Smart Agriculture Market Report 2025

The smart agriculture market size has grown rapidly in recent years. It will grow from $16.25 billion in 2024 to $18.34 billion in 2025 at a compound annual growth rate (CAGR) of 12.8%. The growth in the historic period can be attributed to rising global population, climate change concern, government initiatives and support, farm labour shortages, water scarcity concerns.

The smart agriculture market size is expected to see rapid growth in the next few years. It will grow to $28.44 billion in 2029 at a compound annual growth rate (CAGR) of 11.6%. The growth in the forecast period can be attributed to emphasis on sustainable agriculture, market demand for organic produce, focus on sustainable agriculture practices, adoption of smart irrigation systems. Major trends in the forecast period include precision farming and precision agriculture, adoption of internet of things (IoT) sensors, farm management software and platforms, robotics and automation in farming, blockchain for supply chain transparency, climate-smart agriculture, collaborations and partnerships in the agtech ecosystem.

The increasing pressure on the food supply system, driven by the rapidly growing population, is expected to boost the smart agriculture market in the coming years. Food supply systems encompass all individuals and interactions along the food value chain, from input supply and crop production to livestock, fish, processing, wholesale, retail, food preparation, and disposal. Smart farming plays a vital role in linking all participants in the food supply chain by facilitating an effective and equitable flow of information, which promotes better decision-making. For example, in April 2024, the Global Report on Food Crises (GRFC) 2024, published by the World Food Programme, an Italy-based non-profit organization, highlighted the significant challenge of eradicating hunger by 2030. In 2023, about 282 million people, or 21.5% of those analyzed across 59 countries and territories, faced severe food insecurity and required urgent assistance for food and livelihoods. Thus, the rising pressure on the food supply system due to population growth is driving the expansion of the smart agriculture market.

The growth of the smart agriculture market is further propelled by the increasing adoption of the Internet of Things (IoT). IoT, a networked system of interconnected computing devices, plays a pivotal role in smart agriculture by enabling real-time data collection from various sensors and devices. This data empowers farmers to make informed decisions regarding crop management, irrigation, and livestock monitoring, leading to heightened efficiency and productivity. As of September 2022, global IoT connections reached 13.2 billion, with projections indicating a substantial increase to 34.7 billion connections by 2028. The rising adoption of IoT technologies signifies a significant driver for the smart agriculture market.

Major companies in the smart agriculture market are concentrating on technological advancements, particularly in advanced AI integration, which facilitates detailed forecasting of crop yields and identifies optimal global growing conditions. Advanced AI integration involves the seamless incorporation of AI technologies into various systems, enabling automated decision-making, data analysis, and improved user interactions. For example, in July 2024, Cropin, a software company based in India, introduced Sage, designed to revolutionize agricultural decision-making by providing extensive data and insights. This new AI-powered agri-intelligence platform merges generative AI, climate data, crop knowledge graphs, and sophisticated models to deliver real-time insights for yield forecasting and optimal growing conditions worldwide. By utilizing a grid-based mapping system, it supplies precision data for 13 major crops, which account for 80% of global food demand, thereby aiding stakeholders in making data-driven decisions to bolster food security.

Major players in the smart agriculture market are intensifying their efforts to introduce advanced systems, such as crop intelligence models, as a strategic approach to enhance revenue generation. Crop intelligence models leverage sophisticated data analytics and Internet of Things (IoT) technologies to optimize agricultural practices. These models facilitate precise decision-making in crop management and resource utilization. A notable example is PepsiCo, Inc., a prominent US-based food company, which collaborated with Cropin in April 2023 to introduce a crop intelligence model in India, specifically targeting the optimization of potato yield. This initiative exemplifies the application of smart agriculture, offering real-time weather monitoring, predictive intelligence at crop and plot levels, tailored advice for irrigation, fertilization, and pest control, as well as an early warning system for disease and pest outbreaks. The integration of technology and data-driven insights underscores the commitment to fostering responsible and efficient farming practices.

In June 2022, BASF SE, a chemicals company based in Germany, acquired Horta s.r.l. for an undisclosed amount. This acquisition is intended to bolster BASF SE's digital farming capabilities, especially in the realm of sustainable agriculture. Horta s.r.l., an Italy-based company, specializes in advanced decision support systems and focuses on creating and implementing innovative digital solutions for sustainable agricultural practices.

Major companies operating in the smart agriculture market are Deere & Company, AG Leader Technology Inc., Trimble Inc., Bayer Crop Science LP, Syngenta AG, Corteva Agriscience Inc., PrecisionHawk Inc., The Climate Corporation, Farmers Edge Inc., Taranis Inc., Raven Industries Inc., AeroFarms LLC, Granular Inc., AgriWebb Pty Ltd, Ecorobotix AG, CropX Inc., SmartFarm LLC, Indigo Ag Inc., Ceres Imaging Inc., Hexagon AB, FarmLogs Inc., Parrot Drones SAS, Vultus Inc., Prospera Technologies Inc., Fieldin Inc., Sentera Inc., Harvest CROO Robotics LLC, Blue River Technology Inc., AgFunder Inc., AgroStar.

North America was the largest region in the smart agriculture market in 2024. Asia-Pacific is expected to be the fastest-growing region in the smart agriculture market report during the forecast period. The regions covered in the smart agriculture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart agriculture market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Smart agriculture, a modern approach to farming, integrates Internet of Things (IoT), robotics, artificial intelligence (AI), sensors, and advanced technologies to enhance agricultural productivity. It's an innovative strategy aimed at minimizing human labor while optimizing resource utilization.

The primary components of smart agriculture encompass hardware, software, and services. Hardware consists of tangible parts incorporated or added to electronic devices such as computers, cellphones, and other gadgets. Farms of varying sizes - small, medium, and large - utilize smart agriculture for applications like precision farming, livestock monitoring, precision aquaculture, smart forestry, smart greenhouses, and more.

The smart agriculture market research report is one of a series of new reports that provides smart agriculture market statistics, including smart agriculture industry global market size, regional shares, competitors with a smart agriculture market share, detailed smart agriculture market segments, market trends and opportunities, and any further data you may need to thrive in the smart agriculture industry. This smart agriculture market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The smart agriculture market consists of revenues earned by entities through system integration, consulting, and support and maintenance services. The market value includes the value of related goods sold by the service provider or included within the service offering. The smart agriculture market includes revenues earned by entities through precision aquaculture, livestock monitoring, precision forestry, smart greenhouses, and others. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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