Smart Agriculture Market Size, Share, and Trends 2025 to 2034

What is the Smart Agriculture Market Size?

The global smart agriculture market size is accounted at USD 26.27 billion in 2025 and is predicted to increase from USD 29.48 billion in 2026 to approximately USD 74.03 billion by 2034, expanding at a CAGR of 12.20% from 2025 to 2034.

Smart Agriculture Market Key Takeaways

• North America led the global market with the highest market share of 43% in 2024.
• By offering, the software segment has held the largest market share in 2024.
• By application, the precision farming application segment captured the biggest revenue share in 2024.
• By agriculture type, the livestock monitoring segment registered the maximum market share in 2024.

Market Overview

Smart agriculture refers to farming practices using technologies and smart devices to improve sustainability, resource management, and production efficiency. Incorporating data analytics, drones, and sensors in farming practice enables precise monitoring of crops, livestock health, and soil conditions. AI-driven insights and automation empower farmers to mitigate environmental impact, reduce waste, enhance yield, and make informed decisions, ensuring a profitable and resilient agricultural sector.

Key players operating in the market are focusing on developing advanced farming equipment integrated with advanced cameras and sensors. Advanced technologies such as biometrics, GPS, and RFID enable precision farming. Additionally, the increasing trend of automation and the rising government support and subsidies to support smart agriculture are likely to contribute to the market growth.

Market Outlook

• Industry Growth Overview: The smart agriculture market is growing rapidly as farmers adopt IoT sensors, drones, AI-driven analytics, and automation to improve crop yields, resource efficiency, and climate resilience. Rising global food demand, shrinking arable land, and the need for precision farming solutions are further accelerating the adoption of advanced agricultural technologies.
• Sustainability Trend: The sustainability trend is reshaping the market by driving adoption of precision technologies that reduce water use, minimize chemical inputs, and lower the environmental footprint of farming. As climate pressures intensify, farmers are increasingly investing in IoT monitoring, data analytics, and automation to enhance soil health, conserve resources, and support long-term sustainable food production.
• Major Investors: Major investors in the market include leading technology companies such as John Deere, Trimble, IBM, and AGCO, as well as ag-tech venture capital firms like Temasek, SoftBank, Pontifax AgTech, and S2G Ventures. These investors contribute by funding innovations in IoT sensors, AI-driven analytics, robotics, and automation, enabling farmers to improve productivity, reduce resource use, and adopt more sustainable and data-driven farming practices.

Smart Agriculture Market Growth Factors

Smart agriculture is helping farmers to grow crops with more efficiency by utilizing advanced technologies. One of the key factors driving the growth of global smart agriculture market is growing technological advancements and adopting innovative technologies. The technologies such as internet of things, artificial intelligence, blockchain, and machine learning are creating lucrative opportunities for the growth and development of global smart agriculture market over the forecast period.

Another factor driving the growth of global smart agriculture market is growing government initiatives for the adoption of latest and advanced technologies. In addition, government of various developing and developed regions is providing tax benefits to those market players who are operating in smart agriculture market. Moreover, government is also heavily investing for the growth of global smart agriculture market.

The impact of the COVID-19 pandemic on the growth of global smart agriculture market was quite moderate in nature. The market players operating in smart agriculture market saw growth as well as decline in the sales of food grains and dairy products. The supply chain disruption and trade restrictions had negative impact on the growth of global smart agriculture market. On the other hand, the stringent government regulations regarding food safety and security had positive outlook on the expansion of global smart agriculture market during 2020.

The other factors such as increasing adoption of smartphones and growth of telecom sector are driving the growth and development of global smart agriculture market. The growing usage of smartphones is helping farmers to track and monitor agriculture activities on farm. It also provides accurate information and data and also helps to keep record on various parameters. Thus, this factor is propelling the demand for smart agriculture in the global market over the forecast period.

Market Scope

Market Dynamics

Driver

Increasing adoption of smartphones and drones

The increasing adoption of smartphones and drones in farming practices drives the growth and development of the global smart agriculture market. Smartphones allow farmers to track and monitor agriculture activities, providing accurate information and data and also helping to keep records on various parameters. Moreover, key players are making efforts to develop advanced farming equipment, which propel the market. For instance,

• In May 2024, DJI, China-based drone maker company, launched the Agras T25 and Agras T50 drones for agricultural applications. These drones are designed to deliver precision services in agricultural operations.

Restrain

Lack of connectivity infrastructure

Lack of internet access in rural areas may create challenges in adopting smart farming solutions, restraining the market growth. Connectivity issues deter farmers from adopting advanced technologies necessary for efficient agricultural operations, limiting their access to data and tools for improving sustainability and productivity in agriculture practices. Addressing this obstacle is necessary for expanding the effectiveness and reach of smart agriculture solutions in rural communities.

