Farm Management Software Market size is expected to surpass USD 24.24 Billion by the end of 2035, growing at a CAGR of 17.70% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of farm management software was over USD 3.43 Billion.The growth of the market can be attributed to growing yield losses. With absent crop protection, many important food crops could have yield losses of up to about 69%. Weeds are the main cause of yield losses, accounting for approximately 29% of losses, followed by animal pests and diseases, which cause losses of about 22% and 16%, respectively. Pests cost the global economy a total of about USD 289 billion annually by causing approximately 19-40% of yield losses worldwide. Hence, farm management software market aids farmers and growers in making agronomic choices that reduce yield losses under challenging circumstances and enhance yield amounts and quality under ideal circumstances.
Farm management software is ideally suited to assisting farmers and growers in managing their agronomic practices as a result of data management's capacity to gather, record, and synthesize large amounts of information from numerous sources (such as weather stations, soil monitors, images from satellites and drones, local, regional, and federal agricultural databases, and more). Moreover, growing demand for food is also estimated to boost need to adopt farm management software. The globe would need to feed an additional of about 2 billion people by 2030, with approximately 89% of them residing in developing nations; and the world would need to increase food output by about 59-70% by 2050 to feed more than nine billion people.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
17.70% |
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Base Year Market Size (2022) |
USD 3.43 Billion |
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Forecast Year Market Size (2035) |
USD 24.24 Billion |
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Regional Scope |
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Application (Precision Farming, Livestock Monitoring, Smart Greenhouse, Aquaculture)
The global farm management software market is segmented and analyzed for demand and supply by application into precision farming, livestock monitoring, smart greenhouse, and aquaculture. Out of which, the precision farming segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing adoption of precision farming. Larger farms in the US are using precision agriculture more frequently and implementing strategies despite technological obstacles. In the US, about 14–40% of big farms in 2022 used guidance systems, variable-rate technology, or another type of precision technology. However, only a small percentage of America's small farms, which account for more than 85% of all American farms, have embraced precision agriculture. Hence, government are encouraging farmers to adopt precision farming which would further boost the farm management software market growth. The idea of precision agriculture makes it feasible to maximize crop growth and health, apply the appropriate amount of inputs where they are required, and increase yield and ROI. Moreover, this method lowers input usage and related costs. Reducing input utilization lowers pollution, agricultural waste, and carbon emissions. Hence, soil fertility is unaffected. Therefore, the preference for precision farming is growing.
Type (Local/Web-Based, Cloud-Based)
The global farm management software market is also segmented and analyzed for demand and supply by type into local/web-based, and cloud-based. Amongst which, the cloud-based segment is anticipated to have the significant growth over the forecast period. Cloud has proved to be very effective in agriculture. It has made gathering data easier for experts in order to guide farmers on what to plant next. They also receive regional weather information and forecasts for the coming days. Based on the data they receive via cloud computing; farmers could make decisions about their crops. Hence, this saves crops from spoiling. Farmers in rural areas have been exploited for a long time as a result of middlemen that prevent them from selling their produce directly to the consumer. However modern technology, including cloud computing, has made it possible for farmers to sell directly to customers and retailers.
Our in-depth analysis of the global farm management software market includes the following segments:
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By Type |
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By Application |
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APAC Market Statistics
The share of farm management software market in Asia Pacific, amongst the market in all the other regions, is projected to have the highest growth by the end of 2035, backed by growing population along with growing demand for food in this region. However, a population shift away from agriculture is a foreseeable aspect of contemporary economic development. The percentage of people living in rural areas in Asia region has decreased significantly from 80% in 1970 to 52% in 2020 and is expected to drop to 38% by 2050 owing to the lure of higher-paying manufacturing and service jobs in cities. Hence, agriculture is becoming more dependent on female laborers, who frequently have less access to resources and financing, as more males migrate to urban areas. Moreover, to boost labor productivity and provide smallholder farmers in Asia with access to agricultural machine services, new strategies have been developed. Farmers have been made more productive while using less water and chemical inputs since of improved technologies and methods in this region. Hence, this factor is estimated to boost the growth of the farm management software market software in this region.
North American Market Forecast
The North America farm management software market is estimated to be the second largest, to have the highest growth. Owing to the region's leading industrial automation industry and widespread use of artificial intelligence products, the market has been expanding. In industrialized countries versus underdeveloped countries, contemporary technology is adopted more quickly owing to larger farms and farmer awareness. The market for farm management software market technology is thus growing in the North American continent.
Europe Market Forecast
Additionally, the farm management software market in Europe region is also estimated to have the significant growth over the forecast period. The growth of the market in this region can be attributed to growing investment in digitalizing agriculture in this region. The funding was intended to advance the creation and application of digital technologies that may support sustainable agriculture, precision farming, and more effective food production. Moreover, the agriculture industry has been transformed by the Internet of Things (IoT) technology, which gives farmers access to real-time data on machine and environmental conditions. With the use of these data, farmers could make wiser judgements and enhance all facets of their business, such as crop farming and livestock management.
Sonata Software and AGRIVI collaborated to promote global agriculture ecosystem digitalization initiatives. Together, Sonata and AGRIVI were thought to be able to provide customers in the US, Europe, and the Middle East with the best digital agriculture solutions on the market owing to Sonata's power and influence as well as AGRIVI's knowledge of the farm management sector.
The Watson Decision Platform for Agriculture is being implemented with farmers by Heifer International, IBM Corporation, and CATIE, a global organisation focused on inclusive and sustainable human well-being in Latin America. The solution creates a thorough dashboard customised to a farmer's land by fusing predictive AI technology with geospatial, weather, environmental, and IoT field data.
Author Credits: Abhishek Verma
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