Smart Agriculture Market: Intelligent Farming, Higher Returns

The global smart agriculture market size was calculated at USD 25,420 million in 2024 and is predicted to reach around USD 92,600 million by 2034, expanding at a CAGR of 13.8% from 2025 to 2034.

Smart Agriculture Market Report Highlights

• By region, North America dominated the smart agriculture market in 2024.
• By region, Asia Pacific region is expected to grow fastest during the forecast period.
• By type, the livestock monitoring segment dominated the smart agriculture market in 2024 and accounted for the highest revenue share.
• By type, the precision farming segment is expected to grow fastest during the forecast period.
• By offering, the software segment dominated the smart agriculture market in 2024 and accounted for the highest revenue share.
• By offering, the hardware segment is expected to grow fastest during the forecast period.
• By application the yield monitoring segment dominated the smart agriculture market in 2024 and accounted for the highest revenue share.
• By application the field mapping segment is expected to grow fastest during the forecast period.

Industry Valuation and Growth Rate Projection

The smart agriculture market refers to the production, distribution, and application of smart agriculture refers to the use of technologies like robots, location systems, sensors, automation, Internet of Things (IoT), and Artificial Intelligence (AI) on your farm. Smart agriculture, also known as smart farming, is the adoption of advanced technologies and data-driven farm operations to optimize and improve sustainability in agricultural production. Smart agriculture involves using precision equipment and machinery, including advanced technology in farm tire design.

Tractors, harvesters, and other farm equipment are equipped with GPS and IoT sensors, allowing for precise planting, harvesting, and monitoring. It helps to maintain the production of food using minimal resources such as fertilizer, water, and seeds, irrespective of climate change. Smart farming includes information and communication technologies into machinery, equipment, and sensors used in agricultural production systems. Technologies like the IoT and cloud computing are advancing this development even further by introducing more robots and artificial intelligence into farming. The advantages of smart farming also include the risk of crop failure decreases when farmers can digitally monitor and better manage their fields and enhanced workflows means greater efficiency and lower costs.

Growing pressure on the food supply chain is driving the growth of the smart agriculture market. People around the globe share a common need for a safe, nutritious, and reliable supply of food. Agriculture is of fundamental importance to developing countries because a well-functioning agricultural sector is essential to ensuring food security, and agricultural products are a major source of national income. Effective agricultural supply chain management components include risk management, supply chain visibility and traceability, warehousing and storage, logistics and transportation, quality assurance and control, and sourcing and supplier management.

The supply chain in the agriculture sector plays an important role in improving productivity, reducing costs, ensuring quality and safety, promoting economic growth, supporting sustainability, and building resilience. Supply chain management helps sustain human life. The agri-food supply chain refers to the process that describes how food from a farm ends up on the table. The processes include production, processing, distribution, marketing, consumption, and disposal.

Rising demand for AI and IoT-based systems is driving the growth of the smart agriculture market. Smart agriculture integrates artificial intelligence (AI) and the Internet of Things (IoT) into cyber-physical systems for comprehensive farm management. AI applications cover many areas like disease detection, crop health monitoring, soil management, and weed control. By enhancing operational efficiency, resource management, and crop yield, IoT can significantly increase profitability. The savings from improved resource usage, coupled with higher crop yields and healthier livestock, translate into greater financial gains for farmers.

IoT smart farming solutions are a system that is built for monitoring the crop field with the help of sensors like crop health, soil moisture, temperature, humidity, light, etc., and automating the irrigation system. The farmers can monitor the field conditions from anywhere. By using these technologies, this team has created a system that integrates agriculture’s three primary operations, which are crop selection, autonomous watering, and fertilizer suggestions.

Government support for smart agriculture is driving the growth of the smart agriculture market. The government provides support through a combination of payments to farmers, policies that affect the price of agricultural commodities, and other aids to the sector. They support to use of technology and data-driven practices in smart agriculture, can enhance fuel efficiency, help farmers reduce costs, and minimize their environmental impact. Remote monitoring of farm inputs allows operators to adjust or shut down machinery when needed, thereby reducing unnecessary fuel usage. Many government schemes for agriculture help to increase farmers' income.

According to a report published in June 2024, Volza’s big-data technology scans over 1575467 Agricultural Machinery export-import data, 28940 buyers, and 42981 suppliers records to identify new buyers, profitable markets, reliable suppliers, and promising products.