Global Artificial Intelligence in Agriculture Market Overview
The key drivers impacting artificial intelligence in the agriculture market are the growing demand for agricultural production due to the mounting population. For instance, the World Population datasheet estimations show that the world population is anticipated to reach 9.9 billion by 2050, increasing over 25% from the present 2020 population of 7.8 billion. As a result, food demand can increase about 59% to 98% by the year 2050. Hence, the growing population increased demand for food which necessitates the need for IoT devices for monitoring and analyzing weather conditions, the status of crops, and soil. Moreover, the rising demand for high crop yield, growing focus on enhanced crop management contributes to artificial intelligence in agriculture market demand in the later years.
According to Value Market Research, the global artificial intelligence in the agriculture market size was valued at about USD 966.8 million in 2020 and is estimated to grow at a CAGR of around 26% during the forecast period 2021 to 2027.
The growing internet of things (IoT) penetration in the agriculture industry will likely augment the need for artificial intelligence in agriculture in the forecast period. Also, the utilization of drones for pesticide spraying is positively impacted market growth. However, the high cost of gathering precise field data hampers the market in the long run. In addition, the absence of a skilled workforce impedes the market growth. Nevertheless, the market trends, such as penetration into multiple applications such as military and digital signage and Use of AI solutions to manage small farms, might provide considerable opportunities to the market's leading players.
Artificial intelligence in the agriculture market is widespread, with many local and international players. The market leaders follow diverse strategies to strengthen their market, such as amalgamation, extending product portfolio, acquisitions, contracts, product upgrades to raise their market share globally. The key players in the report are Microsoft, Integrated IBM Corporation, Deere & Company, The Climate Corporation, AgEagle, Aerial Systems Inc., Granular, Inc., Tule Technologies Inc, Descartes Labs, Inc., Prospera Technologies, Taranis, aWhere Inc., GAMAYA, ec2ce, PrecisionHawk, VineView
In this research report, artificial intelligence in the agriculture market is segmented by component, technology, application, and region.
Analysis by Component:
By component, the report is segmented into hardware, software, service. The software segment dominates with the highest market share in the forecast period. It is due to the benefits of AI-enabled software for possible application areas, such as drone analytics and precision farming availability of famous predictive analytics-based software which include Watson decision platform by IBM Corporation, and See and Spray pesticide and AI Sowing App by Microsoft and herbicide distribution systems by Deere & Company. Moreover, artificial intelligence solutions facilitate farmers to decide the optimal dates for crop sowing, monitor crop yield, detect crop diseases and resolve the necessary amount of land, water, fertilizers, and pesticides, thereby contributes to the growth of the software segment in the forecast period.
Analysis by Technology:
By technology, the report is segmented into machine learning & deep learning, predictive analytics, and computer vision. The machine learning & deep learning segment dominates with the highest market share of 80% in the forecast period. It is because machine learning-enabled solutions are being considerably adopted by agricultural organizations and farmers globally to augment their farm productivity. Moreover, the application of machine learning to farm management systems, sensor data are developing into real artificial intelligence systems and expanding the scope of production enhancement, thereby contributes to the growth of machine learning & deep learning in the forecast period.
Analysis by Application:
By Application, the report is divided into precision farming, drone analytics, agriculture robots, livestock monitoring, and others. The precision farming segment dominates with the highest market share in 2020. It is because precision farming is among the fastest-growing AI-enabled applications in agriculture. Moreover, the growing popularity of e- precision farming among farmers due to the increasing need for optimum yield production from the limited available resources is contributing to the increased market demand from the precision farming segment.
Analysis by Region:
In the regional outlook of the global artificial intelligence in the agriculture market, the North America region dominates with the largest market share of 36% in 2020. It is due to the leading industrial automation industry and the adoption of artificial intelligence solutions in the region. Moreover, the improved purchasing power of the population, continuous investments in automation, considerable investments in IIoT, and increasing focus from governments on in-house AI equipment production contribute to the tremendous market growth across North America.
Market Segmentation covered in the Report:
- Machine Learning & Deep Learning
- Predictive Analytics
- Computer Vision
- Precision Farming
- Drone Analytics
- Agriculture Robots
- Livestock Monitoring
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.