The Artificial Intelligence in Agriculture Market is set to experience substantial growth, expected to reach USD 12.8 billion by 2032, driven by AI tools focused on crop monitoring, predictive analytics, and climate resilience. The market was valued at USD 1.8 billion in 2023 with a projected CAGR of 24.34% from 2024 to 2032.

In the U.S., the market benefits from early technology adoption, significant agri-research investment, and the integration of AI-powered precision farming tools. Government support in smart farming and sustainability-focused agri-tech investment are important growth catalysts.

The software segment dominated in 2023, due to the deployment of AI-embedded devices. However, the hardware segment is expected to grow rapidly, driven by advancements in drones, sensors, and automated irrigation tools.

Machine Learning and Deep Learning were prominent in 2023, integral to yield forecasting and anomaly detection, while computer vision is positioned to grow rapidly in applications like pest and weed identification.

Regionally, North America led the market in 2023 supported by advanced tech adoption and robust digital infrastructure. Asia-Pacific will likely see the fastest growth, driven by digital transformation efforts in countries like India and China.

Recent developments include IBM's AI-based weather forecasting tool, John Deere's partnership with NVIDIA for AI analytics, and Bayer's disease detection platform. These innovations highlight ongoing advancements and collaborations in the field of AI in agriculture.