Connected Agriculture Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Solution, Service), By Application (Smart Logistics, Smart Irrigation, Farming Planning & Management), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 8.34 Billion
CAGR (2026-2031)	12.29%
Fastest Growing Segment	Smart Irrigation
Largest Market	North America
Market Size (2031)	USD 16.72 Billion

Market Overview

The Global Connected Agriculture Market will grow from USD 8.34 Billion in 2025 to USD 16.72 Billion by 2031 at a 12.29% CAGR. Connected Agriculture is defined as the application of advanced digital technologies, including the Internet of Things, sensors, and mobile connectivity, to monitor, manage, and optimize farming operations for enhanced productivity and sustainability. The primary drivers supporting this market’s growth are the escalating global demand for food security, the critical need for resource efficiency regarding water and fertilizers, and the intensifying labor shortages that necessitate automated solutions. These fundamental economic and environmental pressures compel the agricultural sector to adopt integrated systems that maximize yield while minimizing input costs.

However, a significant challenge impeding broader market expansion is the persistent lack of reliable connectivity infrastructure in remote rural areas, which severely limits the transmission of real-time data essential for these systems to function. This digital divide restricts the deployment of advanced tools despite the clear operational benefits. According to the Association of Equipment Manufacturers, in 2025, the adoption of on-site weather monitoring technology increased by 7 percent year-over-year as farmers sought precise localized data to mitigate environmental risks. This demonstrates a strong demand for connected solutions even as infrastructure hurdles remain a barrier to full-scale implementation.

Key Market Drivers

The proliferation of smartphones and high-speed connectivity in rural regions is a foundational driver propelling the Global Connected Agriculture Market, as it directly bridges the gap between field operations and digital management systems. Reliable cellular and broadband infrastructure enables the seamless transmission of data from IoT sensors to cloud platforms, allowing farmers to control irrigation, monitor soil health, and track equipment remotely. This technological accessibility reduces the barrier to entry for small and medium-sized enterprises that previously lacked the capital for complex hardware, ensuring that digital agriculture is no longer the exclusive domain of industrial conglomerates. According to the United States Department of Agriculture, August 2025, in the 'Technology Use (Farm Computer Usage and Ownership)' report, 74 percent of farms had access to the internet through a cellular data plan, highlighting the critical role of mobile networks in modern farm management.

Concurrently, the rising need for climate-resilient farming and real-time weather monitoring is accelerating the deployment of connected solutions to mitigate environmental risks. As extreme weather events become more frequent, agricultural producers are increasingly relying on hyper-local weather stations and predictive analytics to safeguard crops and optimize resource application. These connected systems provide actionable insights that help farmers adjust planting schedules and protect yields against unforeseen volatility. According to the Association of Equipment Manufacturers, April 2025, in the '2025 Agricultural Weather Challenges Report', 48 percent of farmers across North America experienced financial losses exceeding $10,000 due to weather-related events, underscoring the financial urgency of adopting resilient technologies. Furthermore, the commercial utility of connectivity is evident as, according to the United States Department of Agriculture, in 2025, 50 percent of farms utilized the internet to purchase agricultural inputs, demonstrating a robust integration of digital tools into daily agribusiness transactions.

Download Free Sample Report

Key Market Challenges

The persistent lack of reliable connectivity infrastructure in remote rural areas constitutes a significant barrier to the expansion of the Global Connected Agriculture Market. Advanced agricultural systems, such as autonomous machinery and real-time sensor networks, rely heavily on continuous, high-bandwidth data transmission to synchronize field operations with cloud-based management platforms. When network coverage is intermittent or non-existent, these technologies cannot relay critical information regarding soil health, crop moisture, or equipment diagnostics effectively. This latency renders predictive analytics unreliable and prevents the seamless operation of precision tools, forcing growers to forego automation in favor of manual processes despite the potential for increased efficiency.

This infrastructure gap creates a severe bottleneck for market adoption. According to the National Farmers' Union, in 2024, only 22 percent of farmers reported receiving a reliable mobile signal across their entire farm. This statistic underscores the operational reality that a vast majority of agricultural producers still lack the consistent connectivity required to support sophisticated digital ecosystems. Consequently, farmers are reluctant to invest capital in high-tech solutions that are liable to fail in the field due to network outages, directly stalling the broader deployment of connected agriculture technologies.

Key Market Trends

The expansion of agricultural drone applications has shifted beyond simple surveillance to active field operations like precise aerial spraying. This evolution transforms drones into functional machinery capable of treating crops with high accuracy, driving demand for integrated flight management platforms. This capability allows producers to replace heavy ground equipment, reducing soil compaction and input costs while necessitating robust data links for operation. According to DJI Agriculture, April 2025, in the '2025 Agricultural Drone Industry Insight Report', the global fleet of agricultural drones reached 400,000 units by the end of 2024, a 90 percent increase since 2020. This adoption surge highlights how connected aerial systems are becoming central to modern farm execution strategies.

