Smart Agriculture Market

Smart Agriculture Market Size

The global smart agriculture market was estimated at USD 22.9 billion in 2024. The market is expected to grow from USD 25.9 billion in 2025 to USD 60.9 billion in 2034, at a CAGR of 10.8%, according to Global Market Insights Inc.

The smart agriculture market is being driven by major global challenges, including the growing demand for food due to population growth, a labor shortage, and the need to adapt to climate change. Government entities and industry stakeholders are putting innovative programs and policies in place to deal with these issues, and advance agricultural productivity, sustainability, and resilience.

Global population is estimated to surpass 9 billion by the year 2050 with a 60% increase in demand for food. To feed this population, agricultural productivity must advance significantly to sustainably feed people. According to the Food and Agriculture Organization (FAO), significantly higher crop yields, along with improvements in distribution of food, will be necessary to feed this confirmed increasing population.

As a consequence, governments are realizing the importance of more pervasive agricultural productivity. The FAO's 2023 report recommends 600 adaptation measures for governments to enhance agriculture's capacity to feed people in the future. These adaptations emphasize improved resilience and sustainability in agriculture.

The agricultural industry in the United States is experiencing major labor problems that have been affecting productivity and food security in the country. To tackle these issues, in September of 2023, the U.S. Department of Agriculture (USDA) announced the Farm Labor Stabilization and Protection Pilot Program, which allocates up to $ 65 million to support agricultural employers in helping resolve their labor workforce challenges. This initiative has two primary objectives, improving working conditions for farm workers and increasing legal migration options, including the H-2A visa program, to ensure a stable labor supply in support of the agriculture sector.

Moreover, the Advancing Automation Research and Development in Agriculture Act (AARDA), introduced in June 2023, directs the USDA to create a competitive grant program in order to increase the competitiveness of specialty crop producers through mechanization and automation. The aim of the bill is to develop cost-efficient technologies that will decrease the demand for manual labor and improvement crop production and management practices, while harvesting, processing, and packaging.

Climate change is impacting agricultural output as increased temperature, unpredictable rainfall, and extreme weather changes pose risks to crop output and food safety. To counter this, the U.S. Department of Agriculture (USDA) released its revised Climate Adaptation and Resilience Plan in June 2024. The Climate Adaptation and Resilience Plan presented strategies to build more resilience in agricultural production, management of natural resources, and rural development to respond to climate risks to the nation's food systems.

Furthermore, the USDA's Climate-Smart Agriculture and Forestry initiative aims to promote practices to improve productivity, build resilience, and reduce greenhouse gas emissions. The USDA plans to support the profitability of producers and sustainability through investments in climate-smart solutions. This initiative is aimed at strengthening rural wealth by opening new market opportunities.

Smart Agriculture Market Trends

The smart agriculture sector is advancing in technology and initiatives from the government that will lead to increased productivity, sustainability, and resilience to climate-related risks in farming practices.

• U.S. Department of Agriculture (USDA) announced the Climate Adaptation and Resilience Plan (2024), which identifies strategies to enhance agricultural production and management of natural resources in light of climate risks. As a complementary approach, the USDA’s Climate-Smart Agriculture and Forestry Initiative is designed to innovate practices that promote productivity, climate-resilience, and the reduction of greenhouse gas emissions for sustainable practices and new market opportunities.
  
• Through the USDA’s Partnerships for Climate-Smart Commodities program, the USDA has invested in 135 opportunities, committing USD 3.03 billion since the program’s launch in September 2022. More than 21,000 farms have been enrolled across over 5.2 million acres to advance climate-smart practices and produce climate-smart commodities including beef, coffee, almonds, rice, and dairy products.
  
• Due to persistent drought conditions, the U.S. Department of Agriculture announced a $400 million investment via the Water Savings Commodity Program. The investment helps irrigation districts and producers adopt new on-farm water savings technologies and practices and hopes to conserve up to 50,000 acre-feet of water across 250,000 acres of irrigated land.
  
• The USDA has put more than $3 billion toward the Partnerships for Climate-Smart Commodities program to help farmers transition to sustainable farm management practices that build soil health and reduce greenhouse gas emissions. Almost half of the farmers participating in the program are small or underserved farmers, which indicates an emphasis on serving all types of producers.
  
• Smart agriculture quickly adapts to change, spurred on by demonstrating government support and growing acceptance of sustainable practices. Investment and practices in climate-smart, water-saving technologies, and a mix of innovation programs enable farmers to manage productivity and environmental challenges. They also highlight an enhanced focus on inclusivity and resilience and feature a more efficient, sustainable, and future-ready agricultural sector globally.
  

