The global farm management software market size was valued at USD 1.03 billion in 2016. Increasing implementation of cloud computing for real-time farm data management is one of the key trends stimulating market growth. Farm management software (FMS) involves the use of information communication technology (ICT), particularly IoT and big data analytics, to address resource constraints such as shortage of energy, water, and labor and social issues, which negatively influence the agricultural production.
Adoption of remote sensing technology in the agriculture industry is on a rise due to emergence of drones and GIS. Images captured through device featuring remote sensing technology can be used for detection of cop water stress, monitoring weeds & crop diseases, classification of crop species, and mapping of soil properties. A few of the open source remote sensing software, include Quantum GIS Semi-Automatic Classification Plugin (SCP), Optical and Radar Federated Earth Observation (ORFEO) toolbox, Opticks, and PolSARPro.
Growing adoption of site-specific crop management is likely to reduce the usage of pesticides, improve crop yields, and provide better information for farm management decisions. Farm productivity can be increased by forecasting crop performance under various environmental conditions. Phenotyping helps understand numerous factors such as nitrogen depletion and pH levels of soil affecting crop growth and is carried out to determine crop growth under different conditions.
Players in the agriculture industry are acknowledging the need for technology infusion to increase crop production. Growing farm mechanization has increased profitability of the agriculture sector in developed countries. Modern agriculture involves use of software and hardware components. Equipment manufacturing requires embedded application software and hardware, along with network services.
Based on agriculture type, the market has been segmented into precision farming, livestock monitoring, smart greenhouse, and others. The others segment includes horticulture and fish farming. The precision farming segment dominated the market in 2016 and is expected to remain dominant over the forecast period. The segment was valued at USD 546.7 million in 2016.
Precision farming involves the use of IoT and ICT for preserving resources and optimizing yields. It will help the growers to control the amount of fertilizers to be applied to a farm field by measuring variations in conditions within the field and adapt the harvesting strategies accordingly. Both hardware and software tools are used to analyze naturally occurring conditions in every field and are treated accordingly. Key applications of precision farming includes yield monitoring, crop scouting, irrigation management, inventory management, and weather tracking.
Precision livestock monitoring facilitates real-time determination of health, production, and welfare of livestock for ensuring optimal yield. The increasing size of dairy farms and number of technological advancements, such as precision livestock monitoring, have encouraged the market players to focus on new product launch and focus on reducing costs associated with the livestock monitoring management.
The rise in urban population has led to growth of the smart greenhouse market. A smart greenhouse is a structure that are used for growing plants in a controlled environment. The estimates and forecasts of the smart greenhouse market include vertical farming market and aligned market variables.
Based on deployment model, the farm management software market has been segmented into web-based and cloud-based. The cloud-based segment is anticipated to witness the highest CAGR of 19.5% over the forecast period.
A cloud-based software solution does not require users to purchase a server to run the farm software. Adoption of these solutions is estimated to reduce costs pertaining to administering and purchasing servers, software licensing, backups, and security. Furthermore, the solutions can be accessed from mobile phones, PCs, and tablets.
Smart sensors capture data pertaining to irrigation, lighting, plant growth, and pest usage and the data is then transferred to cloud-based or web-based servers. Farmers can configure the settings of the system that collects data using a web admin console and also integrate the system with other solutions.
Based on service, the market has been divided into system integration & consulting, maintenance & support, assisted professional services, and managed services. The managed services segment dominated the market and is poised to remain dominant over the forecast period.
The managed services segment is further classified into data services, farm operation services, and analytics services. Assisted professional services are categorized into climate information services and supply chain management services. The climate information services segment is projected to witness the highest CAGR of 21.9% from 2017 to 2025.
Farmers are increasingly adopting smarter and efficient agricultural methods for delivering quality products to the market, while maintaining quantity, to gain profits. The mobile technology facilitates provision of innovative services and applications that can be used across the agriculture value chain.
The climate information services segment is likely to witness significant growth over the forecast period. Most crop losses are weather-related and can be reduced using precision agriculture systems that are able to perform predictive weather measurement. For instance, NEC Corporation (Japan) entered into a partnership with Dacom, a Netherlands-based agriculture IT company, for deploying precision agriculture solutions in Romania.
The Asia Pacific market is expected to witness the highest CAGR of 19.2% over the forecast period. It is spearheading the revenue growth with China & Japan at the forefront. Companies in the region are increasingly investing in R&D to introduce advanced drones to improve the productivity. Additionally, market players such as Yamaha Motor Co., Ltd. (Japan) and DJI (China) are trying to tap into the market by introducing drones with better sensors and imaging capabilities.
Governments in North America are actively providing subsidies to encourage application of smart irrigation due to rising concerns pertaining to water conservation. For instance, the government of California is offering a rebate on smart controllers.
Furthermore, increasing government funds to develop vertical farms are anticipated to drive the North America market. For instance, New Jersey Economic Development Authority offered USD 9 million to AeroFarms for building the largest vertical farm in New Jersey, which would harvest around 2 million pounds of food per year.
The South America market is estimated to witness significant growth over the projected period. The growth of the region can be attributed to presence of substantial number of integrators to customize and promote agriculture technology.
Agricultural equipment manufacturers are developing telematics systems, owing to increasing awareness of precision agriculture among farmers. For instance, telematic services of Raven Industries called Slingshot offers real-time kinematic GPS correction signals, real-time Raven technical support, and data transfer in the field.
The key players in the industry include Ag Leader technology; CropZilla Software, Inc.; The Climate Corporation; DeLaval; and Farm Edge, Inc.
Base year for estimation
Actual estimates/Historical data
2014 - 2015
2017 - 2025
Revenue in USD Million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, South America, and MEA
U.S., Canada, Mexico, U.K., Germany, France, Russia, Japan, China, India, Australia, and Brazil
Revenue forecast, competitive landscape, growth factors, and trends
15% free customization scope (equivalent to 5 analysts working days)
If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of latest industry trends and opportunities in each of the sub-segments over the forecast period. For the purpose of this study, Grand View Research has segmented the global farm management software market report based on agriculture type, deployment model, service, and region:
Agriculture Type Outlook (Revenue, USD Million, 2014 - 2025)
Deployment Model Outlook (Revenue, USD Million, 2014 - 2025)
Service Outlook (Revenue, USD Million, 2014 - 2025)
System integration & consulting
Maintenance & support
Farm operation services
Assisted professional services
Supply chain management services
Climate information services
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Middle East and Africa (MEA)
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