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Smart Agriculture Market Size 2024-2028

The smart agriculture market size is forecast to increase by USD 10.98 billion at a CAGR of 10.22% between 2023 and 2028.

The market is experiencing significant growth due to several key trends. The availability of affordable cloud services is encouraging farmers to adopt smart farming techniques. Big data is being increasingly utilized in smart farming to enhance crop yields and optimize resource usage.
However, the high initial investment required for implementing smart farming remains a challenge for many farmers. Despite this, the benefits of improved crop yields, reduced water usage, and increased efficiency are driving the market forward. Smart agriculture is revolutionizing the agricultural sector by integrating technology into traditional farming practices, leading to more sustainable and productive farming methods.

What will be the Size of the Smart Agriculture Market During the Forecast Period?

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The market is experiencing significant growth as farmers and aquaculture farm owners seek to optimize production and improve crop and livestock health through the integration of advanced technologies. The Internet of Things (IoT) and machine learning are driving innovation in this space, enabling remote monitoring and automation of various farm operations.
Smart technologies, such as sensors, RFID, GPS, and Wi-Fi technology, are used to collect real-time data on crop growth, soil conditions, livestock health, and infrastructure health. Automation through robots and automatic feeders is also becoming increasingly common, allowing for more precise and efficient farming practices. Artificial intelligence and machine learning algorithms are used to analyze data and provide recommendations to farmers, improving crop quality and reducing the need for manual labor.
The market for smart agriculture is expected to continue growing as the demand for protein-rich diets drives up the need for more efficient and sustainable farming practices. Smart technologies are transforming traditional agricultural practices, making farming more data-driven and automated, and enabling farmers to make informed decisions in real-time.

How is this Smart Agriculture Industry segmented and which is the largest segment?

The smart agriculture industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Precision farming
  Smart greenhouse
  Livestock monitoring
  Others


Product

  Hardware
  Software
  Services


Geography

  North America

    Canada
    US


  Europe

    UK


  APAC

    China
    India


  South America



  Middle East and Africa

By Type Insights

The precision farming segment is estimated to witness significant growth during the forecast period.

In the realm of modern agriculture, the hardware segment holds significant importance In the implementation of smart farming practices. This segment encompasses the physical devices and equipment engineered to boost productivity, efficiency, and sustainability. Key hardware components include sensors and monitoring systems. These devices collect real-time data on environmental factors and crop conditions, measuring parameters such as temperature, humidity, soil moisture, pH levels, nutrient content, and weather conditions. Monitoring systems integrate this data, providing farmers with valuable insights for informed decision-making. Other hardware segments include Internet of Things (IoT) devices, such as remotely operated vehicles (ROVs), automatic feeders, and milking robots, which contribute to precision farming and livestock monitoring.

Additionally, machine learning and artificial intelligence technologies are integrated into hardware systems to optimize crop yields, improve livestock health, and minimize resource consumption. Farm owners of various scales, from large to small, benefit from these smart agricultural technologies, addressing challenges like land fragmentation, input and resource management, and environmental concerns, such as nitrogen cycle management, waterways protection, and land and water degradation. The hardware segment also includes services, such as precision feeding systems, robotic systems, and specialized services, which cater to the needs of farmers and livestock farmers in the decentralized agriculture industry. The software segment, which includes livestock monitoring solutions, livestock feeding systems, livestock biometrics, and fish farm monitoring, complements the hardware segment by providing real-time data analysis, variable rate technology, smart irrigation controllers, and inventory management solutions.

The integration of hardware and software in smart agriculture leads to improved c

Smart Agriculture Market size was valued at USD 17.74 Billion in 2024 and is projected to reach USD 42.85 Billion by 2032, growing at a CAGR of 10.30% from 2026 to 2032.• Precision Farming Adoption: Farmers are increasingly adopting precision farming solutions such as GPS-guided equipment, soil sensors and variable rate technology to optimize crop yields, reduce input costs and improve resource management in response to rising global food demand.• Rising Food Security Concerns: Growing concerns about food shortages and the need to increase agricultural productivity sustainably are driving governments and agribusinesses to invest in smart agriculture technologies that improve farm efficiency, crop monitoring and production forecasting.

This statistic shows the market value of smart farming worldwide in 2023, and provided a forecast for 2024 to 2033. The global market size of smart agriculture is expected to grow from **** billion U.S. dollars in 2023 to over ** billion U.S. dollars by 2033.

According to Cognitive Market Research, the global Smart Agriculture Market size will be USD 15241.5 million in 2025. It will expand at a compound annual growth rate (CAGR) of 10.60% from 2025 to 2033.

North America held the major market share for more than 40% of the global revenue with a market size of USD 5639.36 million in 2025 and will grow at a compound annual growth rate (CAGR) of 8.4% from 2025 to 2033.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 4420.04 million.
APAC held a market share of around 23% of the global revenue with a market size of USD 3657.96 million in 2025 and will grow at a compound annual growth rate (CAGR) of 12.6% from 2025 to 2033.
South America has a market share of more than 5% of the global revenue with a market size of USD 579.18 million in 2025 and will grow at a compound annual growth rate (CAGR) of 9.6% from 2025 to 2033.
The Middle East had a market share of around 2% of the global revenue and was estimated at a market size of USD 609.66 million in 2025 and will grow at a compound annual growth rate (CAGR) of 9.9% from 2025 to 2033.
Africa had a market share of around 1% of the global revenue and was estimated at a market size of USD 335.31 million in 2025 and will grow at a compound annual growth rate (CAGR) of 10.3% from 2025 to 2033.
Precision farming category is the fastest growing segment of the Smart Agriculture industry

Market Dynamics of Smart Agriculture Market

Key Drivers for Smart Agriculture Market

Rising Food Demand and Climate Pressures Accelerate Adoption of Smart Agriculture Technologies

The rising global population and ongoing climate challenges are driving the urgent need for more efficient and productive agricultural methods. To meet this demand, farmers worldwide are adopting smart agriculture technologies like artificial intelligence, the Internet of Things (IoT), and automation to increase crop yields and use resources more efficiently. In Kenya, small-scale farmers have seen improved harvests by using AI platforms such as Virtual Agronomist and PlantVillage, which offer personalized advice on crop care. In India, deep learning is being used to detect plant diseases, minimizing crop loss swiftly. At CES 2025, companies like John Deere showcased autonomous farming equipment, highlighting the sector's shift toward sustainable, tech-driven farming solutions.

Mitigating Labor Shortages in Agriculture with Automation Technologies

Labor shortages in agriculture are a growing challenge, driven by factors like rural-to-urban migration, an ageing workforce, and the seasonal nature of farming. To combat this, farmers are turning to automation technologies, including drones, autonomous tractors, and AI-powered systems. In Gujarat, India, the state government has allocated ?35 crores to help farmers purchase drones for tasks like pesticide application, reducing dependence on manual labour. These technologies not only address labour shortages but also enhance operational efficiency. Automation allows for precise task execution, reduces human error, and enables farmers to focus on complex tasks, transforming agriculture into a more sustainable industry.

Restraint Factor for the Smart Agriculture Market

High Initial Investment Costs Hindering Adoption of Smart Agriculture Technologies

The adoption of smart agriculture technologies faces a significant barrier due to the high initial investment costs. Technologies such as precision farming tools, IoT devices, drones, and AI-driven systems often require substantial upfront capital, making them inaccessible for small-scale farmers, particularly in developing countries. These high costs extend beyond the purchase of equipment, including installation, maintenance, and training expenses. As a result, many farmers are hesitant to adopt these technologies despite their long-term benefits. This financial challenge is slowing the widespread adoption of smart farming solutions, hindering the growth of the market.

Introduction of the Smart Agriculture Market

The Smart Agriculture market involves the use of advanced technologies like IoT, AI, drones, and automation to optimize farming practices, increase productivity, and ensure sustainability. These technologies enable real-time monitoring of crops, efficient use of resources, and precise decision-making. Key market drivers include the rising global demand for f...

According to Cognitive Market Research, the global Smart Agriculture Farming market size will be USD 17254.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 9.70% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 6901.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 5176.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 3968.47 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.7% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 862.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.1% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 345.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.4% from 2024 to 2031.
The Hardware held the highest Smart Agriculture Farming market revenue share in 2024.

Market Dynamics of Smart Agriculture Farming Market

Key Drivers

Increasing the use of modern technologies in agriculture products to propel market growth

Utilizing its full potential, smart agriculture can assist farmers in minimizing the adverse impacts of climate change on crops by collecting geospatial data on planting, soil, livestock, and other data between and within fields. Reducing resource waste, smart agriculture also provides information on the proper dosage of irrigation, liquid fertilizer, insecticides, and herbicides. Modern agricultural technologies like yield mapping software (YMS), data management software, global positioning system (GPS), variable rate technology (VRT), and mapping software help boost soil fertility, boost profitability, lower farming costs, and support sustainable agriculture. Smart agriculture tools have two main benefits: increased productivity for businesses through automated procedures and superior output at reduced farming costs. Smart agriculture technology is projected to make agribusiness more profitable than it has ever been. Thus, in an effort to increase crop yields and profitability, business-minded farmers have started utilizing a variety of smart agricultural instruments. The worldwide smart agriculture market is expected to expand quickly over the anticipated time due to the increasing adoption of modern technology in agricultural goods by business-oriented farmers.

Internet of Things (IoT) adoption in agriculture is growing to propel market growth

The increasing adoption of Internet of Things (IoT) technology in agriculture provides real-time support through IoT apps, assisting farmers in tracking the development of new products. By using IoT applications with traditional agriculture processes, producers can focus on providing their consumers with high-quality food instead of spending time and money on resources like land, electricity, and water. Precision farming enhances crop and soil health and allows organic food to be distributed to a wide range of end consumers. IoT-based agricultural equipment helps reduce the use of pesticides and fertilizers in this way. The extensive use of IoT technology in agriculture helps farmers adapt to major variations in weather, humidity, and air efficiency. It uses data analytics, visualization, and a variety of management tools and solutions to automate conventional farming activities. The application of IoT technology in agriculture reduces carbon emissions and boosts farm productivity by utilizing cutting-edge sustainable technologies to conserve energy and water.

Key Restraint

Fragmented agriculture sector to hinder market growth

Decentralized, the agricultural sector comprises a multitude of autonomously operated large, medium, and small-scale farms. A standardized machine-to-machine (M2M) solution is challenging to implement because of this fragmentation since each farm may have distinct needs and operate differently. Due to the incorrect distribution of inputs and resources caused by land fragmentation, costs are subsequently elevated. Encouraging, m...

Global Smart Agriculture Market size is set to expand from $ 14.86 Billion in 2023 to $ 61.78 Billion by 2032, a CAGR of around 15.3% from 2024 to 2032.

The Smart Farm Market Report is Segmented by Offering (Hardware, Software, and Services), Application (Precision Farming, Livestock Monitoring, Smart Greenhouse, Field Mapping, Farm Labour Management, and More), Farm Size (Small and Medium Farms, and Large Farms), Connectivity Technology (Cellular IoT, LPWAN, Satellite IoT, and More), and Geography (North America, South America, Europe, Asia-Pacific, and Middle East and Africa).

Global Smart Agriculture market size is expected to reach $28.44 billion by 2029 at 11.6%, population growth pressures drive smart agriculture market growth

Asia Pacific Smart Agriculture Market size was valued at USD 4100.09 Million in 2024 and is projected to reach USD 11275.82 Million by 2031, growing at a CAGR of 13.48% from 2024 to 2031.

What is Smart Agriculture?

Smart farming focuses on the utilization of data acquired through several sources such as historical, geographical, and instrumental in the administration of farm activities. Smart systems are different from advanced systems due to their ability to record the data and make use of it. Smart farming employs hardware and software to capture the data and give actionable insights to maintain and handle all the operations on the farm, both pre and post-harvest. The captured data is organized, accessible all the time, and allows farmers to monitor field operations from anywhere in the world.

The global smart agriculture market size was valued at USD 18.7 Billion in 2024. Looking forward, the market is forecasted to reach USD 37.1 Billion by 2033, exhibiting a CAGR of 7.9% during 2025-2033. North America currently dominates the market, holding a significant market share of over 44% in 2024. The market is experiencing steady growth driven by the government support, widespread adoption of advanced technology, the increasing demand for sustainable and efficient farming practices, and rising need to cope with acute labor shortages.

Smart Farming Market size is expected to be worth around USD 58.4 Bn by 2034, from USD 21.5 Bn in 2024, growing at a CAGR of 10.5%

Market Size for Japan Smart Agriculture Industry on the Basis of Revenue (JPY Billion), 2018–2024 In 2023, Kubota Corporation introduced a new autonomous tractor equipped with AI-powered systems to optimize field operations and reduce the burden on farmers. This initiative aligns with the growing trend of automation and digitization in Japan’s agricultural sector. Prefectures such as Hokkaido and Ibaraki are key markets due to their extensive farmlands and advanced farming infrastructure. The Japan smart agriculture market reached a valuation of JPY 250 Billion in 2023, driven by the increasing adoption of precision farming technologies, rising labor shortages in rural areas, and the government’s focus on modernizing the agricultural sector. The market is characterized by major players such as Kubota Corporation, Yanmar Holdings, Farmnote, Spread Co., Ltd., and NTT Data. These companies are recognized for their innovative solutions, technological expertise, and commitment to advancing agricultural productivity.

In 2023, China's smart agriculture industry was estimated to have a value of over ** billion yuan. Along with the development of the country's artificial intelligence industry, the agricultural sector has transformed hugely. Some smart farming applications are drones, self-driving vehicles, and precision fertilizing.

The global Smart Agriculture market size reached USD 18.65 Billion in 2022 and is expected to reach USD 70.05 Billion in 2032 registering a CAGR of 13.1%. Smart Agriculture market growth is primarily driven owing to increasing agricultural productivity across the globe and rising adoption of vertica...

The global smart agriculture market size reached approximately USD 19.50 Billion in 2024. The market is further projected to grow at a CAGR of 9.20% between 2025 and 2034, reaching a value of USD 47.02 Billion by 2034.

Sales generated within the smart agriculture market in Japan were forecasted to reach around ***** billion Japanese yen by fiscal year 2030, up from a market size of under *** billion yen in fiscal year 2015. The Japanese smart agriculture market includes a variety of technological and artificial intelligence-based solutions to digitalize and efficiently support production processes within the agricultural sector.

Future Outlook and Projections for Japan Smart Agriculture Market on the Basis of Revenues in USD Billion, 2024-2029 The Japan smart agriculture market is anticipated to grow significantly by 2029, exhibiting a strong CAGR during the forecast period. This growth will be driven by technological advancements, increasing government support, and the rising need for sustainable farming practices in response to labor shortages and environmental challenges. What Lies Ahead for Japan Smart Agriculture Market?

This statistic shows the first year return on investment for different agri-tech solutions. Tech planter solution cost was estimated over ** thousand U.S. dollars, while the benefit of this solution after a year was estimated about over ** thousand U.S. dollars.

The smart farming market is projected to reach $117.20 billion by 2034 from $17.40 billion in 2023, growing at a CAGR of 19.09% during the forecast period 2024-2034.

Smart Agriculture Solution Market Outlook

The global smart agriculture solution market size was valued at approximately USD 13.6 billion in 2023 and is projected to reach USD 27.8 billion by 2032, growing at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2032. This impressive growth can be attributed to increasing demand for sustainable farming practices, advancements in technology, and the growing need for efficient crop management techniques. Additionally, the integration of IoT, AI, and big data analytics is revolutionizing the agricultural sector by enabling real-time monitoring and data-driven decision-making.

One of the key growth factors driving the smart agriculture solution market is the rising global population, which necessitates an increase in food production. With traditional farming methods proving inadequate to meet the growing demand, smart agricultural solutions provide efficient alternatives. Precision farming, for instance, allows for optimal use of resources such as water and fertilizers, thereby enhancing crop yields and reducing waste. Moreover, the adoption of smart technologies can help farmers monitor crop health, weather conditions, and soil quality, ensuring timely interventions and better productivity.

Technological advancements are another significant driver of market growth. Innovations in IoT, AI, and robotics are transforming the way farming operations are conducted. IoT devices and sensors enable continuous monitoring of crops and livestock, offering real-time data that can be used to make informed decisions. AI algorithms can analyze this data to predict crop yields, identify pest infestations, and recommend the best farming practices. Robotics, on the other hand, automate labor-intensive tasks such as planting, watering, and harvesting, thereby increasing efficiency and reducing labor costs.

Government initiatives and supportive policies are also playing a crucial role in the expansion of the smart agriculture solution market. Many governments around the world are promoting the adoption of smart farming technologies through subsidies, grants, and training programs. These initiatives aim to modernize the agricultural sector, improve food security, and promote sustainable farming practices. For example, the European Union's Common Agricultural Policy (CAP) has allocated significant funds to digitize farming operations across member states, thereby boosting the adoption of smart agriculture solutions.

From a regional perspective, North America and Europe are leading the way in the adoption of smart agriculture solutions, driven by high levels of technological adoption and substantial investments in R&D. However, Asia Pacific is expected to witness the fastest growth during the forecast period, owing to the increasing demand for food production and the rising awareness about the benefits of smart farming practices. Countries like China, India, and Japan are investing heavily in agricultural technology to enhance productivity and ensure food security.

Component Analysis

In the smart agriculture solution market, the component segment is categorized into hardware, software, and services. The hardware segment includes sensors, drones, GPS systems, and other physical devices that are crucial for collecting and transmitting data. This segment is expected to hold a significant market share due to the growing adoption of advanced farming equipment. Sensors, for instance, are widely used for soil monitoring, weather tracking, and crop health assessment. They provide real-time data that helps farmers make informed decisions, thereby improving crop yields and reducing resource wastage.

The software segment comprises various applications and platforms that analyze the data collected by hardware devices. This includes farm management software, yield mapping, and data analytics tools. The software segment is anticipated to grow rapidly due to the increasing need for data-driven decision-making in farming operations. Advanced software solutions offer predictive analytics and real-time monitoring capabilities, enabling farmers to optimize resource use and enhance productivity. These solutions also facilitate better planning and forecasting, which are essential for efficient farm management.

Services in the smart agriculture solution market include consulting, system integration, and maintenance services. This segment is expected to witness substantial growth as farmers increasingly seek expert advice to implement and manage smart farming technologies. Consulting services help farmers choo