Smart Agriculture Market Analysis

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Based on product type, the market is segmented into hardware & equipment, software & digital platforms, and services & connectivity. The hardware and equipment segment dominated the smart agriculture industry accounting for USD 14.1 billion in 2024 and is expected to grow at a CAGR of 10.9% through 2034.

• The hardware and equipment side of smart agriculture is on a steady growth trajectory. The US Department of Agriculture (USDA) supports initiatives to allow farmers to upgrade machinery to devote time to productivity and sustainability. Large companies like John Deere are on the forefront of introducing autonomous tractors and smart farming equipment that utilize sensors and artificial intelligence.
  
• Digital techniques and software programs are becoming a more prominent part of farming in the new age of agriculture. The National Institute of Food and Agriculture funded by the USDA is also developing apps and platforms aimed at helping farmers manage their crops more effectively. Several states are also reaching out to local agritech firms to develop digital tools and resources to serve their local farmers. The shift towards digital farming enables farmers to make more informed, tactical decisions when managing inputs like water and fertilizers and delivering those services at lower costs.
  
• Reliable internet access is a vital component that allows smart farming to be effective. The USDA and Federal Communications Commission (FCC) are funding expansion of broadband in rural areas with funds such as the Rural Digital Opportunity Fund. Their investments are valuable to farmers who are using devices such as sensors and drones to connect their equipment to the internet for real-time data. Companies such as CNH Industrial are partnering with satellite providers to establish internet service access on rural farms while farmers can continue to use digital tools that are beneficial for them even in remote, hard to reach places.
  

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Based on application, the smart agriculture market is categorized into crop production, livestock management, and post-harvest & supply chain. The crop production segment dominates the market with 61% share in 2024, and the segment is expected to grow at a CAGR of 10.6% from 2025 to 2034.

• The field of smart agriculture includes emerging technologies that are completely transforming crop production. Smart agriculture refers to the implementation of newer technologies to increase the precision and efficiency of farming. The U.S. Department of Agriculture, as well as other government programs, is further supporting the use of these technologies by promoting the use of sensors, drones, and satellite images to monitor the health of crops and soil quality. The best-laid plans make no difference if there is not enough water, fertilizer, or optimum pest control, at the right time, to ensure your crop reaches its highest potential. Data and data-driven crop management is helping crops adapt to changing weather patterns while improving overall sustainability.
  
• Smart agriculture technologies in livestock management are soliciting new advancements in health and productivity for the farm. The U.S. Department of Agriculture, and other government programs, are encouraging the use of IoT devices and health monitoring systems, allowing livestock to be monitored constantly and remotely in real-time. These devices and systems allow farmers to monitor their livestock's behavior, routine, nutritional intake, and environment. Smart agriculture technologies are changing farm management, allowing farmers to continually monitor animal health status, rapidly detect illness, manage feeds more efficiently, and even monitor welfare. Smart agriculture systems are reducing production risks and reducing losses while improving the eating quality of meat, milk, and other dairy products.
  
• Smart agriculture is also achieving impactful changes in the postharvest period that includes food handling, storage, and distribution. Along with postharvest processing, state programs are supporting investment in cold storage, automated sorting, and traceability systems, and mediums just entering the farm and food systems. Farmers, processors, distributors, and retailers are ordering supplies, cold storage, and sorting, and tracking food for quality-control purposes in real-time.

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U.S. Smart Agriculture Market

US dominated the market in North America with around 76% share in 2024 and generated USD 4.6 billion in revenue.

• The U.S. smart agriculture market is growing rapidly, which can be attributed to federal investments in order to promote sustainable farming practices. In 2024, the U.S. Department of Agriculture (USDA) announced funding of more than USD 3 billion to assist agricultural producers and forest landowners with transitions to climate-smart practices in the largest single year of funding in history. This funding will support practices including cover cropping, conservation tillage, nutrient management, etc. on more than 28,500 farmers and ranchers over 361 million acres of land.
  
• The USDA's Partnerships for Climate-Smart Commodities initiative indicates apparent dedication on the part of the government to increasing the pace of climate-smart agricultural transformation. At the same time, with an investment of more than USD 3.1 billion, the program funded 141 projects to provide technical assistance and financial assistance to producers to incorporate climate-smart production techniques for projects at the ranch level. The initiative will focus on small and underserved producers while also providing a pathway to expand market possibilities for American producers of commodities produced with climate-smart practices.
  
• To assess climate-smart practices, the USDA is committing USD 300 million to improve measurement, monitoring, reporting, and verification (MMRV) of greenhouse gas emissions and carbon sequestration in agriculture and forestry. These activities build on aspects of the Federal Strategy to Advance Greenhouse Gas Measurement and Monitoring, with the goal of improving the accuracy and reliability of greenhouse gas estimates, allowing for improved decision-making and policies in the agricultural sector.
  
