AI in Agriculture Market Size

AI in Agriculture Market Size

AI in Agriculture Market size was valued at USD 2.1 billion in 2023 and is estimated to register a CAGR of over 24% between 2024 and 2032, attributed to the increasing demand for precision agriculture. The growing need to optimize agricultural processes and enhance productivity is driving the adoption of AI technologies in the agriculture market.

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Research results from the AgriTech Trends 2023 survey indicate a notable increase in digital transformation efforts within agribusinesses. However, many struggle to extract actionable insights from their data. Agribusinesses encounter both on-farm and off-farm challenges stemming from inaccurate yield predictions and data complexity. Survey respondents express a clear demand for advancements in digital technologies, including AI and automation, to facilitate more precise, data-informed decision-making throughout the agrifood supply chain.

AI technologies, such as drones, sensors, and machine learning algorithms, enable precise monitoring, analysis, and management of agricultural operations. This enhances efficiency, resource allocation, and decision-making, contributing to the growth of the AI in agriculture market.

Continuous advancements in AI technologies, including computer vision, predictive modeling, and robotics, are making agriculture more data-driven and efficient. These innovations enable farmers to make informed decisions, optimize resource allocation, and mitigate risks, thereby driving the adoption of AI in agriculture.

Quoting an instance, in March 2024, a collaboration of UCF researchers unveiled plans to advance AI integration in agriculture by developing various AI-driven technologies aimed at enhancing field operations within the industry. This initiative is backed by a $2.74 million grant from the U.S. Department of Agriculture (USDA) – National Institute of Food and Agriculture (NIFA). The project, supported by NIFA's AI Institute for Transforming Workforce and Decision Support (AgAID), will specifically focus on enhancing agricultural applications. Professor Manoj Karkee from Washington State University serves as the principal collaborator of AgAID for this endeavor.

However, the initial investment required for implementing AI technologies, such as sensors, drones, and data analytics platforms, can be prohibitive for many farmers, especially those operating on smaller scales. Additionally, access to reliable internet connectivity and technical expertise may pose challenges in adopting and utilizing AI solutions effectively.