South & Central America Artificial Intelligence in Agriculture Market Forecast to 2030 - Regional Analysis by Component and Application

The South & Central America artificial intelligence in agriculture market was valued at US$ 103.57 million in 2022 and is expected to reach US$ 434.74 million by 2030; it is estimated to record a CAGR of 19.6% from 2022 to 2030.

Increasing Need for Real-Time Analytics in Agriculture Bolsters South & Central America Artificial Intelligence in Agriculture Market

Real-time data from agricultural farms enables timely decision-making for preventative measures. AI provides real-time data and insights on soil moisture, crop growth, and weather conditions, which helps farmers make informed decisions about planting, irrigation, and fertilization. For instance, using computer vision to monitor crop growth can help farmers identify issues such as disease and pest infestation early, allowing them to take action before any significant damage. Farmers in South & Central America employ sensors, drones, and soil samples in their farms to collect data related to soil moisture and nutrient levels.

Farmers and producers in Brazil use high-tech instruments for data collection and analysis. The collection of the right data provides appropriate calculations and optimization of several operations, allowing more precise agriculture and faster decisions. For carrying out several agricultural operations, such as spraying pest-control chemicals or other compounds, the collection of real-time data is necessary.

The fluctuation in weather conditions has also surged the need for real-time analytics. Real-time weather monitoring assists in precise irrigation, reducing water wastage, and maximizing crop yield. It aids in effective pest control by monitoring weather conditions that favor pests, reducing the need for broad-spectrum pesticides. Thus, the increasing need for real-time analytics in agriculture drives the AI in agriculture market.

South & Central America Artificial Intelligence in Agriculture Market Overview

The SAM AI in agriculture market is segmented into Brazil, Argentina, and the Rest of SAM. The countries in SAM have abundant natural resources such as water, soil, and vegetation cover. Moreover, Brazil faces a unique problem in the form of Amazon deforestation, which has garnered unfavorable global attention. Brazil is experiencing tremendous issues such as climate change, workforce constraints, environmental concerns, shifting customer needs, and demand volatility. These elements, taken together, threaten overall Brazil's long-term growth. Brazilian agribusinesses are increasingly relying on digital and genomic breakthroughs to address these critical difficulties. Brazil now has over 1,700 agtech businesses working on novel blockchain, artificial intelligence, and drone technology to boost competitiveness.

Various players in the region are indulging in the launch of several AI technologies for agriculture. For example, in January 2024, DeepAgro launched AI-based crop selective weeder technology, SprAI. SprAI, a selective herbicide, can be sprayed in crop regions to prevent unnecessary waste. When compared to traditional spraying, SprAI technology can reduce pesticide use by 70% and environmental contamination by 45%. Thus, such focus on ag-tech business and the launch of AI-enabled agriculture technology propels the growth of AI in agriculture market.

South & Central America Artificial Intelligence in Agriculture Market Segmentation

• The South & Central America artificial intelligence in agriculture market is categorized into components, application, and country.
• Based on component, the South & Central America 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 South & Central America 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 South & Central America artificial intelligence in agriculture market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America artificial intelligence in agriculture market share in 2022.
• Deere & Co, Climate LLC, Gamaya SA, International Business Machines Corp, Microsoft Corp, Easytosee Agtech SL, and Taranis are some of the leading companies operating in the South & Central America artificial intelligence in agriculture market.

Market Highlights

• Based on component, the South & Central America artificial intelligence in agriculture market is categorized into hardware, software, and services. The software segment held 59.2% market share in 2022, amassing US$ 61.31 million. It is projected to garner US$ 268.80 million by 2030 to register 20.3% CAGR during 2022-2030.
• In terms of application, the South & Central America artificial intelligence in agriculture market is segmented into precision farming, drone analytics, agriculture robots, livestock monitoring, and others. The precision farming segment held 45.2% share of South & Central America artificial intelligence in agriculture market in 2022, amassing US$ 46.76 million. It is anticipated to garner US$ 194.39 million by 2030 to expand at 19.5% CAGR during 2022-2030.
• This analysis states that Brazil captured 62.4% share of South & Central America artificial intelligence in agriculture market in 2022. It was assessed at US$ 64.64 million in 2022 and is likely to hit US$ 285.62 million by 2030, registering a CAGR of 20.4% 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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