Smart Farming Market by IoT & AI Forecasts to 2032 – Global Analysis By Component (Hardware, Software and Services), Farm Size, Deployment Model, Application, End User and By Geography

According to Stratistics MRC, the Global Smart Farming Market by IoT & AI is accounted for $24.18 billion in 2025 and is expected to reach $55.16 billion by 2032 growing at a CAGR of 12.5% during the forecast period.Smart farming is the use of advanced technologies like IoT, AI, robotics, and big data to enhance agricultural productivity, efficiency, and sustainability. It enables real-time monitoring, data-driven decision-making, and precision farming practices, such as optimized irrigation, fertilization, and pest control. By integrating digital tools, smart farming helps farmers reduce resource use, lower costs, and increase crop yields while minimizing environmental impact and adapting to changing climate conditions.

According to a report by the U.S. Environmental Protection Agency (EPA), precision agriculture can reduce water usage by up to 30% and enhance crop yields by 20%.

Market Dynamics:

Driver:

Rising global food demand

Smart farming technologies are emerging as a critical solution to enhance productivity and sustainability. Precision agriculture tools such as IoT sensors, AI-driven analytics, and GPS-guided equipment enable farmers to optimize input usage and maximize yields. These innovations help reduce waste, conserve water, and improve soil health, addressing both food security and environmental concerns. Governments and private stakeholders are increasingly investing in agri-tech to meet future food demands. As a result, smart farming is becoming a cornerstone of modern agricultural strategies worldwide.

Restraint:

Data privacy and security concerns

The integration of digital technologies in agriculture raises significant concerns around data privacy and cybersecurity. Farmers and agribusinesses are generating vast amounts of sensitive data, including crop performance, soil conditions, and proprietary farming practices. Without robust security protocols, this data is vulnerable to breaches, misuse, or unauthorized access. Small and medium-sized farms, in particular, may lack the resources to implement advanced cybersecurity measures. These concerns can slow the adoption of smart farming technologies, especially in regions with limited digital infrastructure.

Opportunity:

Integration of blockchain in agri-supply chains

Blockchain technology offers transformative potential for enhancing transparency and traceability in agricultural supply chains. By recording every transaction and movement of goods on a decentralized ledger, blockchain ensures data integrity and reduces fraud. Smart contracts can automate payments and logistics, improving efficiency and reducing disputes. As consumers demand more accountability in food sourcing, blockchain adoption is gaining momentum among producers and retailers. The convergence of blockchain with IoT and AI is expected to unlock new levels of trust and efficiency in agri-business operations.

Threat:

Standardization and interoperability issues

The smart farming ecosystem comprises a wide array of hardware, software, and data platforms from different vendors. A major challenge lies in the lack of standardization and interoperability among these systems. Incompatible technologies hinder seamless data exchange and integration, limiting the effectiveness of precision agriculture. Farmers often struggle to synchronize equipment and platforms, leading to inefficiencies and increased costs. This fragmentation also discourages investment in new technologies, especially for smallholders.

Covid-19 Impact

The COVID-19 pandemic accelerated the adoption of smart farming technologies as labour shortages and supply chain disruptions exposed vulnerabilities in traditional agriculture. Farmers turned to automation, remote monitoring, and data-driven decision-making to maintain productivity under restricted conditions. Drones, autonomous tractors, and sensor-based irrigation systems gained traction as contactless solutions. The crisis also highlighted the importance of resilient and localized food systems, boosting interest in vertical farming and smart greenhouses. The pandemic served as a catalyst for long-term structural changes in the agri-tech landscape.

The software segment is expected to be the largest during the forecast period

The software segment is expected to account for the largest market share during the forecast period, due to its central role in data analytics, decision support, and farm management. Advanced platforms enable real-time monitoring of crop health, weather patterns, and equipment performance. Cloud-based solutions offer scalability and remote access, making them ideal for large-scale and distributed farming operations. Integration with AI and machine learning enhances predictive capabilities, allowing farmers to proactively manage risks.

