Farming as a Service Market

Farming as a Service Market

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Raksha

Author:

Raksha Sharma

Amulya

Fact-checked by:

Amulya Agarwal

Shruti

Editor:

Shruti Bhat

The global farming as a service market size was USD 3.65 Bn in 2022 and is likely to reach USD 12.10 Bn by 2031, expanding at a CAGR of 16% during 2023–2031. The market is driven by the rising adoption of advanced technologies in farming practices to boost productivity and cost-efficiency in the agricultural ecosystem.

Farming as a Service (FaaS) is a framework of professional agricultural services and solutions offered on a subscription or pay-per-use basis. These solutions provide a diverse range of agricultural management solutions to boost productivity and cost-efficiency. These farm management solutions help farmers to gain insights into factors related to crop management, scheduling agricultural cycles, supply chain tools, and marketing.

Farming as a Service Market Outlook

Technology is gaining significance in modern smart agriculture practices. FaaS adopts various types of advanced technologies such as GPS, data management software, yield mapping software (YMS), Internet of Things (IoT), machine learning algorithms, and artificial intelligence (AI) to enhance agricultural output by reducing energy consumption and operating costs.

FaaS helps farmers easily access information related to equipment and labor available on a rental basis and services such as power supply and irrigation automation facilities. Technological solutions such as analytics tools, sensors, and drones are used to accumulate data related to soil, temperature, water, and humidity to enhance crop yield and utilize resources in an organized manner and make data-driven decisions to maximize the crop yield.

The market report finds that the COVID-19 pandemic partially affected farming as a service market. The lockdown measures in the various economies restricted the movement of people and goods and as a result, agricultural activities were stalled for a short period of time.

However, after an initial phase of strict lockdown measures, the policymakers relaxed the restrictions on farmers to some extent to keep the agricultural supply chain functioning. The farmers conducted remote monitoring of parameters related to irrigation, pest prevention, and yield cultivation with the help of analytics and farming tools.

Farming as a Service Market Dynamics

Farming as a Service Market Dynamics

Major Drivers

Increasing adoption of technology in crop management practices to enhance agricultural output is expected to drive the market. Agricultural practitioners are incorporating technological innovations such as the Internet of Things (IoT), machine learning algorithms, yield mapping software (YMS), and data management software to improve the yield in a sustainable and cost-effective manner.

Rising awareness among the agricultural community about utilizing natural resources consciously is anticipated to drive the market. Agribusinesses are driven by productivity and cost-effectivity.  

The sensors, data analytics tools, and unmanned aerial vehicles such as drones help farmers to utilize natural resources such as water and soil proportionately. The data analytics tools process the data about soil quality, weather, and germination to formulate effective farming strategies.

Existing Restraints

A lack of interest in adopting advanced technologies in agricultural communities is likely to hinder the market. The majority of farmers are unaware of the functionalities of technological devices and equipment. Digital illiteracy and unwillingness to adopt new technologies in the agricultural community are likely to limit market growth.  

Opportunities

The rising number of startups in the FaaS sector across the world is likely to create significant opportunities for the market. The startups in the FaaS sector are encouraging farmers and agricultural practitioners to deploy technological innovations to boost productivity and cost-effectivity.

Scope of the Farming as a Service Market Report

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

Attributes

Details

Report Title

Farming as a Service Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2022

Historic Data

2016–2021

Forecast Period

2023–2031

Segmentation

Delivery Model (Pay-per-use and Subscription), Service Type (Production Assistance, Farm Management Solutions, and Access to Market), and End-user (Farmers, Corporate, Governments, Financial Institutions, and Advisory Bodies)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast

Key Players Covered in the Report

SGS Société Générale de Surveillance SA; Mahindra & Mahindra Ltd.; Deere & Company; PrecisionHawk; Accenture; Trimble Inc.; Apollo Agriculture; and BigHaat.com

Market Segment Insights

Based on the delivery model, the farming as a service market is bifurcated into pay-per-use and subscription. The subscription segment is expected to expand at a significant growth rate during the projection period owing to the feasibility and affordability provided by the subscription-based service providers. The subscription model provides financial viability to the farmers by letting the agricultural equipment for a specific period. This practice helps farmers to enhance cost-efficiency in farming practices.

On the basis of service type, the global market is segregated into production assistance, farm management solutions, and access to the market. The farm management solutions segment is projected to register a considerable CAGR during the forecast period due to the rising acceptance of precision farming in the agricultural services sector. Precision farming helps farmers in conserving natural resources with the help of sensors, hyperspectral imaging technology, and precision irrigation systems to maximize the yield in an organized manner.

