As the global population and trade policies escalate, the pricing and supply chain of agricultural products are significantly impacted. The rising need for fresh crop produce and animal protein due to the rising standard of living has pressured the agriculture industry to increase production per hectare. Furthermore, shrinking agricultural lands and scarcity of availability of natural resources have raised the urgency to resolve this growing concern in the sector.
To overcome the challenge of rising food production, the agriculture industry is turning towards technological modern farming solutions for introducing automation and precision in farming practices. Precision agriculture circles several emerging technologies such as guidance technologies, sensing technologies, analytics, and many more that have enabled data-driven farming. Additionally, the implementation of artificial intelligence (AI) has allowed farm equipment and solutions to interpret, acquire, and react to unpredictable farm situations with enhanced efficiency.
In the recent industry analysis conducted by the BIS Research, the global artificial intelligence (AI) in agriculture market generated a revenue of $1091.9 million in 2019 and is projected to reach the mark of $3807.3 million by 2024, at a whopping CAGR of 28.38% during the forecast period 2019-2024. Growing demand to derive insights from emerging complexities of data-driven farming, the increasing need to optimize farm operation planning, and rising development of autonomous equipment in agriculture, are certain factors that have contributed to the growth of the market.
Agricultural technologies have offered a wide array of applications covering the entire farming cycle, including data management, soil management, yield mapping, as well as monitoring, spraying, harvesting, and planning, among others. While growers and other agriculture customers have welcomed AI with open arms, the AI technology has been critically used to optimize agricultural operations based on data. Predictive analytics is one of the most deployed use cases of AI in agriculture, where it aids in efficient farm production with reduced losses.
Based on the region, North America gathered an overall revenue of $476.9 million in 2019 and is anticipated to generate the highest revenue during the forecast period. However, the Asia-Pacific region showcased the fastest market growth rate due to its vast availability of arable land, the countries’ economic dependence on agriculture, and social growth along with the support by the government in terms of subsidies, regulations, or research.
In recent years, several key players of the market have ramped up their product launch activities to generate public awareness about their existing line of products and compete with their competitors’ product portfolio. The leading players in the market include AgEagle Aerial Systems Inc., Gamaya SA, Granular Inc., IBM Corporation, Microsoft Corporation, PrecisionHawk Inc., The Climate Corporation, VineView, Root AI Inc., Prospera Technologies, Robert Bosch GmbH, Deere and Company, Harvest Croo Robotics LLC, BASF SE, and SAP SE.