Artificial Intelligence In Agriculture Market To Reach USD 12.8 Billion By 2032, Driven By Climate-Smart Practices And Yield Optimization AI Tools SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) The market is growing due to increased adoption of AI tools for crop monitoring, predictive analytics, and climate resilience.

Pune, June 29, 2025 (GLOBE NEWSWIRE) -- Artificial Intelligence in Agriculture Market Size Analysis:

“ The SNS Insider report indicates Artificial Intelligence in Agriculture Market size was valued at USD 1.8 billion in 2023 and is estimated to reach USD 12.8 billion by 2032, growing at a compound annual growth rate (CAGR) of 24.34% between 2024 and 2032. ”

The U.S. Artificial Intelligence in Agriculture Market was valued at USD 0.5 billion in 2023 and is projected to reach USD 3.4 billion by 2032, growing at a CAGR of 24.03% during 2024–2032. Due to early adoption of tech, substantial investment in agri-research, and the mass adoption of AI-powered precision farming tools. Support from the federal government over the next decade, investment in smart farming, deployment of autonomous machinery, and, most importantly, sustainability-focused agri-tech investment will kick-start future growth.

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Major Players Analysis Listed in this Report are:

• IBM Corporation – Watson Decision Platform for Agriculture
• Microsoft Corporation – Azure FarmBeats
• Deere & Company – See & Spray
• Trimble Inc. – Trimble Ag Software
• AGCO Corporation – Fuse Smart Farming
• BASF SE – xarvio Digital Farming Solutions
• Corteva Agriscience – Granular Insights
• Bayer AG (Climate LLC) – Climate FieldView
• Raven Industries, Inc. – VSN (Visual Guidance System)
• Prospera Technologies – Prospera Crop Monitoring
• Taranis – Taranis Precision Scouting
• Gamaya – Gamaya AI Crop Intelligence
• PrecisionHawk – PrecisionAnalytics Agriculture
• AgEagle Aerial Systems Inc. – MicaSense RedEdge Sensor

Artificial Intelligence in Agriculture Market Report Scope:

Report Attributes	Details
Market Size in 2023	US$ 1.8 Billion
Market Size by 2032	US$ 12.8 Billion
CAGR	CAGR of 24.34 % From 2024 to 2032
Base Year	2023
Forecast Period	2024-2032
Historical Data	2020-2022
Key Segments	. By Component (Hardware, Software, Services) . By Technology (Machine Learning & Deep Learning, Predictive Analytics, Computer Vision) . By Application (Precision Farming, Drone Analytics, Agriculture Robots, Livestock Monitoring, Labor Management, Others)
Key Growth Drivers	AI is boosting productivity and resource efficiency in farming to meet growing global food demand.

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By Component: Software Segment Dominated, Hardware Fastest Growing

The software segment dominated the market in 2023 and accounted for 55% of revenue share, due to the large requirements for AI-embedded devices (such as smart sensors, edge devices, and embedded chips in manufacturing equipment). Such components are similar to the hardware aspect of a smart factory that allows the extraction of data for processing within the factory in real-time. Even hardware is being driven by the increase in investments in robotics, automated material handling, and industrial cameras. In fact, manufacturing has always required hardware, particularly as the sector moves towards a greater reliance on cyber-physical systems, where the performance of AI systems is determined to such a large extent by the hardware that supports them.

Drone, sensor, and automated irrigation tool rapid adoption are expected to drive the hardware segment, experiencing the fastest CAGR from 2024–2032 throughout the forecast timeline. Now that the prices of smart equipment are falling with the advancement of technology, farmers want best-of-breed hardware to implement real-time AI in the field.

By Technology: Machine Learning & Deep Learning Dominated, Computer Vision Fastest Growing

Machine Learning & Deep Learning dominated the market in 2023 and accounted for 47% of revenue share, as they remain the cornerstone for pattern recognition, yield forecasting and soil and crop data anomaly detection. With these technologies, it is possible to build prediction models that point the best planting times and fertilization. This multi-purpose ability wherever they are grown guarantees their continued success.

In contrast, the computer vision segment is expected to witness the fastest growth, with increasing application of computer vision for pest detection, weed identification and fruit grading. Computer vision is a fundamental element of automation since it relies on the use of high-resolution cameras and image processing tools powered by AI, which will allow for rapid visual analysis and interpretation.

By Application: Precision Farming Dominated, Agriculture Robots Fastest Growing

Precision farming segment dominated the market in 2023 and accounted for a significant revenue share, due to its comprehensive approach to maximizing output with minimum use of resources. AI tools for these segments help in seeding, irrigation, and nutrient management to achieve sustainable agriculture. Remote sensing and GPS-based automated systems further hone operations.

Agriculture robots are registering the fastest CAGR as they are being rapidly employed for automated harvesting, soil analysis, and planting activities. The demand for continuous, precise fieldwork paired with persistent labor shortages is leading to investments in robotic systems that are becoming a key enabling technology for large-scale agricultural operations.

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Regional Insights: North America Dominated, Asia-Pacific Fastest Growing

North America dominated the AI in agriculture market in 2023 and accounted for 36% of revenue share, to early adoption of advanced farming technologies, and robust digital infrastructure in the region, however the agritech investment in U.S. and Canada also plays a significant role in the market growth which was substantial which was 36% in terms of revenue share in 2023. Farmers deploy these systems on a mass scale, backed by government subsidies and tech partnerships.

Asia-Pacific is anticipated to register the fastest CAGR from 2024 to 2032, because of the ongoing digital transformation in the region, especially in countries such as India, China, and Japan. Increased adoption of AI is being fueled by rising food security concerns, population growth, and agri-startup activity.

Recent Developments in 2024

• June 2024: IBM launched a new AI-based weather forecasting tool tailored for small-scale farmers in Africa and South Asia.
• May 2024: John Deere announced a strategic partnership with NVIDIA to develop real-time AI analytics for self-driving tractors.
• April 2024: Bayer Crop Science unveiled its AI-powered disease detection platform for wheat and corn crops.

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