IoT in Agriculture Market Overview
As per MRFR analysis, the IoT in Agriculture Market Size was estimated at 9.76 (USD Billion) in 2023. The IoT in Agriculture Market Industry is expected to grow from 10.85 (USD Billion) in 2024 to 34.7 (USD Billion) by 2035. The IoT in Agriculture Market CAGR (growth rate) is expected to be around 11.14% during the forecast period (2025 – 2035).
Key IoT in Agriculture Market Trends Highlighted
Driven by the demand for more efficiency and production in farming, the IoT in Agriculture Market is now undergoing meaningful change. Key market drivers include the rising need for food caused by population increase, which pushes farmers to use modern technology. This push is in line with government projects in several areas, including funding innovative agricultural programs supporting sustainable practices. IoT solutions integrated into farming, soil conditions, and animal management provide improved monitoring and management, hence enabling data-driven choices to maximize productivity. Among the many possibilities in this sector are smart sensors and drones offering farmers real-time data for exact irrigation and fertilizing.
Furthermore, the emergence of big data analytics coupled with IoT would enable farmers to forecast market trends and guide their planting and harvesting choices. As farmers increasingly use technology to examine data gathered from IoT devices, the movement of precision agriculture has gained worldwide traction in recent years. This method reduces resource waste and boosts output. Moreover, with IoT applications optimizing the use of water and chemical inputs, there is an increasing focus on sustainability since they assist in lowering the environmental effect of agriculture. These developments underline the great promise of the IoT in Agriculture Market to convert conventional farming into a more connected and efficient ecosystem, therefore solving economic as well as environmental issues the agricultural industry confronts.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
IoT in Agriculture Market Drivers
Increased Demand for Smart Agriculture Solutions
The growing need for innovative agricultural solutions is significantly driving the IoT in Agriculture Market Industry. The need for efficient food production techniques has skyrocketed since the world population is expected to be over 9.7 billion by 2050. To satisfy this goal, the Food and Agriculture Organization (FAO) of the United Nations has underlined the necessity of raising agricultural output by 70%. John Deere and AG Leader Technologies are among the businesses creating IoT solutions that maximize agricultural productivity via precision agriculture.
By using sensors to monitor soil moisture, crop health, and meteorological conditions, these devices improve production and resource efficiency. Incorporating IoT into agricultural helps to promote sustainability by means of ecological issues and the growing worldwide need for food.
Government Initiatives and Support
Governments worldwide are spending more and more on IoT technology to promote agricultural practices. The U.S. Department of Agriculture, for example, has set aside money for many projects meant to encourage smart agricultural techniques using IoT technologies. Government assistance like this increases R&D possibilities that enable local farmers to use this technology. Countries like India have started specific initiatives aiming at digital agriculture as a sign of their dedication, hoping to change conventional agricultural methods into technology-driven ones.
Such government programs are anticipated to help significantly the CAGR of the IoT in Agriculture Market Industry.
Rising Labor Costs and Labor Shortages
Major forces of the IoT in Agriculture Market Industry include rising labor prices and agriculture sector shortages. The U.S. Department of Labor Statistics reports that agricultural labor costs have increased by over 10% in the last five years. Farmers have turned to IoT and automation technologies that may lower reliance on human labor in response to this trend. Trimble and SenseFly are two companies offering drones and autonomous machinery that reduce labor requirements while enhancing operational efficiency.
The continuous quest for technological solutions to solve labor problems emphasizes the vital importance of IoT in agriculture for guaranteeing sustainable production.
Climate Change and Environmental Concerns
One of the most important challenges for agriculture is climate change, which is driving a move toward more flexible agricultural methods, mostly based on IoT technology. According to the Intergovernmental Panel on Climatic Change, changes in climatic patterns are likely to have serious effects on agricultural output. By using IoT devices to track environmental factors such as crop temperatures, soil moisture, and rainfall patterns, farmers may change their methods in real-time.
Companies like Climate Corporation are leading the way in giving farmers tools that depend on IoT technology to provide thorough weather predictions and environmental data. This trend underlines how IoT helps farmers react proactively to climate-related issues, hence driving the expansion of the IoT in Agriculture Market Industry.
