Global Agriculture Technology-as-a-Service Market - 2023-2030

Market Overview

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 2030. The market is growing at a CAGR of 21.5% during the forecast period 2023-2030.

Farm management software is gaining popularity as it streamlines operations, improves efficiency, and enhances decision-making on farms. The as-a-Service model provides farmers with access to cloud-based farm management software, allowing them to digitize their operations and benefit from advanced features such as crop planning, inventory management, and financial analysis. The convenience and scalability offered by the software as a service drive market growth.

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 Dynamics

Rising Global Population is Driving the Market Growth

The global population is predicted to reach 8.5 billion in 2030 and to increase further to 9.7 billion in 2050 and 10.4 billion by 2100, according to the United Nations. This population growth creates a greater demand for food to ensure global food security. Agri-TaaS solutions play a crucial role in meeting this increased demand by enhancing agricultural productivity, optimizing resource utilization, and improving crop yields.

With a growing population, there is a need for agricultural systems to become more efficient in producing food. Agri TaaS technologies enable farmers to adopt precision farming practices, leveraging data-driven insights, remote sensing, and automation to optimize crop management. This leads to improved efficiency in resource allocation, reduced waste, and increased productivity. Hence, the rising global population is driving the market growth of the agriculture technology-as-a-service market.

The Rising Need For Precision Agriculture Fuels the Growth of the Agriculture Technology-as-a-Service Market

Due to the rising food demand, the need to lessen agriculture's negative environmental effects, and the rising costs of inputs like water and fertilizer, the adoption of precision agriculture is growing. For instance, Arya.ag, India's largest integrated grain commerce platform, announced on November 2022 that it had made a strategic investment in the SaaS company Assert AI to develop products for the agricultural industry, which specializes in computer vision.

AgriTech-as-a-Service solutions can provide farmers with access to the latest precision agriculture technologies and tools on a subscription or pay-per-use basis. This can be particularly beneficial for small and medium-sized farmers who may not have the resources to purchase and maintain their technology infrastructure. 0verall, the need for precision agriculture is a key driver for the growth of the AgTech market.

Infrastructure Limitations Hamper the Growth of the Agriculture Technology-as-a-Service Market

In many rural areas where agriculture is a primary industry, there may be limited access to high-speed internet, mobile networks, and other digital infrastructure that is necessary for the effective use of AgriTech-as-a-Service solutions. Without reliable and high-speed internet connectivity, farmers may be unable to access cloud-based applications, data analytics tools, and other online resources that are essential for precision agriculture. This can limit the ability of farmers to optimize their inputs, monitor their crops in real-time, and make informed decisions about when to apply inputs or harvest their crops.

In addition to digital infrastructure limitations, there may also be physical infrastructure limitations that can impact the adoption of AgriTech-as-a-Service solutions. For example, in some areas, there may be limited access to electricity, which can make it difficult to power sensors, drones, and other precision agriculture tools. Overall, infrastructure limitations can be a significant restraint on the growth of the agriculture technology-as-a-service market.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario, and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it to pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

AI Impact

AI enables advanced analytics and machine learning algorithms to process large amounts of data from various sources such as sensors, drones, and satellite imagery. This data-driven approach empowers farmers to make informed decisions regarding crop management, irrigation, pest control, and resource allocation, leading to improved productivity and optimized yields. AI algorithms can analyze historical and real-time data to make predictions and recommendations. Artificial intelligence (AI)and robotics enable the development of autonomous machinery and robotic systems for various farming tasks.

Segment Analysis

The global agriculture technology-as-a-Service market is segmented based on service type, technology, application, and region.

Yield Mapping & Monitoring Held the Highest Share

Based on application, the Agriculture Technology-as-a-Service market is classified into yield mapping & monitoring, soil management, crop health management, navigation & positioning, and others.

In 2022, yield mapping and monitoring has a high share in the agriculture technology-as-a-service market because it plays a critical role in helping farmers optimize their crop yields and increase their profitability. Yield mapping and monitoring involves using sensors and other technologies to gather data on crop yields and other factors that affect plant growth, such as soil moisture levels, nutrient levels, and pest infestations. According to FAO, increasing total food production by almost 70% between 2005-2007 and 2050 would be necessary to feed a global population of 9.1 billion people by that time. Hence, there is a growing need for increasing crop yield.

With the help of yield mapping and monitoring, farmers can analyze their crops and make more informed decisions about how to manage their crop production. They can also use this data to make more accurate predictions about crop yields, which can help them plan their harvests and marketing strategies. Overall, yield mapping and monitoring is a key technology in the agriculture industry that can help farmers increase their efficiency, reduce waste, and improve their profitability, making it a valuable area for investment and growth in the agriculture technology-as-a-service market.

Geographical Analysis

The Large Agricultural Sector in the Asia-Pacific Region

In 2022, the Asia Pacific region has a significant share in the agriculture technology-as-a-service market due to a combination of factors, including a large agricultural sector, increasing adoption of new technologies, and growing demand for more efficient agricultural practices. The Asia Pacific region is home to a large and diverse agricultural sector, with countries such as China, India, Indonesia, and Vietnam. According to Asia Development Bank, 75% of farmers in Asia are reliant on agriculture. By 2050, crop productivity is expected to decline by 15% to 20% (or perhaps 50% in some crops) due to climate change.

This creates a significant market for agriculture technology services that can help farmers optimize their production and improve their yields. Secondly, the region is seeing increasing adoption of new technologies in agriculture, including precision farming, drone technology, and IoT-enabled sensors. Hence, the large agricultural sector has contributed to the Asia Pacific region's high share in the agriculture technology-as-a-service market.

Competitive Landscape

The major global players include: 365FarmNet GmbH, AGCO Corporation, Agrivi, IBM Corporation, Accenture, Airbus SE, AT&T Inc., Degree & Company, Hexagon Agriculture and Topocon Corporation.

Why Purchase the Report?

• To visualize the global agriculture technology-as-a-Service market segmentation based on service type, technology, application, and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous agriculture technology-as-a-Service market-level data points all for 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 102 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies