Farm Management Software Market Analysis Report By Agriculture Type (Precision Farming, Smart Greenhouse), By Deployment Model (Web-based, Cloud-based), By Services, And Segment Forecasts, 2020 - 2025

Report Overview

The global farming as a service market size was valued at USD 1.71 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 16.7% from 2020 to 2025. 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.

The 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.

Farm Management Software Market Trends

One of the primary factors driving the growth of the farm management software market is the usage of current technologies such as yield mapping software, variable rate technology, data management software, and GPS in agricultural products. These technologies increase land fertility and profitability, increase production, lower farming costs, and make agriculture more sustainable.

The expanding agricultural practices and growing requirement for real-time data enabling decision-making are driving the expansion of the farm management software industry. Precision farming, fish farming, livestock monitoring, and smart greenhouse practices are all examples of where machine learning and artificial intelligence are becoming widely used technology. They manage the data exchanged between hardware equipment and personnel to expedite the farm management process.

Understanding the environment through evaluating data provided by various farm management technology such as satellite imagery, global positioning systems (GPS), and in-field sensors is a primary focus in the farm management framework. In agriculture, data management is critical since management choices are dependent on real-time data analysis obtained from agricultural activities. Artificial intelligence and machine learning have enabled real-time data access, making data management tasks like purchasing, planning, harvesting, feeding, marketing, and stock control much easier. Data collected in real time from agricultural farms aids in analysis and decision-making. In recent years, the global agriculture business has seen great developments in smart farming technologies. One of the key motivations driving farm owners' embrace of cutting-edge technology like the Internet of Things (IoT), drones, artificial intelligence (AI), and hyperspectral imaging is the increasing pressure to fulfil rising food consumption with limited resources. These technologies are used in farming to help raise productivity, improve efficiency, reduce resource waste, improve accuracy, and precision, and provide high profitability for farm owners.

Artificial intelligence (AI) is a potential technology capable of meeting the agricultural industry's continued food need by increasing production. By giving insights, AI systems boost the efficiency of agricultural operations. Farmers can examine real-time data linked to meteorological conditions, moistures, temperatures, and crop prices in the market due to the combination of advanced analytics and IoT via AI. By spotting abnormalities within a field correctly and concisely, AI technologies are also assisting farmers in swiftly and accurately pinpointing an issue using drones and robots. Thousands of visible and infrared photos of each field are captured by advanced software and fed into an algorithm, which combines data into a single frame of the field to highlight whether regions are damaged or require additional nutrients.

Agriculture Type Insights

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 include 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 livestock monitoring management.

The rise in the urban population has led to the 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.

Deployment Model Insights

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.

Service Insights

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 the 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 measurements. For instance, NEC Corporation (Japan) entered into a partnership with Dacom, a Netherlands-based agriculture IT company, for deploying precision agriculture solutions in Romania.

Regional Insights

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 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 market in North America. 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. In South America, the market is estimated to witness significant growth over the projected period. The growth of the region can be attributed to presence of a substantial number of integrators to customize and promote agriculture technology.

In addition, in 2019, to digitize and automate agriculture, the Canadian government has spent USD 49.5 million in the Canadian Agri-Food Automation and Intelligence Network (CAAIN). The CAAIN is aiming to enhance farming solutions by strengthening robotics, artificial intelligence, and precision farming. As a result, large-scale farms, a higher adoption rate by farmers, and government projects are anticipated to boost the market during the projected period.

Key Companies & Market Share Insights

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.

Farm Management Software Market Report Scope

Global Farm Management Software Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the 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)

  • Precision farming

  • Livestock monitoring

  • Smart greenhouse

  • Others

• Deployment Model Outlook (Revenue, USD Million, 2014 - 2025)

  • Web-based

  • Cloud-based

• Service Outlook (Revenue, USD Million, 2014 - 2025)

  • System integration & consulting

  • Maintenance & support

  • Managed services

    • Data services

    • Analytics services

    • Farm operation services

  • Assisted professional services

    • Supply chain management services

    • Climate information services

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • South America

    • Brazil

  • Middle East and Africa (MEA)