IoT in Agriculture Market Size, Share & Trends Analysis Report By Component, By Hardware Type, By Farm Type, By Farm Production Planning Stage, By Application, By Region And Segment Forecasts 2026 – 2035

IoT in Agriculture Market Size, Share and Trends 2026 to 2035

According to MarketnReports, the global IoT in Agriculture market size was estimated at USD 17.81 billion in 2025 and is expected to reach USD 45 billion by 2035, growing at a CAGR of 9.7% from 2026 to 2035. IoT in Agriculture Market is driven by rising demand for agricultural products and technical advancements.

What are the Key Insights of IoT in Agriculture Market?

• The global IoT in Agriculture market size was estimated at USD 17.81 billion in 2025 and is expected to reach USD 45 billion by 2035.
• The market is projected to grow at a CAGR of 9.7% from 2026 to 2035.
• The IoT in Agriculture market is driven by rising demand for agricultural products, technical advancements, and increased usage of IoT devices by farmers.
• In the Component segment, Hardware dominates with approximately 48% share due to the essential role of sensors and devices in data collection.
• Hardware is dominated because it forms the foundational infrastructure for IoT systems, enabling real-time monitoring and automation in farming operations.
• In the Application segment, Precision Farming dominates with around 50% share owing to its ability to optimize resource use and boost productivity.
• Precision Farming is dominated as it leverages IoT for data-driven decisions, reducing waste and enhancing crop yields, which drives overall market growth.
• In the Farm Type segment, Large Farms dominate with about 55% share, supported by their capacity to invest in advanced technologies.
• Large Farms lead because they benefit from economies of scale in implementing IoT solutions, leading to significant efficiency gains and market expansion.
• North America holds the dominant regional share of approximately 40%, driven by government initiatives and advanced agricultural infrastructure.
• North America is dominated due to supportive policies like the North America Climate Smart Agriculture Alliance and high adoption of smart farming technologies.

What is the Industry Overview of IoT in Agriculture?

The IoT in Agriculture market encompasses the integration of sensors, computers, and robots into agricultural systems to monitor crops, automate irrigation, and provide farmers with actionable data for efficient management. This market defines IoT in agriculture as the application of connected devices and networks to enhance farming practices, enabling precision agriculture that optimizes resources and improves productivity. By connecting physical assets like soil sensors and drones to the internet, farmers can gather real-time insights on environmental conditions, crop health, and livestock, transforming traditional farming into smart, data-driven operations that address challenges such as food security and sustainability.

What are the Market Dynamics in IoT in Agriculture?

Growth Drivers

The growth drivers in the IoT in Agriculture market include the escalating global demand for agricultural products amid population growth, coupled with technological advancements in sensors and connectivity. Governments worldwide are promoting smart farming through subsidies and initiatives, which lower barriers to adoption and encourage investment in IoT solutions. Additionally, the integration of Variable Rate Technology (VRT) allows for precise application of inputs like fertilizers and water, reducing costs and environmental impact while boosting yields. These factors collectively propel market expansion by enabling farmers to achieve higher efficiency and sustainability in their operations.

Restraints

Restraints in the IoT in Agriculture market stem from high initial costs associated with IoT devices and infrastructure, particularly burdensome for small-scale farmers in developing regions. There is also a notable shortage of skilled workers capable of implementing and maintaining these advanced systems, which hinders widespread adoption. Data security concerns and privacy issues arise from the vast amounts of sensitive information collected, potentially exposing farms to cyber threats. Furthermore, ineffective data management practices and the early-stage development of IoT applications limit their scalability and reliability in diverse agricultural settings.

Opportunities

Opportunities in the IoT in Agriculture market are abundant with increasing government interest in smart farming technologies, including subsidies that make IoT more accessible. The rise of automated aerial vehicles like drones offers precise imaging over large areas, reducing operational costs and enhancing crop monitoring efficiency. Precision agriculture presents significant potential for boosting productivity through real-time data analytics, allowing for better resource allocation and yield optimization. As farmers become more tech-savvy via smartphones and internet access, there is room for innovative solutions that integrate AI and machine learning to predict and mitigate agricultural risks.

Challenges

Challenges in the IoT in Agriculture market include the high upfront investments required for IoT tools, which can deter adoption among less affluent farmers. The need for qualified personnel to operate sophisticated equipment such as GPS, drones, and satellites poses a barrier in regions with limited technical education. Limited offerings from startups dominating the sector restrict comprehensive IoT applications, slowing the transition to smart technologies. Additionally, managing large-scale deployments and ensuring interoperability among diverse devices remain technical hurdles that complicate implementation and data integration.

