According to our latest study on "Artificial Intelligence (AI) in Agriculture Market Size and Forecast (2020-2030), Global and Regional Share, Trend, and Growth Opportunity Analysis - by Type and Application," the 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.
Growing Smart Farming to Provide Lucrative Opportunities for Artificial Intelligence (AI) in Agriculture Market Growth During Forecast Period
Smart farming is done using equipment that is integrated with advanced sensors and cameras. Smart farming is a management concept that aims to provide the agricultural business with the infrastructure it needs using advanced technologies, such as the cloud, big data, and the IoT, to track, automate, monitor, and analyze activities. It is often known as precision agriculture and is controlled by software and monitored by sensors. Precision agriculture is becoming increasingly important along with the growing global population, and the demand for higher crop yields is increasing along with it. Further the need to use natural resources more efficiently, the increasing use and complexity of information and communication technology, and the rising need for climate-smart agriculture propelling smart farming. The goal of smart farming is to maximize resource efficiency and reduce environmental effects while increasing production quantity and quality through the application of new technologies that have emerged in the fields of agriculture and cattle production with the advent of the Fourth Industrial Revolution.
Various entities are using smart farming to increase their production. For example, in February 2021, AKVA Group entered into a five-year agreement with Trollvika Drift AS for the installation of 45 SmartEye Precision HD cameras with AKVAconnect 4 camera system controls at various locations across Norway. Thus, the increasing use of smart farming is forcing the use of new technologies such as IoT and AI. Thus, the increasing smart farming creates opportunities for AI in the farming market.
Key Findings of Artificial Intelligence (AI) in Agriculture Market Study:
Based on component, the Artificial Intelligence (AI) in Agriculture Market is segmented into hardware, software, and services. The software segment held significant artificial intelligence (AI) in agriculture market share in 2022. Artificial Intelligence (AI) is rapidly transforming the agriculture industry, and software plays a crucial role in this transformation. AI-powered software is being used in a wide range of agricultural applications, from crop and soil monitoring to pest and disease detection to precision irrigation and automated harvesting. The software is also being used for image recognition, data collection, and analysis. Various companies provide software applications that use AI and computer vision algorithms to analyze vegetables and fruits and provide information on quality, ripeness, and size. These AI systems can also detect faults and diseases in crops, allowing farmers to take preventive steps before any damage. For example, various Agrocares providers are providing AI-powered software that conducts chemical soil analyses and estimates missing nutrients accurately. Thus, constant software product developments by the key players are expected to benefit the market for the segment.
The report includes artificial intelligence (AI) in agriculture market forecast by Type/Application/ and regions/countries from 2021 to 2031. The geographic scope of artificial intelligence (AI) in agriculture market report focuses encompasses North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). Further, the artificial intelligence (AI) in agriculture market report includes company positioning and concentration to evaluate the performance of competitors/players in the market.
Germany held significant artificial intelligence (AI) in agriculture market share in 2022. The German government is taking several steps to improve agriculture in the country. For instance, in March 2023, the German Federal Ministry for Economic Affairs and Energy provided a subsidy to the Agri-Gaia project. The subsidy is given to create an open infrastructure for providing AI algorithms in agriculture. Under the supervision of the German Research Center for Artificial Intelligence (DFKI), project partners from associations, research, and industry are developing a digital ecosystem for the agricultural and food industry. Moreover, in October 2023, in a move toward advancing sustainable agricultural science and the shift toward a circular biobased economy, Osnabr