Internet of Things (IoT) in Agriculture Market to Reach US$ 107.40 Billion by 2033 as Smart Farming Adoption Accelerates Worldwide

DataM Intelligence has released a new research report titled "Internet of Things in Agriculture Market Size 2026". The report delivers in-depth insights into key market dynamics, including regional growth trends, market segmentation, CAGR projections, and the revenue performance of leading industry players. It also highlights major growth drivers shaping the market landscape. Designed to provide a clear and comprehensive perspective, the report offers a detailed view of the current market size in terms of both value and volume, along with emerging opportunities and the overall development outlook of the global Internet of Things in Agriculture Market.

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The Global Internet of Things (IoT) in Agriculture Market reached US$ 40.11 billion in 2025 and is expected to reach US$ 107.40 billion by 2033, growing with a CAGR of 13.1% during the forecast period 2026-2033.

The market is experiencing significant growth as farmers, agribusiness companies, and governments increasingly adopt smart farming technologies to improve crop productivity, optimize resource utilization, and strengthen food security. Rising deployment of connected sensors, precision irrigation systems, livestock monitoring tools, and AI-enabled farm analytics is accelerating digital transformation across modern agriculture ecosystems.

Industry participants are actively focusing on cloud-based farm management platforms, real-time monitoring capabilities, and automation technologies to enhance operational efficiency and reduce labor dependency. Increasing investments in precision agriculture, expanding rural connectivity infrastructure, and growing demand for sustainable farming practices are expected to create long-term growth opportunities for technology providers, equipment manufacturers, and agricultural solution companies worldwide.

Key Industry Developments

United States:
✅ March 2026: MISUMI Group announced a strategic partnership with Oishii Farm Corporation to strengthen AI-driven smart agriculture and digital manufacturing capabilities for IoT-enabled indoor farming systems. The collaboration focuses on robotics, automation, and precision agriculture technologies aimed at improving crop monitoring, resource efficiency, and scalable vertical farming operations across the U.S. market.

✅ January 2026: Deere & Company expanded development of AI-powered precision agriculture and connected farm management solutions integrating IoT sensors, predictive analytics, and autonomous equipment technologies. The company intensified R&D efforts to improve real-time farm data collection, machine connectivity, and precision spraying capabilities for large-scale U.S. farming operations.

✅ November 2025: Mitsubishi Electric Automation, Inc. continued deployment of industrial IoT and automation technologies supporting smart agriculture infrastructure and connected farming ecosystems in North America. Its advanced data analytics, remote monitoring, and automation platforms enhanced operational efficiency and sustainability initiatives for agricultural automation applications.

Japan:
✅ November 2025: Internet Initiative Japan Inc. and Sony Semiconductor Solutions Corporation announced a joint venture for smart agriculture solutions using soil moisture sensors and irrigation navigation services. The initiative combines IoT connectivity, sensor technologies, and precision irrigation analytics to support sustainable farming and improve agricultural productivity in Japan.

✅ March 2026: MISUMI Group accelerated investments in agritech automation and IoT-enabled agricultural manufacturing technologies through its collaboration with U.S.-based Oishii. The development strengthened Japan's position in AI-powered agriculture systems, robotics integration, and smart farming innovation for controlled-environment agriculture.

✅ October 2025: J-AGRI TOKYO showcased next-generation smart farming technologies including IoT sensors, autonomous agricultural machinery, AI crop analytics, and connected greenhouse management platforms. The exhibition highlighted growing adoption of digital agriculture technologies across Japan, with strong emphasis on sustainability, precision farming, and automated farm operations.

Strategic Acquisitions & Partnerships
✅ Internet Initiative Japan Inc. & Sony Semiconductor Solutions Corporation - Joint Venture / Strategic Partnership
(November, 2025)
IIJ and Sony Semiconductor Solutions announced plans to establish a joint venture focused on smart agriculture and environmental monitoring solutions using IoT sensors, LPWA connectivity, and AI-driven analytics. The partnership combines IIJ's agricultural IoT deployment experience with Sony's sensing and data-analysis technologies to improve operational efficiency and sustainability in farming applications.

✅ AGCO Corporation & Trimble Inc. - Strategic Joint Venture Expansion (PTx Trimble)
(January, 2025)
AGCO continued expanding its PTx Trimble precision agriculture platform, integrating mixed-fleet connectivity, smart farming analytics, and IoT-enabled precision agriculture solutions across its machinery ecosystem. The collaboration strengthens AGCO's connected farming portfolio and accelerates autonomous and data-driven agriculture technologies globally.

