Global Agriculture Technology-as-a-Service Market is segmented By Service Type (Software-as-a-Service, Equipment-as-a-Service), By Technology (Data Analytics and Intelligence, Guidance Technology, Sensing Technology, Variable Rate technology, Others), By Application (Yield Mapping & Monitoring, Soil Management, Crop Health Management, Navigation And Positioning, Others), By Region (North America, Europe, South America, Asia Pacific, Middle East, And Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Size
The Global Agriculture Technology-as-a-Service Market reached US$ 2.6 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 12.3 billion by 2031. The market is growing at a CAGR of 21.5% during the forecast period 2024-2031.
Farmers are increasingly relying on data and analytics to make informed decisions and optimize their farming practices. As a service providers offer data collection, analysis, and visualization tools, allowing farmers to access real-time insights about crop health, soil conditions, weather patterns, and equipment performance. The demand for timely and actionable data drives the growth of agriculture technology as a service market.
Advanced agricultural technologies, such as Internet of Things (IoT) devices, drones, and robotics, can be expensive for individual farmers to invest in and maintain. The as-a-Service model allows farmers to access these technologies without significant upfront costs. Service providers offer subscription-based access to IoT-enabled devices, drones for aerial imaging, and robotic systems for various farm operations. The accessibility and affordability of these technologies through the as-a-Service model fuel market growth.
Market Scope
| Metrics | Details |
| CAGR | 21.5% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Service Type, Technology, Application and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Rising Demand for Food Production Globally is Driving the Growth of the Agriculture Technology as-a-Service Market
According to The Food and Agriculture Organisation (FAO), to feed a global population of 9.1 billion people in 2050, overall food production is need to increase by 70% between 2005/07 and 2050. As the demand for food is increasing, the traditional methods of farming may not be able to keep up with this demand. Agriculture technology as-a-service can help farmers to increase their production, reduce waste, and improve the quality of their crops.
The rising demand for food production is driving a need for more sustainable farming practices. Agriculture technology as-a-service can help farmers to adopt sustainable practices such as reduced tillage, crop rotation, and precision irrigation. In summary, the rising demand for food production globally is driving the growth of the agriculture technology-as-a-service market by helping farmers to increase their production, reduce waste, and adopt sustainable farming practices.
The Rising Adoption of Smart Farming Techniques is Driving the Agriculture Technology as-a-Service Market Growth
Smart farming techniques, enabled by advanced technologies such as IoT, drones, and sensors, help farmers optimize their operations and achieve higher productivity. These technologies provide real-time data on crop health, soil conditions, weather patterns, and machinery performance, allowing farmers to make data-driven decisions. By subscribing to agriculture technology-as-a-service offerings, farmers can access these smart farming tools without significant upfront costs, leading to increased adoption and market growth.
Smart farming techniques enable precision agriculture practices, which involve targeted application of resources such as water, fertilizers, and pesticides. By leveraging IoT sensors and data analytics, farmers can monitor and analyze field conditions with precision, thereby optimizing resource usage. As service providers offer precision agriculture solutions, farmers can adopt these techniques without the need for substantial investments in equipment and technology, driving market growth.
High Capital Costs Associated With Agriculture Technology Hamper the Market Growth
High capital costs associated with agriculture technology hamper market growth. Agriculture technology as-a-service requires specialized equipment and infrastructure, such as sensors, drones, and data analytics tools. The cost of this equipment and infrastructure can be high, particularly for precision agriculture technologies.
Implementing new agricultural technologies requires training and support for farmers to use these technologies effectively. This can add to the initial investment costs, particularly if the technology is complex or requires specialized skills. Small-scale farmers may not have the financial resources to invest in expensive agricultural technologies, and this can limit their ability to compete with larger farms. This can lead to a concentration of the market among larger farms, limiting the potential market size for agriculture technology-as-a-service.
Market Segmentation Analysis
The global agriculture technology-as-a-Service market is segmented based on service type, technology, application, and region.
