IoT in Agriculture Market Size, Share, By Component [Software (On-Premises, and Cloud based), Hardware (Soil Sensors, Drones, and Others)], Farm Type (Large, Mid-Size, and Small Farms), Application (Precision farming, Livestock monitoring, Smart Greenhouse, Fish Farm Monitoring, and Others), End Users (Farmers, Agricultural Cooperatives, Food Producers, and Research Institutions), and Region - Trends, Analysis, and Forecast till 2035

• By 2035, the IoT in agriculture market size is contemplated to enlarge at a valuation of USD 43.4 Billion.
• In 2024, the IoT in agriculture market valuation was USD 16.4 Billion.
• IoT in agriculture market is developing at a CAGR of 10.3%.

In agriculture, IoT (Internet of Things) refers to the use of internet-connected smart devices and sensors to track and control farming activities in real time. Farmers can now gather information on temperature, crop health, livestock activity, and soil moisture owing to this technology, which makes farming more accurate and productive. Increased agricultural productivity, decreased resource waste (such as water and fertilizer), better animal management, early disease or insect detection, and total cost savings are some of the advantages of IoT in agriculture. IoT assists farmers in making well-informed decisions by automating processes and offering useful information, increasing sustainability and productivity.  

At the moment, the need for increased agricultural yield as a result of rising global food consumption, the need for effective resource management and water use, and the push to lower operating costs due to labor shortages are driving the expansion of the IoT in agriculture sector. Farmers are also being pushed to use data-driven methods for improved risk management due to climate change and erratic weather patterns. Additionally, farmers are being encouraged to embrace IoT technologies by growing awareness of the advantages of smart farming and supporting government policies or incentives for contemporary agricultural methods.

With the integration of cutting-edge technology and an emphasis on sustainability, the IoT in agricultural industry is set to undergo a substantial shift in the future. One of the major themes is the merging of IoT with machine learning and artificial intelligence (AI), which makes predictive analytics possible for better crop management and resource use. Blockchain technology is becoming more popular as a way to improve agricultural supply chain traceability and transparency while satisfying customer needs for ethical sourcing and safe food. By automating the planting, monitoring, and harvesting processes, the use of autonomous tractors and drones is poised to transform farming methods, boosting productivity and decreasing reliance on human labor. Furthermore, the development of 5G networks and other high-speed internet connectivity will make remote monitoring and real-time data transfer easier, particularly in rural areas.

Recession Risk & Tariff Analysis:

• Trade tariffs and recession threats are currently posing problems for the IoT in agriculture business. Farm incomes have declined during economic downturns, and there is less money available to acquire pricey technologies. Furthermore, the cost of IoT devices has gone up due to tariffs on electronic components, especially those imported from China, making them more expensive for farmers.
• The adoption of IoT solutions in agriculture has been further hampered by these constraints, which have led to supply chain disruptions and increased production costs. Cost-effective and sustainable agricultural methods are becoming more popular in spite of these obstacles as a way to maximize resource use and preserve output in the face of economic uncertainty.

Impact of Generative AI on IoT in Agriculture Market:

• The IoT in agriculture market is being greatly enhanced by generative AI, which is revolutionizing data analysis and decision-making. Generative AI facilitates sophisticated applications including disease modeling, crop yield prediction analytics, and climate adaption plans by connecting with IoT devices.
• This collaboration maximizes resource use and boosts agricultural productivity by enabling real-time, data-driven insights. Furthermore, generative AI makes it easier to create digital twins, which are virtual versions of agricultural settings that aid in modeling and improving agricultural methods prior to their application.

Key Drivers:

The Market is Maturing Progressively due to the Rising Global Food Consumption

Growing populations and shifting dietary patterns are driving up global food consumption, which is placing tremendous pressure on the agriculture industry to boost output and efficiency. Farmers are using IoT technology, which provide accurate monitoring and control over farming activities, to meet this expanding need in a sustainable manner. Higher crop yields with fewer resources are achieved through the optimization of irrigation, fertilization, and pest control by IoT devices. One of the main factors propelling IoT use in agriculture and speeding up market expansion globally is the demand for scalable, data-driven solutions to produce more food with less environmental effect.

• For Instance, according to the data published by ONE Campaign, Poor people in developing countries often spend 60-80% of their income on food. Over 25 million tons of pumpkins, squash, and gourds are produced around the world each year. More than 9 out of 10 farms in the world are family farms. By 2030, global food demand is expected to rise by 35%. By 2030, only 1 in 7 people are expected to be consuming less than 2,500 calories per day.

