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Japan Applied Ai In Agriculture Market

ID: MRFR/ICT/60447-HCR
200 Pages
Aarti Dhapte
October 2025

Japan Applied AI in Agriculture Market Research Report By Technology (Machine Learning, Computer Vision, Predictive Analytics), By Offering (Software, AI-as-a-Service), and By Application (Drone Analytics, Precision Farming)-Forecast to 2035

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Japan Applied Ai In Agriculture Market Summary

As per MRFR analysis, the applied AI in agriculture market size was estimated at 154.26 USD Million in 2024. The applied ai-in-agriculture market is projected to grow from 180.78 USD Million in 2025 to 883.23 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 17.19% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Japan applied AI-in-agriculture market is experiencing robust growth driven by technological advancements and increasing demand for sustainable practices.

  • Precision agriculture adoption is transforming traditional farming methods, enhancing efficiency and yield.
  • Automation and robotics are becoming integral to farming operations, streamlining labor-intensive tasks.
  • Data-driven decision making is gaining traction, enabling farmers to optimize resource use and improve crop management.
  • Technological advancements in AI and rising labor costs are key drivers propelling market growth in Japan.

Market Size & Forecast

2024 Market Size 154.26 (USD Million)
2035 Market Size 883.23 (USD Million)

Major Players

Bayer AG (DE), Corteva Agriscience (US), Syngenta AG (CH), John Deere (US), Trimble Inc. (US), AG Leader Technology (US), Taranis (IL), Farmers Edge (CA), Aker Solutions (NO)

Japan Applied Ai In Agriculture Market Trends

The applied ai-in-agriculture market is experiencing notable advancements, driven by the increasing need for efficiency and sustainability in agricultural practices. In Japan, the integration of artificial intelligence technologies is transforming traditional farming methods, enabling farmers to optimize crop yields and reduce resource consumption. This shift is largely influenced by the country's aging population and declining workforce, which necessitates the adoption of innovative solutions to maintain productivity. Furthermore, the Japanese government actively supports the development of smart agriculture through various initiatives and funding programs, fostering a conducive environment for technological adoption. Moreover, the applied ai-in-agriculture market is characterized by a growing emphasis on precision farming techniques. These methods leverage data analytics and machine learning to provide insights into soil health, weather patterns, and pest management. As a result, farmers can make informed decisions that enhance their operational efficiency. The collaboration between technology providers and agricultural stakeholders is also on the rise, indicating a collective effort to harness the potential of ai-driven solutions. This trend suggests a promising future for the applied ai-in-agriculture market, as it aligns with Japan's goals of achieving food security and environmental sustainability.

Precision Agriculture Adoption

The applied ai-in-agriculture market is witnessing a surge in precision agriculture practices. Farmers are increasingly utilizing AI-driven tools to analyze data related to soil conditions, crop health, and weather forecasts. This trend allows for targeted interventions, optimizing resource use and enhancing crop productivity.

Automation and Robotics

Automation is becoming a key component in the applied ai-in-agriculture market. The introduction of robotic systems for tasks such as planting, harvesting, and monitoring crops is gaining traction. This shift not only addresses labor shortages but also improves operational efficiency.

Data-Driven Decision Making

The emphasis on data analytics is reshaping the applied ai-in-agriculture market. Farmers are leveraging AI to process vast amounts of data, enabling them to make informed decisions regarding crop management and resource allocation. This trend enhances overall farm productivity and sustainability.

Japan Applied Ai In Agriculture Market Drivers

Rising Labor Costs

The increasing labor costs in Japan are driving the applied ai-in-agriculture market towards automation and AI solutions. With a declining rural workforce, farmers are facing challenges in maintaining productivity levels. The application of AI technologies, such as autonomous tractors and drones, offers a viable solution to mitigate labor shortages. Reports indicate that labor costs in agriculture have risen by approximately 20% over the past five years. Consequently, the applied ai-in-agriculture market is likely to see a heightened demand for automated solutions that can enhance efficiency and reduce reliance on manual labor.

Technological Advancements in AI

The applied ai-in-agriculture market in Japan is experiencing a surge due to rapid technological advancements in artificial intelligence. Innovations in machine learning and computer vision are enabling farmers to optimize crop yields and reduce resource wastage. For instance, AI-driven systems can analyze soil health and predict weather patterns, allowing for more informed decision-making. The market is projected to grow at a CAGR of approximately 15% from 2025 to 2030, driven by these technological improvements. As farmers increasingly adopt these technologies, the applied ai-in-agriculture market is likely to expand, enhancing productivity and sustainability in the agricultural sector.

Data Analytics and Crop Management

The integration of data analytics in crop management is emerging as a key driver for the applied ai-in-agriculture market in Japan. Farmers are increasingly utilizing AI-powered analytics tools to monitor crop health, optimize resource allocation, and enhance yield predictions. These tools can process vast amounts of data from various sources, including satellite imagery and sensor networks, providing actionable insights. The market for data analytics in agriculture is projected to grow significantly, with estimates suggesting a potential increase of 25% by 2030. This trend indicates that the applied ai-in-agriculture market will continue to evolve, driven by the need for data-driven solutions in modern farming.

Government Initiatives and Support

Government initiatives play a crucial role in the growth of the applied ai-in-agriculture market in Japan. The Japanese government has been actively promoting the integration of AI technologies in agriculture through various subsidies and funding programs. For example, the Ministry of Agriculture, Forestry and Fisheries has allocated over ¥10 billion to support research and development in agricultural AI applications. This financial backing encourages farmers to adopt innovative solutions, thereby increasing the market's potential. As a result, the applied ai-in-agriculture market is expected to benefit significantly from these supportive policies, fostering a more technologically advanced agricultural landscape.

Consumer Demand for Sustainable Practices

There is a growing consumer demand for sustainable agricultural practices in Japan, which is influencing the applied ai-in-agriculture market. As consumers become more environmentally conscious, they are seeking products that are produced using sustainable methods. AI technologies can assist farmers in implementing eco-friendly practices, such as precision irrigation and integrated pest management. This shift towards sustainability is expected to drive market growth, as farmers adopt AI solutions to meet consumer expectations. The applied ai-in-agriculture market is thus positioned to thrive in an environment where sustainability is increasingly prioritized.

Market Segment Insights

By Technology: Machine Learning (Largest) vs. Computer Vision (Fastest-Growing)

In the Japan applied ai-in-agriculture market, Machine Learning holds the largest market share, dominating the technology segment due to its extensive applications in data analysis and predictive modeling. It enables farmers to enhance crop yield and reduce costs, making it a crucial tool for agricultural advancement. On the other hand, Computer Vision is rapidly gaining traction as the fastest-growing technology in this market segment. It facilitates tasks such as crop monitoring and disease detection, thereby providing significant value to farmers and agronomists. The growth trends in this segment are driven by the increasing demand for precision agriculture and the need for data-driven decision-making in farming operations. Furthermore, advancements in AI algorithms and the decreasing costs of related technologies are propelling the adoption of both Machine Learning and Computer Vision. As farmers seek to leverage technology for improved productivity, these technologies are likely to witness sustained growth, thereby shaping the future landscape of agriculture in Japan.

Technology: Machine Learning (Dominant) vs. Computer Vision (Emerging)

Machine Learning is characterized by its ability to process vast amounts of agricultural data, providing insights that lead to better decision-making and enhanced farming efficiency. It plays a dominant role in predictive analytics, crop management, and supply chain optimization in Japan applied ai-in-agriculture market. In contrast, Computer Vision, though emerging, is becoming an essential tool for real-time monitoring and analysis of crops. Its applications include defect detection, yield estimation, and automated harvesting, which are increasingly adopted by progressive farmers looking to integrate advanced technology into their practices. As both technologies evolve, they complement each other, offering comprehensive solutions to modern agricultural challenges.

By Offering: Software (Largest) vs. AI-as-a-Service (Fastest-Growing)

In the Japan applied ai-in-agriculture market, the software segment commands a significant portion of the market share, proving to be the most prominent offering. This segment encompasses various applications, enhancing efficiency and productivity across agricultural practices. Meanwhile, AI-as-a-Service is gaining traction, representing a newer and more flexible option that appeals to businesses seeking advanced AI capabilities without hefty investment in infrastructure. Growth trends indicate that the demand for AI-as-a-Service is rapidly increasing, driven by the need for scalability and the ability to leverage cutting-edge AI technologies on a subscription basis. This model enables farmers and agribusinesses to access sophisticated tools and analytics, fostering innovation in agricultural practices. The combination of software solutions and AI-as-a-Service is expected to reshape the landscape, leading to improved agricultural outcomes and operational efficiencies.

Software (Dominant) vs. AI-as-a-Service (Emerging)

The software segment in the Japan applied ai-in-agriculture market is characterized by established applications such as precision farming tools, farm management solutions, and data analytics platforms. These products are integral for optimizing crop yields and resource management, thus making them the dominant choice for many industry stakeholders. In contrast, AI-as-a-Service emerges as a flexible, cloud-based solution enabling users to utilize AI functionalities without the complexities of managing hardware and software. This model is particularly appealing to smaller enterprises looking to innovate without the upfront costs associated with traditional software solutions, positioning AI-as-a-Service as a critical player in the evolution of agricultural technology.

By Application: Drone Analytics (Largest) vs. Precision Farming (Fastest-Growing)

In the Japan applied ai-in-agriculture market, Drone Analytics holds a significant share, acting as the dominant force driving efficiency and innovation in agricultural practices. This segment benefits from a robust integration of advanced technologies, enabling farmers to monitor crop health and manage resources effectively. On the other hand, Precision Farming is rapidly gaining ground, catering to the increasing demand for optimized agricultural operations and resource management that enhances yield while minimizing waste. Growth trends indicate a rising adoption of both segments, particularly with the enhanced capabilities provided by Drone Analytics, which offer real-time data collection and insights. Precision Farming is propelled by technological advancements, with an emphasis on tailored farming solutions that support sustainable agriculture. Collective challenges such as labor shortages and the need for efficiency further fuel the progression of both segments, making them vital to the future of agriculture in the region.

Drone Analytics (Dominant) vs. Precision Farming (Emerging)

Drone Analytics has emerged as the dominant segment in the Japan applied ai-in-agriculture market, offering solutions that enhance precision and operational efficiency through aerial surveillance and data collection. This technology allows farmers to assess crop conditions swiftly and accurately, leading to informed decision-making and resource optimization. In contrast, Precision Farming is labeled as an emerging segment that focuses on using data-driven techniques to improve crop yields and reduce environmental impact. While still growing, it is characterized by innovative applications of technology such as IoT devices, sensors, and AI analytics, enabling farmers to implement sustainable practices and increase productivity. Together, these segments reflect a transformative shift towards greater efficiency and sustainability in agriculture.

Get more detailed insights about Japan Applied Ai In Agriculture Market

Key Players and Competitive Insights

The applied ai-in-agriculture market in Japan is characterized by a dynamic competitive landscape, driven by technological advancements and increasing demand for sustainable agricultural practices. Key players such as Bayer AG (DE), Corteva Agriscience (US), and John Deere (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Bayer AG (DE) focuses on innovation through its digital farming solutions, aiming to integrate AI with traditional agricultural practices. Corteva Agriscience (US) emphasizes partnerships with local farmers to tailor solutions that meet specific regional needs, while John Deere (US) leverages its strong brand reputation to expand its AI-driven precision agriculture technologies. Collectively, these strategies contribute to a competitive environment that is increasingly centered on technological integration and sustainability.

In terms of business tactics, companies are localizing manufacturing and optimizing supply chains to enhance efficiency and responsiveness to market demands. The market structure appears moderately fragmented, with several key players exerting influence while also facing competition from emerging startups. This fragmentation allows for diverse innovations and solutions, fostering a competitive atmosphere where established companies must continuously adapt to maintain their market share.

In October 2025, Bayer AG (DE) announced a partnership with a leading Japanese agricultural technology firm to develop AI-driven pest management solutions tailored for local crops. This strategic move is significant as it not only enhances Bayer's product offerings but also strengthens its foothold in the Japanese market, aligning with the growing trend towards localized agricultural solutions. The collaboration is expected to yield advanced tools that improve crop yields while minimizing chemical usage, reflecting a commitment to sustainability.

In September 2025, Corteva Agriscience (US) launched a new AI-based platform designed to assist farmers in optimizing their planting schedules based on real-time weather data and soil conditions. This initiative is crucial as it empowers farmers to make informed decisions, potentially increasing productivity and reducing resource waste. By integrating AI into everyday farming practices, Corteva positions itself as a leader in the digital transformation of agriculture, appealing to tech-savvy farmers looking for innovative solutions.

In August 2025, John Deere (US) unveiled its latest AI-powered machinery that utilizes machine learning algorithms to enhance operational efficiency in large-scale farming. This development is pivotal as it not only showcases John Deere's commitment to innovation but also addresses the increasing demand for automation in agriculture. The introduction of such advanced machinery is likely to attract a broader customer base, particularly among large agricultural enterprises seeking to optimize their operations.

As of November 2025, current competitive trends in the applied ai-in-agriculture market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances among key players are shaping the landscape, fostering innovation and collaboration. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident, suggesting that future competitive differentiation will hinge on the ability to innovate and adapt to evolving market needs.

Key Companies in the Japan Applied Ai In Agriculture Market market include

Industry Developments

While NEC and Sumitomo Corporation signed a strategic partnership in March 2024 to expand CropScope globally, including extended AI advisory and irrigation control for diverse crops beyond tomatoes, NEC, through its DXAS joint venture with Kagome, deployed its AI-enabled CropScope platform in Europe and worldwide tomato farms in November 2023, following Japanese trials.

Using AI-powered disease detection, Local 5G, and Wi-Fi HaLow communications to enable autonomous tractors and drone imaging for yam and wheat assessment—real-time analysis over large agricultural plots—NEC carried out advanced demonstrations in Hokkaido that same year.

Despite not publicly announcing new AI modules in Japan after 2023, Farmnote is still providing AI-supported livestock herd management through IoT sensors on dairy farms. Despite not having dates associated with any particular agriculture AI initiatives, Mitsubishi Electric, Fujitsu, Hitachi, Sony, Panasonic, Toyota, and Rakuten were named in industry reports for 2023–2024 as major players in the Japanese AI-agri market.

During that time, no public agriculture-AI projects for Z Holdings, Bokoi, or Yamaha were revealed. Therefore, by planned global expansion through Sumitomo and CropScope platform advancements, NEC stands out as the only firm having verified AI-agriculture deployments and partnerships in Japan from January 2023.

Japan Applied AI

Future Outlook

Japan Applied Ai In Agriculture Market Future Outlook

The applied ai-in-agriculture market in Japan is projected to grow at a 17.19% CAGR from 2024 to 2035, driven by technological advancements and increasing demand for sustainable practices.

New opportunities lie in:

  • Development of precision agriculture platforms utilizing AI for crop monitoring and yield optimization.
  • Integration of AI-driven pest management systems to enhance crop protection and reduce chemical usage.
  • Creation of AI-based supply chain solutions to streamline logistics and reduce waste in agricultural products.

By 2035, the market is expected to be robust, driven by innovation and strategic investments.

Market Segmentation

Japan Applied Ai In Agriculture Market Offering Outlook

  • Software
  • AI-as-a-Service

Japan Applied Ai In Agriculture Market Technology Outlook

  • Machine Learning
  • Computer Vision
  • Predictive Analytics

Japan Applied Ai In Agriculture Market Application Outlook

  • Drone Analytics
  • Precision Farming

Report Scope

MARKET SIZE 2024 154.26(USD Million)
MARKET SIZE 2025 180.78(USD Million)
MARKET SIZE 2035 883.23(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 17.19% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Bayer AG (DE), Corteva Agriscience (US), Syngenta AG (CH), John Deere (US), Trimble Inc. (US), AG Leader Technology (US), Taranis (IL), Farmers Edge (CA), Aker Solutions (NO)
Segments Covered Technology, Offering, Application
Key Market Opportunities Integration of precision agriculture technologies enhances yield and sustainability in the applied ai-in-agriculture market.
Key Market Dynamics Rising adoption of precision agriculture technologies enhances productivity and sustainability in Japan's applied AI-in-agriculture market.
Countries Covered Japan

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FAQs

What is the expected market size of the Japan Applied AI in Agriculture Market in 2024?

The Japan Applied AI in Agriculture Market is expected to be valued at 131.78 million USD in 2024.

What will be the market value of the Japan Applied AI in Agriculture Market by 2035?

By 2035, the market is anticipated to grow to a value of 700.0 million USD.

What is the expected CAGR for the Japan Applied AI in Agriculture Market from 2025 to 2035?

The market is projected to experience a CAGR of 16.395% during the forecast period from 2025 to 2035.

Which technology segment is expected to have the highest market valuation in 2035?

The Computer Vision segment is expected to be valued at 240.0 million USD in 2035, indicating significant growth.

What will be the market size for Machine Learning in 2035?

The Machine Learning segment is projected to reach a market size of 220.0 million USD by 2035.

Who are the major players in the Japan Applied AI in Agriculture Market?

Key players in the market include Denso, Hitachi, Sony, Toyota, Yamaha, and Mitsubishi Electric.

How much is the Predictive Analytics segment valued at in 2024?

The Predictive Analytics segment is valued at 46.78 million USD in 2024.

What trend is driving the growth of AI applications in Japanese agriculture?

The increasing demand for precision farming and data-driven decision making is driving the growth of AI applications in agriculture.

What challenges does the Japan Applied AI in Agriculture Market face?

Challenges include high implementation costs and the need for skilled labor to effectively utilize AI technologies.

What impact does the current global scenario have on the agriculture AI market in Japan?

The current global scenario influences supply chains and agricultural practices, ultimately affecting the uptake of AI technologies in agriculture.

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