Market Overview:
The global farming as a service market size is expected to reach USD 14.63 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.9% during the forecast period.
Farming as a Service (FaaS) is a model where farmers can access advanced, professional, and user-friendly agricultural solutions on a pay-per-use or subscription basis. It is a set of professional services that provide a range of agriculture management solutions. In addition, it provides farmers with a range of services, including precision farming tools, utility and labor services, analytics, equipment rentals, and access to a wider audience and markets, among other benefits. Additionally, FaaS offers farmers convenient access to crop production, timely access to labor, the ability to rent equipment for specific periods, as well as utility services such as irrigation and power supply.
Growth Factors and Opportunities:
Technological advancements like precision agriculture, IoT, AI, and robotics are propelling the market CAGR for farming as a service. Additionally, the need for fresh and ecologically obtained food increases considerably as the urban population continues to rise. Moreover, it increases the need for FaaS providers to use their technologies to improve farming methods and boost efficiency.
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Key Participants:
Major players in the market are making significant investments in research and development to broaden their product offerings, leading to further growth in the market. Some of the major players participating in the farming as a service market:
- Accenture
- Apollo Agriculture
- BigHaat
- EM3
- IBM
- ITC
- John Deere (Deere & Company)
- Mahindra & Mahindra Ltd.
- Precision Hawk
- Taranis
- Trimble Inc.
Market Segmentation:
The farming as a service market is mainly segmented based on service type, delivery mode, end user, and region. Based on service type analysis, in 2023, the farm management solutions segment led the market with a substantial share. Farm management software provides a wide range of tools to improve farm operations, increase productivity, and enhance decision-making capabilities.
Moreover, according to the delivery mode analysis, in 2023, the subscription delivery model segment accounted for the largest market share. It helped by providing a trustworthy and steady source of new fruits and vegetables, making transportation and delivery more efficient.
Farming as a Service Market, Service Type Outlook (Revenue – USD Billion, 2019-2032)
- Farm Management Solutions
- Production Assistance
- Access to Markets
Farming as a Service Market, Delivery Model Outlook (Revenue – USD Billion, 2019-2032)
- Subscription
- Pay-per-use
Farming as a Service Market, End-User Outlook (Revenue – USD Billion, 2019-2032)
- Corporate
- Financial Institutions
- Advisory Bodies
- Farmers
- Governments
Farming as a Service Industry Developments:
- July 2024: Taranis Launches Ag Assistant with Generative AI
Taranis introduced Ag Assistant, an innovative tool that leverages generative AI to provide agriculture retailers and producers with field-specific insights and actionable recommendations. This technology aims to revolutionize farm management decisions by delivering real-time, data-driven advice that enhances productivity and optimizes operations on the farm. - September 2023: Trimble and AGCO Form Joint Venture for Precision Agriculture
Trimble and AGCO formed a joint venture to enhance global mixed fleet precision agriculture solutions. The collaboration focuses on integrating advanced technologies to boost farming productivity and sustainability. By combining their expertise, the companies aim to provide comprehensive solutions that support farmers in improving efficiency and reducing environmental impact worldwide. - March 2024: FMC India Launches Arc Farm Intelligence Platform
FMC India introduced the Arc Farm Intelligence Platform, designed to optimize crop yields and promote sustainability through precision agriculture. The platform integrates various technologies to help Indian farmers make data-driven decisions, improving both farm productivity and environmental sustainability.
The growth of the farming as a service market is driven by rapid automation adoption in farming applications. Farmers are increasingly embracing automation technologies such as sensors, electronic actuators, and industrial IoT to optimize farming processes, reduce labor costs, and boost productivity. The growing adoption of mechanical development tools in agriculture is enabling the development of advanced autonomous systems for tasks like weeding, watering, and harvesting.