Asia Pacific Artificial Intelligence in Agriculture Market Forecast to 2030 - Regional Analysis by Component and Application

The Asia Pacific artificial intelligence in agriculture market was valued at US$ 356.33 million in 2022 and is expected to reach US$ 1.87 billion by 2030; it is estimated to record a CAGR of 23.1% from 2022 to 2030.

Potential Growth Opportunities in Developing Countries Boost Asia Pacific Artificial Intelligence in Agriculture Market

Developing countries confront particular issues in agriculture, including limited resources, small landholdings, insufficient water, and a lack of access to technology and credit. Climate change has resulted in increased droughts, floods, and insect infestation. Difficulty in connecting to markets and receiving fair pricing for crops. In response to these challenges, various governments across developing countries are focusing on AI in agriculture. AI has the potential to address these issues while dramatically increasing agricultural output and sustainability in developing countries. Several global organizations are taking various initiatives.

For example, AI4AI intends to scale digital agriculture through public-private partnerships and reach one million farmers worldwide by 2027. Under the public-private partnership, the government across the world has taken several steps. For example, the Public-Private Partnerships for Digital Transformation of Agriculture project intends to strengthen policy recommendations for Agriculture 4.0 frameworks using data from pilots established since 2021. The goal is to achieve 100 cases and assess their appropriateness for new crops, such as plantain, cape gooseberry, and palm, in addition to historical crops, including cocoa, coffee, and avocado.

Another example is India, which is focusing on scaling digital agriculture. For example, the Government of India is collaborating with the corporate sector, industry, and farmer organizations. Agri Stack is the government's digital foundation for bringing multiple stakeholders together to promote agriculture in India and enable improved outcomes and results for farmers through the use of data and digital services. In 2022, India led multi-stakeholder discussions in six working groups to make recommendations on Public-Private Partnerships in Digital Agriculture. Thus, such initiatives by developing economies are anticipated to create several opportunities for AI in agriculture market.

Asia Pacific Artificial Intelligence in Agriculture Market Overview

The Asia Pacific AI in agriculture market is segmented into Australia, India, China, Japan, South Korea, and the Rest of Asia Pacific. According to the theme chapter of the Asian Development Outlook 2021 Update, 76% of the poor people live in rural regions; increasing agricultural output and income is critical to eliminating poverty. Thus, governments across the region are taking initiatives to transform agriculture to make it more climate-proof and modern. For example, in December 2023, China developed its first domestically designed unmanned vertical plant factory in Chengdu.

The team at the Institute of Urban Agriculture (IUA) and the Chinese Academy of Agricultural Sciences (CAAS) deployed robots that can produce and harvest a lettuce crop in 35 days. This artificial intelligence-based control system uses cutting-edge technology and algorithms to monitor, analyze, and change important environmental factors within the vertical farming operation.

Several players across the region are taking strategic initiatives such as partnerships and collaborations to provide AI-enabled farming. For example, in November 2022, Syngenta and Plantix, an image recognition company, announced a partnership that to offer AI-enabled digital farming tools to at least half a million smallholder farmers in Asia Pacific. The partnership provides smallholder farmers access to a worldwide database of over 50 crops and 500 illnesses, available via Syngenta's Cropwise Grower app for farmers.

The app harnesses the power of data to safeguard crop yields by providing on-demand advice on agricultural best practices and crop protection solutions. Cropwise Grower uses AI to allow farmers to snap a photo of a crop problem and identify crop pests and illnesses in real-time with 93% accuracy. The Plantix algorithms analyze the image to determine the problem and make a recommendation. Thus, such developments across the Asia Pacific propel the AI in agriculture market.

Asia Pacific Artificial Intelligence in Agriculture Market Segmentation

• The Asia Pacific artificial intelligence in agriculture market is categorized into components, application, and country.
• Based on component, the Asia Pacific artificial intelligence in agriculture market is categorized into hardware, software, and services. The software segment held the largest market share in 2022.
• In terms of application, the Asia Pacific artificial intelligence in agriculture market is categorized into precision farming, drone analytics, agriculture robots, livestock monitoring, and others. The precision farming segment held the largest market share in 2022.
• By country, the Asia Pacific artificial intelligence in agriculture market is segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. China dominated the Asia Pacific artificial intelligence in agriculture market share in 2022.
• Tule Technologies Inc, Deere & Co, International Business Machines Corp, and Microsoft Corp are some of the leading companies operating in the Asia Pacific artificial intelligence in agriculture market.

Market Highlights

• Based on component, the Asia Pacific artificial intelligence in agriculture market is categorized into hardware, software, and services. The software segment held 61.2% market share in 2022, amassing US$ 218.18 million. It is projected to garner US$ 1.19 billion by 2030 to register 23.7% CAGR during 2022-2030.
• In terms of application, the Asia Pacific artificial intelligence in agriculture market is segmented into precision farming, drone analytics, agriculture robots, livestock monitoring, and others. The precision farming segment held 41.7% share of Asia Pacific artificial intelligence in agriculture market in 2022, amassing US$ 148.72 million. It is anticipated to garner US$ 762.04 million by 2030 to expand at 22.7% CAGR during 2022-2030.
• This analysis states that China captured 33.4% share of Asia Pacific artificial intelligence in agriculture market in 2022. It was assessed at US$ 118.89 million in 2022 and is likely to hit US$ 717.32 million by 2030, registering a CAGR of 25.2% during 2022-2030.
• In October 2021, IBM has introduced an environmental intelligence software suite that uses AI to assist organizations in preparing for and responding to climate risks, assessing their environmental impact, and reducing regulatory compliance.

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