Farm Management Software Industry Overview
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Farm Management Software Market Analysis
The farm management software market is projected to register a CAGR of 11.2% over the forecast period.
- The adoption of farm management software is increasing every year, with farmer needs shifting toward high productivity and return on investments. The development of customized technological systems for research testing, comprising various hardware and software that are easily accessible by the farmers, is accelerating the growth of the farm management software market.
- The growth of the farm management software market is also largely driven by the increasing agricultural activities and increasing need for real-time data for decision-making. Machine learning and Artificial intelligence are becoming the mainstream technologies for various farming applications, such as precision farming, livestock monitoring, fish farming, and smart greenhouse practices. They manage the data exchanged between hardware equipment and individuals to streamline the farm management process.
- Furthermore, governments are taking initiatives to encourage the adoption of modern agricultural technologies. For instance, in October 2021, the UK Department for Environment, Food and Rural Affairs (Defra) and UK Research and Innovation partnered to launch a funding program aimed at driving the adoption of innovative technology in the agricultural sector to improve the profitability of the farmers.
- Innovation is a vital factor in addressing the challenges faced by the agricultural sector. The penetration of artificial intelligence and machine learning has simplified data management activities such as planning, purchasing, feeding, harvesting, marketing, and inventory control. New ideas, technologies, and processes, such as farm management software, will play a key role in helping farmers, growers, and businesses to become more productive, which will result in the growth of the market studied during the forecast period.
Farm Management Software Industry Segments
Farm management software provides the farmer with a holistic view of all farm activities and inputs through a single platform, enabling efficient planning, tracking activities in real time, and making the right decisions.
The farm management software market is segmented by type (local/web-based and cloud-based), application (precision farming, livestock monitoring, smart greenhouse, aquaculture, and other applications), and geography (North America, Europe, Asia-Pacific, South America, and Africa). The report provides market sizing in terms of value (USD million) for the above-mentioned segments.
Farm Management Software Market Trends
Farm Labor Shortage and Decreasing Arable Land
The agriculture labor force has decreased in recent years due to the decreased interest in farming, combined with the aging farmer population. According to the FAO statistics 2021 report, the agriculture, forestry, and fishing sector’s contribution to employment declined from 896,341 thousand people in 2017 to 873,757 thousand people in 2020. Furthermore, the agricultural industry in the US and the UK, among other countries, depend on laborers, and a similar trend is seen across other developed countries as well. On a similar note, Asia-Pacific, where agriculture, forestry, and fishing occupy a significant part of the economy, is witnessing a massive decline in the workforce, nearly a decline of 618,147 thousand people in 2017 to 589,103 thousand people in 2020.
As technologically assisted agriculture needs skilled laborers that are in acute shortage of availability, precision farmers admire and tend to consume software that can be productive, considering the current challenge. This scenario is one of the major factors that drive the market forward. The decreasing arable land and the increasing global population are among the major reasons driving the market.
Further, according to the World Bank, the area of arable land hectares per person decreased from 0.19 hectares in 2017 to 0.18 hectares in 2020. This pushed growers to increase their productivity per hectare of land available to meet the growing demand for food. Additionally, rising issues, such as environmental safety regarding the usage of crop protection chemicals, led the government of various countries to impose strict regulations on the use of crop protection chemicals. All these changes in the agriculture field are boosting the use of farm management software, which helps farmers increase their productivity and the return on investment. As a result, the shortage of farm labor, with the decreasing area of arable land, is expected to drive the rate of adoption of farm management software among farmers, providing a boost to the overall market during the forecast period.
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North America Dominates the Market
In North America, farm management software is anticipated to witness exponential growth in the coming years, owing to the leading industrial automation industry and the adoption of artificial intelligence solutions in the region. The larger farms and awareness among the farmers lead to the quick adoption of modern technologies in developed countries compared to developing nations. This makes the North American region the largest farm management software technologies market.
