Farm Management Software Market Trends, Industry & Size 2031

Report Description

Farm Management Software Market Outlook 2031

The global farm management software market size was valued at USD 2.70 Billion in 2022 and is expected to reach USD 6.96 Billion by 2031, expanding at a CAGR of 11.1% during the forecast period, 2023–2031. The growth of the market is attributed to increasing use of cloud computing for real-time agricultural data management.

Farm management software (FMS) entails the application of information and communication technology (ICT), specifically accessing to the Internet of Things (IoT) and big data analytics, for farming practices. The software provides detailed information about key components such as energy, water, and labor that are required for agricultural production to ensure better farming decision.

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On the other hand, phenotyping is used to assess crop development under various settings and understand multiple elements such as nitrogen depletion and soil pH levels that impact crop growth.

Therefore, growing use of site-specific crop management is expected to minimize pesticide use, increase crop yields, and give better data for farm management decisions. However, the use of remote sensing technologies in agriculture is increasing due to wide deployment of drones and GIS technology for better farming practices.

Images recorded by devices equipped with remote sensing technology is used to identify agricultural water stress, monitor weeds and crop diseases, classify crop species, and map soil attributes. The agricultural industry in industrialized nations has become more profitable due to rising use of farm automation.

The COVID-19 pandemic outbreak had negative impact on the market due to disruption of the global supply chain for the agriculture industry. Companies are focused on new tactics for developing more convenient instruments to produce crops as to meet rising food demand globally.

As a result, the FMS, as a key component for farming method, is likely to play a crucial role in the near future. Moreover, the use of FMS is responding to COVID-19's exceptional circumstance by delivering predictive analytics and analytical outputs to aid in efficient crop development and animal health.

Farm Management Software Market Trends, Drivers, Restraints, and Opportunities

• Integration of Artificial Intelligence and Machine Learning technologies in FMS to produce real-time agricultural data management is a major driving factor of the market.
• Increased awareness of the advantages of organic foods and government investment in new agriculture practices are anticipated to fuel the market growth in the coming years.
• Growing number of the global population and rising demand for foods to feed for these growing population present key drivers of the market. 
• In developing countries, there is a lack of technical skills and modern infrastructure for agricultural and farming production. This acts a key restraint that can hinder the market expansion.
• Wide adoption of smart agricultural technology and increasing R&D for improvement of agricultural methods are expected to create lucrative growth opportunity of the market in the coming years.

Scope of Farm Management Software Market Report

The report on the global farm management software market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Farm Management Software Market Segment Insights

Services Segment Analysis

On the basis of services, the farm management software market is fragmented into managed services, assisted professional services, system integration & consulting, and maintenance & support. The managed services segment is further classified as analytics services, data services, and farm operation services.

The assisted professional services segment is further bifurcated into climate information services and supply chain management services. The managed services segment is projected to expand at a considerable CAGR during the forecast period.

Farmers are progressively using smarter and more efficient agricultural technologies to supply high-quality crops to market while maintaining quantity in order to maximize revenues.  On the other hand, the climate information services segment is anticipated to account for a major market share during the forecast period.

The majority of agricultural losses are caused by abnormal weather change, thus, using the service type can provide necessary information about climate condition and allow the farmers to mitigate the problems by precision agriculture equipment used for predictive weather observations.

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Deployment Model Segment Analysis

In terms of deployment models, the market is bifurcated into cloud-based and web-based. The cloud-based segment is expected to account for significant share of the market as users of a cloud-based software solution do not need to buy a server to operate the farm software. Farmers may use a web admin panel to customize the parameters of the data collection system and combine it with other solutions.

Agriculture Type Segment Analysis

Based on agriculture types, the farm management software market is segregated into livestock monitoring, smart greenhouse, precision farming, and others. The precision farming segment is expected to grow at a significant rate during the projected period owing to wide adoption of the software for the precision farming method that includes the use of IoT and ICT for resource conservation and yield optimization.

Using the software, producers can control the quantity of fertilizer applied to a farm field by measuring fluctuations in field conditions and adjusting harvesting tactics as needed. Moreover, the smart greenhouse segment is expected to be a fast-growing segment during the forecast period as plants are grown in a controlled environment using this method.

Regional Outlook

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to constitute a key share of the market during the projected period as companies in the region are progressively spending in research and development in order to offer improved drones for farming production.

However, the market of North America is anticipated to expand at a rapid pace during the forecast period due to growing concerns about water conservation while governments are aggressively giving incentives to encourage the use of smart irrigation.

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