The smart greenhouses segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the smart greenhouses segment is predicted to witness the highest growth rate, due totheir ability to provide controlled environments for year-round cultivation. These systems leverage IoT sensors, climate control technologies, and AI algorithms to optimize temperature, humidity, and lighting. The result is higher crop yields, reduced resource consumption, and minimal pesticide use. Urbanization and the rise of vertical farming are further driving demand for smart greenhouse solutions.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market sharedue toits vast agricultural base and rapid technological adoption. Countries like China, India, and Japan are investing heavily in agri-tech to boost productivity and ensure food security. Increasing smartphone penetration and affordable IoT devices are enabling smallholder farmers to participate in the digital revolution.Government initiatives promoting digital agriculture and rural connectivity are accelerating market growth.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to its advanced infrastructure and early adoption of precision agriculture. The U.S. and Canada are home to leading agri-tech companies and research institutions driving innovation. Farmers in the region are increasingly adopting AI, robotics, and data analytics to enhance efficiency and sustainability. Government support through subsidies and climate-smart agriculture programs is further fuelling growth.

Key players in the market

Some of the key players profiled in the Smart Farming Market by IoT & AI include Deere & Company, Ag Leader Technology, Trimble Inc., Arugga, AGCO Corporation, FarmWise, Topcon Corporation, Small Robot Company, CropIn Technology Solutions Pvt. Ltd., Intello Labs Pvt Ltd, DeHaat, Stellapps, Fasal, BouMatic Robotic B.V., and Raven Industries, Inc.

Key Developments:

In May 2025, John Deere announced the acquisition of Sentera, a leading provider of remote imagery solutions for agriculture headquartered in St. Paul, Minnesota. This acquisition will advance the capabilities of John Deere's existing technology offerings, providing farmers and ag service providers with a more comprehensive set of tools to generate and use data to make decisions that improve farm profitability, efficiency, and sustainability.

In April 2025, Trimble announced a new integration between its B2W Track and Trimble Siteworks software systems to automate and enhance progress quantity tracking for earthwork and civil contractors. This unique field-to-office connection allows contractors to compare actual material production quantities achieved to planned quantities more easily and accurately. Continuous assessment of field progress can be critical for civil contractors, enabling them to make timely operational adjustments.

Components Covered:
• Hardware
• Software
• Services

Farm Sizes Covered:
• Small Farms
• Medium-Sized Farms
• Large-Scale Farms

Deployment Models Covered:
• On-Premise
• Cloud-Based

Applications Covered:
• Precision Farming
• Automated Harvesting & Seeding
• Livestock Monitoring
• Crop Health Monitoring & Disease Detection
• Smart Greenhouses
• Weather Forecasting
• Fish Farming / Aquaculture
• Soil Monitoring
• Irrigation Management
• Supply Chain & Market Access Optimization
• Other Applications

End Users Covered:
• Individual Farmers
• Agricultural Cooperatives
• Research Institutes & Universities
• Government Agencies
• Agribusinesses
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements


1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Technology Analysis
3.7 Application Analysis
3.8 End User Analysis
3.9 Emerging Markets
3.10 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Industrial IoT (IIoT) Market, By Component
5.1 Introduction
5.2 Hardware
5.2.1 Industrial Sensors & Actuators
5.2.2 RFID Tags & Readers
5.2.3 Industrial Gateways & Edge Computing Devices
5.2.4 Industrial Cameras & Vision Systems
5.2.5 Industrial Networking Equipment
5.2.6 Industrial Robotics
5.3 Software & Platforms
5.3.1 Device & Connectivity Management Platforms
5.3.2 Data Ingestion & Analytics Software
5.3.3 Operational Technology (OT) Integration Software
5.3.4 Predictive Maintenance & Asset Performance Management (APM) Software
5.3.5 Digital Twin Platforms & Solutions
5.3.6 Cloud-Based IIoT Platforms & Edge Orchestration
5.4 Services
5.4.1 Consulting & Advisory Services
5.4.2 System Integration & Implementation Services
5.4.3 Managed Services
5.4.4 Support & Maintenance Services
5.4.5 IIoT Security Services
6 Global Industrial IoT (IIoT) Market, By Deployment Mode
6.1 Introduction
6.2 On-Premise
6.3 Cloud-Based
6.4 Hybrid
7 Global Industrial IoT (IIoT) Market, By Connectivity Technology
7.1 Introduction
7.2 Wired Technology
7.3 Wireless Technology
8 Global Industrial IoT (IIoT) Market, By Organization Size
8.1 Introduction
8.2 Small & Medium Enterprises (SMEs)
8.3 Large Enterprises
9 Global Industrial IoT (IIoT) Market, By Application
9.1 Introduction
9.2 Predictive Maintenance & Asset Monitoring
9.3 Smart Robotics & Remote Operations
9.4 Condition-Based Monitoring
9.5 Production & Operations Optimization
9.6 Supply Chain & Inventory Management
9.7 Workforce Tracking & Safety Monitoring
9.8 Energy Management
9.9 Quality Control & Defect Detection
10 Global Industrial IoT (IIoT) Market, By End User
10.1 Introduction
10.2 Manufacturing
10.2.1 Discrete Manufacturing
10.2.2 Process Manufacturing
10.3 Oil & Gas
10.4 Transportation & Logistics
10.5 Healthcare
10.6 Agriculture
10.7 Construction
10.8 Energy & Utilities
10.9 Other End Users
11 Global Industrial IoT (IIoT) Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies
13 Company Profiling
13.1 Siemens AG
13.2 General Electric Company
13.3 IBM Corporation
13.4 Cisco Systems, Inc.
13.5 Microsoft Corporation
13.6 Bosch Group
13.7 Schneider Electric SE
13.8 Rockwell Automation, Inc.
13.9 Honeywell International Inc.
13.10 Intel Corporation
13.11 Amazon Web Services, Inc.
13.12 ABB Ltd.
13.13 PTC Inc.
13.14 Hitachi, Ltd.
13.15 Emerson Electric Co.
13.16 SAP SE
13.17 Mitsubishi Electric Corporation
13.18 Advantech Co., Ltd.
List of Tables
Table 1 Global Industrial IoT (IIoT) Market Outlook, By Region (2024-2032) ($MN)
Table 2 Global Industrial IoT (IIoT) Market Outlook, By Component (2024-2032) ($MN)
Table 3 Global Industrial IoT (IIoT) Market Outlook, By Hardware (2024-2032) ($MN)
Table 4 Global Industrial IoT (IIoT) Market Outlook, By Industrial Sensors & Actuators (2024-2032) ($MN)
Table 5 Global Industrial IoT (IIoT) Market Outlook, By RFID Tags & Readers (2024-2032) ($MN)
Table 6 Global Industrial IoT (IIoT) Market Outlook, By Industrial Gateways & Edge Computing Devices (2024-2032) ($MN)
Table 7 Global Industrial IoT (IIoT) Market Outlook, By Industrial Cameras & Vision Systems (2024-2032) ($MN)
Table 8 Global Industrial IoT (IIoT) Market Outlook, By Industrial Networking Equipment (2024-2032) ($MN)
Table 9 Global Industrial IoT (IIoT) Market Outlook, By Industrial Robotics (2024-2032) ($MN)
Table 10 Global Industrial IoT (IIoT) Market Outlook, By Software & Platforms (2024-2032) ($MN)
Table 11 Global Industrial IoT (IIoT) Market Outlook, By Device & Connectivity Management Platforms (2024-2032) ($MN)
Table 12 Global Industrial IoT (IIoT) Market Outlook, By Data Ingestion & Analytics Software (2024-2032) ($MN)
Table 13 Global Industrial IoT (IIoT) Market Outlook, By Operational Technology (OT) Integration Software (2024-2032) ($MN)