IoT in Agriculture Market: Report Scope

How is the Market Segmentation of IoT in Agriculture?

The IoT in Agriculture market is segmented by Component, Hardware Type, Farm Type, Farm Production Planning Stage, Application, and region.

Based on Component Segment, Hardware is the most dominant subsegment, followed by Software as the second most dominant. Hardware dominates because it provides the essential physical devices like sensors and actuators that collect critical data, enabling the core functionality of IoT systems in agriculture; this drives the market by facilitating real-time monitoring and automation, which are key to improving efficiency and reducing operational costs. Software, as the second dominant, supports data analysis and integration, helping farmers make informed decisions and further propelling market growth through advanced analytics and predictive capabilities.

Based on Hardware Type Segment, Precision Farming Hardware is the most dominant subsegment, with Precision Livestock Hardware as the second most dominant. Precision Farming Hardware leads due to its widespread use in monitoring soil and crop conditions, optimizing inputs, and enhancing yields; it drives the market by addressing the need for sustainable farming practices amid growing food demands. Precision Livestock Hardware follows, aiding in animal health tracking and management, which improves productivity in livestock farming and contributes to overall market expansion through better resource utilization.

Based on Farm Type Segment, Large Farms is the most dominant subsegment, followed by Mid-Sized Farms. Large Farms dominate as they have the financial capacity to invest in comprehensive IoT solutions, achieving significant scale efficiencies; this drives the market by demonstrating high ROI through reduced waste and increased output. Mid-Sized Farms, as second, adopt IoT to compete effectively, fostering market growth by broadening the technology's accessibility and application across varying farm sizes.

Based on Farm Production Planning Stage Segment, Production Planning is the most dominant subsegment, with Pre-Production Planning as the second most dominant. Production Planning leads by enabling real-time adjustments during crop growth, optimizing resources like water and fertilizers; it drives the market through enhanced operational efficiency and yield improvements. Pre-Production Planning follows, assisting in site selection and planning, which lays the foundation for successful farming cycles and supports market growth by minimizing risks from the outset.

Based on Application Segment, Precision Farming is the most dominant subsegment, followed by Precision Livestock. Precision Farming dominates due to its transformative impact on crop management, using IoT for precise data-driven decisions that boost productivity and sustainability; this drives the market by meeting global food security needs. Precision Livestock, as second, enhances animal welfare and efficiency, contributing to market expansion in the growing livestock sector through health monitoring and automated feeding systems.

What are the Recent Developments in IoT in Agriculture?

• In February 2022, DeLaval introduced the RC550 and RC700 robots to enhance cow comfort and hoof health on solid surfaces, featuring a rotational dung intake mechanism that handles manure without additional water, improving hygiene and reducing labor.
• In April 2022, Deere & Company updated its Exact Rate technology for on-planter fertilization, allowing application at twice the speed and reducing the need for tank refills, thereby increasing efficiency during planting seasons.

How is the Regional Analysis of IoT in Agriculture Market?

• North America to dominate the global market

North America leads the IoT in Agriculture market, driven by robust government initiatives such as the North America Climate Smart Agriculture Alliance (NACSAA), which educates farmers on sustainable practices. The United States dominates within the region, benefiting from advanced technological infrastructure and high adoption rates of precision farming tools. This dominance fosters innovation in IoT applications, enhancing productivity and addressing climate challenges through data-driven agriculture.

Asia Pacific holds the second-largest share, propelled by rapid urbanization, increasing food security needs, and government policies promoting farm digitalization. China and India are key dominating countries, with China leading due to massive investments in smart agriculture technologies and India following through subsidies for IoT adoption. This region's growth is fueled by rising incomes and consumer demand for quality produce, driving widespread implementation of IoT for efficient resource management.

Europe is experiencing steady growth in the IoT in Agriculture market, supported by stringent environmental regulations and a focus on sustainable farming. Germany and France dominate, with Germany excelling in precision engineering and IoT integration for crop monitoring. The region's emphasis on reducing chemical usage through smart technologies like sensors and AI analytics contributes to market expansion, ensuring compliance and optimizing yields.

Latin America shows promising potential, driven by large agricultural exports and the need for efficiency in vast farmlands. Brazil dominates, leveraging IoT for soybean and coffee production through drone monitoring and soil sensors. Challenges like infrastructure gaps are being addressed, with opportunities in precision agriculture to boost competitiveness and sustainability in global markets.

Middle East and Africa faces unique challenges but offers growth opportunities through IoT in arid agriculture. South Africa dominates, adopting smart irrigation systems to combat water scarcity. The region's focus on food security amid climate change drives IoT adoption, with innovations in greenhouse farming and livestock tracking enhancing resilience and productivity.

