The United States agricultural technology market reached a value of approximately USD 5.57 billion in 2024. As digitization and data-driven farming practices reshape the agricultural landscape, the industry is expected to expand at a CAGR of 8.40% during 2025–2034, reaching a projected market size of USD 12.48 billion by 2034.
This strong growth is being propelled by innovations in precision farming, smart farming tools, and the increasing use of drones, IoT, and AI to improve crop yields, optimize livestock management, and enhance resource efficiency.
Key Market Drivers
Rising Demand for Food Security and Yield Optimization
With the U.S. population growing and exports remaining strong, the pressure to maximize crop yields and reduce waste is increasing. AgTech solutions enable real-time monitoring of soil, crops, and weather, helping farmers make better decisions and improve efficiency.
Labor Shortages in Agriculture
One of the major challenges in U.S. agriculture is a decline in available farm labor. Technologies such as automated machinery, drones, and AI-enabled sensors reduce the need for manual intervention and help maintain productivity.
Sustainability and Climate-Resilient Agriculture
Environmental concerns are driving the adoption of climate-smart technologies. AgTech solutions help reduce the overuse of water, fertilizers, and pesticides while ensuring compliance with regulatory standards.
Government Support and Investment
Programs such as the USDA’s Climate-Smart Agriculture Initiative, as well as state-level subsidies for smart irrigation and drone usage, are accelerating AgTech adoption across the country.
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United States AgTech Market Segmentation
By Product Type
Precision Farming
Precision agriculture is the largest product segment, leveraging GPS, IoT, and data analytics to optimize inputs such as water, fertilizer, and seeds.
Technologies include soil sensors, GPS-guided tractors, and yield monitors.
Benefits include increased profitability, reduced environmental impact, and improved crop quality.
Farm Management Software
Farmers are increasingly using cloud-based software platforms to track operations, finances, weather, equipment usage, and supply chain logistics.
These tools offer real-time dashboards, crop planning, and compliance tracking.
Integrated platforms improve transparency and traceability.
Smart Greenhouses
Smart greenhouses use sensors and automation to control temperature, humidity, lighting, and irrigation.
Suitable for high-value crops like fruits, vegetables, and flowers.
Adoption is growing in urban and semi-urban areas due to limited arable land.
Agricultural Drones
Drones are used for crop scouting, spraying, and mapping.
Enable quick coverage of large areas with minimal human effort.
Can detect issues such as pest infestation or nutrient deficiency early, reducing crop loss.
Livestock Monitoring
Wearable sensors and automated feeding systems help monitor animal health, fertility, and movement.
Used in dairy, poultry, and cattle farms to boost productivity and reduce veterinary costs.
Alerts and predictive insights improve overall herd management.
Others
Other emerging AgTech tools include automated irrigation systems, vertical farming technologies, blockchain-based traceability platforms, and robotic weeders.
By Application
Precision Agriculture
This application dominates due to its widespread usage in row crops like corn, soybeans, and wheat.
Farmers use AgTech to monitor soil conditions, apply inputs with precision, and maximize yield per acre.
Remote sensing and AI-based decision tools support real-time adjustments.
Livestock Farming
AgTech supports real-time herd management, health diagnostics, breeding optimization, and automatic feeding systems.
Helps large-scale farms monitor animals across multiple locations.
Reduces reliance on manual observation.
Aquaculture
Though smaller in scale, aquaculture is embracing tech solutions for water quality control, feeding systems, and disease monitoring.
Smart sensors ensure ideal conditions for fish and shellfish.
Automating processes cuts down on labor and feed costs.
Forestry
AgTech solutions assist in monitoring deforestation, tree health, and timber inventory.
Satellite imaging and drones are used for forest mapping and reforestation planning.
Useful in wildfire-prone areas for risk assessment.
Horticulture
Controlled environment farming, especially for organic produce and floriculture, is growing in urban settings.
AgTech tools enable precise control over inputs and increase off-season production.
Integration with vertical farming systems is also emerging.
Others
This includes viticulture, beekeeping, and smallholder farming, which are also beginning to adopt affordable AgTech tools.
Regional Analysis
New England
Small and mid-sized farms are using AgTech for dairy, greenhouse horticulture, and organic crop monitoring.
Strong adoption of farm management software in Connecticut and Massachusetts.
Mideast
Includes urban agriculture centers like New York and Philadelphia.
Strong push toward controlled environment agriculture and indoor farming systems.
Great Lakes
Home to major corn and soybean producers.
High demand for precision agriculture and drone mapping.
Plains
Dominated by large-scale farms in states like Kansas, Nebraska, and North Dakota.
High adoption of soil sensors, variable rate technology (VRT), and automated irrigation.
Southeast
Key producers of cotton, peanuts, and poultry.
Rising use of livestock monitoring and precision irrigation systems.
Southwest
Water-scarce regions like Texas and New Mexico are investing in smart irrigation.
Growing interest in vertical farming and smart greenhouses.
Rocky Mountain
Smaller but innovative farming base using AgTech for ranching and outdoor cultivation.
Drone adoption is notable in mountainous terrains.
Far West
California leads the AgTech market due to its fruit, vegetable, and wine industries.
Home to Silicon Valley startups developing next-gen agricultural software and hardware.
Leading AgTech Companies in the United States
Deere & Company
A pioneer in agricultural machinery, Deere has expanded into precision agriculture with its Operations Center platform, GPS-enabled tractors, and data-driven tools.
Trimble Inc.
Provides advanced positioning and data solutions for GPS-guided tractors, field mapping, and machine control systems.
AGCO Corporation
Offers full-line farming solutions, including drones, sensor systems, and farm management platforms.
Raven Industries, Inc.
Known for its precision agriculture software, automated spraying systems, and guidance technology.
AgJunction Inc.
Focuses on guidance and auto-steering solutions for agricultural vehicles, improving field efficiency and accuracy.
The Climate Corporation (Bayer)
Developed the FieldView platform, which aggregates weather, soil, and crop data to help farmers make informed decisions.
Emerging Trends in the U.S. AgTech Industry
AI and Machine Learning: Used for yield forecasting, pest detection, and decision-making automation.
Blockchain in Agriculture: Enhances supply chain transparency and traceability from farm to fork.
Robotics: Autonomous machines for weeding, planting, and harvesting are reducing labor costs.
Sensor Networks and IoT: Real-time updates on moisture, nutrient levels, and animal activity.
5G and Edge Computing: Improving connectivity and enabling faster processing of farm data.
Market Challenges
High upfront costs of advanced AgTech solutions.
Lack of digital literacy in rural areas limiting adoption.
Fragmented regulations across states for drone usage and data privacy.
Limited interoperability between different AgTech platforms and devices.
Future Outlook
The future of agriculture in the U.S. lies in its ability to embrace technology, make data-driven decisions, and increase sustainability. Between 2025 and 2034, the AgTech market will be driven by:
Widespread use of predictive analytics
Growth of urban agriculture and controlled environments
Greater investment in automation and robotics
Collaboration between startups, farmers, and government agencies
As food systems become smarter, U.S. farmers are poised to lead the next wave of precision-driven, environmentally friendly, and efficient agriculture.
FAQs
What is the current size of the U.S. AgTech market?
The market reached approximately USD 5.57 billion in 2024.
What is the expected value of the market by 2034?
It is projected to grow to around USD 12.48 billion by 2034.
What is the growth rate of the market?
The market is anticipated to grow at a CAGR of 8.40% from 2025 to 2034.
Which product type dominates the market?
Precision farming holds the largest share due to its widespread application in crop cultivation.
Which companies are key players in the U.S. AgTech market?
Major players include Deere & Company, Trimble Inc., AGCO Corporation, Raven Industries, and The Climate Corporation (Bayer).
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