Thailand AI in Agriculture Market with Market Share, Growth, Trends Analysis

Market Overview

Thailand AI in Agriculture Market was worth USD 80.33 Million in 2023 and is expected to forecast consistent growth during the forecast period with a CAGR of 6.08% during 2029.

In April 2024, Thailand’s National Innovation Agency (NIA) introduced the AGROWTH platform to help drive the growth of deep-tech agri-startups, with a focus on artificial intelligence (AI), robotics, automation, and biotechnology. The goal of this effort is to build collaborations among startups and large-scale farming enterprises in order to better integrate technologies of the fourth industrial revolution in the agricultural sector. Thailand today boasts 81 agri-startups, less than 15 of which specialize in deep technology, and investments into the agri-tech sector have surpassed 1.7 trillion baht.

The Thai government’s intention to modernize agriculture using technological advancement is reflected in its strategic plans. The Bio-Circular-Green (BCG) economic strategy focuses on the implementation of smart agriculture technologies, such as AI, to enhance sustainability and efficiency. AI technologies like machine learning, predictive analytics, and robotics are being leveraged to maximize farming techniques, improve crop yields, and minimize wastage.

Key Market Drivers

Growing Demand for Precision Farming
The growing need for precision farming in Thailand is driving a significant boost in the demand for Artificial Intelligence (AI) in agriculture. Precision farming methods, which include optimizing inputs like water, fertilizers, and pesticides using real-time data, are becoming more prominent as farmers look for more efficient and sustainable means of tending to their crops. Artificial intelligence technologies, such as machine learning algorithms and data analytics, are important in revolutionizing conventional farming practices into smart and data-based processes. These technologies allow farmers to process large volumes of data, make decisions, and apply accurate interventions to improve crop yields and resource utilization.

With Thai agriculture joining the digital revolution, the need for AI solutions is growing across different farming activities. AI-based applications give farmers information on soil health, crop growth patterns, and pest control, enabling them to make anticipatory decisions for improved results. The use of AI in agriculture is in line with Thailand’s efforts to modernize its agricultural practices, boost productivity, and tackle environmental sustainability issues. This expanding synergy of precision agriculture and AI technologies represents a revolutionary change in the face of agriculture, facilitating intelligent and resource-saving farming modes in line with the changing needs of the Thai agricultural industry.

Availability of Affordable AI-Based Agri-Tech Solutions
A major catalyst driving the rising demand for Artificial Intelligence (AI) in agriculture in Thailand is the availability of affordable AI-based agri-tech solutions. With increasing accessibility and affordability of technology, Thai farmers are eager to utilize AI applications to improve their farming activities. Low-cost AI solutions provide numerous advantages, such as precision agriculture, crop monitoring, predictive analytics, and optimal resource utilization. These technologies enable farmers to make informed decisions, maximize input usage, and enhance overall productivity.

The cost-effectiveness of AI-driven agri-tech is especially important to small and medium-scale farmers who might be budget-bounded. The availability of these technologies makes AI in farming more democratic since it allows more farmers to gain the benefits of intelligent farming practices. With lower barriers to entry, more Thai farmers are adopting AI solutions to simplify their operations, boost yields, and help drive the sustainability of the agricultural industry. This trend reflects the disruptive power of affordable AI technologies, opening a new age of precision agriculture and efficiency in Thailand. As affordability remains to propel demand, the adoption of AI in farming is set to play a fundamental role in redefining the future of agriculture practices in the nation.

Key Market Players

• Microsoft (Thailand) Company Limited
• Deere & Company (Global Fleet Sales (Thailand) Ltd.)
• IBM Thailand Company Limited
• True Digital Group Co., Ltd.
• HG Robotics Co., Ltd.
• Varuna (Thailand) Co., Ltd.
• FarmInno (Thailand)
• ATi Technologies Co., Ltd.
• Syngenta Co., Ltd.
• jDrones & Co.

Segmental Insights

Technology Insights
According to Technology, in the market for AI in Agriculture in Thailand, Machine Learning is rapidly becoming the predominant technology, transforming the sector through the immense possibilities it offers. By leveraging the capabilities of Machine Learning, not only can crop yields be improved, but farming operations can also become more efficient and productive. Computer Vision technology’s ability to identify crop diseases accurately allows preventative measures to be taken ahead of time, resulting in healthier crops and reduced losses. Being able to predict harvests accurately is made possible with Predictive Analytics integration, enabling farmers to make well-informed decisions and maximize resource utilization. The harmonious synergy of these leading-edge technologies within Thai agriculture is expanding the envelope of innovation, creating room for sustainable development and long-term industry growth.

Offering Insights
From the Offering, within the Thailand AI in Agriculture market, AI-As-A-Service is the market leader. The reason for this is the expanding requirement for predictive analytics to inform farm practice optimisation and to enable data-informed decisions. Farmers, the pillars of the agricultural sector, are now seeking cost-efficient and scalable AI solutions that can offer real-time recommendations and insights without any heavy initial investment in hardware and software infrastructure. Through AI-As-A-Service, farmers can avail the latest AI technologies and expertise and use them to enhance crop yield, minimize wastage of resources, and boost overall agricultural output. With the implementation of AI-As-A-Service, farmers are able to take advantage of the most recent developments in artificial intelligence. They are able to use machine learning algorithms to process large volumes of data, such as weather conditions, soil types, and crop growth metrics. This data-driven strategy enables farmers to make informed decisions regarding irrigation, fertilization, and pest management, resulting in maximized resource utilization and enhanced crop health.

AI-As-A-Service is scalable and adaptable in nature, enabling farmers to adapt their AI solutions as per their individual needs and requirements. They can scale up or down their use of AI services according to parameters like seasonal fluctuations or shifting agricultural practices. This adaptability dispenses with the requirement of large-scale initial investments and offers a cost-saving option for farmers of every size. By adopting AI-As-A-Service, Thailand’s agriculture sector is undergoing a revolutionary change towards sustainability and efficiency. This transformation not only equips farmers with sophisticated tools but also helps the overall sustainable development of the agricultural sector. Through optimized farming methods, minimized wastage of resources, and increased productivity, AI-As-A-Service is leading the way towards a more sustainable and successful future for Thai farmers and the entire agriculture sector.

Regional Insights
The Thai AI in Agriculture market is most competitive, with multiple regions making tremendous progress. But Eastern Thailand stands out as a leader, controlling the market with its sophisticated farming solutions. The region is experiencing substantial investment in AI-based solutions for precision farming, crop monitoring, and pest control, considerably improving the agriculture productivity and sustainability. In the Eastern part of Thailand, AI adoption in the agricultural sector has been spurred by a number of factors. The area enjoys a good climate, rich soil, and a solid agricultural heritage. Farmers and agriculture companies in the area have taken to technology and innovation, and they use AI to streamline operations and achieve optimal yields.

By adopting AI-based solutions, Eastern Thailand has made tremendous progress in precision farming. Drones and sensors are used to track crops and gather real-time information, allowing farmers to make well-informed decisions about irrigation, fertilization, and pest control. This data-driven method not only enhances crop health and production but also reduces the consumption of resources, thus making agriculture more sustainable and eco-friendly.

The application of AI technology in the control of pests has transformed farm operations in Eastern Thailand. Data from multiple sources, including weather conditions, pest infestation levels, and the health of the crops, is examined by machine learning algorithms in order to predict and avert pest infestation. This foresight strategy diminishes the dependence on chemical pesticides, minimizing environmental damage while securing crop protection. As a result of these advancements, Eastern Thailand has become a hub for AI-driven agriculture, attracting investments and collaborations from local and international stakeholders. The region’s success serves as a model for other areas in Thailand and beyond, showcasing the transformative potential of AI in revolutionizing the agricultural sector.