Opportunity

Increasing adoption of livestock monitoring solutions in developing countries

The increasing acceptance of livestock monitoring solutions creates immense opportunities in the market. Livestock monitoring solutions enable farmers to track animal's status and well-being from remote locations. The increasing demand for dairy products and milk is expected to accelerate the demand for livestock monitoring technologies, including feeding robots, in the coming future.

• For instance, In July 2023, SK Telecom collaborated with bio venture company uLikeKorea and launched a livestock monitoring system called ‘Live Care,' which allows farmers to monitor the health of their cattle using smart biocapsules.

Segment Insight

By Agriculture Type Insight

The livestock monitoring segment accounted for the largest market share in 2024. Livestock monitoring helps farmers monitor livestock health and production to ensure optimal yields. Factors such as rising technological advancements and the increasing size of dairy farms have encouraged market players to develop cost-effective solutions related to livestock management. For instance,

• In September 2022, Defra and Innovation UK funded the FarmSense project. This project provided farmers with automated surveillance to monitor their livestock remotely.

Offering Insights

The software segment dominated the smart agriculture market in 2024 and was valued at USD 3,013.2 million in 2023, growing with a CAGR of 13.5% from 2024 to 2034. The growing technological advancements and adoption of innovative technologies are driving the growth of the segment. The software that is installed in smart agriculture devices and equipment is cloud-based and web-based. This software helps in data collection, data tracking, and data monitoring for farmers and livestock. Thus, the software segment is growing at a rapid pace in the smart agriculture market.

The hardware segment is the fastest growing segment of the smart agriculture market in 2023. The hardware segment is being driven by the rising automation of raw material manufacturing as well as the manufacturing of dairy products. This also helps in the reduction of labor costs, which is positively impacting the growth of the global smart agriculture market. The trend of growing automation technologies is also helping the segment to grow at a strong growth rate.

Application Insights

The precision farming application segment dominated the smart agriculture market in 2024 precision farming helps to monitor the yield of the crops. In addition, it also tracks and maps fields with accurate and precise methods. One of the important applications in this segment is weather tracking and forecasting. Water scarcity and growing environmental concerns are resulting in the expansion of the segment. The agriculture purpose depends heavily on water. This factor is boosting the growth of the segment. The yield monitoring segment accounted revenue share of around 44.3% in 2023.

The smart greenhouse application segment will be the fastest-growing segment of the smart agriculture market in 2023. Smart greenhouse helps in managing water and fertilizers on fields effectively and efficiently. The smart greenhouse also supports determining heating, ventilation, and air conditioning for agricultural purposes. Proper climatic and weather conditions are required for carrying out specific agricultural purposes. All of these factors are propelling the growth of the smart greenhouse application segment over the forecast period.

Regional Insights

U.S. Smart Agriculture Market Size and Growth 2024 to 2034

The U.S. smart agriculture market size is estimated at USD 7.95 billion in 2025 and is predicted to be worth around USD 22.80 billion by 2034, at a CAGR of 12.40% from 2025 to 2034.

What Makes North America the Dominant Region in the Smart Agriculture Market?

North America dominated the smart agriculture market in 2024 with a revenue share of 43%. The growth of the smart agriculture market in the North America region is attributed to the growing government initiatives and favorable guidelines for the expansion of the agriculture sector. In addition, several market players are collaborating with government agencies to implement the concept of smart agriculture. Moreover, the government in this region is also providing subsidies and tax incentives for the development of smart agriculture markets. All of these factors are driving the growth of the smart agriculture market in North America.

North America leads in the commercial adoption of precision agriculture technologies because of large farms, high mechanization levels, and significant investment from venture capital and corporations in agrotech. Farmers more often use GPS-guided tractors, variable-rate applicators, multispectral imagery, and yield-mapping systems to increase profit from every hectare. Data platforms that integrate weather, soil, and market information are facilitating predictive management and risk reduction on a wide scale. Meanwhile, aggregation services and farm-management-as-a-service models are making it easier for mid-sized growers to access advanced tools.

U.S. Smart Agriculture Market Trends

The U.S. leads in agtech commercialization, with large row-crop farms quickly adopting drones, soil probes, and autonomous equipment. Silicon Valley–backed startups and traditional OEMs work together on farm-scale data platforms that connect sensors, machinery, and marketplaces. USDA programs and state extension services support pilot projects and proof-of-value demonstrations that help scale solutions. However, the U.S. still faces challenges with fragmented data standards and the need for farmer-friendly, low-latency tools for real-time decision-making.

What Makes Asia Pacific the Fastest-Growing Market?

