According to a new market intelligence report by BIS Research titled 'Global Artificial Intelligence (AI) in Agriculture Market − Analysis and Forecast, 2019-2024', the artificial intelligence in agriculture market is estimated at $578.0 million in 2019 and is projected to reach $2,015.7 million by 2024.
The market is expected to grow at a CAGR of 28.38% from 2019 to 2024. The reported growth in the market is expected to be driven by the increasing need to optimize farm operation planning, growing need to derive insights from emerging complexities of data-driven farming, and rising development of autonomous equipment in agriculture.
Precision agriculture is a rising phenomenon in the farming industry since the past decade and has been adapted to improve crop yield to meet the global food demand. It involves the application of emerging smart technologies such as artificial intelligence in farming operations to reduce the wastage of resources with precise and variable application of agri-inputs.
With the establishment of technical infrastructure and availability of internet in farms across the world, there has been a rise in the data points on these farms, leading to large amounts of data, and associated complexities for human intelligence. In this scenario, artificial intelligence, a family of technologies consisting of computer vision and machine learning, among others, is gradually implemented to achieve insight-driven profitable farming.
Artificial intelligence capabilities have been traditionally experienced by the growers with the employment of a combination of software and hardware as a product or service. However, with the rise in customized requirements across various sizes and dynamics of farms, AI-as-a-Service as a product offering has risen in popularity over the past several years. While the growers still require support services to comprehend and optimally utilize AI products, the adoption of AI-as-a-Service is presently limited to the B2B customers, due to the inherent complexity in its application that requires technical knowledge and training.
Some of the popular use cases of AI in agriculture include predictive analytics, robotics, unmanned aerial vehicles, and autonomous farm vehicles. As per agricultural applications, crop protection, weather forecasting, farm machinery automation, and livestock growth monitoring are the areas where AI has been successfully implemented.
According to Rakhi Tanwar, Principal Analyst at BIS Research, "The governments of all leading agricultural economies are currently developing AI strategies at national levels. Across the supply chain, all stakeholders have realized the true potential of this technology, further leading to the rising investments and growing number of start-ups. AI has brought about significant changes in the agriculture industry with an unprecedented pace of developments. The integration of artificial intelligence in farm operations has been establishing an era of precision agriculture in the agriculture industry."
The competitive landscape for the artificial intelligence in agriculture market demonstrates an inclination toward companies adopting strategies such as product launch and development and partnerships, collaborations, and joint ventures. The major established players in the market are focusing on product launches and developments to introduce new technologies.