Farming as a Service Market Size was valued at USD 3.2 Billion in 2022. The Farming as a Service market End User is projected to grow from USD 3.7 Billion in 2023 to USD 11.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.30% during the forecast period (2023 - 2032). Modern technology and the Internet of Things (IoT) are increasingly being used in agricultural products, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
When used to its full potential, smart agriculture can help farmers combat the negative effects of climate change on crops by collecting geospatial data on planting, soil, livestock, and other inter- and intra-field data. By providing information on the appropriate dosages of pesticides, herbicides, liquid fertiliser, and irrigation, smart agriculture also helps to prevent waste. Examples of contemporary agricultural technologies include data management software, GPS, yield mapping software (YMS), variable rate technology (VRT), and mapping software. These technologies boost soil fertility and profit growth while lowering operating costs and promoting sustainable agriculture. Additionally, smart agriculture technology has the ability to cut farming costs while producing more outstanding food and boosting corporate productivity through automated operations. Business-minded farmers have started to adopt a number of cutting-edge agricultural instruments in order to boost crop yields and earnings. The objective of smart agriculture practises is also to boost agribusiness profitability.
Farmers have profited from the growing usage of Internet of Things (IoT) technology in agriculture by gaining real-time help through LoT applications. Traditional farming methods that use Internet of Things (IoT) applications save time and money by using fewer resources for farming, such as land, electricity, and water, allowing farmers to focus on growing high-quality food for their clients. Additionally, the widespread use of loT technology in the agricultural sector enables farmers to respond to large variations in weather, humidity, and air quality. LoT technology in agriculture increases farm output while reducing carbon emissions by conserving energy and water resources through sophisticated sustainable solutions. It uses a variety of management tools and technology, visualisation, and data analytics to automate conventional farming practises. Farmers may also stay updated on how to use information and communication technology to optimise revenues and preserve resource conservation under a variety of climatic circumstances as internet usage develops in the agricultural industry. The growing adoption of the Internet of Things (IoT) in the agriculture sector is therefore predicted to fuel the growth of the farming as a service business during the projection year.
As part of production support, it is possible to lease or contract out equipment and personnel. Pay-per-use and subscription are the other two types under the delivery model. In the subscription model, the farmer rents out the equipment for a specific period of time. Every time the farmer uses the equipment, he is required to pay a fee per use. FaaS prevents resource mismanagement and the loss in crop productivity. Due to the increased use of farming-as-a-service, farmers are developing their abilities in precision farming, farm management, information exchange, and other areas. Thus, driving the Farming as a Service market revenue.
The Farming as a Service Market segmentation, based on service type, includes farm management solutions, production assistance, and access to markets. Farm management solutions segment dominated the global market in 2022. This is because precision farming is becoming more and more accepted as a way to meet the growing demand for high-quality food items worldwide. Tools to enhance agricultural outcomes include hyperspectral imaging technology, sensors (to gather information on weather, soil health), auto-guidance equipment, precision irrigation systems, etc.
The Farming as a Service Market segmentation, based on delivery model, includes subscription and pay-per-use. Subscription segment dominated the Farming as a Service Market in 2022. For a predetermined period of time, such as three to four months, farmers who use subscription services can rent or lease farming equipment. Subscription services can be useful for farmers who only occasionally (once or twice a year) need a certain piece of equipment.
The Farming as a Service Market segmentation, based on end user, includes corporate, financial institutions, advisory bodies, farmers, and governments. Farmers segment dominated the global market in 2022. The farmers make use of all service types, including solutions for farm management and market access.
Figure 1: Farming as a Service Market, by End User, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Farming as a Service market dominated this market in 2022 (45.80%). Agro-based economies like India, China, and Bangladesh, which are driving the rise, depend mostly on agriculture for their GDPs. The main drivers of the rise are an increase in food consumption and a growing population in the area. Moreover, China’s Farming as a Service market held the largest market share, and the Indian Farming as a Service market was the fastest growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: FARMING AS A SERVICE MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America Farming as a Service Market is expected to register significant growth from 2023 to 2032. The bulk of the region's countries utilise automation and control systems more frequently than other nations, and the adoption of smart farming practises has increased the demand for agriculture farming-as-a-service. These factors together account for the region's significant market share. Further, the U.S. Farming as a Service market held the largest market share, and the Canada Farming as a Service market was the fastest growing market in the North America region.
Europe Farming as a Service market accounted for the healthy market share in 2022. France contributes roughly 23% of the E-15's total agricultural output, with Germany and Italy coming in second and third, respectively. The primary agricultural products of Europe are cotton, non-seasonal fruits and vegetables, chocolate, tea, spices, soy products, and coffee. The quantity and quality of the goods are often tracked in Europe using FaaS technologies. Further, the German Farming as a Service market held the largest market share, and the U.K Farming as a Service market was the fastest growing market in the European region
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Farming as a Service market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Farming as a Service Industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Farming as a Service Industry to benefit clients and increase the market sector. In recent years, the Farming as a Service Industry has offered some of the most significant advantages to medicine. Major players in the Farming as a Service market, including Apollo Agriculture, Accenture, Mahindra & Mahindra Ltd., Precision Hawk, Deere & Company, Taranis, 63Ideas Infolabs Private Limited, Trimble Inc., SGS Société Générale de Surveillance SA, and BigHaat.com, are attempting to increase market demand by investing in research and development operations.
Mahindra & Mahindra Ltd. (M&M), the parent firm of the Mahindra Group, is a complex business. Transportation, aerospace, agribusiness, aftermarket, information technology, consulting, components, clean energy, financial services, infrastructure, industrial and construction equipment, two-wheelers, retail, steel, hospitality, IT services, transportation, and logistics are just a few of the key industries it operates in. There are production facilities in the US, France, Finland, India, Japan, Africa, China, and Australia, among other nations. The company also manages research and development centres. M&M has businesses not only in North America but also in Italy, South Korea, Japan, and India. The M&M firm is based in Mumbai, Maharashtra, India. Mahindra & Mahindra Ltd. launched its FaaS business in Karnataka in February 2021 by opening Krish-e centres in five distinct cities. Several significant states currently have Krish-e centres, including Gujarat and Uttar Pradesh.
Khetibuddy Agritech Private Limited (KAPL), a startup operating as a Private Limited Indian Non-Government Company, was established in India on March 26, 2021 (two years and three months ago). Its registered office is located in Ahmedabad, Gujarat, India. The business is involved in the agricultural industry. To help farmers manage their farms, KhetiBuddy Agritech Private Limited released a free smartphone app in June 2020. It supports field management, planting, and harvesting for farmers. This software helps farmers adjust the crop schedule based on the weather, inventory data, and soil data using localised information.
January 2023 Panorama, Precision Planting's newest tool to help farmers use data from their 2020® monitor, was unveiled today. The Panorama was unveiled on the first day of the company's annual Winter Conference.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 3.2 Billion |
| Market Size 2023 | USD 3.7 Billion |
| Market Size 2032 | USD 11.5 Billion |
| Compound Annual Growth Rate (CAGR) | 15.30% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Service Type, Delivery Model, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Apollo Agriculture, Accenture, Mahindra & Mahindra Ltd., Precision Hawk, Deere & Company, Taranis, 63Ideas Infolabs Private Limited, Trimble Inc., SGS Société Générale de Surveillance SA, and BigHaat.com |
| Key Market Opportunities | ·      The adoption of farming-as-a service |
| Key Market Dynamics | ·      Adoption of advanced technologies in agricultural products and the Internet of Things (IoT) is gaining popularity in agriculture |
Farming as a Service Market Highlights:
Frequently Asked Questions (FAQ) :
The Farming as a Service Market size was valued at USD 3.2 Billion in 2022.
The global market is projected to grow at a CAGR of 15.30% during the forecast period, 2023-2032.
Asia Pacific had the largest share in the global market
The key players in the market are Apollo Agriculture, Accenture, Mahindra & Mahindra Ltd., Precision Hawk, Deere & Company, Taranis, 63Ideas Infolabs Private Limited, Trimble Inc., SGS Société Générale de Surveillance SA, and BigHaat.com
The Farm Management Solutions Service Type dominated the market in 2022.
The Subscription Delivery Model had the largest share in the global market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
