uptake in growth markets. As connectivity increases and mobile platforms improve AIaaS is likely to emerge as the preferred model for delivering smart farming solutions worldwide.
  
• AI-driven predictive analytics is acting as a critical tool for yield prediction, market planning and supply chain optimization. AI models can forecast crop results with high accuracy by examining old data, satellite images, weather conditions and real-time field inputs. This helps farmers to plan for bad weather and make better investment and harvest choices. Governments and agribusinesses also stand to gain by anticipating storage, pricing, and distribution strategies.
  

Trump Administration Tariffs

• The Trump Administration's levies on Chinese imports can severely impact the production economics of AI-based farming equipment. Most sensors, IoT modules, processors, and drone parts used in AI applications were Chinese-sourced. Levies on these electronics resulted in higher costs of manufacturing for U.S. based businesses and Agri-tech startups. This increases the prices of smart farming equipment for end customers and also reduced adoption among small and medium farmers. Equipment manufacturers swallowed losses or passed them on to users, distorting affordability and pushing back deployment schedules of all AI agriculture projects.
  
• In response to U.S. tariffs, China and other nations also placed their own tariffs on U.S. farm products. This decreased the earnings of American farmers, especially soybean and corn farmers who depended on exports, with lower revenues, most farmers postponed investments in new technologies such as AI-based solutions such as precision agriculture and predictive analytics software. The rate of AI adoption in agriculture fell during the trade war period especially in export-oriented areas. This caused market uncertainty impacting financing and implementation of AI pilot projects to upgrade farms.
  
• Although the tariffs interrupted imports and increased prices, they unintentionally made some domestic innovation in AI and Agri-tech hardware. American companies started looking for local substitutes for sensors, processors, and autonomous systems to decrease reliance on Chinese supply chains. In the short run, this change can slow down product development cycles with increased lead times and pushed back commercialization of AI tools in agriculture. Startups and small technology companies were particularly hit because of thin margins. Therefore, although tariffs promoted supply chain resilience, they also served as a drag on market momentum during their implementation.
  

AI in Agriculture Market Analysis

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Based on the component, the AI in agriculture market is divided into solution and service. The solution segment dominates by surpassing a value of over USD 3.3 billion in 2024 and is projected to exceed USD 31 billion by 2034, propelled by the pressing need for increased efficiency, sustainability, and productivity in food production.

• AI-based solutions cover a vast array of applications such as crop monitoring, disease detection, precision planting, intelligent irrigation, and yield forecasting. These software platforms analyse data from sensors, drones, and satellite imaging to provide farmers with actionable information.
  
• Since they can be configured for various crops, geographies, and farming practices, AI solutions hold immense scalability. Their flexibility and applicability throughout the whole value chain of agriculture starting right from soil preparation to post-harvest, makes them more affordable and effective than individual services. This broad applicability fuels the market dominance of AI solutions over service-based solutions.
  
• Most AI agricultural solutions are cloud-based and user-friendly, making them simple to implement on farms of any size. Such platforms typically work by means of mobile applications, dashboards, or online portals with minimal technical expertise. Farmers can tap real-time information on weather patterns, pest outbreaks, and crop yields from remote locations. The ease of updating and scaling these systems without the need for physical hardware installations also lowers their cost and complexity, with rural internet penetration increases, demand for deployable AI solutions picks up speed further cementing the software segment as the industry leader.
  
• AI software solutions are extremely flexible and can be integrated with current farm equipment, ERP systems and third-party platforms. This gives large agribusinesses and cooperatives the ability to adapt AI tools according to their specific requirements, whether it's precision spraying, predictive analytics, or crop lifecycle management.
  
• In contrast to labour-intensive and generic service models, software-based offerings provide modular updates, real-time updates and API integrations. This feature of being compatible with various operating models makes AI solutions the choice of both corporate farms and smallholders, sustaining growth and market dominance in the global agriculture AI ecosystem.
  
• For instance, in August 2024, Microsoft's Azure Data Manager for Agriculture, combined with generative AI tools like AgPilot, enables farmers to integrate data from various sources, including IoT devices and ERP systems. This facilitates real-time insights into soil health, crop conditions, and weather forecasts, enhancing decision-making and productivity.
  

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Based on the technology, the AI in agriculture market is categorized into machine learning, computer vision and predictive analysis. The machine learning segment held a major market share of around 50% in 2024 and is expected to grow significantly.

• Machine learning algorithms are particularly good at parsing large volumes of structured and unstructured data in agriculture to make accurate predictions. Machine learning is applied extensively for yield prediction, disease detection in crops, and forecasting pest infestation. Machine learning models improve and make better recommendations as new data is accumulated.
  
• For instance, in February 2025, IBM’s Watson Decision Platform for Agriculture integrates AI, weather data, IoT, and blockchain to provide farmers with tools to manage crops, monitor conditions, and optimize resource use.
  
• Unlike technologies with narrow applications, machine learning is versatile and underpins many AI-driven agricultural solutions. From intelligent irrigation and precision farming to market forecasting and automated machinery, most AI systems rely on ML algorithms. It enables real-time decision-making by learning from live and historic data streams. Such companies as Climate LLC, Microsoft, and IBM leverage ML to drive platforms supporting smallholder farmers and large agricultural businesses alike.
  
• Machine learning models are very scalable and can be hosted on cloud platforms, thus making them accessible to farmers and agribusinesses from any location, as internet penetration and smartphone use in rural geographies increase, ML-based applications are being widely adopted even in emerging economies. Cloud-based ML solutions enable constant updates, collective insights and adaptive learning, while keeping costs in check.
  
• Machine learning forms the backbone of future technologies such as generative AI, autonomous tractors, and robot sprayers. Machine learning facilitates real-time object recognition for applications such as weed identification, livestock monitoring, and yield prediction using aerial images. Industry majors and startups alike are betting big on ML-based technologies with high accuracy and efficiency. Moreover, Machine learning makes it possible to integrate data from IoT devices, drones, and weather sensors to form holistic models that other technologies cannot match. This ongoing investment and innovation mean that machine learning continues to be the leading and most influential technology in AI-based agriculture.
  

Based on application, the AI in agriculture market is segmented into crop and soil monitoring, livestock health monitoring, intelligent spraying, precision farming, agriculture robot, weather data and forecast and others. The precision farming segment held a market share of over 33% in 2024.

• Precision farming employs AI to process huge amounts of data from soil sensors, satellite imagery, and weather stations. By running this data through machine learning algorithms, farmers can accurately forecast crop yields and detect potential problems such as diseases, pests, or nutrient deficiencies.
  
• Machine learning algorithms can monitor environmental conditions in real-time and make resource allocation suggestions based on exact requirements. For example, AI can detect where a field needs irrigation or the application of certain nutrients so that resources are utilized only where necessary. This is cost effective along with promoting environmental sustainability by minimizing waste of resources and preventing overuse of water or chemicals, which are typical problems in traditional farming.
  
• Precision agriculture combines AI with automation technologies such as autonomous tractors, harvesters, and drones, which cut the need for human labour drastically. These AI-based machines can conduct activities like sowing, weeding, and harvesting with little human intervention. Through the aid of GPS and real-time data, these systems perform with great precision, ensuring work is completed at the right time and with little room for error. Automation also serves to minimize labour expenses and enhance the efficiency of operations, enabling farmers to expand their operations without sacrificing quality and consistency in managing crops.
  
• AI algorithms can process data from a variety of sources including drones, sensors, and weather reports, repeatedly to provide timely recommendations and insights. With, AI systems become smarter and adjusted to modifying conditions and become more effective and accurate at making decisions about crop health, irrigation, and pest management. This dynamic and changing strategy ensures that farmers can act fast on any unforeseen opportunities and threats, optimizing their productivity and minimizing threats. 
  

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North America dominated the AI in agriculture market with a share of over 36% in 2024 and U.S. leads the market in the region.

• The United States is a world leader in technological innovation mainly in artificial intelligence and precision agriculture. Large technology firms like Microsoft, IBM, and John Deere have made significant investments in AI and machine learning to develop agricultural productivity. The U.S. also boasts a strong research and development ecosystem with universities and government programs driving agri-tech advancements. These breakthroughs, bolstered by high investments and capabilities, put the U.S. ahead of others in the application of AI to agriculture, facilitating its leadership of the world market.
  
• American farmers have readily adopted AI-based technologies like precision agriculture, self-driving machines and plant disease surveillance systems. An adequately developed high-speed internet infrastructure, IoT gadgets, and big data accessibility help make it easy to incorporate AI technologies. This mass adoption is fuelled by the capacity of AI to increase productivity, enhance efficiency, and lower costs. The scalability of these technologies and their established success in U.S. agriculture position the country as a leader in AI agricultural applications.
  
• The United States has a robust ecosystem of agribusinesses and startups creating AI solutions for agriculture. Such companies as Climate Corporation (owned by Bayer), aWhere Inc., and Gamaya are all headquartered in the U.S. and are charting the course for digital agriculture. This pooling of talent and ingenuity is creating a competitive edge, which allows U.S.-based companies to rule the roost in the AI-driven agri-tech market. In addition, venture capital investment in Agri-tech startups is high, providing ongoing growth and development in the U.S. market.
  
• For instance, in November 2024, Farm Wise, a startup, achieved notable milestones with the commercial launch of Vulcan, which began deliveries in late 2023 and scaled throughout the year. Vulcan quickly set productivity records, covering over 8 hectares in a single shift and delivering cost savings of up to $5,000 per day for farmers.
  

The AI in agriculture market in the China is expected to experience significant and promising growth from 2025 to 2034.

• China's government has taken initiative to making agriculture as a key component of its overall rural revitalization strategy. Policies such as the Smart Agriculture Action Plan (2024–2028)" promote AI adoption in all agricultural activities including crop tracking, yield forecasting and intelligent irrigation. With these policy and investment in digital infrastructure the government is driving the deployment of AI technologies in rural regions at a faster pace with opening robust market growth over the next decade.
  
• China is also investing in intelligent farming infrastructure, including AI-based drones, autonomous tractors, and IoT-based sensors. All these tools are mostly being used in large-scale farms in provinces such as Heilongjiang and Inner Mongolia, with improved rural internet penetration and declining costs of advanced machinery, small and medium-sized farms are now also adopting AI solutions due to expanding market size for AI-based agriculture technologies.
  
• For instance, in November 2024, XAG unveiled its 2025 product lineup at the XAAC 2024 conference, emphasizing a fully integrated smart agriculture ecosystem. Key innovations include P150 Agricultural drone; boasts a 70 kg payload and a flight speed of 18 m/s, capable of spraying up to 26 hectares per hour or spreading 2,167 kg per hour. It supports autonomous operations via the XAG One App, featuring intelligent route planning and variable-rate application.
  
• With its large population and increasing food needs, China is increasing pressure to enhance agricultural productivity with the challenge of land and water limitations. AI technologies provide scalable solutions for predictive crop modelling, disease identification early on, and precision utilization of resources all essential to drive food security and climate resilience. As climate variability expands, China is poised to accelerate AI use in agriculture to reduce risk and stabilize food output.
  

The market for AI in agriculture in Saudi Arabia is expected to expand significantly from 2025 to 2034.

• Scarce arable land and a growing population, Saudi Arabia is relying on AI to raise local food output. AI technologies are applied in vertical farming, greenhouse automation and pest detection to optimize yield in the challenging desert climate. These technologies are pivotal to increasing food self-reliance and decreasing the need for imports, which aligns perfectly with national food security programs.
  
• Saudi Arabia is developing a successful Agri-tech startup environment through government accelerators, venture capital investment and collaborations with international technology companies. Startups such as Red Sea Farms and Nawah Scientific are incorporating AI into greenhouse operations and crop optimization. These technologies are backed by institutions like King Abdullah University of Science and Technology (KAUST), making the Kingdom an emerging hub for agricultural AI innovation.
  
• Saudi Arabia's Vision 2030 aims to ensure agricultural sustainability and food security and has placed maximum focus on it which makes AI a central driver in reshaping traditional agriculture. The Ministry of Environment, Water and Agriculture (MEWA) has introduced several initiatives to enhance smart farming such as AI-driven irrigation, drone operations, and digital monitoring systems. Supported by national investment and regulation reforms, these initiatives are making a strong base for the implementation of AI in the agricultural sector.
  
• MEA is suffering with severe water shortage mainly in areas such as North Africa and the Middle East. Precision irrigation systems using AI optimize water usage, by seeing soil moisture, weather conditions and crop needs. The UAE and Saudi Arabia are investing in smart farming to have water-use efficiency. The critical need for sustainable resource management is driving the growth of AI technology adoption in the agriculture sector throughout the region.
  

AI in Agriculture Market Share

• The top 7 companies in AI in agriculture industry are John Deere, Microsoft, Corteva, IBM, Bayer Crop Science, Valmont Industries (Prospera Technologies) and Trimble. They collectively hold a market share of over 45% in the artificial intelligence in agriculture market.
  
• John Deere incorporates AI in autonomous tractors, precision planting, and analytics using machine learning to promote productivity. With the acquisition of Blue River Technology, it enhanced its capabilities in AI in computer vision and real-time decision-making for crop management.
  
• Microsoft is empowering digital agriculture by means of its Azure FarmBeats platform, which leverages AI and IoT to gather and analyse farm data. It supports more intelligent decision-making in crop health, irrigation and yield forecasting leading to scalable and sustainable farming.
  
• Corteva have AI to streamline seed choice, crop protection, and trait creation. Through sophisticated analytics platforms and partnerships, it makes farmers with actionable intelligence to enhance productivity, environmental stewardship, and resistance management on global farmlands.
  
• IBM Watson Decision Platform for Agriculture applies AI, weather information, and satellite images to provide predictive insights. It helps farmers with suggestions on planting, irrigation, and pest management and increasing precision farming and minimizing resource wastage.
  