Concurrently, the accelerated deployment of robotic weeders is redefining crop management through advanced computer vision. These intelligent machines utilize machine learning to distinguish crops from weeds in real-time, enabling precise spot-spraying that drastically lowers herbicide usage. This automation relies on continuous connectivity to update AI models and transmit performance data to central management dashboards. According to Deere & Company, August 2025, in the 'Q3 2025 Earnings Call', the utilization of their autonomous See & Spray technology grew substantially, with a 30 percent increase in acres processed during the 2024 season compared to the prior year. This trend confirms the pivot toward smart automation where connected equipment executes complex decisions independently.

Segmental Insights

The Smart Irrigation segment demonstrates the most rapid expansion within the Global Connected Agriculture Market, driven by the critical necessity for water conservation and precision resource management. Supportive frameworks from regulatory bodies such as the U.S. Environmental Protection Agency (EPA) and global initiatives aligned with the Food and Agriculture Organization (FAO) actively incentivize the adoption of automated water-efficient systems through subsidies and compliance standards. Farmers increasingly integrate weather-based controllers and soil moisture sensors to optimize irrigation schedules, significantly reducing operational costs while maximizing crop yields. This strategic shift addresses escalating water scarcity and climate variability, positioning smart irrigation as a vital component of modern agricultural operations.

Regional Insights

North America maintains the leading position in the global connected agriculture market due to the high rate of automation and digital integration within the farming sector. The dominance of the region is supported by established telecommunications infrastructure which enables reliable data transmission for remote monitoring systems. Additionally, agencies like the United States Department of Agriculture actively encourage the adoption of precision agriculture practices to improve yield stability. This favorable regulatory environment, combined with the presence of major technology providers, fosters the widespread implementation of Internet of Things solutions for efficient farm management.

Recent Developments

• In September 2024, Kubota North America Corporation acquired Bloomfield Robotics, Inc., a startup specializing in image analysis and artificial intelligence for specialty crops. This strategic move aimed to integrate advanced crop monitoring technology into Kubota’s agricultural machinery, such as tractors and sprayers. The acquired technology utilized cameras and AI to assess plant health, maturity, and yield predictions for crops like grapes and blueberries in real-time. By incorporating these digital capabilities, the company sought to provide specialty crop farmers with data-driven insights to optimize harvest timing and improve overall operational efficiency.
• In April 2024, AGCO Corporation and Trimble completed their joint venture transaction to form a new entity named PTx Trimble. This collaboration combined Trimble’s precision agriculture business with AGCO’s JCA Technologies to create a comprehensive mixed-fleet precision agriculture platform. With AGCO acquiring an 85% stake, the joint venture focused on delivering factory-fit and retrofit solutions for guidance, autonomy, and connected farming across various equipment brands. The formation of this entity was intended to accelerate innovation in data management and precision spraying, ensuring farmers could utilize advanced technologies regardless of their machinery's manufacturer.
• In March 2024, Bayer launched a pilot of an expert Generative AI system designed to assist farmers and agronomists. Developed in collaboration with Microsoft and Ernst & Young, this digital tool utilized the company's proprietary agronomic data and extensive trial insights to provide accurate answers regarding farm management and product performance. The system allowed users to query complex agricultural topics using natural language, significantly reducing the time required to access expert information. This initiative highlighted the company's focus on integrating advanced artificial intelligence into digital farming to support decision-making and enhance productivity within the connected agriculture sector.
• In January 2024, Deere & Company announced a strategic partnership with SpaceX to provide satellite communications services to farmers. This collaboration aimed to utilize the Starlink network to bridge connectivity gaps in rural areas, enabling customers to fully leverage precision agriculture technologies. The solution was designed to connect both new and existing machinery via ruggedized satellite terminals, facilitating capabilities such as autonomy, real-time data sharing, and remote diagnostics. By ensuring consistent connectivity, the company intended to help agricultural operations maximize efficiency and minimize downtime, with an initial release planned for the United States and Brazil.

Key Market Players

• Microsoft Corporation
• IBM Corporation
• Cisco Systems, Inc.
• Trimble Inc.
• Bayer AG
• Sentera, Inc.
• Climate LLC
• Topcon Positioning Systems, Inc.
• Raven Industries, Inc.
• SAP SE

By Component	By Application	By Region
Solution Service	Smart Logistics Smart Irrigation Farming Planning & Management	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Connected Agriculture Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Connected Agriculture Market, By Component:

• Solution
• Service

• Connected Agriculture Market, By Application:

• Smart Logistics
• Smart Irrigation
• Farming Planning & Management

• Connected Agriculture Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE