AI in Farming Industry Opportunities & Forecast To 2030

[Business Point 2021]

The rising requirement for higher crop yield and agricultural produce, on account of the increasing disposable income of people in several countries such as India, China, Brazil, and the U.S., changing consumer preferences, surging population, and rapid urbanization, is pushing up the demand for the incorporation of artificial intelligence (AI) in agriculture.

Moreover, due to the growing demand for food products, major agricultural nations are increasingly leveraging AI solutions and systems for increasing the agricultural productivity.
Apart from the aforementioned factors, the growing demand for livestock monitoring is also fueling the integration of AI in agriculture. The usage of advanced AI solutions such as image classification integrated with feeding patterns and body condition score and facial recognition is allowing dairy farms to individually monitor the various behavioral aspects of a herd. Furthermore, many farmers are increasingly utilizing machine vision for recognizing facial features and hide patterns and the health of livestock.

Additionally, these AI-powered solutions help farmers monitor food and water intake of livestock and record their body temperature and behavior. The burgeoning usage of drones in farming processes is another important factor fueling the demand for AI in agriculture across the world. Drones are heavily used for assisting farmers in irrigation schedules, scanning soil health, applying fertilizers, and estimating yield data. Because of the enactment of several government initiatives, the drones in agriculture industry is thriving around the world.

Due to the above-mentioned factors, the demand for the incorporation of AI in farming activities is rising rapidly all over the world. This is, in turn, fueling the advancement of the global artificial intelligence (AI) in agriculture market. The value of the market is predicted to grow from $852.2 million to $8,379.5 million from 2019 to 2030. Furthermore, the market is predicted to progress at a CAGR of 24.8% between 2020 and 2030.

Depending on type, the AI in agriculture market is divided into service and product. Between these, the product category recorded higher growth in the market in the past years. Moreover, in the near future, the mushrooming utilization of AI-based software would propel the market advancement across the globe. This category is further classified into software and hardware, between which, the hardware division registered higher growth in the market in the past.

Globally, the AI in agriculture market will demonstrate the highest growth rate in the Asia-Pacific (APAC) region in the upcoming years, as per the estimates of P&S Intelligence, a market research firm based in India. The rate of usage of smart agriculture methods such as agricultural robots, precision farming, and drone analytics is predicted to increase sharply, especially in the developing nations such as Thailand, Indonesia, and China in the future years.

Hence, it can be said with surety that the demand for AI in agricultural processes would surge all over the world in the years to come, mainly because of the growing requirement for higher agricultural productivity, on account of the soaring population levels and the rising demand for food products.