Artificial Intelligence in Agriculture Market Analysis Report By Component, By Technology, By Application, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global artificial intelligence in the agriculture market size was USD 608.9 million in 2018. It is projected to grow at a CAGR of 25.4% over the forecast period, 2019 to 2025. Artificial intelligence (AI) solutions help in increasing farming productivity and crop yield. These solutions use predictive analytics-based techniques. Moreover, AI solutions are helpful in soil monitoring, pests’ control which benefits the entire supply chain of the business. Thus, these solutions are highly adopted for enhancing harvest quality in the agriculture industry. 

According to the United Nations, the global population is projected to reach 9.8 billion by the end of 2050. The agriculture industry is one of the largest industries and is projected to support the growth of AI-based systems in agribusinesses. The growing need for improved food production and the green revolution is expected to propel the demand for big data, IoT, and artificial intelligence solutions.

In addition, the increasing trend of drones, robots, and wireless sensors is expected to contribute to market growth. For example, in 2017, Microsoft has collaborated with an International crop research institute to develop an AI-based Sowing App. This application provides recommendations about which seeds to be sowed, based on historical data or weather trends. Furthermore, AI-based applications encourage companies to develop IoT-enabled systems. 

Component Insights

The AI in the agriculture market is fragmented into software, service, and hardware depending on the component. The software segment is projected to grow at a significant rate in the next few years. Top companies such as Microsoft, Deere, and Company and IBM provide AI solutions for agribusiness development.

Predictive analytics help to increase crop productivity, which in turn, is projected to support the growth of the software segment. Some of the popular predictive analytics include Watson by IBM, and Microsoft AI sowing App. These solutions help in determining crop yield, crop disease detection, best crop sowing, water requirement, pesticides fertilizers, and land. Additionally, drone analytics and precision farming are anticipated to bolster market growth. 

Application Insights

Applications include drone analytics, agriculture robots, livestock monitoring, precision farming, and others. Precision farming is projected to account for the largest market share over the forecasted period. This solution helps to optimize resources and reducing overall costs. 

For precision farming, artificial intelligence uses digital data to analyze the productivity of crop yield. Harvester uses GPS-equipped artificial intelligence to track field variability of crops harvested in the land. The AI-enabled predictions and analysis help to use accurate pesticides and fertilizers. In addition, AI-enabled agricultural robots combine field sensors, artificial intelligence, and data analytics that is used for soil monitoring and other applications. Thus, new robotics development along with artificial intelligence is expected to surge the need for AI-based solutions in the agriculture industry. 

Technology Insights

Depending on the technology, the market is segmented into predictive analytics, computer vision, and machine learning & deep learning. The growing use of predictive analytics in the agriculture industry is propelling the demand for AI-based solutions. For example, Microsoft, Granular Inc, and AgEagle Aerial Systems offer predictive analytical solutions for farming.

For better agribusiness pesticide control, weather tracking, weed management, and crop infestations are necessary. Predictive analytics helps to address these problems. For example, AgEagle Aeriel Systems focuses on enhancing crop production, and also offers drone solutions. Owing to these key benefits analytical solutions, are projected to propel segmental growth in the coming few years. In addition, advanced machine learning is used to track sensor data to improve production capabilities. Thus, the machine & deep learning segment is anticipated to grow at a substantial rate over the forecasted period. 

Regional Insights

In 2018, North America contributed to an AI in agriculture market share of over 35.0% in the overall market. The growing adoption of the AI system and industrial automation are mainly supporting market growth. In addition, increasing focus by governments on in-house production and the growing trend of industrial IoT & automation is expected to bolster the demand for AI-based systems in the agriculture sector. Moreover, the presence of major players such as IBM, Microsoft, Granular, Inc. is also boosting the market growth.

Asia Pacific is estimated to grow at the fastest CAGR from 2019 to 2025. The increasing adoption of AI technologies especially in countries such as China and India for predictive analysis and remote monitoring in the food industry is boosting the need for AI solutions. Furthermore, smart city initiatives in the developing region are influencing agribusiness companies to leverage these technologies.

Impact of COVID-19

COVID-19 pandemic has adversely impacted the agriculture sector by causing delays in logistics, the slowdown in the supply chain, and reduced workers in farming lands. However, as the coronavirus situation gets normalized, and with a partial lifting of lockdown, the market is projected to grow at a healthy pace in the forecast period.

During the COVID-19 pandemic, several tech companies are focusing on resolving agriculture issues through automation, artificial intelligence (AI), and other digital solutions in farming and irrigation management. For example, Microsoft precision agriculture engages in developing AI solutions for farming. AI-based systems help in improving harvest quality and accuracy through the monitoring process. These initiatives are projected to positively impact market growth. 

Artificial Intelligence (AI) in Agriculture Market Share Insights

Leading players in the market include Microsoft; IBM Corporation; Deere & Company; AgEagle Aerial Systems Inc.; Granular, Inc.; Descartes Labs, Inc.; The Climate Corporation; Prospera Technologies; aWhere Inc.; Taranis; GAMAYA; PrecisionHawk; ec2ce; Tule Technologies Inc; and VineView.

Manufacturers engage in mergers, acquisitions, partnerships, and collaborations to remain competent in the global market. For example, in 2019, Deere and Company have partnered with an international agriculture development organization to improve productivity from farming. 

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global artificial intelligence in the agriculture market report on the basis of component, technology, application, and region:

• Component Outlook (Revenue, USD Million, 2014 - 2025)
    • Hardware
    • Software
    • Service

• Technology Outlook (Revenue, USD Million, 2014 - 2025)
    • Machine Learning & Deep Learning
    • Predictive Analytics
    • Computer Vision

• Application Outlook (Revenue, USD Million, 2014 - 2025)
    • Precision Farming
    • Drone Analytics
    • Agriculture Robots
    • Livestock Monitoring
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • U.K.
        • Germany
        • France
    • The Asia Pacific
        • China
        • Japan
        • India
    • South America
        • Brazil
    • Middle East & Africa (MEA)