Easily Accessibility of the Software-as-a-Service Tool
Based on service type, the agriculture technology-as-a-service market is classified into software-as-a-service and equipment-as-a-service.
In 2022, software-as-a-service (SaaS) has a high share in the agriculture technology-as-a-service market. SaaS-based agriculture has emerged as a potential method that can revolutionize the agriculture sector with cutting-edge software solutions. By digitizing the agricultural supply chains, this smart farming method is driving the management of farm finances and operations towards excellence. SaaS in agriculture can make farming sustainable, supply chains efficient, and bring transparency and traceability into food chains across the world.
SaaS solutions are often customizable, which means that they can be tailored to the specific needs of each customer. This makes it possible for farmers and agricultural businesses to implement technology solutions that are perfectly suited to their unique requirements, without having to invest in expensive custom development. Overall, these factors make SaaS an attractive option for farmers and agricultural businesses looking to adopt new technology solutions.
Market Geographical Share
Increasing Adoption of Technology in Agriculture in the North America Region
North America is home to some of the largest agricultural producers in the world, including the United States, Canada, and Mexico. These countries have a long history of agricultural innovation and are early adopters of new technology solutions. As a result, they have a strong demand for agriculture technology-as-a-service solutions that can help them increase efficiency, reduce costs, and improve yields.
The North American market has a high degree of technology adoption like various automation, control & sensing system, etc. beyond the traditional farm machinery and services. As per Farmers’ Global Insights Survey, in 2022, North America lead in adopting global ag-tech with about 61% currently using or planning to adopt it in the next 2 years. Hence the rising adoption of agricultural technology has contributed to North America having the highest share in the agriculture technology-as-a-service market.
Market Key Players
The major global players in the market include 365FarmNet GmbH, AGCO Corporation, Agrivi, IBM Corporation, Accenture, Airbus SE, AT&T Inc., Degree & Company, Hexagon Agriculture, Topocon Corporation
Covid-19 Impact
The pandemic and related lockdown measures disrupted traditional agricultural practices, highlighting the need for digital solutions that enable remote monitoring, data analysis, and collaboration. Agriculture technology-as-a-service providers offering cloud-based platforms, remote sensing, and data analytics experienced increased demand as farmers sought to optimize their operations while adhering to social distancing guidelines.
The agriculture technology-as-a-service market relies on the availability of hardware components, sensors, and devices, which may have been impacted by supply chain disruptions during the pandemic. Delays in manufacturing and logistics could have temporarily hindered the market's growth and deployment of certain technologies. However, the long-term impact is expected to be mitigated as supply chains recover and adapt to the new normal.
AI Impact
AI enables advanced data analytics and predictive modeling, allowing farmers to make data-driven decisions and optimize their farming practices. AI algorithms can analyze large datasets from various sources, such as satellite imagery, weather data, and soil sensors, to provide insights into crop health, disease detection, yield forecasting, and optimal resource allocation. Agriculture technology-as-a-service providers leverage AI to offer data analysis services, providing farmers with valuable information for improving productivity and resource efficiency.
Key Developments
- In November 2022, Small Robot Company, a provider of robotics-based precision agriculture solutions, launched Tom v4, a new generation of monitoring robots. With a ground sample distance of 0.28mm per pixel, Tom v4 is one of the highest-resolution crop-scanning technology.
- In October 2021, Kubota and Topcon collaborated in smart agriculture. This collaboration will work to innovate for future commercialization through research in smart agriculture.
- In October 2021, Naio Technology, an autonomous robot for agriculture in close collaboration with farmers, announced its plans to enlarge its agricultural robotics market. The plan aims to consolidate its worldwide growth and launch a new robot-as-a-service model.
Why Purchase the Report?
- To visualize the global agriculture technology-as-a-Service- market segmentation based on service type, technology, application and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of the agriculture technology-as-a-Service market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global agriculture technology-as-a-Service market report would provide approximately 60 tables, 60 figures, and 200 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
