Agriculture Technology As a Service Market Size, Share, Growth, and Industry Growth, By Type (Software-as-a-Service and Equipment-as-a-Service), By Application (Farmland and Farms, Agricultural Cooperatives, and Others), Regional Forecast To 2031

Updated On: 13 November 2023

AGRICULTURE TECHNOLOGY AS A SERVICE MARKET REPORT OVERVIEW

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The global agriculture technology as a service market size was USD 1765.6 million in 2022 and is projected to touch USD 7434.4 million by 2031, at CAGR of 17.3% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with agriculture technology-as-a-service experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.

A business concept known as "agriculture technology-as-a-service" enables clients to rent their desired agricultural technology (equipment or software) on several flexible payment plans rather than purchasing it outright. Pay-per-use (PPU) and subscription models are two of the most widely used payment structures for agriculture technology as a service. Growers can benefit from characteristics like simple scalability and upgradeability, straightforward accessibility, quick deployment, and dependable data backups thanks to business models that offer agriculture technology as a service.

Rising implementation of controlled environment agriculture and growing automation of commercial greenhouse conditions are anticipated to propel maximum growth in the global market. The primary factor expected to drive demand during the projection period is the rising industrialization of commercial greenhouses and the expanding usage of the controlled environment agriculture (CEA) idea in greenhouses in an effort to augment crop yield and maintain ideal growing conditions. Farmers realize the possible advantages of growing plants inside a greenhouse, which has led to the development of commercial greenhouses. Due to the ease with which LED grow lights can be included in a CEA setup, cultivators have turned away from conventional lighting systems. Despite being expensive, LED develop lights are the best choice for indoor agriculture because of their long-term advantages in terms of efficiency. 

COVID-19 Impact: Halt in Supply Chain Impeded Market Growth

The COVID-19 pandemic had an influence on the supply chain for most businesses around the world, including agriculture technology-as-a-service. The agriculture industry's supply chain was hampered by the COVID-19 epidemic. Farmers' ability to produce food was hampered by the COVID-19 pandemic, which reduced their ability to generate income. The farmers are now unable to purchase new agricultural machinery due to this. The agricultural sector was affected due to the imposition of lockdown. The supply of food and crops was halted, which impeded the growth of the market. The production of crops and livestock was hindered for farmers, which resulted in the downfall of agricultural revenue generation.

LATEST TRENDS

"Escalating Trend for Precision Farming to Gain Major Growth in Market"

The expanding trend for precision farming is anticipated to gain significant growth in the agriculture technology-as-a-service market owing to the steady adoption of technology. Limited availability of arable land and natural resources coupled with the shortage of water resources globally is expected to foster growth in the market. The rising environmental pressure, such as economic impact and climate change of catastrophic weather events, is anticipated to aid agriculture technology-as-a-service market growth. The constantly rising cost of labor owing to the decline in the agricultural workforce is also forecasted to increase the adoption of agriculture technology-as-a-service.

AGRICULTURE TECHNOLOGY AS A SERVICE MARKET SEGMENTATION

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• By Type Analysis

By type, the market is segmented into software-as-a-service and equipment-as-a-service. 

Software-as-a-service is anticipated to hold a major part of the agriculture technology-as-a-service market share backed by fertilizer distributors providing software as services that helps in analyzing the field data and are expected to help farmers in determining the number of fertilizers and exact location of the farm.  

• By Application Analysis

Based on application, the market is classified into farmland and farms, agricultural cooperatives, and others. 

DRIVING FACTORS

"Various Government Initiatives to Aid Market Growth"

The government's emphasis on the development of the agriculture sector is anticipated to propel market growth. The Paramparagat Krishi Vikas Yojana (PKVY) and the establishment of the Agricultural Technology Management Agency are two examples of the numerous initiatives that the governments have undertaken to offer various advantages and security to farmers (ATMA). As a result, several investors and significant businesses are becoming interested in the agritech market. The government is also pushing farming innovations like FaaS (Farming-as-a-service) and digital transactions coupled with the enhancing infrastructure, which are projected to surge agriculture technology-as-a-service market growth.

"Rapid Adoption of Technology in Agriculture to Propel Service Demand"

Good internet access can provide farmers with a variety of advantages, including cost savings by reducing waste and maximizing the use of various farming inputs, including fertilizers, seeds, and soil. The usage of FaaS would rise as internet availability in rural regions improved, as it offers several advantages, including higher productivity and efficiency through data-driven decisions. The market for agriculture technologies is being driven by an increase in the use of technology in farming processes around the world since it is more efficient than human labor. Another factor driving the market for agricultural technologies is the growing need to use technology to complete agricultural tasks more quickly.

RESTRAINING FACTORS

"Presence of Less Skilled Farmers and Data Security Concern to Retard Market Growth"

The presence of less skilled farmers that do not have any technical knowledge on using agriculture technology-as-a-service may impede growth in the global market. Additionally, the rising case of privacy breaches and data theft is also forecasted to affect growth in the market. 

AGRICULTURE TECHNOLOGY AS A SERVICE MARKET REGIONAL INSIGHTS

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"North America to Dominate Market Attributed To the Rising Adoption of Precision Farming"

North America is expected to hold a major part of the agriculture technology-as-a-service market share. The growth is attributed to the rising adoption of precision farming technologies. The expanding utilization of monitoring systems for smart crop, utilization of drones, autonomous farming machinery, and smart livestock monitoring is also projected to surge growth in the region.

Asia Pacific is forecasted to show commendable growth in the global market owing to the increasing need for global food production backed by the rising population in developing economies such as India, China, and Japan. 

KEY INDUSTRY PLAYERS

"Key Players focusing on innovative technology development to grow in market"

Businesses are working on developing new technology to offer more easy ways to increase yield. Companies also use innovative practices and techniques to create new technologies. Companies are focused on acquisitions and investments to increase sales. The marketplace is competitive as a result of the existence of numerous huge firms. An extensive worldwide consumer base and the execution of operations through specialized distribution networks are other characteristics. The key companies strive to gain a higher market share by launching new products. 

List of Market Players Profiled

• AGCO (U.S.)
• SZ DJI Technology (China)
• Precision Hawk (U.S.)
• Small Robot Company (U.K.)
• Syngenta (Switzerland)
• Accenture (Ireland)
• CLAAS (Germany)
• Hexagon Agriculture (U.S.)
• Taranis (U.S.)
• Fujitsu (Japan)
• Ceres Imaging (U.S.)

INDUSTRY DEVELOPMENT

• March 2021- Syngenta revealed the development of its North American Crop Protection headquarters in North Carolina to gain growth in the global market.

REPORT COVERAGE

An overview of the product is provided along with the product description. Numerous industry elements are included in the research.

• The pandemic's aftereffects and the subsequent lockdown.
• The market's most recent trend is currently fueling expansion.
• The factors are most likely to stimulate agriculture technology-as-a-service market growth.
• The reasons the market is expected to grow more slowly.
• A comprehensive regional analysis of the market is conducted.
• Significant players and their business offices are also covered in the article.