Agri-Tech Market Size, Share, Growth, Trends, and Global Industry Analysis: By Component (Hardware, Software, and Service), By Application (Precision Farming and Farm Management, Livestock Monitoring, Quality Management, and Others), By Technology (AI, IoT, Automation and Robotics, and Others), and Region Forecast 2020-2031

Agri-Tech Market size was valued at US$ 14,200?million in 2024 and is expected to reach US$ 29,800 million by 2031, growing at a significant CAGR of 9.1?% from 2025-2031. Moreover, the U.S. Agri-Tech Market is projected to grow significantly, reaching an estimated value of US$?6,300?million by?2031. The market refers to the integration of advanced technologies such as artificial intelligence, Internet of Things (IoT), robotics, and data analytics into agricultural practices to improve productivity, efficiency, and sustainability. This market encompasses a wide range of solutions including precision farming, automated irrigation systems, drone-based crop monitoring, and smart supply chain management.

Agri-Tech is transforming traditional agriculture by enabling real-time decision-making, reducing resource wastage, and enhancing yield outcomes. The market is gaining traction due to rising food security concerns, labor shortages, climate variability, and growing demand for sustainable farming practices. With increasing investments from both private and public sectors, Agri-Tech is positioned as a critical driver in the modernization of global agriculture systems.

Facts & Figures

• More and more governments at the national level are taking agri-tech mainstream in their public policy, leveraging digital platforms to deliver subsidies, soil health information, and real-time advisories directly to the farmer, developing one digital spine for agriculture.
• More than 70% of Agri-Tech startups now provide bundled services, combining access to inputs, market linkages, weather information, and financial services, offering more than stand-alone products to move towards end-to-end farm enablement models.
• FPOs and farmer cooperatives are turning into hubs of adoption, with most agri-tech companies building group-level interfaces and community-wide dashboards to facilitate community-sized impacts and data sharing.
• Peri-urban and urban areas are turning into testbeds for controlled-agri-tech forms such as hydroponics, vertical farming, and AI-driven greenhouse systems, particularly in water and land-constrained areas.   

Key Developments:

• In July 2025, Singapore based agribusiness group Wilmar buys 20% from Adani Enterprises, gaining control of AWL Agri to expand further in India's agribusiness market
• In June 2025, African agri tech company Nile raises ZAR 200 million to advance its digital marketplace and launch new financing products for farmers in Southern Africa
• In June 2025, IIT-Indore inaugurates Agri-Hub, an AI/ML Agri-Tech Co, Centre of Excellence integrates academia with industry with the goal of creating AI-enabled precision farming solutions and farmer empowerment.

Agri-Tech Market Segmentation:

Based on the components:

• Hardware
• Software
• Service

Hardware is still the foundation of the Agri-Tech ecosystem, facilitating physical connectivity between digital systems and on-the-ground farm realities. Sensor-laden drones, GPS-laden tractors, automated irrigation systems, and field weather stations constitute the essence of precision agriculture infrastructure. Hardware is the leading segment because its main job is data generation, infusing real-time environmental, crop, and machinery information into digital analytics machines. With decreasing sensor prices and greater ruggedization for hostile environments, hardware uptake is increasing even in capital-constrained areas. From variable rate application enablement to crop health monitoring through NDVI imagery, smart hardware is not a cost-intensive extravagance but has become a business necessity for competitive, climate-resilient agriculture.

Based on the technology:

• AI
• IoT
• Automation
• Robotics
• Others

IoT is the technological hub of the Agri-Tech revolution, facilitating smooth machine-to-machine communication in fragmented agricultural settings. From networked weather stations to soil probes and animal wearables, IoT devices collect rich, location-based information in real-time. What is significant about IoT is that it can harmonize fragmented ag-processes, determining automated irrigation schedules, pest notifications, or equipment failure notices. Its scalability makes it suitable for big agribusinesses and smallholder cooperatives alike. With low-power wide-area networks (LPWAN) and satellite-based IoT entering the scene, rural connectivity gaps are closing. Finally, IoT converts passive data collection into active decision systems, which turn farming smarter, quicker, and far more responsive to evolving agro-climate conditions.

Based on the application:

• Precision Farming
• Farm Management
• Livestock Monitoring
• Quality Management
• Others

Precision agriculture has emerged as the most impactful use case in Agri-Tech, transforming farm operations, measurement, and monitoring. The method combines satellite imagery, soil sensors, weather forecasting, and AI-powered suggestions to give farmers hyper-personalized decisions on planting, watering, fertilizing, and harvesting. What sets it on top is its clear contribution towards profitability, sustainability, and yield optimization. It minimizes wastage, lowers input costs, and maximizes utilization of resources, especially important under conditions of uncertainty related to climate. Precision agriculture also assists with traceability and adherence to future carbon and sustainability regulations. Its increasing importance is being seen not only in large-scale operations, but increasingly among forward-thinking small-scale farmers embracing mobile-enabled micro-precision frameworks.