PUBLISHER: IMARC | PRODUCT CODE: 1922791
PUBLISHER: IMARC | PRODUCT CODE: 1922791
The Japan precision agriculture market size reached USD 602.1 Million in 2025 . Looking forward, IMARC Group expects the market to reach USD 1,363.8 Million by 2034 , exhibiting a growth rate (CAGR) of 9.51% during 2026-2034 . The market is driven by an aging farming population, limited arable land, and government support for smart farming technologies. Urbanization and climate challenges also enhance the adoption of precision agriculture solutions. Rising demand for sustainable food production, advancements in IoT and AI, and the need for resource efficiency are further expanding the Japan precision agriculture market share.
Adoption of IoT and AI Technologies in Precision Agriculture
The increasing adoption of IoT (Internet of Things) and AI (Artificial Intelligence) technologies is significantly supporting the Japan precision agriculture market growth. A research report released by the IMARC Group indicates that the artificial intelligence market in Japan was valued at USD 6.6 Billion in 2024. It is projected to grow to USD 35.2 Billion by 2033, reflecting a compound annual growth rate (CAGR) of 20.4% from 2025 to 2033. With IoT-enabled sensors, farmers are monitoring soil moisture, temperature, and crop health in real-time, which enables data-driven decision-making. AI-based analytics help in optimizing irrigation, fertilization, and pest control, thus reducing resource wastage and increasing crop yields. This trend is being promoted extensively by the Japanese government through subsidies and the promotion of smart farming, particularly in response to labor shortages in rural areas. Moreover, private firms are developing autonomous drones and robotics with a view to monitoring fields and accurately spraying fertilizers or treatment, considerably increasing efficiency. Japan is seeing a need for IoT and AI technologies amidst challenges including an aging agriculture workforce and less land for farming. This pattern is expected to accelerate, with more and more farms turning to advanced technologies to increase efficiency and reduce their environmental footprint.
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Expansion of Vertical Farming and Controlled Environment Agriculture (CEA)
Another key trend in the market is the rapid expansion of vertical farming and Controlled Environment Agriculture (CEA). Japan's smart agri programs, such as the 'NoshoNavi1000' model, have shown an 87% reduction in working hours, a 20% reduction in fertilizer usage, and an above 30% increase in rice production. Japan is using 120 new technologies built for rice-growing to rethink productivity in the context of an evaporating workforce with artificial intelligence, the Internet of Things, and robotics. This technology facilitates the integration of indoor vertical farming and precision agriculture in Japan's cutting-edge agricultural sector. Reduced farmland and increased urbanization have resulted in a higher demand for space-efficient agricultural techniques, giving rise to indoor vertical farms utilizing hydroponics and aeroponics. These systems have advanced technologies such as LED lighting, automated nutrient delivery, and climate control, allowing them to optimize plant growth while reducing water and energy use. Japanese corporate behemoths and startups alike are making significant investments in vertical farming in order to provide a steady supply of high-quality leafy greens and herbs year-round, lessening their dependence on imports. Moreover, CEA helps address the challenges of climate change and extreme weather, examples of which can disrupt food supply chains. As consumer demand for local and pesticide-free produce continues to grow, there is room for further expansion within the vertical farming sector, and advances in automation and AI-based tracking systems are helping to support this growth. It is also in line with Japan's measures on food security and sustainable agricultural practices. Therefore, this is further creating a positive Japan precision agriculture market outlook.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.