Climate Change and Unpredictable Weather Patterns have led the Market to Mature Gradually

Unpredictable weather patterns and climate change are posing serious problems for farmers, including droughts, floods, and altered growing seasons, which have an immediate effect on agricultural output and food security. Since IoT solutions offer real-time data and analytics on crop health, weather forecasts, and soil conditions, these uncertainties are fueling the demand for IoT solutions in agriculture. IoT technology enable farmers adjust to shifting environmental circumstances, lower risks, and sustain productivity by facilitating prompt and informed decision-making. The demand for resilient, intelligent farming methods is driving the expansion of the Internet of Things in the agriculture sector as climate variability increases.

• For Instance, according to the data published by Climate.gov, Earth’s temperature has risen by an average of 0.11° Fahrenheit (0.06° Celsius) per decade since 1850, or about 2° F in total. 2023 was the warmest year since global records began in 1850 by a wide margin.

Restraints:

Market Development may be Hampered by Farmers' Lack of Technical Expertise

One major obstacle to the adoption of IoT solutions in agriculture is farmers' lack of technical skills; many are not experienced with maintaining smart equipment, utilizing digital tools, or interpreting data analytics. This lack of understanding may cause people to underuse technology or be reluctant to make any kind of investment in it.

• Counterbalance Statements: Farmers can be given the digital skills they need to overcome this through focused training programs, workshops, and awareness campaigns led by the public or private sectors. Furthermore, these technologies may be made more accessible by creating user-friendly IoT systems with straightforward interfaces and providing continuous technical assistance, enabling farmers to confidently incorporate them into their everyday operations.

Opportunities & Trends:

Expanding High-Speed Internet Access Could Be Applied to Examine Potential Future Markets

One major future trend propelling the growth of the IoT in agriculture market is the spread of high-speed internet connectivity, particularly in rural and agricultural areas. The smooth operation of IoT devices that gather and send real-time data on weather, soil conditions, crop health, and mechanical performance depends on dependable internet access. More farmers will be able to use and profit from smart agricultural technologies as more governments and private businesses make investments in growing broadband and 5G networks. Precision farming, remote monitoring, and automation are made possible by this improved connectivity, which also makes farming more data-driven, efficient, and adaptable to environmental shocks, all of which boost market expansion.

• For Instance, according to the data published by Kepios, there are 5.35 billion people using the internet in 2024, equating to 66.2 percent of the world’s total population. Internet users have grown by 1.8 percent over the past year, with 97 million new users coming online for the first time during 2023.

Component, farm type, application, end users, and region are the divisions of the IoT in agriculture market.

By Component:

Software and hardware are component on which IoT in agriculture market is segmented. The greatest IoT in agriculture market share is held by the hardware category. The crucial role that hardware elements such as sensors, monitoring equipment, and communication modules play in gathering real-time data from fields, cattle, and greenhouses is the reason for this domination.

The second-largest IoT in agriculture market is software. In order to handle and analyze the massive volumes of data gathered by hardware devices and give farmers useful insights, software platforms are essential.

By Farm Type:

Based on the farm type, the IoT in agriculture market is divided into large, mid-size, and small farms. With almost 52% of worldwide income, large farms have the largest IoT in agriculture market share in the IoT in agriculture sector. Their significant financial resources, which allowed them to invest in cutting-edge technology including automated irrigation, AI-driven analytics, and precision agriculture, are the reason for their domination.

The second-largest IoT in agriculture market is mid-sized farms, which are progressively implementing IoT technologies in an effort to enhance operations and stay competitive. Mid-sized farms are better equipped to deploy scalable IoT technology since they have greater resources than small farms, which helps explain their increasing market share.

By Application:

On the account of application, the IoT in agriculture market is categorized into precision farming, livestock monitoring, smart greenhouse, fish farm monitoring, and others. The highest IoT in agriculture market share is held by precision farming. Its capacity to greatly increase crop yields and resource efficiency by integrating IoT technology includes sensors, GPS, and data analytics accounts for its dominance.

The second-largest application area for IoT in agriculture is livestock monitoring. Farmers can now keep an eye on the location, activity, and health of their animals in real time thanks to the growing usage of IoT-enabled devices like smart collars, GPS trackers, and health sensors.

By End Users:

Farmers, agricultural cooperatives, food producers, and research institutions are end users of the IoT in Agriculture Market. The biggest end users of the IoT in agriculture are farmers. They are the main beneficiaries of IoT technologies because of their direct involvement in day-to-day farming operations. These technologies provide real-time data, predictive analytics, and automation capabilities to improve sustainability, efficiency, and production.

Among end users, agricultural cooperatives are the second largest category in the IoT in agriculture market. In order to benefit their members, these cooperatives which were established by farmers to combine resources and handle production and marketing jointly are progressively implementing IoT technologies.

 

Regional Insights:

Geographically, the IoT in agriculture market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific: With almost 44% of the total revenue, Asia-Pacific has the biggest IoT in agriculture market share. The region's extensive agricultural activity, rising food demand brought on by population growth, and encouraging government programs encouraging wise farming methods are the main causes of this supremacy.

• China IoT in Agriculture Market Insights:

China leads the IoT in agricultural market due to its extensive farming operations, quick adoption of cutting-edge technologies, and robust government support through programs notably "Digital Agriculture." China makes significant investments in AI-powered platforms, drones, and sensors as well as other smart farming technologies to boost output and guarantee food security for its enormous population.

North America: The second-largest IoT in agriculture market is North America. The region has a sizable market share due to its sophisticated technological infrastructure, high rates of precision farming technique adoption, and large R&D expenditures. IoT solutions are being used more and more by farmers in the US and Canada to maximize resource use, boost agricultural yields, and solve issues include labor shortages and climatic variability.

• U.S. IoT in Agriculture Market Insights:

The U.S. dominates the IoT in agriculture market in North America due to its sophisticated agricultural infrastructure, sophisticated farming methods, and substantial R&D expenditures. Precision agriculture equipment is actively used by American farmers, and the country's agricultural industry is integrating IoT at an accelerated rate due to the existence of large agri-tech companies.

Europe: A number of important factors are driving the expansion of the IoT in agriculture market in Europe. The most prominent of these is the growing use of precision farming methods, which make use of IoT technologies to maximize resource use, improve crop yields, and advance sustainable farming methods.

• Germany IoT in Agriculture Market Insights:

In the IoT in agriculture market, Germany is clearly the market leader. Germany's excellent technological infrastructure, large R&D expenditures, and proactive adoption of cutting-edge agricultural technologies are all factors in its dominance.

IoT in Agriculture Market Report Scope:

Attribute	Details
Market Size 2025	USD 17.8 Billion
Projected Market Size 2035	USD 43.4 Billion
CAGR Growth Rate	10.3% (2025-2035)
Base year for estimation	2024
Forecast period	2025 – 2035
Market representation	Revenue in USD Billion & CAGR from 2025 to 2035
Regional scope	North America - U.S. and Canada Europe – Germany, U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe Asia Pacific – China, India, Japan, Australia, Indonesia, Malaysia, South Korea, and Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, and Rest of Latin America Middle East & Africa – GCC, Israel, South Africa, and Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segmentation:

By Component:

• Software
  • On-Premises
  • Cloud based
• Hardware
  • Soil Sensors
  • Drones
  • Others

By Farm Type:

• Large
• Mid-Size
• Small

By Application:

• Precision Farming
• Livestock Monitoring
• Smart Greenhouse
• Fish Farm Monitoring
• Others

By End Users:

• Farmers
• Agricultural Cooperatives
• Food Producers
• Research Institutions

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

Focusing on product innovation by creating cutting-edge, user-friendly technology suited to various farm sizes, from smallholders to large-scale operations, is one of the main strategies for IoT in agriculture enterprises. Growth depends on entering emerging markets with significant agricultural potential, especially in Asia-Pacific and Latin America. The key players operating in the IoT in Agriculture Market include, Deere & Company, Trimble Inc., AKVA group, Evato Technology Private Limited (O4S), Raven Industries, Inc., and others.

IoT in Agriculture Market Companies:

• Deere & Company
• Trimble Inc.
• IBM
• AGCO Corporation
• Evato Technology Private Limited (O4S)
• Raven Industries, Inc.
• Topcon
• DeLaval
• AKVA group
• BASF
• Cisco Systems, Inc.
• Hitachi, Ltd.
• Telit Cinterion
• Cropin Technology Solutions Private Limited
• Stellapps

View an Additional List of Companies in the IoT in Agriculture Market

• In May 2025, the first AI-powered all-in-one agriculture app in India, SBOF Agrosmart, was unveiled by Belagavi-based startup SBOF Agrosmart Private Limited. By providing farmers with data-driven, real-time answers to the pressing problems in contemporary agriculture, the app seeks to transform farming.
• In March 2025, to revolutionize Indian agriculture, Lauritz Knudsen Electrical and Automation (previously L&T Switchgear) has introduced a range of cutting-edge, Internet of Things-powered solutions. These technologies, which prioritize efficiency, sustainability, and automation, are intended to increase agricultural productivity by 20% while lowering water usage by 30%.

Analyst View:

An online or physical marketplace where businesses purchase and sell carbon credit certificates to offset emissions and support environmental initiatives which include renewable Food Producers and forestry is known as a carbon credit trading platform. Stricter environmental laws, growing corporate sustainability objectives, and more ESG-focused investments are driving market expansion. The market is anticipated to undergo considerable change between 2025 and 2030 as a result of global policy convergence under the Paris Agreement, blockchain and artificial intelligence breakthroughs, and the growth of nature-based solutions, which will increase the transparency, efficiency, and accessibility of carbon trading.

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Company Name	Deere & Company
Headquarter	Moline, Illinois, United States
CEO	John May
Employee Count	76,000 Employees