Over the years, the United States has been at the forefront of deploying precision technology to farming techniques. As per a report by the US Department of Agriculture (USDA), the average farm size in the United States was 441 acres in 2017, which increased and reached 445 acres in 2021. As large-holding farms are more likely to adopt smart agriculture technologies and software. With an increase in the average farm size in the United States and the shortage of farm laborers, large-holding farmers are well-positioned to use farming software to gain data-driven insights for optimizing crop yields.
Furthermore, players and governments in the region are taking initiatives that are further boosting the market. For instance, in 2022, the Government of Canada invested in the digitization of farming to strengthen the sustainability of Canada’s agriculture sector by granting up to USD 419,000 to Mojow Autonomous Solutions Inc., through the Canadian Agricultural Partnership, under the AgriScience Program.
Likewise, the protein industries Canada has partnered with Farmers Edge Inc. and OPI systems and invested USD 21 million in the project of data analysis farmers and collecting farm-level data related to plant and storage health management, which can be applied to develop predictive models that may use artificial intelligence (AI) and machine learning that can help farmers improve production, as well as make better storage and marketing decisions. This is anticipated to increase return on investments in the areas of seed selection, equipment selection, irrigation, and post-harvest management.
Hence, with the integration of digital technologies and artificial intelligence, farmers can manage resources more effectively and efficiently. Therefore, the large-sized farms, high adoption rate by farmers, and government initiatives are boosting the market studied in the region during the forecast period.
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Farm Management Software Market Competitor Analysis
The farm management software market is highly fragmented. Raven Industries, Inc., Trimble Inc., Topcon Corporation, Cropio Group (Syngenta), and Relex Group (Proagrica) are some of the major players operating in the market. The players are investing in new products and improvising their existing ones. They are also involved in partnerships, expansions, and acquisitions.
Farm Management Software Market Top Players
Raven Industries, Inc.
Cropio Group (Syngenta)
Relex Group (Proagrica)
*Disclaimer: Major Players sorted in no particular order
Farm Management Software Market Recent Developments
- May 2022: AGCO acquired JCA Industries to increase engineering and software development capabilities and to accelerate the development of highly automated and autonomous machines.
- April 2022: Deere & Company and GUSS Automation formed a joint venture with an LLC in Kingsburg, Calif. Global Unmanned Spray System (GUSS) is a pioneer in semi-autonomous sprayers for orchards and vineyards.
- April 2021: Cropin Technology Solutions Private Limited, a leading AI and data-led Agtech organization opened its first international office in Amsterdam as part of its expansion plans. This has opened new markets for the company.
Farm Management Software Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
22.214.171.124 Software as a Service (SaaS)
126.96.36.199 Platform as a Service (PaaS)
5.2.1 Precision Farming
5.2.2 Livestock Monitoring
5.2.3 Smart Greenhouse
5.2.5 Other Applications
5.3.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.3.4 South America
126.96.36.199 Rest of South America
188.8.131.52 South Africa
184.108.40.206 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Deere & Company
6.3.2 Trimble Inc.
6.3.3 Raven Industries Inc.
6.3.4 AG Leader Technology
6.3.6 AGCO Corporation
6.3.8 Topcon Corporation
6.3.9 Bayer Crop Science (The Climate Corporation)
6.3.10 Relex Group (Proagrica)
6.3.11 Cropio Group
6.3.12 CropIn Technology Solutions Private Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Farm Management Software Market Research FAQs
What is the study period of this market?
The Farm Management Software Market market is studied from 2017 - 2027.
What is the growth rate of Farm Management Software Market?
The Farm Management Software Market is growing at a CAGR of 11.2% over the next 5 years.
Which region has highest growth rate in Farm Management Software Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Farm Management Software Market?
North America holds highest share in 2021.
Who are the key players in Farm Management Software Market?
Raven Industries, Inc., Trimble Inc., Topcon Corporation, Cropio Group (Syngenta), Relex Group (Proagrica) are the major companies operating in Farm Management Software Market.
Farm Management Software Industry Reports
In-depth industry statistics and market share insights of the Farm Management Software sector for 2020, 2021, and 2022. The Farm Management Software research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Farm Management Software report PDF.