Top 5 AgTech Trends in 2025
Date Section Blog
Over the past few years, more top AgTech companies have optimized sustainability practices and boosted productivity in both indoor and outdoor agriculture with data-driven initiatives. In 2025, that trend will continue, with niche innovations inching their way to becoming more mainstream practices.
Farmers Still Skeptical About New Technologies
McKinsey’s Global Farmer Insights 2024 survey shows that tech adoption in outdoor farming continues to grow globally, although slowly, with a three-percentage-point increase since 2022. Countries with larger farms (Brazil and the US, for example) lead the way, with digital agronomy and precision agriculture hardware the most sought-after technologies.
The 2024 survey also highlights that since farmers’ main concern is ROI, they are often hesitant to adopt new technologies still perceived as “unproven.” But despite the risks of increased price inputs, extreme weather events, and volatile commodity prices, farmers see three main opportunities to increase profits: trying new yield-increase products, trying new crop protection products, and investing in innovative technologies.
Major Tech Growth Forecast for Indoor Agriculture
As outdoor farming faces mounting risks, the rise of indoor agriculture becomes inevitable in the evolving food production landscape. With that and a major push to produce more organic food (and do so sustainably), the global indoor farming technology market is forecast to grow from roughly $37 billion in 2024 to $42 billion in 2025, reaching more than $68 billion by 2029 (CAGR of 12.9%).
Technological innovations in vertical farming, controlled environment agriculture (CEA), robotics and automation, and AI and data analytics (like real-time monitoring in regenerative agriculture or greenhouse automation) are the main driving factors for this growth.
Top 5 AgTech Trends in 2025: A Closer Look
1. AI Robotics and Automation
Robotics and automation in agriculture involve machines and automated systems performing tasks traditionally done by human labor. The range spans from planting and harvesting to monitoring and sorting crops.
It interconnects with nearly all the other agriculture tech trends listed. The overarching movement is toward combining AI automation with other innovations to advance sustainability and increase the productivity of food production systems.
Example applications:
The examples below highlight just a few of the seemingly endless ways AI robotics and automation can transform and optimize farming and agricultural processes.
- Precise harvesters: Harvesting robots with vision AI systems can detect when a fruit or vegetable is ready to be picked—and pick it, too.
- Rose stem cutter: OEM machine builder ISO and vision AI platform developer Robovision partnered to create a rose stem cutter that uses 3D deep learning to automate the precise pruning of rose stems to optimize the propagation process.
- Tulip bulb planter: The same partnership also created a tulip bulb planter that automates the sorting and planting of tulip bulbs to combat labor shortages in the Netherlands. This innovation is now used to produce half of the global production of tulips.
- Robotic weeders: EarthRover developed a combination crop monitoring and weed detection system: a mobile robot that can identify and “zap” weeds at the root without harming crops.
Since food production must increase to meet the demands of a growing population, 2025 will see robotics and AI automation play a key role. These systems can scale with production and essentially future-proof the industry.
2. AI-Powered Precision Agriculture
Artificial intelligence, machine learning, and big data analytics are combined to optimize farming practices, helping farmers make better, data-driven decisions for crop management, irrigation, pest control, and more. Crop yields are boosted, and the need for water, fertilizer, and pesticides is reduced, which saves money and reduces environmental impact.
Example applications:
- Weed and pest detection: Automated pest monitoring and weed detection together with machines integrated with vision AI can identify and monitor weeds and pests outdoors or in controlled indoor environments, allowing for precise targeting of pesticides and herbicides.
- Crop health analysis: AI can analyze real-time data using sensors and cameras to assess plant health and monitor irrigation levels, optimizing crop quality and preventing the spread of disease.
- Yield predictions and crop analytics: AI tools can analyze weather forecasts and historical crop performance to predict yields and optimize harvest times.
- Precise regenerative agriculture: Nutrient levels in the soil are analyzed in real-time, which allows for tailoring the nutrient application to each crop, reducing soil disturbance, and enhancing soil health.
Precision agriculture maximizes crop yield both indoors and outdoors, playing a key role in risk mitigation and sustainability. AI’s ability to predict weather conditions makes increasing food production more feasible, even as climate change introduces greater environmental unpredictability. For these reasons, AI-powered precision agriculture technologies are expected to continue growing in 2025.
3. Controlled Environment Agriculture (CEA)
CEA encompasses indoor or greenhouse farming, but with highly controlled environmental variables like light, temperature, humidity, and CO2 levels to optimize plant growth. This form of agriculture is typically seen in urban environments.
Example scenarios:
- Aeroponic farming: This technology allows crops to grow vertically without needing soil. Plant roots are suspended in air and misted with a solution that provides the necessary water, oxygen, and nutrients for optimal growth.
- Hydroponic and aquaponic farming: Also soil-free systems, these farms use water-based nutrient solutions (hydroponics) or integrate fish farming (aquaponics) to grow crops.
- Vertical farming: Crops are grown in stacked layers, often using artificial light to optimize space and reduce land use.
A key trend—as seen in numerous showcases at CES 2025—is AI-automated Controlled Environment Agriculture. CEA in itself offers numerous benefits, but with automated agriculture systems, it could be a game changer. It enables year-round crop production and supports localized food systems by bringing food production closer to urban centers, reducing transportation emissions. Highly sustainable, CEA also requires less land and water while potentially eliminating the need for pesticides and herbicides.
Experts point out that the energy demands and cost of maintaining controlled systems still remain a challenge. Addressing this issue is expected to be a significant focus of innovation in 2025 and the coming years.
4. Biotechnological Advancements
The application of genetic engineering, molecular biology, and other biotechnological methods to improve crops, livestock, and farming practices is a growing trend that addresses concerns over food security and environmental degradation.
Examples:
- Gene editing: Tools like CRISPR allow precise modification of plant and animal DNA to enhance traits such as disease resistance, drought tolerance, and nutritional content.
- GMOs: Genetic modification is used to introduce new traits into crops or livestock, such as insect resistance or higher yields.
- Biological products: New biotechnological products are developed to support farming practices, such as bio-based pesticides, fertilizers, and feed additives.
- Tissue culture automation: Reducing labor needs and improving crop survival rates, the automation of transplanting tissue-cultured plantlets aims to maintain uniformity in large-scale propagation.
Market research reports predict that agriculture biotechnology will grow by roughly 9% (CAGR) by 2029. As sustainability and the need to increase food production become more pressing, integrating these technologies with AI solutions will also accelerate. According to Forbes, investors are particularly drawn to initiatives that merge AI with biotechnology.
Imagine genetically engineered plants designed to better withstand drought conditions within a greenhouse equipped with an AI-powered climate control system. The AI optimizes the environment specifically for these plants, reducing water consumption while improving sustainability and boosting yield. The real innovation lies in how these two technologies evolve together.
5. Renewable Energy is the New Crop
Farms are embracing innovative ways to both reduce their energy consumption and produce cleaner energy, utilizing resources like vast land areas and agricultural byproducts. These efforts enhance sustainability and create additional revenue streams, making their continued adoption a strong contender as a defining trend in agriculture this year.
Example cases:
- Green hydrogen from agricultural waste: One example is Australian startup HydGene Renewable, which has developed an on-site system to convert plant-based feedstocks—such as straw, sugar-cane, or food waste—into green (carbon-neutral) hydrogen.
- Biogas production: Dairy farmers are leveraging biodigesters to transform methane emissions from cow manure into biogas, which can be sold as fuel. While under scrutiny, this practice helps reduce methane emissions and diversifies farm income.
- Solar panel “crops”: Also known as agrivoltaics, this approach integrates solar farms with grazing or crop fields. Solar panels provide shade for livestock and sensitive plants during heatwaves, for example, helping mitigate heat stress. At the same time, renewable solar energy can be harnessed for personal consumption or sold, creating an additional revenue stream while potentially boosting crop yields.
As renewable energy solutions provide alternative revenue streams for farmers, these technologies are forecast to become more integrated into agricultural practices in 2025.
From Niche to Norm: AI and Agritech Innovations Converge
The technologies shaping agriculture are becoming more interconnected, with AI playing a central role in driving innovation. Many of today’s trends have been evolving for a few years, but what sets 2025 apart is how these once-niche innovations are steadily becoming mainstream.
The fusion of AI with robotics, precision agriculture, biotechnological advancements, and sustainable energy solutions is reshaping how food is grown, produced, and distributed. While there is still some skepticism when it comes to adopting AI, especially in outdoor agriculture, its integration into multiple technologies is unmistakably the future of the industry.