AI in Agriculture Market to Reach $12.8 Billion by 2032

Pune, June 29, 2025 (GLOBE NEWSWIRE) -- The SNS Insider report indicates that the Artificial Intelligence in Agriculture Market size was valued at $1.8 billion in 2023 and is estimated to reach $12.8 billion by 2032, growing at a compound annual growth rate (CAGR) of 24.34% between 2024 and 2032.

The U.S. segment of the market was valued at $0.5 billion in 2023 and is projected to reach $3.4 billion by 2032, growing at a CAGR of 24.03% during 2024–2032. Early adoption of technology, substantial investment in agricultural research, and the widespread use of AI-powered precision farming tools are key factors driving growth. Federal government support, investment in smart farming, deployment of autonomous machinery, and sustainability-focused agri-tech investments will further boost the market.

The software segment dominated the market in 2023, accounting for 55% of revenue share. AI-embedded devices such as smart sensors, edge devices, and embedded chips in manufacturing equipment are crucial for real-time data extraction and processing. The hardware segment, driven by investments in robotics, automated material handling, and industrial cameras, is expected to experience the fastest CAGR from 2024 to 2032.

Machine Learning and Deep Learning technologies dominated the market in 2023, accounting for 47% of revenue share. These technologies are essential for pattern recognition, yield forecasting, and soil and crop data anomaly detection. Computer vision, which is gaining momentum, is expected to witness the fastest growth due to its applications in pest detection, weed identification, and fruit grading.

Precision farming dominated the market in 2023, accounting for a significant revenue share. AI tools in this segment help in seeding, irrigation, and nutrient management, contributing to sustainable agriculture. Remote sensing and GPS-based automated systems further enhance operations. Agriculture robots, rapidly employed for automated harvesting, soil analysis, and planting activities, are registering the fastest CAGR due to the demand for continuous, precise fieldwork and persistent labor shortages.

North America dominated the AI in agriculture market in 2023, accounting for 36% of revenue share, due to early adoption of advanced farming technologies and robust digital infrastructure. Government subsidies and tech partnerships have also played a significant role. Asia-Pacific is anticipated to register the fastest CAGR from 2024 to 2032, driven by digital transformation, rising food security concerns, population growth, and agri-startup activity.

Recent developments in 2024 include IBM's launch of an AI-based weather forecasting tool for small-scale farmers in Africa and South Asia, John Deere's strategic partnership with NVIDIA for real-time AI analytics in self-driving tractors, and Bayer Crop Science's AI-powered disease detection platform for wheat and corn crops.