The global Farming As A Service Market is projected to reach USD 10.73 billion by 2030, according to the new report by Grand View Research, Inc. The market is expected to witness a CAGR of 14.8% from 2023 to 2030. Farming as a service refers to using technologies such as machine learning and the internet of things in yield monitoring and collecting weather data. After the collection of data on these metrics, various algorithms are applied on these metrics to gather meaningful insights and analytics. These insights are used to boost the farm's production and address any shortcomings that can be adjusted to get a higher level of productivity.
The
market for farming as a service is segmented into three groups: service type,
delivery model, and end-user. The service comprises three subcategories: access
to markets, farm management solutions, and production support. For effective
farm management, analytics is provided for yield monitoring, weather data,
germination data, soil quality data, etc. Access to markets deals with cutting
out intermediaries and linking farmers directly to suppliers and marketplaces
using technologies like mobile apps.
Production
support includes renting or leasing equipment such as tractors, combine
harvesters, and labor provision services. Subscription and pay-per-use delivery
models are used by the farmers servicing the farming. Renting out equipment
through subscriptions for a fixed period is called a subscription, whereas pay
per use is referred to as paying each time the equipment is used. Farmers,
government, businesses, financial institutions, and advisory bodies are the end
users of FaaS.
The
significant drivers of farming as a service include growing internet access in
rural areas, which supports market growth. Fast internet access assists farmers
in numerous ways. It enables them to utilize data-driven analytics for
appropriate seeds and precise amounts of fertilizer and conduct soil analysis
to test the nutrition profile. The use of data-driven decision-making tools
helps reduce wastage, lowering production costs.
Owing
to the several advantages, such as enhanced productivity and efficiency through
data-driven decisions, the use of FaaS will rise in the coming years as the
internet connectivity in rural areas continues to improve Inefficiencies in the
agricultural supply chain, such as low productivity, a lack of farm
mechanization, market access, and data asymmetry, can be addressed with the aid
of FaaS. It promotes the development of new products, including technologies
for instantaneous data collection and analysis and agricultural machinery with
many uses.
Multiple
established companies and new businesses/ startups are entering the market
because of the market's enormous potential. TAFE, ITC Ltd., Cropin Technology
Solutions Pvt. Ltd., and Deere & Company are some new entrants in the FaaS
market. Companies focus on product development and geographical expansion to
gain a foothold in the market.
For
instance, to grow its business in Eastern India, DeHaat introduced the
franchise model in July 2020. The company uses this strategy to acquire agricultural
inputs from vendors like Bayer Crop Sciences, sell them to farmers, and buy
their products from farms within a three to the six-kilometer radius. For
another instance, AGCO Corporation's assembly and distribution facility for
Massey Ferguson small and utility tractors and equipment and Fendt high
horsepower tractors were expanded in November 2019. The facility is based in
Edgewood, Maryland.
Related Press
Release@ Farming As A Service Market Report
Farming As A Service Market Report Highlights
- Farming as a
Service is gaining traction owing to the efficient and data-driven
agriculture possible with the services, thereby improving the farm outputs
- The farm
management solutions segment dominated the market in 2022 and is expected
to expand its revenue share to more than 76.8% by 2030. Precision farming
tools are the largest sub-segment of farm management solutions in terms of
revenue
- The
subscription delivery model segment contributed to more than half of the
market share in 2022 and is expected to continue its domination during the
forecast period
- Farmers are
the largest end-users of the services offered under farming as a service.
The farmer end-user segment is also expected to be the fastest growing
segment with a CAGR of 15.1% during the forecast period
- The Asia
Pacific regional market is expected to be the fastest growing region
during the forecast period of 2023 to 2030. China is the market leader in
the region
- The
prominent players in the industry include Mahindra & Mahindra, John
Deere, ITC, Trimble, EM3, Apollo, Accenture, Taranis, BigHaat, Precision
Hawk, IBM and NinjaKart
Farming As A Service Market Segmentation
Grand
View Research has segmented global farming as a service market based on service
type, delivery model, end-user, and region:
Farming As A Service Type Outlook (Revenue, USD Million,
2017 - 2030)
- Farm
Management Solutions
- Precision
Farming Tools
- Analytics
- Information
Sharing
- Production
Assistance
- Equipment
Rentals
- Labor
services
- Utility
services
- Agricultural
marketing
- Access to
Markets
- Supplier to
farmers
- Farmers to
end market
Farming As A Service Delivery Model Outlook (Revenue, USD
Million, 2017 - 2030)
- Subscription
- Pay-per-use
Farming As A Service End-user Outlook (Revenue, USD
Million, 2017 - 2030)
- Farmers
- Government
- Corporate
- Financial
Institutions
- Advisory
Bodies
Farming As A Service Regional Outlook (Revenue, USD
Million, 2017 - 2030)
- North
America
- U.S.
- Canada
- Mexico
- Europe
- U.K.
- Germany
- France
- Italy
- Asia Pacific
- China
- Japan
- India
- Australia
- South East
Asia
- South
America
- Brazil
- The Middle
East & Africa
List of Key Players in the Farming As A Service
Market
- Mahindra and
Mahindra
- John Deere
- ITC
- Trimble
- EM3
- Apollo
Agriculture
- Accenture
- Taranis
- Precision
Hawk
- IBM
- BigHaat
- Ninja Kart
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, the company offers market intelligence studies ensuring relevant and fact-based research across a range of industries including technology, chemicals, materials, healthcare and energy.
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Grand View Research, Inc
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