Farming as a Service Market Service Type

Based on end-user, the farming as a service market is segmented into farmers, corporate, governments, financial institutions, and advisory bodies. The farmers segment is expected to register a robust growth rate during the forecast period owing to the feasibility and cost-effectivity provided to farmers through FaaS. The farmers benefit through assistance in weather monitoring, equipment rentals, and agricultural marketing.

Farming as a Service Market End User

Regional Outlook

In terms of region, the global farming as a service market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period due to the rising adoption of digital agriculture and precision farming in the agricultural ecosystem in the region. Agricultural practitioners in North America are increasingly adopting smart agricultural practices to maximize crop yield and optimize resource use in an organized and cost-efficient manner.

The market in Asia Pacific is anticipated to expand rapidly throughout the forecast period due to the rising need for enhancing agricultural output and profitability. The rising population and industrialization in the major economies of the region, India and China, are encouraging farmers to adopt smart agriculture systems to cater to the surging demands for various consumer agricultural products and raw materials.

Asia Pacific is primarily an agricultural region, as the majority of the area is covered by agricultural land. The modern farmers in the region are adopting to smart agricultural practices to enhance productivity and efficiency in an agricultural ecosystem.

Farming as a Service Market Region

Segments

The farming as a service market has been segmented on the basis of

Delivery Model

  • Pay-per-use
  • Subscription

Service Type

  • Production Assistance
  • Farm Management Solutions
  • Access to Market

End-user

  • Farmers
  • Corporate
  • Governments
  • Financial Institutions
  • Advisory Bodies

Region

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

Competitive Landscape

Key players competing in the global farming as a service market are SGS Société Générale de Surveillance SA; Mahindra & Mahindra Ltd.; Deere & Company; PrecisionHawk; Accenture; Trimble Inc.; Apollo Agriculture; and BigHaat.com

These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. For instance,

  • In May 2023, SGS Société Générale de Surveillance SA announced that it has acquired a majority stake in Nutrasource Pharmaceutical and Nutraceutical Services Inc. and its subsidiaries to offer enhanced farming services to consumers. The alliance is aimed at providing full regulatory support, clinical trial management, and testing services for the development of farming as a service offering.

Farming as a Service Market Key Players

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Farming as a Service Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Farming as a Service Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Farming as a Service Market - Supply Chain
  4.5. Global Farming as a Service Market Forecast
     4.5.1. Farming as a Service Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Farming as a Service Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Farming as a Service Market Absolute $ Opportunity
5. Global Farming as a Service Market Analysis and Forecast by End Users
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by End Users
     5.2.2. Y-o-Y Growth Projections by End Users
  5.3. Farming as a Service Market Size and Volume Forecast by End Users
     5.3.1. Farmers
     5.3.2. Corporate
     5.3.3. Governments
     5.3.4. Financial Institutions
     5.3.5. Advisory Bodies
  5.4. Absolute $ Opportunity Assessment by End Users
  5.5. Market Attractiveness/Growth Potential Analysis by End Users
6. Global Farming as a Service Market Analysis and Forecast by Region
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Region
     6.2.2. Y-o-Y Growth Projections by Region
  6.3. Farming as a Service Market Size and Volume Forecast by Region
     6.3.1. North America
     6.3.2. Latin America
     6.3.3. Europe
     6.3.4. Asia Pacific
     6.3.5. Middle East and Africa (MEA)
  6.4. Absolute $ Opportunity Assessment by Region
  6.5. Market Attractiveness/Growth Potential Analysis by Region
  6.6. Global Farming as a Service Demand Share Forecast, 2019-2026
7. North America Farming as a Service Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
  7.2. North America Farming as a Service Market Size and Volume Forecast by Country
     7.2.1. U.S.
     7.2.2. Canada
  7.3. Absolute $ Opportunity Assessment by Country
  7.4. North America Farming as a Service Market Size and Volume Forecast by End Users
     7.4.1. Farmers
     7.4.2. Corporate
     7.4.3. Governments
     7.4.4. Financial Institutions
     7.4.5. Advisory Bodies
  7.5. Basis Point Share (BPS) Analysis by End Users
  7.6. Y-o-Y Growth Projections by End Users
  7.7. Market Attractiveness/Growth Potential Analysis
     7.7.1. By Country
     7.7.2. By Product Type
     7.7.3. By Application
  7.8. North America Farming as a Service Demand Share Forecast, 2019-2026
8. Latin America Farming as a Service Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Latin America Average Pricing Analysis
  8.2. Latin America Farming as a Service Market Size and Volume Forecast by Country
      8.2.1. Brazil
      8.2.2. Mexico
      8.2.3. Rest of Latin America
   8.3. Absolute $ Opportunity Assessment by Country
  8.4. Latin America Farming as a Service Market Size and Volume Forecast by End Users
     8.4.1. Farmers
     8.4.2. Corporate
     8.4.3. Governments
     8.4.4. Financial Institutions
     8.4.5. Advisory Bodies
  8.5. Basis Point Share (BPS) Analysis by End Users
  8.6. Y-o-Y Growth Projections by End Users
  8.7. Market Attractiveness/Growth Potential Analysis
     8.7.1. By Country
     8.7.2. By Product Type
     8.7.3. By Application
  8.8. Latin America Farming as a Service Demand Share Forecast, 2019-2026
9. Europe Farming as a Service Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Europe Average Pricing Analysis
  9.2. Europe Farming as a Service Market Size and Volume Forecast by Country
     9.2.1. Germany
     9.2.2. France
     9.2.3. Italy
     9.2.4. U.K.
     9.2.5. Spain
     9.2.6. Russia
     9.2.7. Rest of Europe
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Europe Farming as a Service Market Size and Volume Forecast by End Users
     9.4.1. Farmers
     9.4.2. Corporate
     9.4.3. Governments
     9.4.4. Financial Institutions
     9.4.5. Advisory Bodies
  9.5. Basis Point Share (BPS) Analysis by End Users
  9.6. Y-o-Y Growth Projections by End Users
  9.7. Market Attractiveness/Growth Potential Analysis
     9.7.1. By Country
     9.7.2. By Product Type
     9.7.3. By Application
  9.8. Europe Farming as a Service Demand Share Forecast, 2019-2026
10. Asia Pacific Farming as a Service Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Asia Pacific Average Pricing Analysis
  10.2. Asia Pacific Farming as a Service Market Size and Volume Forecast by Country
     10.2.1. China
     10.2.2. Japan
     10.2.3. South Korea
     10.2.4. India
     10.2.5. Australia
     10.2.6. Rest of Asia Pacific (APAC)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Asia Pacific Farming as a Service Market Size and Volume Forecast by End Users
     10.4.1. Farmers
     10.4.2. Corporate
     10.4.3. Governments
     10.4.4. Financial Institutions
     10.4.5. Advisory Bodies
  10.5. Basis Point Share (BPS) Analysis by End Users
  10.6. Y-o-Y Growth Projections by End Users
  10.7. Market Attractiveness/Growth Potential Analysis
     10.7.1. By Country
     10.7.2. By Product Type
     10.7.3. By Application
  10.8. Asia Pacific Farming as a Service Demand Share Forecast, 2019-2026
11. Middle East & Africa Farming as a Service Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Middle East & Africa Average Pricing Analysis
  11.2. Middle East & Africa Farming as a Service Market Size and Volume Forecast by Country
     11.2.1. Saudi Arabia
     11.2.2. South Africa
     11.2.3. UAE
     11.2.4. Rest of Middle East & Africa (MEA)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Middle East & Africa Farming as a Service Market Size and Volume Forecast by End Users
     11.4.1. Farmers
     11.4.2. Corporate
     11.4.3. Governments
     11.4.4. Financial Institutions
     11.4.5. Advisory Bodies
  11.5. Basis Point Share (BPS) Analysis by End Users
  11.6. Y-o-Y Growth Projections by End Users
  11.7. Market Attractiveness/Growth Potential Analysis
     11.7.1. By Country
     11.7.2. By Product Type
     11.7.3. By Application
  11.8. Middle East & Africa Farming as a Service Demand Share Forecast, 2019-2026
12. Competition Landscape
  12.1. Global Farming as a Service Market: Market Share Analysis
  12.2. Farming as a Service Distributors and Customers
  12.3. Farming as a Service Market: Competitive Dashboard
  12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     12.4.1. SGS Société Générale de Surveillance SA
     12.4.2. Mahindra & Mahindra Ltd.
     12.4.3. Deere & Company
     12.4.4. PrecisionHawk
     12.4.5. Accenture
     12.4.6. Trimble Inc.
     12.4.7. Apollo Agriculture
     12.4.8. BigHaat.com

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