Table 14 Global Industrial IoT (IIoT) Market Outlook, By Predictive Maintenance & Asset Performance Management (APM) Software (2024-2032) ($MN)
Table 15 Global Industrial IoT (IIoT) Market Outlook, By Digital Twin Platforms & Solutions (2024-2032) ($MN)
Table 16 Global Industrial IoT (IIoT) Market Outlook, By Cloud-Based IIoT Platforms & Edge Orchestration (2024-2032) ($MN)
Table 17 Global Industrial IoT (IIoT) Market Outlook, By Services (2024-2032) ($MN)
Table 18 Global Industrial IoT (IIoT) Market Outlook, By Consulting & Advisory Services (2024-2032) ($MN)
Table 19 Global Industrial IoT (IIoT) Market Outlook, By System Integration & Implementation Services (2024-2032) ($MN)
Table 20 Global Industrial IoT (IIoT) Market Outlook, By Managed Services (2024-2032) ($MN)
Table 21 Global Industrial IoT (IIoT) Market Outlook, By Support & Maintenance Services (2024-2032) ($MN)
Table 22 Global Industrial IoT (IIoT) Market Outlook, By IIoT Security Services (2024-2032) ($MN)
Table 23 Global Industrial IoT (IIoT) Market Outlook, By Deployment Mode (2024-2032) ($MN)
Table 24 Global Industrial IoT (IIoT) Market Outlook, By On-Premise (2024-2032) ($MN)
Table 25 Global Industrial IoT (IIoT) Market Outlook, By Cloud-Based (2024-2032) ($MN)
Table 26 Global Industrial IoT (IIoT) Market Outlook, By Hybrid (2024-2032) ($MN)
Table 27 Global Industrial IoT (IIoT) Market Outlook, By Connectivity Technology (2024-2032) ($MN)
Table 28 Global Industrial IoT (IIoT) Market Outlook, By Wired Technology (2024-2032) ($MN)
Table 29 Global Industrial IoT (IIoT) Market Outlook, By Wireless Technology (2024-2032) ($MN)
Table 30 Global Industrial IoT (IIoT) Market Outlook, By Organization Size (2024-2032) ($MN)
Table 31 Global Industrial IoT (IIoT) Market Outlook, By Small & Medium Enterprises (SMEs) (2024-2032) ($MN)
Table 32 Global Industrial IoT (IIoT) Market Outlook, By Large Enterprises (2024-2032) ($MN)
Table 33 Global Industrial IoT (IIoT) Market Outlook, By Application (2024-2032) ($MN)
Table 34 Global Industrial IoT (IIoT) Market Outlook, By Predictive Maintenance & Asset Monitoring (2024-2032) ($MN)
Table 35 Global Industrial IoT (IIoT) Market Outlook, By Smart Robotics & Remote Operations (2024-2032) ($MN)
Table 36 Global Industrial IoT (IIoT) Market Outlook, By Condition-Based Monitoring (2024-2032) ($MN)
Table 37 Global Industrial IoT (IIoT) Market Outlook, By Production & Operations Optimization (2024-2032) ($MN)
Table 38 Global Industrial IoT (IIoT) Market Outlook, By Supply Chain & Inventory Management (2024-2032) ($MN)
Table 39 Global Industrial IoT (IIoT) Market Outlook, By Workforce Tracking & Safety Monitoring (2024-2032) ($MN)
Table 40 Global Industrial IoT (IIoT) Market Outlook, By Energy Management (2024-2032) ($MN)
Table 41 Global Industrial IoT (IIoT) Market Outlook, By Quality Control & Defect Detection (2024-2032) ($MN)
Table 42 Global Industrial IoT (IIoT) Market Outlook, By End User (2024-2032) ($MN)
Table 43 Global Industrial IoT (IIoT) Market Outlook, By Manufacturing (2024-2032) ($MN)
Table 44 Global Industrial IoT (IIoT) Market Outlook, By Discrete Manufacturing (2024-2032) ($MN)
Table 45 Global Industrial IoT (IIoT) Market Outlook, By Process Manufacturing (2024-2032) ($MN)
Table 46 Global Industrial IoT (IIoT) Market Outlook, By Oil & Gas (2024-2032) ($MN)
Table 47 Global Industrial IoT (IIoT) Market Outlook, By Transportation & Logistics (2024-2032) ($MN)
Table 48 Global Industrial IoT (IIoT) Market Outlook, By Healthcare (2024-2032) ($MN)
Table 49 Global Industrial IoT (IIoT) Market Outlook, By Agriculture (2024-2032) ($MN)
Table 50 Global Industrial IoT (IIoT) Market Outlook, By Construction (2024-2032) ($MN)
Table 51 Global Industrial IoT (IIoT) Market Outlook, By Energy & Utilities (2024-2032) ($MN)
Table 52 Global Industrial IoT (IIoT) Market Outlook, By Other End Users (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

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