Key Players:
IBM Corporation | Groupe X-TELIA Inc. | Arable | Fujitsu Limited | BASF SE | Murata Manufacturing Co., Ltd. | Avanijal Agri Automation Pvt. Ltd | Cropin Technology Solutions Pvt Ltd | SAP SE | Semios

Key Highlights: Top 5 Key Players in Internet of Things in Agriculture Market 2026
-IBM Corporation: Expanded the Watson Decision Platform for Agriculture, integrating AI, weather intelligence, satellite imagery, and IoT sensor data to improve precision farming, crop forecasting, and farm-level decision-making for growers and agribusinesses globally.

-Fujitsu Limited: Strengthened its Akisai smart agriculture platform and "Farm to Fork" digital agriculture initiatives with AI-driven analytics, cloud-based farm management, and IoT-enabled monitoring technologies to optimize crop quality, sustainability, and supply chain visibility.

-BASF SE: Advanced digital farming through its xarvio Digital Farming Solutions, delivering AI-powered crop optimization, field monitoring, disease prediction, and smart spraying recommendations using connected agricultural data ecosystems and precision agriculture technologies.

-Cropin Technology Solutions Pvt Ltd: Expanded its AI-powered SmartFarm platform with satellite-based farm intelligence, real-time crop monitoring, and predictive analytics capabilities, enabling agribusinesses to improve yield forecasting, traceability, and climate-resilient farming operations.

-SAP SE: Enhanced its SAP Intelligent Agriculture solutions with IoT-enabled farm data integration, cloud analytics, and supply chain traceability tools, helping agricultural enterprises improve operational efficiency, sustainability tracking, and resource management across farming networks.

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Main Drivers and Trends Shaping the Future of the Internet of Things in Agriculture Market
-Precision Farming Adoption: Farmers are increasingly deploying IoT-enabled sensors, GPS systems, drones, and connected machinery to monitor soil health, irrigation, crop growth, and weather conditions, improving productivity while reducing operational costs.

-Smart Irrigation and Resource Efficiency: Rising water scarcity and sustainability goals are accelerating the use of automated irrigation systems and real-time environmental monitoring to optimize water, fertilizer, and pesticide usage across farms.

-Livestock Monitoring Expansion: Wearable IoT devices and smart tracking systems are gaining traction for livestock health monitoring, disease detection, breeding management, and location tracking, supporting higher farm efficiency and animal welfare.

-AI and Cloud Integration: Integration of IoT with AI, cloud computing, and predictive analytics is enabling data-driven decision-making, yield forecasting, and automated farm operations across large-scale agricultural enterprises.

-Market Challenges: High initial deployment costs, limited rural internet connectivity, cybersecurity concerns, and lack of technical expertise among small-scale farmers continue to restrain widespread adoption.

Regional Insights:
-North America: 45% (Largest share, driven by high adoption of precision farming technologies, advanced agricultural infrastructure, and strong investments in smart farming solutions across the U.S. and Canada).

-Europe: 25% (Supported by sustainable farming initiatives, increasing deployment of IoT-enabled greenhouse systems, and strong government backing for digital agriculture transformation).

-Asia Pacific: 20% (Fastest-growing region, fueled by rising food demand, government-led smart agriculture programs in China, India, and Japan, and increasing adoption of AI-enabled IoT farming tools).

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Market Segmentation Analysis:
-By Type: Large Farms Lead Adoption Through Advanced Automation
Large farms dominate IoT adoption in agriculture due to their higher investment capacity, extensive land management needs, and focus on maximizing operational efficiency through connected devices and automation systems.
Mid-sized farms are increasingly integrating IoT technologies such as smart irrigation, drone monitoring, and livestock tracking to improve productivity and reduce operational costs.
Small farms are gradually adopting affordable IoT solutions, supported by government initiatives, mobile-based farm management platforms, and growing awareness of precision agriculture benefits.

-By Component: Hardware Segment Drives Infrastructure Deployment
Hardware forms the foundation of IoT agriculture systems, including sensors, drones, GPS devices, RFID tags, automated irrigation controllers, and livestock monitoring equipment widely deployed across farms.
Software solutions are rapidly gaining importance through cloud-based analytics, AI-powered decision support, farm management dashboards, and predictive maintenance tools enabling real-time monitoring and data-driven farming practices.

-By Application: Precision Farming Emerges as Core Use Case
Precision farming leads the application segment as farmers increasingly adopt IoT-enabled soil monitoring, variable rate technology, climate sensing, and automated irrigation to optimize crop yields and resource efficiency.
Precision livestock applications support animal health monitoring, smart feeding systems, and location tracking to improve herd productivity and disease management.
Precision aquaculture and precision forestry are expanding steadily through environmental monitoring, water quality analysis, and remote ecosystem management, while other applications include greenhouse automation and smart supply chain tracking.

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