IoT in Agriculture Market Segment Insights
IoT in Agriculture Market Application Insights
The IoT in Agriculture Market, particularly within the Application segment, encompasses a wide array of transformative technologies that are shaping the future of agriculture. By 2024, the overall market is expected to reach a valuation of 10.85 USD Billion, with significant contributions from various applications. Precision Farming is projected to be a major differentiator in the market, valued at 3.25 USD Billion in 2024, and expected to grow to 10.48 USD Billion by 2035. This application utilizes IoT solutions to enhance crop yields and optimize farming practices, thus playing a vital role in increasing productivity and resource efficiency.Livestock Monitoring holds a crucial position as well, starting with a market valuation of 2.15 USD Billion in 2024 and anticipated to expand to 6.81 USD Billion by 2035, allowing farmers to manage their herds more effectively through real-time data on health and behavior. Smart Greenhouses, valued at 2.0 USD Billion in 2024, focuses on creating optimal growth environments for plants, incorporating automated sensors to regulate temperature, humidity, and light, thereby significantly improving resource management and crop quality. Crop Monitoring also plays a significant role in the overall market with a starting valuation of 2.15 USD Billion in 2024 and expected to reach 6.7 USD Billion by 2035, enabling farmers to assess crop health and monitor growth metrics using IoT devices, which ensures timely interventions and maximizes yield outcomes.Finally, Supply Chain Management, with an initial valuation of 1.3 USD Billion in 2024, is projected to grow to 4.37 USD Billion by 2035, improving logistics and traceability in agriculture through IoT integration, which enhances efficiency and reduces waste. Collectively, the Application segment of the IoT in Agriculture Market presents promising opportunities for increased efficiencies, enhanced productivity, and sustainable agricultural practices, addressing the pressing challenges of food security and resource conservation while paving the way for future advancements in technology within the global agriculture industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
IoT in Agriculture Market Technology Insights
The IoT in Agriculture Market focuses on various Technology innovations that enhance agricultural practices through digital transformation. By 2024, this market is expected to be valued at 10.85 USD Billion and demonstrates a strong growth trajectory leading up to 2035 with an expected value of 34.7 USD Billion. The major components in this field include Sensors, Software, Connectivity Technologies, Data Analytics, and Cloud Computing, each playing a crucial role in agricultural advancements. Sensors are essential for collecting real-time data on environmental conditions, while Software solutions facilitate data management and operational efficiency.Connectivity Technologies ensure that devices communicate seamlessly, which is vital for effective IoT implementation. Data Analytics empowers farmers to make informed decisions based on the vast amounts of data generated, while Cloud Computing offers scalable storage solutions enabling efficient data processing. These segments collectively drive efficiency and productivity in agriculture, resulting in improved yields and resource management, thereby responding to the rising global demand for food security amid changing environmental conditions.With a healthy expected CAGR of 11.14 from 2025 to 2035, the IoT in Agriculture Market is poised for substantial expansion, reflecting the growing importance of technology in modern farming practices.
IoT in Agriculture Market End Use Insights
The IoT in Agriculture Market is experiencing notable growth driven by various end use categories, including Farms, Agricultural Cooperatives, Food Producers, and Research Institutions. By 2024, the market is expected to achieve a valuation of 10.85 USD Billion, reflecting the increasing adoption of IoT solutions in the agricultural sector. Farms play a pivotal role in this market, as they utilize IoT technologies for precision farming, which enhances productivity and resource efficiency. Agricultural Cooperatives significantly contribute by pooling resources and leveraging IoT data for better decision-making, thereby maximizing yield and sustainability.Food Producers are also crucial, employing IoT applications to streamline supply chains and improve traceability, aligning with consumer demands for transparency in food sourcing. Meanwhile, Research Institutions enhance the market's growth by developing innovative IoT solutions focused on sustainable practices and agricultural advancements. The overall demand for IoT in agriculture is fueled by the need for improved crop yields and operational efficiency, setting the foundation for robust market growth and offering substantial opportunities for stakeholders in this evolving industry.Global statistics highlight the importance of integrating technology into agriculture as a fundamental step towards enhancing food security and sustainability.
IoT in Agriculture Market Component Insights
The IoT in Agriculture Market revenue reflects substantial growth, projected to reach 10.85 USD Billion by 2024 and further expand to 34.7 USD Billion by 2035, showcasing the increasing adoption of IoT technologies within this sector. The Component segment is crucial, encompassing Hardware, Software, and Services that enhance agricultural productivity and efficiency. Hardware solutions, including sensors and drones, play a vital role by providing real-time data for precision farming, thereby optimizing resource use. Software applications facilitate data analysis and farm management, making them essential for informed decision-making.Services, such as analytics and consulting, support implementation and ongoing management, ensuring technology is effectively utilized. As the global agricultural landscape evolves, driven by the need for sustainable practices and food security, the IoT in Agriculture Market data underscores the significance of these components in addressing modern agricultural challenges, supporting innovation, and contributing to overall market growth. Global trends indicate a rising demand for smart farming solutions, highlighting the importance of each component in driving efficiencies and improving yields across the industry.
IoT in Agriculture Market Regional Insights
The IoT in Agriculture Market showcases a robust growth pattern, with a total market valuation of 10.85 USD Billion expected in 2024 and projected to rise to 34.7 USD Billion by 2035. The North America region leads the IoT in Agriculture Market with a significant share, valued at 4.15 USD Billion in 2024 and anticipated to reach 13.5 USD Billion by 2035, demonstrating its majority holding in this market due to advanced technological infrastructure and investment in sustainable farming practices. Europe follows closely with a valuation of 2.85 USD Billion in 2024, growing to 9.1 USD Billion in 2035, fueled by government initiatives and a strong focus on precision farming.The APAC region, valued at 2.75 USD Billion in 2024 and expected to grow to 8.9 USD Billion by 2035, is gaining traction thanks to increasing agricultural productivity demands and technology adoption. Meanwhile, South America and MEA, though smaller in market size with valuations of 0.8 USD Billion and 0.3 USD Billion in 2024 respectively, hold significant potential for growth driven by emerging agricultural technologies and rising crop demands. These regions present opportunities for innovation and technological advancements, helping to boost the IoT in Agriculture Market revenue through enhanced agricultural efficiency and productivity.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
IoT in Agriculture Market Key Players and Competitive Insights
The IoT in Agriculture Market is experiencing a significant transformation, driven by advancements in technology and the increasing demand for efficient farming techniques. As the agriculture sector seeks to enhance productivity and sustainability, the integration of IoT solutions has become a crucial focus. Competitive insights in this market reveal a dynamic landscape where technology providers, agricultural equipment manufacturers, and software developers compete to deliver innovative solutions tailored to the unique needs of the agricultural industry. This competitive environment is characterized by rapid technological advancements, strategic partnerships, and an emphasis on data-driven decision-making to optimize crop management, improve yield, and reduce waste. Companies are leveraging IoT technologies to develop smart farming solutions that encompass precision agriculture, livestock monitoring, and supply chain management.IBM has established a strong presence in the IoT in Agriculture Market through its extensive portfolio of technology solutions and services. The company’s strengths lie in its ability to offer advanced analytics and cloud-based services that enable farmers to gain actionable insights from data collected through IoT devices. With a focus on enhancing farm management and operational efficiency, IBM's offerings provide solutions for crop monitoring, soil health assessment, and predictive analytics, thereby allowing farmers to make informed decisions that can lead to improved yields and resource optimization. Additionally, IBM has formed strategic alliances with various agricultural stakeholders and technology providers, enhancing its market position and facilitating the integration of its IoT solutions across the agricultural value chain.Trimble is a prominent player in the IoT in Agriculture Market, known for its expertise in geospatial technology and precision agriculture solutions. The company offers a range of key products and services including advanced positioning, guidance systems, and farm management software, which play a vital role in optimizing farming operations. Trimble's strengths include its robust technological capabilities and dedicated focus on improving agricultural productivity through data-driven insights and real-time monitoring solutions. The company has successfully expanded its market presence through strategic mergers and acquisitions, allowing it to integrate various technology platforms and provide comprehensive solutions to farmers globally. Trimble's commitment to innovation and customer support positions it as a leader in the IoT agriculture space, enabling sustainable farming practices and enhancing the overall efficiency of agricultural operations.
Key Companies in the IoT in Agriculture Market Include
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IBM
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Trimble
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AgJunction
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Taranis
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AG Leader Technology
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John Deere
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Quantified Ag
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Huawei
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Climate Corporation
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Sierra Wireless
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Raven Industries
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Cisco
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Siemens
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CropX
IoT in Agriculture Market Industry Developments
In September 2023, IBM announced advancements in its Watson IoT platform specifically tailored for agriculture, enhancing data analytics capabilities to support precision farming. Trimble and AgJunction have collaborated to improve interoperability between their platforms, which is expected to streamline farm management processes. Recently, Taranis has expanded its partnerships to integrate satellite imagery with their IoT systems, allowing for enhanced crop monitoring. Meanwhile, AG Leader Technology has launched a new line of sensors aimed at soil health monitoring, which received positive feedback in the market. John Deere continues to innovate with its autonomous tractor technology, set to impact labor dynamics in agriculture significantly.
In October 2022, Quantified Ag was acquired by a major agricultural technology company, further consolidating its position in precision livestock management. Sierra Wireless has reported significant growth in its IoT connectivity solutions for agriculture, enabling smarter farming practices. Moreover, in March 2021, Raven Industries was acquired by CNH Industrial, strengthening the latter's position in the agriculture technology sector. These efforts reflect a growing trend towards digitization in agriculture, with major investments fueling advancements in IoT technologies globally.
IoT in Agriculture Market Segmentation Insights
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IoT in Agriculture Market Application Outlook
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Precision Farming
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Livestock Monitoring
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Smart Greenhouses
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Crop Monitoring
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Supply Chain Management
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IoT in Agriculture Market Technology Outlook
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IoT in Agriculture Market End Use Outlook
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IoT in Agriculture Market Component Outlook
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Hardware
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Software
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Services
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IoT in Agriculture Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
IoT in Agriculture Market Report Scope
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Report Attribute/Metric
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Details
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Market Size 2023
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9.76 (USD Billion)
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Market Size 2024
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10.85 (USD Billion)
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Market Size 2035
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34.7 (USD Billion)
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Compound Annual Growth Rate (CAGR)
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11.14% (2025 - 2035)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2024
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Market Forecast Period
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2025 - 2035
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Historical Data
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2019 - 2024
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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IBM, Trimble, AgJunction, Taranis, AG Leader Technology, John Deere, Quantified Ag, Huawei, Climate Corporation, Sierra Wireless, Raven Industries, Cisco, Siemens, CropX
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Segments Covered
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Application, Technology, End Use, Component, Regional
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Key Market Opportunities
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Precision farming technologies, Smart irrigation systems, Livestock monitoring solutions, Supply chain optimization tools, Farm management software innovations
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Key Market Dynamics
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increased agricultural productivity, rising adoption of precision farming, growing demand for sustainable practices, advanced data analytics and AI, government support and funding initiatives
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Countries Covered
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North America, Europe, APAC, South America, MEA
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IoT Agriculture Market Highlights:
Frequently Asked Questions (FAQ) :
The IoT in Agriculture Market is expected to be valued at 10.85 USD Billion in 2024.
By 2035, the IoT in Agriculture Market is anticipated to reach a value of 34.7 USD Billion.
The market is forecasted to grow at a CAGR of 11.14% from 2025 to 2035.
In 2024, North America is projected to have the largest share, valued at 4.15 USD Billion.
The Smart Greenhouses segment is expected to reach 6.34 USD Billion by 2035.
The Livestock Monitoring segment is valued at 2.15 USD Billion in 2024.
Major players in the market include IBM, Trimble, AgJunction, Taranis, and John Deere.
The Supply Chain Management application is forecasted to reach 4.37 USD Billion by 2035.
The APAC region is expected to contribute 8.9 USD Billion to the market by 2035.
The Crop Monitoring segment is valued at 2.15 USD Billion in 2024.