  

Germany Smart Agriculture Market

The smart agriculture industry in the Germany is expected to experience significant and promising growth from 2025 to 2034.

• Germany is supporting the digital transformation of its agricultural sector through a number of programs. The Federal Ministry of Food and Agriculture (BMEL) has set aside a large amount of funding to support digitalization of rural areas. One of the significant programs, the "Smarte Land Regionen" model project, is a model project that is allocated USD 25 million for development and implementation of digitalization in seven rural districts, to aid in the creating of a digital collaborative ecosystem. Moreover, BMEL has committed over USD 50 million to digital trial fields to evaluate state's advancements using digital technology in agriculture.
  
• The use of digital technologies in German agriculture is on the rise. An estimated 85.5% of German farmers will be utilizing digital technology on their farms by 2025, as an increasing number of them are also intending to try to invest in their digital farms. Germany's agricultural technology sector generated a turnover of USD 9.1 billion in 2023, making Germany the third largest producer of agricultural technology in the world.
  
  

China Smart Agriculture Market

The market in China is expected to experience significant and promising growth from 2025 to 2034.

• China is quickly modernizing its agricultural industry, with dedicated support from its government. The Ministry of Agriculture and Rural Affairs recently announced a five-year plan (2024-2028) to integrate innovative technologies, such as artificial intelligence, big data, and GPS, into conventional agricultural practices, with the goal of improving food security, increasing agricultural productivity, and reducing reliance on imported agricultural products, which fits into China's recent calls for more self-sufficiency.
  
• The government is also investing extensively in the establishment of high-quality farmland, utilizing smart monitoring and operations systems. As of the end of 2023, more than 66 million hectares of farmland had digital systems in place to aid in intensive management of crops and planting in real time.
  
  

Saudi Arabia Smart Agriculture Market

The smart agriculture industry in Saudi Arabia is expected to experience significant and promising growth from 2025 to 2034.

• As part of Vision 2030, Saudi Arabia is making a concentrated effort to modernize the agricultural sector. A key contributor to this effort is the Public Investment Fund (PIF), which has been investing in sustainable agricultural projects in the country. For example, PIF has invested in NEOM’s food company, Topian, which has a focus on climate-friendly farming and aquaculture initiatives. PIF’s wholly owned subsidiary, the Saudi Agricultural and Livestock Investment Company (SALIC), is also strengthening food security by securing important livestock imports by making acquisitions abroad.
  
• In addition, the government is working to utilize more technology in agriculture. The Ministry of Environment, Water, and Agriculture, established the Agricultural Extension Platform, which connects farmers, livestock owners, and fishermen directly to experts for quick advice. The platform recently won an award for its efforts in small-scale sustainable development. In addition, Saudi Arabia is considering investments in innovative technology such as AI, the Internet of Things, and drones to help farmers better manage their agricultural resources and help them make better-informed decisions.
  
  

Brazil Smart Agriculture Market

The market in Brazil is expected to experience significant and promising growth from 2025 to 2034.

• Brazil is making strides to modernize its agricultural sector through certain target investments and actions consistent with Vision 2030. A leading part of this is the Public Investment Fund (PIF) which seeks investments in sustainable agriculture projects within and outside Brazil. One of these investments was in the food company Topian in NEOM, focused on climate-resilient agriculture and regenerative aquaculture. In addition, PIF also has a subsidiary, the Saudi Agricultural and Livestock Investment Company (SALIC), that has purchased assets based in commodity-rich areas including South America and Australia in order to secure important imports, such as livestock, for domestic use and to ensure food security in times of supply chain disruptions.
  
• Overall, the government is pushing to encourage technology into agriculture. The Ministry of Environment, Water, and Agriculture developed the Agricultural Extension Platform, connecting farmers, livestock owners, and fishermen directly to experts for rapid response to agricultural inquiries. This platform was also recently awarded for its contribution to sustainable development. Finally, Saudi Arabia is further exploring the use of recent technology including artificial intelligence, the Internet of Things, and drones, to provide farmers with new abilities to support the management of resources and enhance decision-making.
  

Smart Agriculture Market Share

• The top 7 companies in the smart agriculture industry are AGCO, Bayer, CLAAS, CNH Industrial, John Deere & Company, Kubota, and Trimble contributing around 40% to 45% of the market in 2024.
  
• These companies continue to acquire and merge with others, expand facilities, and make various collaborations to increase their product offerings, access customer bases, and secure their market positions.
  
