Farming as a Service Market Trends

Growth Drivers

• Adoption of advanced technologies - Advanced technology such as IoT in agriculture provides farmers with useful tools to maximize every farming operation and also aids in reducing the difficulties caused by things like bad weather, managing farms, using pesticides, and crop quality. As a result, the role of farming as a service in modernizing agriculture is likely to increase.
  
  For instance, the implementation of novel IoT technologies has led to the following outcomes: around 34% decrease in energy expenses, over 5% decrease in irrigation water consumption, and about 1% rise in yield.
• Rising focus on sustainability - FaaS solutions are being adopted by an increasing number of farmers worldwide since they improve farming methods, give farmers more authority, and forge a sustainable future for the sector.
  
  Globally, the number of people searching for sustainable products online has increased by over 70% in the last five years.

Challenges

• High initial setup costs - For small-scale farmers in particular, the switch to technology-driven farming can be expensive and they may not be able to afford the high setup and maintenance expenses associated with agri-tech equipment.
• Data privacy and security concerns - Concerns about data security and privacy are yet another major barrier to the FaaS business that could seriously affect farmers, therefore maintaining data confidentiality is crucial for farms and other precision agriculture-related enterprises.