The market in Asia Pacific is expected to expand at the fastest growth rate during the forecast period. The growth of the smart agriculture market in Asia Pacific is being driven by rising government initiatives for agriculture industry. The nations such as Singapore, Japan, and India are taking constant efforts for the growth of smart agriculture market in this region. In addition, the government of these countries is providing financial help for developing smart agriculture. Thus, the rise in adoption of organic agriculture is also supporting the growth of smart agriculture market in Asia Pacific.

• India is leading in organic farming across the globe. For instance, according to the provisional data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), the exports of processed food and agricultural products rose by 13% to $19.69 Bn in the nine months of the Financial Year 2022-23 (Apr-Dec).

Union Budget 2023 Highlights

How is the Opportunistic Rise of Smart Agriculture in the Middle East & Africa?

In the Middle East & Africa, smart agriculture is emerging as a strategic response to water scarcity, desertification, and the urgent need to boost domestic food production. Precision irrigation drip systems with sensor control, protected-culture greenhouses, and hydroponics are being rapidly adopted in arid regions to maximize yields per unit of water. Public investments, donor grants, and PPPs support pilots that combine satellite monitoring with soil moisture sensors to optimize limited resources. Urban and vertical farming are also gaining traction in dense cities to shorten supply chains and stabilize fresh-food availability.

UAE Smart Agriculture Market Trends

The UAE is investing heavily in controlled-environment agriculture, vertical farms, and desalination-powered greenhouses to enhance food security. Smart irrigation, climate control, and sensor systems maximize productivity in challenging climates. Public R&D centers and free-zone incubators promote pilot commercialization with global tech partners. The UAE model focuses on scalability, export potential, and integration with logistics and retail chains.

What Potentiates the Growth of the European Smart Agriculture Market?

Europe's smart agriculture market is growing due to a strong focus on sustainability, regulatory incentives for carbon reduction, and the widespread use of precision tools to achieve both productivity and environmental goals. Farmers utilize variable-rate application, satellite nitrogen monitoring, and real-time animal health telemetry to meet strict EU environmental targets while maximizing yields. Public funding mechanisms and agricultural policy reforms encourage the adoption of digital technologies that support biodiversity, soil health, and water conservation. A strong startup ecosystem and robust agricultural research institutions drive continuous innovation and thorough validation trials.

Germany Smart Agriculture Market Trends

Germany combines strong engineering skills with advanced farm advisory services to speed up the adoption of robotics, sensor arrays, and data platforms. Its precision-machinery manufacturers and agtech startups work closely with research universities to test industrial-grade solutions. Large arable and dairy farms serve as early adopters and demonstration sites for autonomous equipment and sensor-based nutrient management. German policies focusing on climate mitigation and rural digital infrastructure support long-term expansion.

Value Chain Analysis

Technology & Platform Development
Companies develop IoT sensors, drones, AI-based analytics, farm management software, and cloud platforms to enable precision farming and data-driven decision-making.

• Key Players: Trimble, IBM, Microsoft, AG Leader Technology.

Equipment Manufacturing & Integration
This stage involves producing smart farm machinery and integrating digital technologies such as GPS, automated irrigation systems, and robotics.

• Key Players: John Deere, AGCO, CNH Industrial, Kubota.

Implementation & Field Services
Smart agriculture solutions are deployed on farms, including installation of sensors, irrigation systems, drones, and digital platforms, with training and support for farmers.

• Key Players: Trimble, Raven Industries, AG Leader, Yara International.

Smart Agriculture Market Companies

• AG Leader Technology
• AGCO Corporation
• AgJunction Inc.
• Autonomous Solutions Inc.
• Deers& Company
• DroneDeploy
• Farmers Edge Inc.
• GEA Group Aktiengesellschaft
• The Climate Corporation
• DeLaval Inc.

Segments Covered in the Report

By Agriculture Type

• Precision Farming
  • Yield monitoring
    • On-farm
    • Off-farm
    • Field mapping
  • Crop scouting
  • Weather tracking & forecasting
  • Irrigation management
  • Inventory management
  • Farm labor management
• Livestock Monitoring
  • Milk harvesting
  • Breeding management
  • Feeding management
  • Animal comfort management
  • Others
• Precision Aquaculture
• Precision Forestry
• Smart Greenhouse
  • Water & fertilizer management
  • HVAC management
  • Yield monitoring
  • Others
• Others

By Offering

• Hardware
  • HVAC system
  • LED grow lights
  • Valves & pumps
  • Sensors & control systems
  • Others
• Sensing Devices
  • Soil sensor
  • Water sensors
  • Climate sensors
  • Others
• Software
  • Web-based
  • Cloud-based
• Services
  • System integration & consulting
  • Maintenance & support
  • Managed services
    • Data services
    • Analytics services
    • Farm operation services
  • Assisted professional services
    • Supply chain management services
    • Climate information services

By Farm Size

• Small
• Medium
• Large

By Region

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa