AI in Agriculture Market to Reach $8.5 Billion by 2030, Reports BCC Research

“AI is revolutionizing agriculture by boosting crop yields, optimizing resource use, and enabling real-time decision-making across farms worldwide. As global demand for food grows, AI-driven tools and technologies are rapidly expanding, creating a powerful new market shaping the future of smart farming.”

Boston, Jan. 20, 2026 (GLOBE NEWSWIRE) -- According to the latest study, the demand for AI in Agriculture: Global Markets is projected to grow from $2.8 billion in 2025 to reach $8.5 billion by the end of 2030, at a compound annual growth rate (CAGR) of 25.1% from 2025 through 2030.

The global AI in agriculture market is rapidly evolving, driven by advances in machine learning, computer vision, drone analytics, and precision farming technologies. This report highlights key market trends, regional growth opportunities, software and hardware innovations, and the strategies of the companies shaping the future of smart farming. With 2024 as the base year and forecasts through 2030, it offers clear insights into investment patterns, emerging technologies, and the expanding role of AI across the agricultural value chain.

The factors driving the market include:

AI adoption in agriculture is driven by labor shortages and escalating labor costs: AI adoption in agriculture is accelerating due to rising labor shortages and increasing labor costs. Farmers are turning to automation, robotics, and AI-driven tools to maintain productivity, reduce operational expenses, and ensure consistent farm management despite workforce gaps.

Adoption of drone-based weed and pest management: Adoption of drone-based weed and pest management is increasing as farmers seek faster, more precise, and more cost-effective solutions. Drones equipped with AI-powered sensors can identify infestations early and apply treatments only where needed, reducing the use of chemicals, boosting crop health, and improving overall farm efficiency.

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Report Synopsis

Trends:

1. Strong Investment Momentum:
AI-driven AgTech is attracting major capital, with startups such as Monarch Tractor, Inari, and Benson Hill securing funding rounds worth hundreds of millions. Carbon Robotics alone has raised $157 million, including a $70 million Series D backed by investors like Nvidia’s NVentures and Fuse Venture Capital.

2. Strategic Collaborations:
 Industry leaders are forming AI-focused partnerships, with Syngenta Seeds’ collaboration with InstaDeep to apply large language models for faster seed trait innovation a key example of how AI alliances are accelerating agricultural R&D.

AI’s Impact on Agriculture

Artificial intelligence is reshaping agriculture by automating labor-heavy processes and improving speed and precision. Using machine learning, deep learning, and advanced analytics, AI can process large datasets to pinpoint crop varieties with valuable traits, such as drought resistance and higher productivity, thereby reducing breeding and development timelines from years to months. This boosts R&D efficiency, lowers costs, and accelerates breakthroughs in seed innovation. Additionally, AI helps overcome labor shortages by powering automation solutions such as drones, robots, and IoT-based monitoring systems.

Learn More: AI Impact on Agriculture Market - BCC Pulse Report

The report addresses the following questions:

1. What are the market's projected market size and growth rate?

The global market for AI in agriculture was valued at $2.2 billion in 2024 and is expected to reach $8.5 billion by the end of 2030, at a CAGR of 25.1%.

2. What factors are driving the growth of the market?

Key drivers include:

• AI adoption in agriculture is driven by labor shortages and escalating labor costs.
• Rising adoption of drone-based weed and pest management.

3. What factors are restraining the market?

• Infrastructure gaps in developing regions hinder the widespread adoption of AI in agriculture.
• Data-related challenges impacting the scaling of AI in agriculture.

4. What market segments are covered in the report?

The report segments the market by technology, component type, application, and region.

5. Which component type will be dominant through 2030?

The software segment will dominate the AI in the agriculture market though the forecast period. The rapid expansion of AI-driven agriculture software is driven by a surge in the amount of data, requiring sophisticated analysis tools for better decision-making.

6. Which region has the largest market share in the market?

North America accounted for 35.6% of the market in 2024, driven by its advanced AI infrastructure and the presence of many of the leading industry players.

Market leaders include:

• AEROBOTICS PTY. LTD.
• BAYER AG
• CROPIN TECHNOLOGY SOLUTIONS PVT. LTD.
• CROPX INC.
• DEERE & CO.
• EAGLENXT
• ECOROBOTIX
• GAMAYA
• IBM
• INTELLIAS
• MICROSOFT
• N-IX LLC
• SYNGENTA AG
• TARANIS
• TRIMBLE INC.

Related Reports Include:

AI Impact on Contract Manufacturing of Medical Devices Market - BCC Pulse Report: AI is reshaping the medical device contract manufacturing industry by improving production efficiency, enhancing quality control, and accelerating product design cycles. This report highlights how AI-driven automation, predictive analytics, and smart inspection systems are enabling manufacturers to reduce costs, minimize errors, and meet rising global demand. As AI integration grows, it is becoming a key competitive advantage for contract manufacturers across the medical device value chain.

AI in Food Retail and E-commerce: Global Markets: ​AI is transforming food retail and e-commerce by enabling smarter demand forecasting, personalized shopping experiences, and highly efficient supply chain management. From automated inventory systems to AI-powered recommendation engines, retailers are improving accuracy, reducing waste, and boosting customer engagement. As digital adoption accelerates worldwide, AI is becoming essential for competitiveness in the modern food retail ecosystem.

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