PUNE, 27 April 2025: The global Agriculture IoT market is expected to grow significantly, with projections estimating it will reach USD 60.12 billion by 2032, up from USD 23.41 billion in 2023, reflecting a compound annual growth rate (CAGR) of 11.12% from 2024 to 2032.
This growth is being driven by increasing adoption of smart farming technologies, precision agriculture practices, and automation solutions.
Key drivers behind the expansion include the rising demand for real-time monitoring, predictive analytics, and resource optimization in farming. IoT-enabled devices such as sensors, drones, and AI-driven analytics are playing a pivotal role in improving farming efficiency and sustainability. Additionally, future opportunities are anticipated in the integration of AI with IoT, 5G connectivity, and blockchain technology for enhancing supply chain transparency.
In the U.S., the Agriculture IoT market is also seeing substantial growth. Valued at USD 4.87 billion in 2023, it is expected to reach USD 12.40 billion by 2032, growing at a CAGR of 10.94%. This expansion is being fueled by advancements in precision farming, automation, and IoT-based systems for irrigation, as well as government initiatives aimed at supporting digital agriculture and sustainable farming practices.
Hardware and On-Premise Solutions Lead Market
In 2023, the hardware segment captured the largest share of the market, accounting for 46% of total revenue. This dominance can be attributed to the widespread adoption of IoT-enabled devices such as sensors, drones, and automated irrigation systems, which are essential for precision farming and real-time data collection.
On-premise solutions also accounted for a significant portion of the market in 2023, with a 57% revenue share. Farmers increasingly prefer on-premise solutions for better data control, security, and reliability, particularly in rural areas with weak internet connectivity.
Precision Farming and Large Farms Drive Market Growth
The precision farming segment led the Agriculture IoT market in 2023, accounting for 41% of total revenue. This growth is driven by the widespread use of IoT-enabled sensors, GPS technology, and data analytics to optimize crop yield and resource efficiency. Additionally, large farms, which captured 52% of the revenue share in 2023, are the primary adopters of these advanced technologies, given their ability to invest in smart farming solutions.
Asia Pacific Dominates Global Market, North America to See Fastest Growth
In 2023, the Asia Pacific region led the global Agriculture IoT market, securing 37% of total revenue. Countries like China, India, and Japan are heavily investing in IoT-driven solutions for precision farming, AI analytics, and automation, fueling the region's market dominance.
North America is projected to grow at the fastest rate in the market, with a CAGR of 10.67% from 2024 to 2032. The region's rapid growth is driven by advanced technological infrastructure, strong investments in precision agriculture, and the integration of AI, cloud computing, and automation to enhance farm efficiency.
As the sector continues to evolve, Agriculture IoT is set to revolutionize global food production and resource management, improving sustainability and efficiency across the agricultural landscape.
Image credit: aeologic.com