• Through its digital division, Climate LLC, Bayer provides the FieldView platform, utilizing AI to track field variability, optimize inputs, and predict yields. It provides data-driven decision-making that led to farm efficiency and crop yield.
  
• Valmont's acquisition of Prospera incorporates AI into pivot irrigation systems, providing precision watering possible using real-time field information and crop imagery. This optimizes water usage while having maximum yield, turning irrigation into an intelligent automated system.
  
• Trimble uses AI to implement GPS-driven precision agriculture with variable rate application and auto guides. Its intelligent connected farm products are used for providing real-time analysis of data leading to enhanced planting, fertilization, and harvest results on diverse agricultural businesses.
  

AI in Agriculture Market Companies

Major players operating in the AI in agriculture industry are:

• aWhere
• Bayer Crop Science (Climate LLC)
• Corteva
• Gamaya
• IBM
• John Deere
• Microsoft
• Taranis
• Trimble
• Valmont Industries
  

The artificial intelligence in agriculture market is set for revolutionary growth, due to technological innovations and a worldwide call for sustainable agriculture. Autonomous tractors and precision irrigation to AI-powered pest forecast, innovations are making farming more efficient, conserving resources and solving key food security issues. Key companies such as John Deere, Bayer Crop Science, and Microsoft, together with emerging startups, are investing heavily in scalable AI technologies.

Geographically, the United States is still the global AI leader in agriculture because of its superior infrastructure, robust startup ecosystem and high R&D spend. Meanwhile, countries like the Middle East and China are coming up swiftly, using AI to address the likes of water shortage and import dependency on food. Nations such as Saudi Arabia are integrating nation plans such as Vision 2030 with aggrotech growth, spurring adoption of AI on the arid territories. These local initiatives, backed by government resources and increasing private collaborations are establishing a competitive and collaborative global environment for AI-powered agricultural innovation.

AI will play a dominant role in developing precision agriculture, maximizing yields, and maintaining the sustainability of resources. Nonetheless, effective adoption would demand sustained expenditure on digital infrastructure, farm literacy and cyber security. Trilateral collaboration by governments, corporate entities, and research bodies would be important for making AI deployable inclusively and at large scale. AI will not merely assist agriculture when innovation penetrates deeper and outreach expands but fundamentally reshape its destiny.

AI in Agriculture Industry News

• In January 2025, John Deere revealed a line of autonomous equipment at CES 2025, including the second-generation 9RX tractor with AI-based autonomy kits. The equipment features computer vision, AI, and camera systems to traverse agricultural terrain, solving labor shortages and maximizing productivity. Alongside, John Deere also announced its 2025 Startup Collaborator program where it collaborated with six cutting-edge companies to discuss technologies like 3D Earth imaging, 4D LiDAR, and wireless charging to further introduce AI into farming and construction businesses.
  
• In March 2024, Bayer unveiled a pilot of an expert generative AI platform created in partnership with Microsoft. The platform takes advantage of Bayer's in-house agronomic data and Microsoft's AI prowess to give farmers and agronomists quick precise answers to questions related to crop management and Bayer products. The easy-to-use platform answers natural language questions giving expert answers in mere seconds and aims to improve decision-making and productivity among farmers.
  
• In March 2024, Agroz Group Sdn Bhd, a Malaysian agriculture technology firm, is developing its Agroz Copilot for Farmers and Agroz Farm Operating System with the support of Microsoft AI and cloud solutions. By integrating a range of advanced technologies such as IoT sensors, AI, data analytics, automation, environmental control systems, and water management solutions, Agroz aims to create highly digitalized and automated operations for its indoor vertical farms. These farms produce nutrient-rich, pesticide-free, clean vegetables daily, leveraging expertise in agronomy and plant science alongside cutting-edge technology, including edge computing and 5G communications.
  
• In January 2024, scheduled for release in the first wave of 2024 from April 1st to September 30th, Microsoft unveiled its plan to enhance its Industry Clouds with innovative generative artificial intelligence features. This update is a response to valuable input from customers and partners. The additions will encompass a range of new capabilities across various sectors, including Microsoft Cloud for Retail, Azure Data Manager for Agriculture, Microsoft Cloud for Financial Services, Microsoft Cloud for Sustainability, Microsoft Cloud for Healthcare, Microsoft Cloud for Nonprofit, and Microsoft Cloud for Sovereignty.
  

The AI in agriculture market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Component

• Solution
• Service

Market, By Technology

• Machine learning
• Computer vision
• Predictive analysis

Market, By Application

• Crop and soil monitoring
• Livestock health monitoring
• Intelligent spraying
• Precision farming
• Agriculture robot
• Weather data and forecast
• Others

Market, By Deployment mode

• Cloud-based
• On-premises

Market, By Farm size

• Small farms
• Mid-sized farms
• Large farms

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Singapore
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa