DUBLIN–(BUSINESS WIRE)–The “Global Farming as a Service Market Research Report: Forecast (2021-2026)” report has been added to ResearchAndMarkets.com’s offering.
The Global Farming as a Service Market is likely to grow at a CAGR of around 15.3% during the forecast period 2021-2026.
The market growth primarily attributes to the rising need to adopt advanced agriculture technologies to boost productivity. Farming as a Service helps convert capital expenditure into operational expenditure for customers, thereby making the technique affordable for most small farmers. Also, it is beneficial in enhancing customer retention for service providers.
The research report states that added benefits offered by FaaS, including scalability and lower costs, are likely to contribute significantly to Farming as a Service Market across the globe.
Rising Internet Penetration Across Rural Areas to Boost Market Growth
The fast internet connectivity offers many benefits to the farmers and helps them optimize various inputs in farming activities, such as seeds, fertilizers, and soil. Also, it is beneficial in minimizing waste, which further leads to cost reduction.
Further, with the improving internet connectivity in rural areas, the adoption of FaaS shall increase significantly in the coming future owing to its numerous benefits, such as increased productivity and efficiency through data-driven decisions.
Management of Large Volumes of Data for Better Data-Driven Decision Making Might Hinder Market Growth
Data Management is the biggest challenge faced by many end-users. The data obtained from farms using advanced technologies are very crucial as it helps farmers make appropriate decisions. Hence, the data must be stored & managed properly for enhancing farming efficiency. However, management of a large pool of data is a challenging task that could restrain the market growth.
Impact of the COVID-19 Pandemic on the Market
The outbreak of the COVID-19 pandemic has led to a significant downturn in the general economy. The Agriculture industry witnessed a marginal dip in the growth amidst the pandemic. Also, lockdown and movement restrictions resulted in supply chain disruptions across different verticals, such as forestry, precision farming, and livestock monitoring, affecting the farmer’s income.
However, stable demand for agricultural products and various initiatives taken by governments to provide benefits & security to farmers are the crucial factors fueling the overall market growth during the ongoing pandemic. Hence, these factors shall support the overall market growth in the coming future.
Government Sector Dominated with the Largest Share
Based on the End-user, the market bifurcates into Farmer, Government, Corporates, Financial Institution, and Advisory Bodies. Of these segments, the Government sector acquired the largest share of the Global Farming as a Service Market in the previous few years.
Governments have started adopting FaaS solutions to assist farmers in enhancing productivity & efficiency. It can also help overcome the challenges faced by the farmers, such as lack of access to technology, dependence on rainwater for irrigation, high cost of machinery, and low financing.
Besides these, the influx in the government spending to support the FaaS startups & propel the adoption of pay-per-use services among the farmers is likely to promulgate the growth of the Farming as a Service market globally in the coming years.
Production Assistance Captured the Significant Share
Based on the Solution, the market bifurcates into Farm Management, Production Assistance, and Access to Markets. Of these three, Production Assistance held the largest share of the Global Farming as a Service Market in the past few years.
The segment growth owes to the rising inclination of the farmers toward the farm assistance services, such as rental equipment to use machinery at an affordable rate and utility services, including irrigation & off-grid power service to enhance productivity.
In addition, the surging investment in the startups such as EM3 and the launch of production assistance solutions by major industry players such as John Deere and TAFE positively impact the overall growth of the Farming as a Service market in the forthcoming period.
North America Attained the Largest Market Share
Geographically, North America has dominated the Global Farming as a Service Market in the previous few years. It is due to the presence of industry players with best-in-class equipment and service to offer. Further, surging demand for advanced technology & devices to support the growth of agribusinesses and rising awareness regarding the quality of crops provides lucrative opportunities to drive the market in the North America region.
Key Questions Answered
1. What are the overall market statistics or estimates (Market Overview, Market Size – by Value, Forecast Numbers, Market Segmentation, and Market Shares) of the Global Farming as a Service Market?
2. What is the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Farming as a Service Market?
4. Who are the key competitors, their key strengths & weaknesses, and how they perform in the Global Farming as a Service Market based on a competitive benchmarking matrix?
5. What are the key results derived from the market surveys conducted during the Global Farming as a Service Market study?
Leading Companies Profiled
- John Deere
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