Japan Smart Agriculture Market

Japan Smart Agriculture Market Size and Share:

The Japan smart agriculture market size was valued at USD 1,209.10 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 4,122.30 Million by 2033, exhibiting a CAGR of 14.60% from 2025-2033. The Japan smart agriculture market share is expanding, driven by the rising adoption of new technologies in farming practices that allow smarter decision-making, along with the increasing establishment of smart greenhouses that offer controlled cultivation with less energy.

The rising labor shortages is offering a favorable Japan smart agriculture market outlook. The country’s aging population and declining rural workforce encourage farmers to adopt technology. With fewer people available for physically demanding tasks, tools like robots, drones, and automated machinery step in to fill the gap. These technologies handle jobs like planting, harvesting, and even monitoring crop health, making farms more efficient despite fewer workers. Precision farming tools help farmers to manage resources like water and fertilizer with minimal labor. Government agencies also support this shift by providing subsidies and promoting innovations to address the labor crisis. By turning to smart agriculture, Japan ensures its farming industry stays productive and modern.

The increasing export demand is encouraging farmers to adopt advanced technologies that ensure high-quality and competitive production. Japan is known for premium exports like specialty rice, fruits, and vegetables, which need precise cultivation techniques to meet strict international standards. Smart farming tools, like the Internet of Things (IoT) sensors, drones, and artificial intelligence (AI)-enabled systems, help to optimize crop growth, monitor quality, and lower waste. Technologies like smart greenhouses allow year-round production, ensuring a steady supply for export markets. With worldwide demand for Japanese products growing, especially in regions like Southeast Asia and the Middle East, farmers wager on automation and precision farming to increase output.

Japan Smart Agriculture Market Trends:

Growing adoption of sustainability

The rising adoption of sustainability is fueling the market growth. It encourages eco-friendly practices and usage of efficient resources. Farmers prioritize technologies that reduce environmental impact, such as IoT-enabled systems that optimize water and fertilizer usage. Smart greenhouses are important since they allow controlled cultivation with minimal energy and water utilization, enabling large-scale production with minimal waste. Moreover, renewable energy-powered systems and precision farming tools help to minimize carbon footprints while maximizing yields. These efforts address challenges like climate change, limited farmland, and high food demand. Big companies wager on building smart greenhouses to support sustainable practices. In November 2024, J. Huete Greenhouses, the farm equipment and supply company, led the establishment of a new one-hectare multi-tunnel greenhouse to be constructed in Japan for hydroponic lettuce farming. This initiative incorporates nutrient film technique (NFT) gutters for its production system and provides modern technological solutions for climate management and automation, tailored to local needs and regulations.

Technological advancements

Advancements in technology is occurring to cater to the rising Japan smart agriculture market demand. They have made farming more efficient, precise, and sustainable. Enhanced tools like IoT sensors, drones, and global positioning systems (GPS)-enabled machinery help farmers to monitor crops, manage resources, and automate tasks. AI and machine learning (ML) bring smarter decision-making, offering insights on weather, soil conditions, and yield predictions. Robotics also play a big role, especially in tackling labor shortages, with machines taking over planting, harvesting, and livestock monitoring. These advancements make it convenient for farmers to generate more with less effort while also being eco-friendly. With government backing and support from tech companies, innovations continue to evolve, making smart agriculture a key player in transforming Japan’s farming industry. In February 2024, Nile Works Co., Ltd., the prominent agtech company based in Tokyo, unveiled a locally produced autonomous flight drone- Nile that focuses on self-directed flight. The company aims to provide cultivation support and agricultural work matching services using AI image analysis.

Government support and initiatives

Initiatives by government agencies are encouraging farmers to adopt smart technologies, thereby impelling the Japan smart agriculture market growth. Through subsidies, grants, and policies, the government makes it easier for farmers to invest in IoT devices, robotics, and precision farming tools. Programs under the Smart Agriculture Initiative promote digital transformation in farming, helping both small and large-scale farmers to modernize their practices. Research and development (R&D) funding also allows innovations, enabling tech companies to create tailored solutions for Japan’s unique agricultural needs. Additionally, partnerships between the government, universities, and private companies enhance the rollout of smart greenhouses, drones, and AI-oriented tools. In August 2024, the Japanese government partnered with Vietnam to improve technological advancements and digital transformation in agricultural methods. This project is essential for enhancing the capabilities of cooperatives and agricultural families. It provides a new electronic agricultural extension system that enables quick and effective information transfer between farming agencies and farmers. Other than this, the government of Japan passed the ‘Act on Promoting the Utilization of Smart Agricultural Technology’ to create an accreditation framework and implement novel production techniques for advancing smart farming innovations.

Japan Smart Agriculture Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Japan smart agriculture market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on agriculture type, offering, and farm size.

Analysis by Agriculture Type:

• Precision Farming
• Livestock Monitoring
• Smart Greenhouse
• Others
   

Precision farming enables efficient resource utilization and enhanced productivity. It employs technologies, such as GPS and sensors to track soil health, weather, and crop conditions in real time. Farmers use data-driven insights for enhancing fertilization, irrigation, pest control, and reducing waste and environmental impact. With government support and subsidies, precision farming is being rapidly adopted to address labor shortages and rising food demand.

Livestock monitoring caters to the need for efficient animal health management and productivity enhancement. Technologies like wearable sensors and radio-frequency identification (RFID) tags track vital signs, feeding habits, and movement patterns of livestock. AI-oriented systems are being employed to analyze data, detect diseases early, and optimize breeding practices. Furthermore, intelligent solutions reduce labor costs and improve animal welfare.

Smart greenhouse offers year-round cultivation with optimal resource use. IoT sensors, climate control systems, and AI-driven platforms monitor and regulate temperature, humidity, and lighting to maximize crop yields. This approach reduces water and energy usage while improving quality. In addition, smart greenhouses are especially beneficial in urban areas with limited farmland. Government initiatives promoting agricultural innovation and private investments in controlled-environment farming encourage the adoption of smart farming tools.

Analysis by Offering:

• Hardware
• Software
• Service
   

Hardware provides tools for precision farming and automation. It includes sensors, drones, automated machinery, and IoT devices, which enable real-time monitoring of soil conditions, crop health, and weather. It caters to labor shortages by automating tasks like planting and harvesting. Apart from this, advanced greenhouses equipped with smart hardware are becoming popular.

Software is used in farm management systems, crop monitoring platforms, and predictive analytics tools that optimize resource utilization. Software solutions employ AI and ML to forecast yields, analyze trends, and automate irrigation and fertilization schedules. Cloud-based systems enable farmers to retrieve data and work in real-time.

Service offers consulting, training, and system integration services. Providers assist farmers in adopting and maintaining smart farming technologies, ensuring effective implementation and optimization. Additionally, technical support and data management services help to overcome operational challenges. Customized training programs enable farmers to leverage digital tools for better decision-making.

Analysis by Farm Size:

• Small
• Medium
• Large
   

Small represents a significant portion of the market. Small farms contribute to the utilization of smart agriculture technologies. Farmers integrate affordable tools like IoT sensors, drones, and mobile apps to optimize resources and enhance productivity. Government grants as well as subsidies further encourage small-scale farmers to adopt precision farming techniques. Compact and modular solutions are tailored to fit small farms’ specific needs.

Medium employs smart agriculture to enhance efficiency and scale operations. Technologies like GPS-enabled machinery, automated irrigation systems, and farm management software allow these farms to maximize yields while minimizing costs. Medium farms benefit from economies of scale, enabling them to invest in advanced solutions like drones and AI-powered analytics.

Large is noted for adopting advanced smart agriculture technologies due to its financial capacity and operational scale. These farms utilize robotics, AI-driven systems, and big data analytics to automate tasks, optimize supply chains, and increase productivity. Additionally, large-scale adoption of smart greenhouses and livestock monitoring systems enhances efficiency and sustainability.

Regional Analysis:

• Kanto Region
• Kansai/Kinki Region
• Central/ Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region
   

The Kanto region, home to Tokyo and surrounding urban areas, is noted for its high-tech adoption and urban farming initiatives. With limited farmland, smart greenhouses and vertical farming solutions are popular in this region. The proximity to technology hubs ensures access to advanced tools and expertise. Moreover, people require fresh and locally grown food products, which encourages the usage of smart agriculture tools.

The Kansai/Kinki region, centered around Osaka, integrates smart agriculture to support its diverse farming practices. This area adopts precision farming technologies like automated irrigation and pest control systems to improve efficiency in rice and vegetable production. Urban farming initiatives thrive in cities, driven by demand for fresh products.

The Central/Chubu region, known for its diverse agriculture, utilizes smart farming technologies to enhance productivity in fruit, vegetable, and rice cultivation. IoT sensors and drones monitor crop health and improve the overall use of resources, eradication shortages of labor. The region’s mountainous terrain encourages the adoption of smart greenhouses and hydroponics for efficient farming.

The Kyushu-Okinawa region employs smart agriculture to enhance its tropical fruit, tea, and rice production. In this region, AI-powered tools and IoT devices help to manage water and fertilizer usage, addressing challenges like climate variability. This area adopts smart greenhouses and robotics to optimize labor and increase yields, particularly in remote and rural areas. The region’s export-oriented agriculture, combined with innovation in farming techniques, positions Kyushu-Okinawa as an important hub.

The Tohoku region is a key agricultural hub and adopts smart agriculture to optimize rice production and manage the impact of extreme weather conditions. Precision farming technologies, such as GPS-enabled machinery and IoT sensors, improve efficiency and yield quality. The region focuses on sustainability and the use of smart irrigation systems and renewable energy-powered farms.

The Chugoku region integrates smart agriculture to support its small and medium-sized farms specializing in fruit and rice production. IoT sensors and data analytics optimize resource management while smart greenhouses enable year-round cultivation. This region faces labor shortages, promoting the adoption of robotics and automation in farming operations. Additionally, local government agencies and universities partner to advance research and training in smart agriculture technologies.

Hokkaido is Japan’s largest agricultural producer and known for adopting large-scale technologies like AI-powered machinery, drones, and automated irrigation systems. It is recognized for its production of dairy, rice, and vegetables. This area benefits from its vast farmlands and advanced farming practices. Research institutions and government agencies wager on innovations, promoting precision farming and sustainable methods.

The Shikoku region employs smart agriculture to enhance its citrus fruit and rice production, leveraging technologies like IoT and AI for resource optimization. Small and medium-sized farms incorporate smart greenhouses and automated systems to cater to issues like labor shortages and improve efficiency. Local government agencies invest in innovations through subsidies and partnerships with research institutions.

Competitive Landscape:

Key players are working on bringing innovations and advanced technologies to the farming industry. Companies specializing in IoT, AI, robotics, and data analytics provide tools and platforms that help farmers to optimize resource use, increase productivity, and cut costs. Big technology firms’ team-up with local farms to introduce smart greenhouses, precision farming solutions, and automated machinery, addressing issues like labor shortages and efficiency. Startups also contribute by developing tailored solutions, such as drones for monitoring crops and sensors for soil health. Additionally, government agencies collaborate with key players to ensure funding and support for R&D activities. These companies introduce cutting-edge technologies and offer training and support services, helping farmers transition smoothly into smart agriculture. For instance, in June 2024, Mitsubishi Mahindra Agricultural Machinery partnered with CNH, the well-known manufacturer of machines and solutions for the agriculture and construction sectors, to launch Case IH agricultural machinery products in Japan. This agreement aims to broaden sales nationwide, including in the Honshu and Kyushu regions where farming plots are increasing in size.

The report provides a comprehensive analysis of the competitive landscape in the Japan smart agriculture market with detailed profiles of all major companies.

Latest News and Developments:

• December 2024: NTT e-Drone Technology Co., Ltd. declared the initiation of a new agreement with Iseki Agricultural Machinery Co., Ltd., a company involved in the manufacturing and sale of agricultural machinery, concerning the management of drones for pesticide application created and produced by the former. They seek to enhance map-linked variable fertilization, like rice transplanters, and offer tractor machinery that aids in map-linked variable fertilization in Japan.
• December 2024: NTT Data CCS Corp. teamed up with Nihon Nohyaku Co., to create an AI application to detect various crop diseases and recommend suitable pesticide treatments.
• October 2024: NX Group, a leading logistics company, invested in the development of AI- and robot-driven intelligent agriculture technology, AGRIST. The company plans to collaborate with local authorities in Hokkaido, Kyushu, and various parts of Japan on joint projects aimed at agriculture, utilizing DX to enhance logistics efficiency through yield predictions, determining ideal shipment destinations, and offering further tangible validation of optimal logistics service methods within the context of smart agriculture.
• September 2024: RX Japan, a prominent exhibition organizer, intended to showcase advanced farming technologies at J AGRI Tokyo 2024. One of the products include a self-sufficient robot engineered to function on uneven ground and carry out various labor-reducing agricultural activities.
• March 2023: The Asian Productivity Organization (APO) appointed National Agriculture and Food Research Organization (NARO), Japan as its latest Center of Excellence on Climate-smart Agriculture. The facility intends to concentrate on implementing technologies for climate change mitigation and adaptation to increase agricultural efficiency, elevate food output, and lower greenhouse gas emissions.

Japan Smart Agriculture Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan smart agriculture market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Japan smart agriculture market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan smart agriculture industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.