The global Agritech Market is experiencing rapid growth as artificial intelligence and Internet of Things technologies become central to modern farming practices. Valued at US$ 25.60 billion in 2023, the market is projected to reach US$ 67.10 billion by 2031, registering a compound annual growth rate of 12.8% from 2024 to 2031. AI and IoT are enabling farmers to improve productivity, optimize resource use, and enhance sustainability across agricultural operations.

The Role of AI in Modern Agriculture

Artificial intelligence is transforming agriculture by enabling data-driven decision-making across the farming lifecycle. AI-powered platforms analyze data collected from sensors, drones, and satellites to provide actionable insights on crop health, soil quality, and weather patterns. These systems help farmers predict yields, identify disease outbreaks early, and optimize planting and harvesting schedules.

Machine learning algorithms continuously improve accuracy by learning from historical data and real-time inputs. This allows farmers to minimize crop losses, reduce input costs, and improve overall farm profitability. AI-driven image recognition tools are also being used to detect pest infestations and nutrient deficiencies, supporting targeted interventions rather than blanket chemical applications.

IoT-Enabled Precision Farming

Internet of Things technology forms the backbone of precision agriculture by connecting sensors, devices, and machinery across farms. IoT-enabled sensors monitor critical parameters such as soil moisture, temperature, humidity, and nutrient levels. This real-time data allows farmers to make timely decisions related to irrigation, fertilization, and crop protection.

Connected devices also support smart irrigation systems that deliver water based on actual crop requirements, significantly reducing water waste. In addition, IoT-enabled machinery, including GPS-guided tractors and automated harvesters, enhances operational efficiency and ensures precise execution of farming tasks. These technologies collectively reduce resource consumption while increasing yield and consistency.

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Market Segmentation and Applications

The agritech market is segmented by type and application. By type, it includes biotechnology and biochemicals, big data and analytics, sensors and connected devices, mobility solutions, and other technologies. Sensors and connected devices, along with big data and analytics, are gaining strong momentum as AI and IoT adoption accelerates across farms.

By application, the market covers irrigation, production and maintenance, supply chain management, and marketplace platforms. Production and maintenance led the market in 2023, driven by the need for efficient farm operations and real-time monitoring. AI and IoT solutions are increasingly integrated into irrigation systems and supply chain platforms to improve traceability, reduce losses, and enhance transparency.

Regional Insights

North America dominated the agritech market in 2023 due to early adoption of AI-driven and IoT-enabled farming solutions. Farmers across the region widely use drones, sensor-based monitoring systems, and GPS-guided equipment to maximize productivity and reduce operational costs. Asia-Pacific is emerging as a fast-growing market, supported by rising awareness of precision agriculture, supportive government initiatives, and a growing number of agritech startups offering affordable digital solutions for smallholder farmers.

Key Players Advancing AI and IoT in Agritech

Major players shaping the agritech landscape include ARSR Tech, AeroFarms, Apollo Agriculture, Crofarm Agriproducts Pvt Ltd, Conservis, Indigo Ag, LettUs Grow Ltd., Pivot Bio, AgBiome, and Ceres Imaging. These companies are investing heavily in AI and IoT capabilities to deliver scalable, data-driven solutions that improve farm efficiency and sustainability.

Trending Reports : 

Global Agritech Market

North America Agritech Market

Future Outlook

The integration of AI and IoT is expected to accelerate agritech market growth through 2031. Advancements in predictive analytics, autonomous machinery, and real-time farm management platforms will continue to enhance precision agriculture. As digital infrastructure improves and technology becomes more accessible, AI and IoT will remain key enablers of sustainable farming and long-term food security worldwide.

Question :

1. Why are AI and IoT critical to agritech market growth?
A. AI and IoT enable real-time monitoring, predictive analysis, and precision farming, helping farmers optimize resources, reduce costs, improve yields, and support sustainable agricultural practices.