Who are the Key Market Players in IoT in Agriculture?

• Deere & Company (USA): Focuses on precision agriculture solutions, investing in R&D for advanced machinery like updated Exact Rate technology to enhance fertilization efficiency and reduce operational costs.
• Trimble Inc. (USA): Specializes in GPS and guidance systems, emphasizing data analytics and connectivity to improve farm management and yield optimization strategies.
• AGCO Corporation (USA): Develops smart farming equipment, leveraging IoT for real-time monitoring and automation to support sustainable agricultural practices.
• Kubota Corporation (Japan): Innovates in compact tractors and IoT-integrated tools, aiming to boost productivity for small to mid-sized farms through efficient resource management.
• CNH Industrial N.V. (UK): Offers connected farming solutions, focusing on telemetry and data platforms to enable predictive maintenance and enhanced decision-making.
• Topcon Corporation (Japan): Provides precision positioning technologies, integrating IoT for crop monitoring and variable rate applications to minimize waste.
• DeLaval (Sweden): Specializes in dairy farming IoT, introducing robots like RC550 for improved animal health and manure management without water addition.
• AKVA Group (Norway): Focuses on aquaculture IoT, developing systems for fish health monitoring and feeding automation to optimize marine farming.
• InnovaSea Systems Inc. (USA): Innovates in underwater IoT sensors, enhancing data collection for sustainable aquaculture practices and efficiency.
• Afimilk Ltd. (Israel): Develops livestock management software, using IoT for milk production tracking and health alerts to improve dairy yields.
• Heliospectra AB (Sweden): Specializes in smart LED lighting for greenhouses, integrating IoT for controlled environments to maximize plant growth.
• Cisco Systems, Inc. (USA): Provides networking infrastructure for IoT connectivity, ensuring secure data transmission in agricultural applications.
• International Business Machines Corporation (IBM) (USA): Offers AI-driven analytics platforms, leveraging IoT data for predictive farming insights and risk management.
• Telit Communications PLC (UK): Focuses on IoT modules and connectivity solutions, enabling seamless device integration in remote farming areas.
• Hitachi, Ltd. (Japan): Develops sensor technologies and cloud platforms for data aggregation, supporting smart agriculture ecosystems.
• Decisive Farming Corp. (Canada): Provides farm management software, using IoT for precision recommendations on inputs and operations.
• OnFarm Systems Inc. (USA): Integrates multiple IoT devices into unified platforms, offering dashboards for comprehensive farm oversight.
• Farmers Edge Inc. (Canada): Utilizes satellite imagery and IoT sensors for field-specific insights, driving variable rate technology adoption.
• SlantRange, Inc. (USA): Specializes in aerial imaging analytics, employing drones and IoT for crop health assessment and yield forecasting.
• The Climate Corporation (USA): Offers digital farming tools, combining IoT with weather data for risk mitigation and insurance products.

What are the Market Trends in IoT in Agriculture?

• Increasing adoption of drones for precise aerial imaging, reducing costs and improving crop efficiency on large farms.
• Integration of AI and machine learning with IoT for predictive analytics, anticipating issues like pests or weather impacts.
• Growth in smart greenhouse technologies, using sensors for automated climate control and resource optimization.
• Emphasis on sustainable practices through IoT-enabled precision irrigation, minimizing water usage amid scarcity concerns.
• Expansion of livestock monitoring systems, enhancing animal health and productivity via real-time data tracking.
• Rise in data analytics platforms, providing farmers with actionable insights to boost yields and reduce waste.
• Adoption of blockchain for supply chain transparency, integrating with IoT for traceability from farm to table.
• Development of affordable IoT solutions for small farms, democratizing access to smart agriculture technologies.
• Focus on cybersecurity measures to protect IoT networks from threats in agricultural data management.
• Collaboration between tech firms and agribusinesses to innovate hybrid solutions for diverse farming needs.

What Market Segments and Subsegments are Covered in the IoT in Agriculture Report?

By Component

• Hardware
• Software
• Services
• Others

By Hardware Type

• Precision Farming Hardware
• Precision Livestock Hardware
• Precision Aquaculture Hardware
• Precision Forestry Hardware
• Smart Greenhouses Hardware
• Others

By Farm Type

• Large Farms
• Mid-Sized Farms
• Small Farms
• Others

By Farm Production Planning Stage

• Pre-Production Planning
• Production Planning
• Post-Production Planning
• Others

By Application

• Precision Farming
• Precision Livestock
• Precision Aquaculture
• Precision Forestry
• Smart Greenhouses
• Others

By Region

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • South Africa
  • Rest of Middle East & Africa