• John Deere is a company known for farming machinery like tractors and harvesters. They also employ technology that includes GPS and automation to improve a farmer's working environment. Their machinery increases the ability to sow seeds, grow crops, and harvest crops more efficiently, thereby yielding more at less time and input.
  
• AGCO makes an array of farm machinery and focuses on smart farming solutions. In addition to machinery, AGCO provides technology to assist farmers in tracking and managing their crops. Their systems are built to connect machinery and data, empowering farmers to make better decisions while using their input resources more sustainable, including seeds, water, and fertilizer.
  
• Bayer delivers digital services for farmers to improve crop growing practices. The Climate software records a variety of information about the field crops and soil environment, growing conditions, and weather. Their software then integrates weather information with the environment and recommends what, when, and how to plant or manage crops. Bayer's intention is to provide farmers the information they need to raise a higher yielding crop at a lower input cost and in a more sustainable way.
  

Smart Agriculture Market Companies

Major players operating in the smart agriculture industry are:

• AGCO
• Bayer
• Carbon Robotics
• CLAAS Group
• CNH Industrial
• Farmers Edge
• John Deere & Company
• Kubota
• Mahindra & Mahindra
• Monarch Tractor
• Prospera Technologies
• Taranis
• Topcon
• Trimble
• Yara International
  
• To improve the product and market share key players are constantly investing in technological activities and are also entering into partnerships to provide improved and better solutions for the customers. These investments are benefiting both companies and customers as they help develop and offer solutions as per the changing technological trends and thus the customer requirements.
  
• Kubota is a prominent supplier of agricultural machinery and well-regarded for its reliable tractors, harvesters, and irrigation systems. Kubota's smart agriculture solutions consist of reliable machines and precision technology to improve productivity. Kanota's products are suitable for a wide range of small and large commercial farming systems providing simple systems that allow farmers to increase efficiency and productivity through integration with digital technologies.
  
• CNH Industrial provides many brands, such as Case IH and New Holland Agriculture, that offer many types of farming products and smart farming technologies. CNH Industrial manufacturers many precision farming systems, including automated guide systems, digital driver access, and crop monitoring technologies, all of which improve efficiency for planting, harvesting, and management of fields. CNH is a common choice for wide commercial agriculture that make reliable implement and use robust digital farming platforms for data management.
  
• Trimble is a leading player in agriculture solutions for advanced positioning technologies and data solutions. Trimble's products include GPS-based guidance systems, mapping systems, and drone technologies to allow farmers to monitor crop and manage inputs more accurately. Trimble extensively supports agriculture farmers with software hardware that integrate planning, data monitoring, and farm-based in on field information, improve fit, reduce waste, and increase productivity on many -on-farm applications.
  

Smart Agriculture Industry News

• In April 2025, Taylor Farms, a leading name in the salad industry, announced its acquisition of FarmWise, an AI-powered weeding startup facing financial challenges. This strategic move highlights Taylor Farms' commitment to integrating advanced technologies into its operations, aiming to enhance efficiency and sustainability in agricultural practices.
  
• In January 2025, John Deere announced a suite of new autonomous vehicles, including an autonomous tractor, an autonomous lawn mower, a crewless dump truck, and a specialized tractor for orchards, to assist in addressing labor shortages and to improve productivity in the agricultural, landscaping, and construction sectors.
  
• In October 2024, Kubota North America expanded its presence in crop monitoring services by acquiring Bloomfield Robotics, a company renowned for its AI-driven plant imaging and analytics solutions tailored for specialty crops. This strategic acquisition aligns with Kubota's commitment to integrating advanced technologies into agricultural practices, enhancing productivity and precision in crop management.
  
• In September 2024, Corteva and Pairwise announced a collaboration to advance gene editing technologies, aiming to enhance climate resilience in agriculture. For more details, visit the official announcement: Corteva Media Center
  

The smart agriculture market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2034, for the following segments:

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Market, By Product Type

• Hardware & equipment
  • GNSS guidance & steering systems
  • IoT sensors & monitoring devices
  • Autonomous & robotic systems
  • Precision application equipment 
• Software & digital platforms
  • Farm management information systems (FMIS)
  • Decision support systems
  • Supply chain & traceability platforms
• Services & connectivity
  • Connectivity solutions
  • Cloud computing & data analytics
  • Professional services

Market, By Application

• Crop production
  • Precision planting & seeding
  • Nutrient management
  • Crop protection
  • Irrigation management 
• Livestock management
  • Animal health monitoring
  • Automated feeding systems
  • Breeding & reproduction management
• Post-harvest & supply chain
  • Yield monitoring & analysis
  • Storage & handling optimization
  • Traceability & compliance

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE