Market Trends of Artificial Intelligence In Agriculture Industry
Growing Emphasis on Precision Farming
- Precision farming leverages advanced sensors and analytical tools to enhance crop yields and promote sustainable agricultural practices. This method addresses the challenges of traditional farming, such as labor intensity, unpredictable weather, poor yield quality, and resource wastage. Governments worldwide are increasing their investments in precision farming. For example, in September 2024, India's Union Ministry of Agriculture launched the 'Smart Precision Horticulture Programme', investing USD 5 million (INR 6,000 crore) over the next five years. The program focuses on cutting-edge technologies like IoT, AI, drones, and data analytics.
- Globally, the adoption of precision agriculture is rising. According to Japan's Ministry of Agriculture, Forestry and Fisheries, the percentage of farmers using data-driven methods increased from 36.4% in 2020 to 48.6% in 2021. This shift contributed to the growth of Japan's agricultural industry's production value, which rose from USD 80 billion in 2021 to USD 81 billion in 2022, as reported by the Statistics Bureau of Japan.
- Additionally, collaborations among agri-input companies in the precision farming sector are becoming more common, aiming to enhance their solutions and create more efficient systems. In April 2023, AGCO Corporation partnered with Bosch BASF Smart Farming to integrate and commercialize 'Smart Spraying' technology on Fendt Rogator sprayers. This innovative technology optimizes herbicide usage and ensures effective weed control, allowing for targeted spraying at any time. Currently, this technology supports crops such as corn, soy, cotton, canola, sunflower, and sugarbeet. Thus, with increasing government support, a rise in data-driven farming adoption, and continuous innovations, the precision farming segment is set for growth in the coming years.
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North America Dominants the Market
- North American countries, particularly the United States and Canada, are increasingly adopting AI technologies in agriculture. These technologies are being utilized for predictive analytics related to weather and crop health, automating equipment for planting and harvesting, and employing intelligent systems for pest and disease management. Furthermore, the development of automated robots is bolstering market growth. In 2022, Nature Fresh, one of North America's largest greenhouse farms, collaborated with Four Growers, a FANUC Authorized System Integrator, to create an AI-equipped robotic system for harvesting tomatoes in greenhouse settings.
- Along with this, government investments are bolstering the integration of AI in agriculture, thereby propelling market growth. In 2023, the United States Department of Agriculture's National Institute of Food and Agriculture (NIFA) announced a USD 70 million investment in sustainable agricultural initiatives. These initiatives aim to meld research, education, and extension efforts, fostering resilient and climate-smart food and agricultural systems, with a particular emphasis on AI applications in food production. Additionally, in 2022, the Minister of Agriculture and Agri-Food allocated over USD 1 million in funding to SomaDetect Inc. and Vivid Machines Inc. via the AgriScience Program, aiming to enhance farm management. Thus, the surge in AI innovations and investments in agriculture in North America is driving regional market growth during the forecast period.
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