The farming as a service market offers highly advanced and customized farming management solutions and services to meet the changing requirements of large-scale as well as smallholder farmers across the globe. Farming as a service provides agricultural practices like field monitoring, crop management, soil management, climate-smart advisory, precision irrigation and many other services through software solutions, hardware integration and expert advisory. These services help farmers make informed decisions, optimize field operations and maximize crop yield. The Global Farming as a Service Market is estimated to be valued at US$ 4.12 Billion in 2024 and is expected to exhibit a CAGR of 151% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the farming as a service are Accenture, John Deere, AGCO Corporation, Trimble, Ag Junction. Accenture being a global leader in consulting, technology, outsourcing and digital services offers customized digital solutions and services for precision farming. John Deere provides integrated hardware, software and services solutions like automated steering and variable rate technology for optimal field operations.
The rising demand for food owing to growing global population coupled with decreasing arable land is driving the need for maximizing crop yields through technology enabled precision farming practices. Farming as a service allows smallholder and large-scale farmers to gain access to advanced farming solutions and expertise to boost productivity in a cost-effective manner.
Several farming as a service providers are expanding their geographical footprints to tap the opportunities in emerging markets of Asia Pacific, Latin America, Middle East and Africa. Strategic partnerships with local farming organizations help them to better understand regional farming ecosystems and offer localized solutions. Global providers are also acquiring prominent regional players to consolidate their presence across major agricultural economies.
Market Key Trends
Integration of advanced technologies like IoT, AI, drones and predictive analytics is a major trend in farming as a service market. Precision IoT sensors incorporated in farm equipment, fields and livestock are generating vast amounts of agricultural data. Service providers are leveraging AI/ML capabilities for predictive monitoring of crop and livestock health. They are also using computer vision powered drones for hyperlocal field analysis. These technology driven precision agriculture services are helping farmers optimize resource use and boost per acre crop yields. The promising results have increased tech adoption among smallholder farmers as well, thereby scaling farming as a service at an exponential rate globally.
Porter's Analysis
Threat of new entrants: The threat is low as it requires high investment and presence of large players make it difficult for new players to enter.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are many service providers in the market.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many technology providers and product manufacturers in the industry.
Threat of new substitutes: The threat of substitutes is low as there are limited substitutes available for farming as a service.
Competitive rivalry: The competitive rivalry is high among existing players to gain market share and acquire new customers.
Geographical Regions
The North American region currently holds the largest share in the farming as a service market in terms of value owing to the widespread adoption of advanced technologies and focus on maximizing productivity and yield.
The Asia Pacific region is estimated to witness the fastest growth over the forecast period driven by the increasing population, rising demand for food globally and initiatives by governments in countries like India and China to support smart farming practices and use of cutting edge technologies.
What Are The Key Data Covered In This Farming as a Service Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Farming as a Service 's growth between 2024 and 2031.
:- Accurate calculation of the size of the Farming as a Service and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Farming as a Service Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Farming as a Service vendors
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
