In agricultural management, of course, there is no revenue without a harvest, but even if there is a bumper crop, high costs will not lead to profits. Furthermore, the market is also affected by external environmental factors, such as a bumper crop causing prices to collapse. Therefore, sowing is done by counting backward from when prices are high and management efforts are made to reduce input resources, but there is also a risk of complete destruction depending on weather conditions.
Precision agriculture is attracting renewed attention because AI is better than humans at analyzing and optimizing a wide variety of parameters. Furthermore, by utilizing AI and robotics, it is evolving into autonomous agriculture, which can precisely optimize the growing environment, irrigation, fertilization, and more. Behind this trend is the worsening labor shortage in agriculture and growing awareness of the risk of future food shortages.
While the agricultural market size is expected to grow 1.3 times from $ 3.4 trillion to $ 4.4 trillion in 2024 , the market size for AI in precision agriculture is expected to grow rapidly, fourfold over the same period, from $ 3.1 billion to $ 12.7 billion . Furthermore, the market size for agricultural robots is expected to reach $ 22.9 billion in 2026 , and then rapidly expand to $ 123.4 billion by 2035 , at an average annual growth rate of more than 23% over the next 10 years .
The idea behind precision agriculture is not to rely on AI because there is a labor shortage , but to rely on AI because it is better than humans . In other words, AI has a higher chance of generating profits in agriculture than humans. This was proven in a cultivation challenge hosted by Wageningen University in the Netherlands, which found that AI was more profitable than humans in cultivating tomatoes and cucumbers .
We will explain the innovations of startups that support not only precision agriculture but also autonomous agriculture, such as variable- rate prescription maps, weeding robots, vertical farming, and autonomous EV tractors.
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