The global smart agriculture market size is estimated to reach $54,71-billion by 2030, registering a CAGR of 13,9% from 2025 to 2030, according to a new report by Grand View Research.
The major factors driving the growth of the agtech industry are the increasing use of artificial intelligence (AI) and Internet of Things (IoT) and the integration of image processing technologies into agriculture.
Agriculture has grown significantly in recent years owing to precision agriculture practices. The development plan of several nations, such as India, China, and Brazil, emphasises digital transformation and digitization across various sectors, including agriculture.
The smart agriculture business is predicted to be driven by factors such as constant population increase, favourable government incentives, a scarcity of cultivable land, and a desire for high and fresh-quality food.
According to World Health Organisation (WHO) and Population Council, an estimated 80% of the world’s population lives in urban cities. However, the current land constraint in metropolitan areas has compelled producers to find a new way to produce fresh vegetables.
The adoption of smart agriculture techniques will allow producers to grow crops indoors, in a multi-story building, stacked on racks, and in warehouse.
Smart farming can be utilised to produce organic crops on a vast scale. Vertical farming can be used in the large-scale production of organic crops. Controlled growing technologies such as hydroponics and aeroponics eliminate the use of chemical pesticides. Crops are produced in carefully chosen and well-monitored circumstances to guarantee optimal growth all year.
As compared to open-field agriculture and other farming practices, vertical farm systems provide more crop rotation. Controlled humidity, temperature, and daylight will eventually result in a faster crop cycle. It takes 21 days for the system to produce fresh vegetables and greens. The growth rate is controlled with the help of a computer database that manages optimum growing conditions for various varieties such as baby spinach, lettuces, baby rocket, tatsoi, and basil.
Technological improvements in numerous industries have also positively impacted agriculture, as landowners and farmers are always striving to get the most out of their resources and land.
Furthermore, due to labour difficulties such as a shortage of qualified farmers, a rising number of aged farmers, and a growing trend of large-scale farms, agriculture automation is gaining pace.
Innovations in GPS mapping and associated farm applications, as well as advancements in precision agriculture, are also assisting farmers in operating more effectively and increasing their profit margins.
Highlights of the smart agriculture market report include:
- Based on offering, the hardware segment accounted for the largest market share of over 66% in 2024.
- The smart greenhouse application segment is anticipated to grow significantly during the forecast period. The rising focus on urban agriculture and local food production is also propelling the growth.
- North America accounted for the largest revenue share of over 43% in 2024. Growing government initiatives and regulations to enhance the agriculture industry in the region are expected to drive the demand over the forecast period.
- Asia Pacific is expected to witness a significant CAGR of over 16.0% during the forecast period.