Farming as a Service Market size was over USD 5.3 Billion in 2023 and is set to cross USD 23.6 Billion by the end of 2036, growing at more than 16% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of farming as a service is assessed at USD 6.8 Billion.
Increasing food production globally is a driving factor behind this market expansion. Farming as a service (FaaS) has the potential to change farmers' lives and reshape the food system by advancing much-needed process and product innovations in agriculture. As per the Food and Agriculture Organization, to feed the 9.1 billion people that will inhabit the planet by 2050, total food production would need to increase by about 70%.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
16% |
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Base Year Market Size (2023) |
USD 5.3 Billion |
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Forecast Year Market Size (2036) |
USD 23.6 Billion |
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Regional Scope |
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Service (Farm Management Solutions, Production Assistance, Access to Markets)
Farm management solutions segment is expected to dominate farming as a service market share of over 77% by 2036. The segment growth can be attributed to the expanding landscape of drones. It is predicted that the global drone industry will expand by more than 2% between 2024 and 2028, reaching a market size of around USD 4 billion by that year.
Farm management software helps farmers make accurate agronomic and financial decisions to enhance production and profitability by using high-tech equipment including drones, and satellites which help in gathering exact information about farms and their situations.
Farming as a service (faaS) models are gaining traction, giving farmers access to drone technology that can raise national agricultural standards by helping farmers with various tasks and facilitating improved data management.
Delivery Model (Subscription, Pay-per-Use)
The subscription segment in farming as a service market is estimated to gather the highest CAGR from 2024 to 2036. The major factor for the expansion of the segment is the rise of the subscription economy. Convenience ranked as the primary motivation for subscription service usage globally in 2023, with over 45% of consumers either presently enrolled or expected to do so.
Farming as a service provides cutting-edge, expert-level solutions for agriculture and related services through a subscription model where farmers can rent out equipment for a certain amount of time, which proves to be more economical as compared to the pay-per-use model.
Our in-depth analysis of the farming as a service market includes the following segments:
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Delivery Model |
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End-User |
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Service |
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North American Market Statistics
In farming as a service market, North America region is expected to account for around 45% revenue share by 2036. The market growth in the region is due to the rapid economic expansion. Despite making up less than 4% of the global population, Americans produce and earn more than 15% of global GDP.
The region's economy benefits greatly from the agricultural industry, which may augment the adoption of farming as a service market.
The United States is home to significant international producers of agricultural machinery, who have maintained their dominant positions in the sector, leading to a higher adoption of farming as a service market.
In Canada, agriculture is a major industry and is a worldwide hub for companies looking to expand into the food, agri-tech, and agriculture industries.
APAC Market Analysis
The Asia Pacific region will also encounter huge growth for the farming as a service market during the forecast period and will hold the second position owing to the increasing popularity of precision farming in the region.
The most common farming technique in the area is expected to be digital farming, which is an innovative technique driving improvements in the APAC food supply chain led by government programs in emerging nations that promote the adoption of contemporary precision farming technologies intending to maximize productivity.
Japan is a leader in the field of smart farming, with technology that uses AI and satellite imaging to make data-driven agriculture accessible to even smallholder farmers at reasonable prices.
China has emerged as one of the agriculturally technologically advanced nations, which may fuel the farming as a service market revenue.
A lot of agritech businesses that use the farming-as-a-service (FaaS) model are currently working to develop cutting-edge farming-related technology processes in India to assist farming in becoming a sustainable business and providing farmers a wide range of services at reasonable costs.
It is projected that the top five companies will dominate the farming as a service market by initiating strategic initiatives, and through consistent expansion, partnerships, agreements, and teamwork.
Author Credits: Nilanjana Ray
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