The agriculture IoT market is poised for significant growth, with projections estimating its size to reach USD 28.65 billion by 2024 and an anticipated compound annual growth rate (CAGR) of 10.5% from 2025 to 2030. This surge is driven by a confluence of factors, including the rising demand for automation, the pursuit of operational efficiency, and the increasing adoption of smart farming technologies that enable precise monitoring and management of crops.
One of the most transformative trends in this sector is the integration of artificial intelligence (AI) and machine learning (ML) with IoT systems. These technologies can analyze vast amounts of data collected by IoT devices, offering predictive insights that empower farmers to make informed decisions. By identifying potential issues before they escalate, AI and ML enhance operational efficiency, optimize crop yields, and foster a more productive agricultural environment. This evolution marks a significant shift from traditional farming methods, paving the way for smarter and more precise agricultural practices.
Government support is also playing a crucial role in the expansion of the agriculture IoT market. Various initiatives, subsidies, and research programs are being implemented globally to encourage farmers to adopt smart farming solutions, including precision agriculture and automated irrigation. These backing efforts aim to improve food security, boost agricultural productivity, and promote sustainable farming practices. Such government initiatives are expected to accelerate the deployment of IoT technologies, further driving industry growth.
Sustainability is another critical factor influencing market dynamics. The emphasis on eco-friendly practices is leading to the adoption of precision agriculture, which utilizes IoT to optimize the use of resources like water, fertilizers, and pesticides. By enabling more efficient resource application and closer monitoring of environmental factors, IoT technologies support sustainable farming practices, thus appealing to a growing number of environmentally conscious consumers and stakeholders.
Advancements in sensor technology and connectivity are also pivotal in the growth of the agriculture IoT industry. The introduction of low-cost, high-performance sensors and enhanced connectivity options, such as 5G and low-power wide-area networks, allows farmers to gather real-time data from their fields and livestock. This data is instrumental in monitoring soil health, weather conditions, and crop growth, which helps farmers make timely and informed decisions.
In terms of components, the hardware segment is leading the market, accounting for over 56% of revenue in 2024. The demand for real-time data collection and monitoring solutions is driving farmers to adopt various IoT devices, including sensors and automated machinery. As precision farming gains traction, the need for advanced IoT hardware becomes essential for enhancing productivity and sustainability.
On the services side, the segment is expected to witness the highest CAGR of 13.1% from 2025 to 2030, driven by the growing need for integrated solutions that encompass installation, maintenance, and data analytics. As farmers increasingly rely on IoT technologies, comprehensive services become crucial to ensure these systems operate effectively and deliver actionable insights.
Deployment strategies are also evolving, with the on-premises segment accounting for the largest revenue share in 2024. This trend is largely due to the need for reliable data management in areas with limited internet connectivity, allowing farmers to maintain control over their data and ensure operational continuity. Conversely, the cloud segment is anticipated to grow rapidly, offering scalable data storage and advanced analytics capabilities that support informed decision-making.
Connectivity options are diversifying as well, with the cellular segment leading the market due to its reliability in remote areas. However, Bluetooth technology is expected to record the highest CAGR, providing a cost-effective solution for short-range communication among devices, making it particularly appealing for smaller farms.
Applications of IoT in agriculture are expanding, with precision farming holding the largest revenue share. This approach allows for optimal resource utilization and real-time monitoring, crucial for meeting the increasing global food demand. Meanwhile, aquaculture is projected to experience the highest CAGR, driven by the need for real-time monitoring of aquatic environments and the growing demand for seafood.
As the agriculture sector continues to evolve, these trends highlight the critical role of IoT technologies in shaping the future of farming. The implications of this growth are profound, promising enhanced productivity, sustainability, and efficiency in agricultural practices worldwide.
