AI in Precision Farming Market Report 2026

The ai in precision farming market size has grown rapidly in recent years. It will grow from $0.94 billion in 2025 to $1.12 billion in 2026 at a compound annual growth rate (CAGR) of 19.8%. The growth in the historic period can be attributed to rise in traditional farming inefficiencies, growing pest and disease pressures, increasing adoption of early digital tools, rising cost of agricultural inputs, expansion of commercial farming activities.

The ai in precision farming market size is expected to see rapid growth in the next few years. It will grow to $2.08 billion in 2030 at a compound annual growth rate (CAGR) of 16.7%. The growth in the forecast period can be attributed to growing need for sustainable farming practices, rising adoption of AI-based analytics, increasing deployment of precision agriculture tools, expansion of connected farm ecosystems, rising demand for optimized crop yields. Major trends in the forecast period include increasing demand for data-driven crop optimization, rising use of automated field monitoring tools, growing adoption of precision soil and input management, expansion of smart irrigation and resource efficiency practices, enhanced focus on minimizing crop loss through early detection technologies.

The limited availability of arable land is anticipated to drive the growth of the AI in precision farming market going forward. Arable land refers to land suitable for agricultural cultivation, particularly for growing crops. The availability of such land is constrained by factors including urbanization, soil degradation, and climate change. AI in precision farming helps address these challenges by optimizing resource use and improving crop productivity through data-driven insights and targeted actions. For example, in August 2023, the U.S. Department of Agriculture (USDA), a U.S.-based government department, reported that the average value of U.S. farm real estate, which includes all land and buildings on farms, rose to $4,080 per acre in 2023, an increase of $280 per acre, or 7.4%, compared with 2022. Therefore, the limited availability of arable land is fueling the growth of the AI in precision farming market.

Leading companies in the artificial intelligence (AI) in precision farming market are focusing on developing technological advancements such as digital agronomy platforms to improve data-driven crop management, optimize resource use, and boost overall farm productivity. A digital agronomy platform refers to an integrated software system that combines data analytics, remote sensing, and AI technologies to deliver real-time insights and decision support for enhancing crop production and farm management practices. For example, in January 2023, Precision Planting, a US-based agricultural technology company, introduced a new data app for farmers called Panorama. It gives farmers easy access to detailed agronomic data from the Gen 3 20|20 monitor, enabling them to view row-by-row maps, field reports, and yield comparisons on their phone or computer. It streamlines data management by automatically syncing information and allowing remote dealer support, helping farmers make more informed decisions for planting and crop management. The app’s goal is to provide a clear, portable view of farm data to improve efficiency and enhance overall crop performance.

In March 2024, GEA Group AG, a Germany-based industrial machinery company, acquired CattleEye Ltd. to bolster its portfolio with CattleEye's advanced AI solution for early detection of lameness in dairy cows. This acquisition underscores GEA's commitment to enhancing animal health and welfare as part of its Next Generation Farming strategy. CattleEye Ltd., based in the UK, specializes in developing AI solutions for precision farming, particularly for the dairy farming sector.

Major companies operating in the ai in precision farming market are Microsoft Corporation, Robert Bosch GmbH, Intel Corporation, International Business Machines Corporation, Bayer AG, Deere & Company, SAP SE, Yara International ASA, DTN LLC, FarmWise Labs Inc., Taranis Visual Ltd., Blue River Technology Inc., Agworld Inc., Ceres Imaging Inc., PrecisionHawk Inc., FarmLogs Inc., Prospera Technologies Ltd., Arable Labs Inc., Agribotix LLC, Resson Aerospace Corporation.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the AI in precision farming market by raising the cost of imported sensors, AI processors, and automated monitoring equipment, increasing deployment costs for hardware and analytics systems. Hardware-heavy segments such as IoT sensors, drones, and AI-enabled farm machinery are most affected, particularly in regions reliant on foreign technology imports such as Asia-Pacific, South America, and Africa. Despite these challenges, tariffs may stimulate domestic production, promote regional technology innovation, and create opportunities for locally developed precision farming solutions.

The AI in precision farming market research report is one of a series of new reports that provides AI in precision farming market statistics, including AI in precision farming industry global market size, regional shares, competitors with AI in precision farming market share, detailed AI in precision farming market segments, market trends, and opportunities, and any further data you may need to thrive in the AI in precision farming industry. This AI in precision farming market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Precision farming integrates artificial intelligence (AI) technologies into agricultural processes to optimize crop yield, minimize resource usage, and enhance overall farm efficiency. Its purpose is to empower farmers with data-driven insights to boost productivity, sustainability, and profitability.

The primary AI techniques in precision farming include machine learning, computer vision, and others. Machine learning, a subset of AI, enables systems to learn and improve autonomously by analyzing data and recognizing patterns to make predictions or decisions without explicit programming. It is available in different forms such as hardware, software, AI-as-a-service, and services, catering to various applications like research, farm management, customized cultivation, and more.North America was the largest region in the AI in precision farming market in 2025. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the ai in precision farming market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ai in precision farming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The AI in precision farming market consists of revenues earned by entities by providing services such as data analytics services, integration services, and telematics services. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in precision farming market also includes sales of sensors, drones with imaging systems, satellite imaging systems, automated farming equipment, and IoT devices used to increase agriculture productivity. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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