Farm Management Software Market Trends

Growth Drivers

• Growing Population - In mid-November 2022, there were 8.0 billion people on the planet, up from 2.5 billion in 1950, and 1 billion since 2010 and 2 billion since 1998. The population of the world is projected to rise by almost 2 billion people over the course of the next 30 years, from the present 8 billion to 9.7 billion in 2050, with a potential peak of roughly 10.4 billion in the middle of the 1980s. Hence, with the growing population the demand for food is also expected to increase. Therefore, in order to boost the production of agriculture also reducing the wastage of food the demand for farm management software is anticipated to increase.
• Rise in Adoption of Drones by Farmers - In Brazil, about 1,399 drones were registered legally for agricultural use as of August 2019. In the state of Sao Paulo, drone registrations made up more than one third. With each state having more than 149 drones, Minas Gerais and Paraná were among the states with the greatest number of registered agricultural drones. The Normalized Difference Vegetation Index (NDVI) is specialized imaging equipment that is mounted on the drones. The NDVI provides a thorough color breakdown of the plant's health. In order to address any issues swiftly enough to save the plant, this aids farmers in keeping tabs on crops as they develop. Hence, the adoption of drones is high.
• Surge in Government Initiatives to Adopt Modern Technologies - On August 22, 2022, it was announced that research and development projects would receive funding through the Farming Innovation Programme. These projects included artificial intelligence technology to optimise pig welfare, agri-robots to help speed up vegetable harvests, and automation to increase fruit crop yields. About USD 335 million Agricultural Innovation Project of the UK Government included about USD 19 million investment that was estimated to support innovation in horticulture and agriculture in 2022.
• Growth in Adoption of Agtech - Almost 60 percent of farmers in Europe and North America already use or intend to use one or more agtech products in the next two years, leading the world in agtech adoption.
• Upsurge in Agricultural Land Area- In 2020, there were about five billion hectares of agricultural land worldwide, or 38% of the earth's surface.  

Challenges

• Require High Capital Investment - The majority of farmers believe that farm management systems are too expensive and that the price of the necessary hardware, software, and integration services is too high. The cost of GPS-enabled navigation and mapping devices is substantial, and the initial outlay for integrating guidance and sensing equipment with farm management software market is also significant. This limiting issue has a significant effect in developing economies such as China, Japan, and India where there are many marginal farmers and dispersed farmlands. Since these software solutions are complicated to use, farmers would pay extra for the integration of the software with the hardware equipment as well as for further advice. So, it is anticipated that the high cost of farm management equipment and software would impede the farm management software market expansion.
• Presence of Fragmented Farms
• Lack of Knowledge Among Farmers