AI makes significant foray into agriculture, expected to reach $10B by 2032

As key industries jostle to embrace artificial intelligence (AI), experts predict agriculture will be the next big frontier for machine learning technologies as adoption soars.

AI’s agricultural market share is projected to balloon to $10.1 billion by 2032 from its present share of under $2 billion. The forecast astronomical growth could directly result from several integral factors peculiar to agriculture.

The report cites labor shortages plaguing farms across the globe and the need for sustainable agricultural practices as reasons for AI’s rising adoption in the space. Other factors backing the research hypothesis include the need for improved efficiency and cost-reduction benefits.

A segment analysis reveals that AI software is in pole position in AI adoption in agriculture, buoyed by deploying a range of offerings. Farms are pivoting to AI-powered software solutions for crop monitoring, pest detection, and irrigation systems to make informed decisions.

Closely trailing software use cases are AI-powered hardware applications for agricultural processes. AI-powered planters and harvesters have already made their debut in farms in the U.S., Europe, and Japan with impressive results while drones and sensors are now a mainstay in the sector.

However, the report predicts that hardware may surpass the market share controlled by software following rapid innovation in the space.

AI-as-a-Service has also gathered significant steam in recent months, with enterprises turning to the offering due to its low entry barrier and flexibility. The report points to a burgeoning services segment accentuated by training and consultations with a cross-section mulling over the prospects of integration with other emerging technologies.

“The future of AI in agriculture looks promising with continued innovation and adoption expected,” read the report. “AI technologies will play a pivotal role in addressing the challenges of feeding a growing global population while minimizing environmental impact.”

North America leads the pack

A deep dive into IMARC’s report reveals a clear lead by North America in terms of AI adoption in agriculture. The report points to the region’s presence of AI solutions providers and a traditional positive stance for embracing innovative offerings.

Europe comes in second place, while the Asia Pacific and Latin America appear keen on joining the leading pack with a swathe of government-backed initiatives.

Japanese-based enterprises tested the waters with an AI-powered cucumber harvester in late 2023 but still have their sights on the global markets with a new tomato harvester designed for European farms.

“The region places emphasis on sustainable farming practices and environmental conservation, making AI a valuable tool for optimizing resource utilization and minimizing ecological impact,” read the report.

In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI.

Watch: Dr Mohamed Essaaidi—BSV’s scaling will change governance, banking, agriculture