Report Overview

Saudi Arabia AI in Agriculture Market – Industry Size, Trends & Forecast Report, 2031

Saudi Arabia AI in Agriculture Market size was estimated at USD 1.78 billion in 2024. During the forecast period between 2025 and 2031, Saudi Arabia AI in Agriculture Market size is projected to grow at a CAGR of 5.7% reaching a value of USD 2.63 billion by 2031. Prominent drivers of Saudi Arabia AI in Agriculture Market include AI’s increasing role in addressing pressing the Kingdom challenges like climate change and the rising demand for food products. The integration of AI becomes increasingly imperative to meet rising food demand amid limited arable land. AI technologies, leveraging IoT and big data, are revolutionizing agriculture through increasing crop monitoring, precision farming, predictive analytics, and yield optimization. Innovations such as AI-enabled drones, robots, and wireless sensors are increasingly deployed for tasks like predictive analysis, pest detection, and soil monitoring. Major collaborations among global technology companies and universities are projected to drive the AI adoption for sustainable agriculture practices across the Kingdom.

AI in Agriculture – Overview

Major players in the agriculture sector utilize artificial intelligence (AI) technologies in boosting efficiency, sustainability, and productivity. By incorporating AI technologies, such as machine learning (ML), computer vision, and robotics, farmers can make data-driven decisions and streamline their operations. Through analyzing satellite imagery, weather data, and sensor inputs, AI plays a crucial role in monitoring crops, detecting diseases, and predicting yields. The AI technologies support precision farming by offering tailored solutions like optimized irrigation schedules and pesticide applications, which help in not only cutting costs but also minimizing environmental footprint. Overall, the integration of AI technologies into agriculture practices marks a significant advancement, enhancing agricultural practices through intelligent data utilization and targeted interventions.

Saudi Arabia AI in Agriculture Market

Growth Drivers

Growing Adoption of Technological Advancements

Saudia Arabia’s rapid adoption of technological innovations in response to major challenges, such as climate change, labor shortages, and soil degradation, are reshaping the agricultural landscape across the Kingdom. Artificial intelligence (AI) has emerged as a transformative force, revolutionizing farming practices worldwide. AI enables precision agriculture through data-driven insights, optimizing irrigation, monitoring crop health, and managing pests more effectively. It facilitates predictive analytics for improved yield forecasts and market insights, empowering farmers in decision-making processes. Furthermore, AI-driven automation—from autonomous tractors to smart drones—helps in streamlining operations and mitigating labor constraints.

Challenges

Requirement of High Initial Investments

High initial investments could act as a significant barrier to the growth of Saudi Arabia AI in Agriculture Market. Implementing AI technologies, such as precision farming systems, AI-driven sensors, and autonomous machinery requires substantial upfront capital expenditure. Farmers may find it challenging to spend on these technologies despite their potential long-term benefits in improving productivity and sustainability. The financial barrier could slow the adoption rate and limit the expansion of Saudi Arabia AI in Agriculture Market, highlighting the need for innovative financing solutions and cost-effective AI solutions tailored to diverse agricultural settings.

Impact of Escalating Geopolitical Tensions on Saudi Arabia AI in Agriculture Market

Escalating geopolitical tensions among countries across the regions, particularly in the Middle East, could have a significant impact on the growth of Saudi Arabia AI in Agriculture Market. Military and trade Conflicts between nations disrupt supply chains, hinder international collaborations, and increase regulatory uncertainties, contributing to market volatility. Countries facing instability may prioritize domestic food security over technological imports, altering market dynamics and growth trajectories. Additionally, heightened uncertainties could dampen investor confidence, limiting funding for AI innovations in agriculture. As geopolitical tensions persist, strategic partnerships and regulatory frameworks become pivotal in navigating the evolving landscape of AI adoption in agriculture worldwide.

Saudi Arabia AI in Agriculture Market

Segmental Coverage

Saudi Arabia AI in Agriculture Market – By Component

Based on component, Saudi Arabia AI in Agriculture Market is divided into Hardware, Software, and Services segments. The software segment holds the highest share in Saudi Arabia AI in Agriculture Market by component, due to the rising adoption of predictive analytics tools. Key solutions include IBM Corporation's Watson Decision Platform, Microsoft's AI Sowing App, and Deere and Company's See and Spray systems for pesticide distribution. These AI applications empower farmers by optimizing planting schedules, detecting crop diseases, monitoring yields, and efficiently managing resources such as land, fertilizers, and water. Furthermore, AI technology supports precision farming and drone analysis, expanding the software market's scope within agriculture. This segment, led by prominent players like IBM, Microsoft, and Deere & Company, is poised for significant growth, fueled by advancements in predictive analytics and computer vision capabilities.

Saudi Arabia AI in Agriculture Market – By Technology

Based on technology, Saudi Arabia AI in Agriculture Market is divided into Machine Learning (ML), Computer Vision, Predictive Analytics, and Natural Language Processing (NLP) segments. The ML segment holds the highest share in Saudi Arabia AI in Agriculture Market by technology, primarily due to farmers' increasing adoption of advanced technology in agriculture. ML technologies enable farmers to make informed decisions by analyzing real-time data on weather, temperature, crop conditions, and other factors. The integration of ML enhances agricultural productivity and efficiency, expanding the footprint of AI in the agriculture sector. The ML technology segment’s market dominance is also supported by the increasing deployment of IoT devices for field mapping and irrigation system management by farm managers and producers.

Saudi Arabia AI in Agriculture Market – By Deployment

Saudi Arabia AI in Agriculture Market by deployment is divided into Cloud, On-Premises, and Hybrid segments.

Saudi Arabia AI in Agriculture Market – By Application

On the basis of application, Saudi Arabia AI in Agriculture Market is divided into Precision Farming, Livestock Monitoring, Drone Analytics, Agriculture Robots, Labor Management, Crop Management, and Irrigation Management segments. The precision farming segment holds the largest share of Saudi Arabia AI in Agriculture Market by application, represents a transformative evolution in modern agriculture. Precision farming integrates advanced technologies like AI to revolutionize traditional farming methods, enabling precise and data-driven decision-making across every aspect of crop cultivation and management. By harnessing AI's capabilities in analyzing vast datasets from satellites, drones, and sensors, precision farming optimizes resource allocation—from seed selection and soil health assessment to irrigation management, pest control, and efficient crop harvesting. This comprehensive integration not only enhances productivity and sustainability but also addresses critical challenges posed by population growth, climate change, and the imperative for sustainable agricultural practices. As AI continues to refine and expand its applications in precision farming, it is expected to lead the agricultural sector into a future where innovation and sustainability go hand in hand, ensuring food security and environmental stewardship for generations to come.

Competitive Landscape

Major players operating in Saudi Arabia AI in Agriculture Market include The Saudi Company for Artificial Intelligence (SCAI), Microsoft Corporation, IBM Corporation, PrecisionHawk Inc, Cainthus Corp, CropX Inc., Oracle, Deere & Company, FarmHQ, and AgEagle Aerial Systems Inc. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2024 - The Saudi Company for Artificial Intelligence (SCAI) and the Saudi Arabia Ministry of Environment, Water, and Agriculture (MEWA) signed a Memorandum of Understanding (MoU) for the integration of AI technologies into environment, water, and agriculture sectors in Saudi Arabia.

Scope of the Report

By Component

• Hardware

• Software

• Services

By Technology

• Machine Learning (ML)

• Computer Vision

• Predictive Analytics

• Natural Language Processing (NLP)

By Deployment

• Cloud

• On-Premises

• Hybrid

By Applications

• Precision Farming

• Livestock Monitoring

• Drone Analytics

• Agriculture Robots

• Labor Management

• Crop Management

• Irrigation Management

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3.  Saudi Arabia AI in Agriculture Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing focus on enhancing food security
         2. Government’s supportive initiatives and funding
         3. Rapid adoption of technological advancements
      2. Restraints
         1. Requirement of high initial investments
         2. Limited technical expertise
      3. Opportunities
         1. Development of new AI applications for farming and allied practices
         2. Focus on improving supply chain management
      4. Challenges
         1. Integration with existing systems
         2. Regulatory and ethical issues
         3. Data privacy and security concerns
      5. Technological Advancements/Recent Developments
   3. Regulatory Framework
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia AI in Agriculture Market: Marketing Strategies
5. Saudi Arabia AI in Agriculture Market: Pricing Analysis
6. Saudi Arabia AI in Agriculture Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share and Forecast
      1. By Component
         1. Hardware
         2. Software
         3. Service
      2. By Technology
         1. Machine Learning
         2. Computer Vision
         3. Predictive Analytics
         4. Natural Language Processing (NLP)
      3. By Deployment
         1. Cloud
         2. On-Premises
         3. Hybrid
      4. By Applications
         1. Precision Farming
         2. Livestock Monitoring
         3. Drone Analytics
         4. Agriculture Robots
         5. Labor Management
         6. Crop Management
         7. Irrigation Management
         8. Others 
7. Competitive Landscape
   1. List of Key Players and Their Applications
   2. Saudi Arabia AI in Agriculture Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
8. Impact of Escalating Geopolitical Tensions on Saudi Arabia AI in Agriculture Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. The Saudi Company for Artificial Intelligence (SCAI)
   2. Microsoft Corporation
   3. IBM Corporation
   4. PrecisionHawk Inc.
   5. Cainthus Corp.
   6. CropX Inc.
   7. Oracle
   8. Deere & Company
   9. FarmHQ
   10. AgEagle Aerial Systems Inc.
   11. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1.    Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents, By Region
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Saudi Arabia AI in Agriculture Market Segmentation

Figure 2       Saudi Arabia AI in Agriculture Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Saudi Arabia AI in Agriculture Market Size, By Value (USD Billion), 2019−2031

Figure 5       Saudi Arabia AI in Agriculture Market Share, By Component, By Value (USD Billion), 2019−2031

Figure 6       Saudi Arabia AI in Agriculture Market Share, By Technology, By Value (USD Billion), 2019−2031

Figure 7       Saudi Arabia AI in Agriculture Market Share, By Deployment, By Value (USD Billion), 2019−2031

Figure 8       Saudi Arabia AI in Agriculture Market Share, By Applications, By Value (USD Billion), 2019−2031

List of Tables

Table 1        Saudi Arabia AI in Agriculture Market Size, By Component, By Value (USD Billion), 2019−2031

Table 2        Saudi Arabia AI in Agriculture Market Size, By Technology, By Value (USD Billion), 2019−2031

Table 3        Saudi Arabia AI in Agriculture Market Size, By Deployment, By Value (USD Billion), 2019−2031

Table 4        Saudi Arabia AI in Agriculture Market Size, By Applications, By Value (USD Billion), 2019−2031

Table 5        The Saudi Company for Artificial Intelligence (SCAI) Company Overview

Table 6        The Saudi Company for Artificial Intelligence (SCAI) Financial Overview

Table 7        Microsoft Corporation Company Overview

Table 8        Microsoft Corporation Financial Overview

Table 9        IBM Corporation Company Overview

Table 10      IBM Corporation Financial Overview

Table 11      PrecisionHawk Inc. Company Overview

Table 12      PrecisionHawk Inc. Financial Overview

Table 13      Cainthus Corp. Company Overview

Table 14      Cainthus Corp. Financial Overview

Table 15      CropX Inc. Company Overview

Table 16      CropX Inc. Financial Overview

Table 17      Oracle Inc. Company Overview

Table 18      Oracle Inc. Financial Overview

Table 19      Deere & Company Overview

Table 20      Deere & Company Financial Overview

Table 21      FarmHQ Company Overview

Table 22      FarmHQ Financial Overview

Table 23      AgEagle Aerial Systems Inc Company Overview

Table 24      AgEagle Aerial Systems Inc Financial Overview