Farm Management Software Market

[319 Pages Report] The global farm management software market is estimated to grow from USD 3.0 billion in 2023 to USD 5.1 billion by 2028 at a CAGR of 11.1% during 2023–2028. The growth of the farm management software market is largely driven by the increasing agricultural activities and the growing need for real-time data for decision-making. Artificial intelligence and machine learning are used in multiple farming applications including precision farming, livestock monitoring, precision aquaculture, smart greenhouse, vertical and indoor farming practices. Rapid urbanization and rising population, paired with water shortage issues and increased climate changes prove to be a driving factor for this market.

The impact of recession is likely to have a low-to-medium impact on the farm management software market. Even the prices for farming equipment are increasing; an increase in the need for software arises due to labor shortages for on sight production management in many parts of the world. Investment scenario in precision farming-related technology might witness a slight dip in the year 2023 due to glooming macro and micro factors across major developed regions. However, the precision farming segment is expected to provide attractive growth and investment opportunities from a medium-to-long-term perspective. The dairy farm segment within precision livestock is expected to have minimum impact, whereas precision livestock segments such as poultry and swine farm would be witnessing higher pain points in the short-to-medium time interval.

To know about the assumptions considered for the study, Request for Free Sample Report

Market Dynamics:

Driver: Increasing implementation of big data analytics in agriculture

Big data provides farmers with granular data on rainfall patterns, water cycles, fertilizer requirements, and more. Farm operators tend to make smarter decisions in aspect of crop health, growth, monitoring and appropriate harvest time for better profitability. Data analytics facilitates ease in precision agriculture or smart farming, which helps in cutting-down costs and increase yields. Big data helps in boosting the agricultural supply chain's efficiency by providing effective tracking and optimization options for delivery truck routes. This makes the food delivery cycle convenient to track from producer to market. It makes sure that food will not go to waste in the process.

Farm offices gather information regarding crop yields, fertilizer requirement, soil mapping, weather patterns, and animal health. This data helps to make appropriate decisions with regards to costs and yields. The use of water sensors helps to facilitate the ease in digital agriculture as to how the water usage should be planned for optimal usage of water. This can be particularly helpful in drought-prone areas. By combining AI with big data, farmers can get valid recommendations based on well-sorted real-time information on crop needs. This, in turn, will take away the guesswork and enable more precise farming practices such as irrigation, fertilization, crop protection, and harvesting.

Restraint: Requirement of high initial capital investment

According to the majority of farmers, farm management solutions are not cost-effective, and the cost required for hardware, software, and integration services is too high. The GPS technology-enabled devices for navigation and mapping applications are expensive, and the integration of guidance and sensing devices with farm management software and databases requires high initial investments. In developing countries such as China, Japan, and India, the impact of this restraining factor is high since the farmlands are fragmented, and the number of marginal farmers is high. Farmers need to pay an additional cost for the integration of software with the hardware devices and also for further consultation to use these software solutions as they are complex to use. The high cost of devices and software used for farm management is thus expected to restrain the growth of the farm management software market

Opportunity: Increasing use of drones and remote sensing for farm management

With the assistance of drones, farmers can track the crop density, moisture, water requirement and fertilizer requirement across the field remotely. They can also keep track of crop health, and growth with high precision. The accurate satellite data with higher resolution helps to deliver better results. Drones are also helpful in identifying the presence of pests, insects, and any irregularity in the fields. It can also track the invasion of rhodes and pests, which can be prevented by applying insecticide in hazardous areas using drones while reducing the likelihood of direct exposure leading to chemical poisoning.

Even though drones are easy to use and can collect large amounts of data within short time frames, using them constantly can be a challenge as they do not come cheap. Drones are almost helpless where mapping or monitoring of large areas is required, and it is better to complement the technology with satellite monitoring among already mapped areas where specific zones need to be cross-checked.

Remote sensing involves aerial or satellite scans of the Earth’s surface. For medium spatial resolution land remote sensing data gathered from space, Landsat is a better alternative. The Landsat 8 is an observation satellite that orbits Earth every 16 days. It records nine visible light bands helping assess crop health, nutrient content, insect infestation, or moisture. Not only does Landsat 8 record visible light, but also the one invisible to the human eye—Thermal Infrared Radiation (TIR). This increased usage of drones and remote sensing in agricultural fields can help create opportunities to strive for the growth of this market.

Challenge: Large presence of fragmented farms in developing countries

There are over 570 million farms around the world, and 95% of all these farms are less than 5 hectares in size. Developing countries such as India, China, and African countries account for a large number of fragmented farmlands. India is characterized by small farms, as more than 80% of farms in the country are less than 5 acres in size. Farmers in these countries are reluctant to use farm management software solutions mainly due to high initial investment for implementing farm management software solutions, low ROI, availability of cheap labor, and limited adoption of modern farming practices such as precision farming, smart greenhouse, and livestock monitoring. The majority of farmers in these countries do not have access to fundamental precision farming technologies, such as yield monitoring, guidance technology, and variable rate technology. These factors are challenging the growth of the farm management software market in these countries.

Precision farming segment likely to dominate overall farm management software market during the forecast period

The precision farming application held the largest share in farm management software market in 2022 and similar trend is expected to continue during the forecast period. Increasing demand for food arising from the rapid increase in population has prompted many farmers to adopt farm management software and other precision farming techniques. By using farm management software, the productivity of the farm can be enhanced by optimization of farming processes and conservation of resources. Processes such as site inspections and the application of fertilizers not only consume a lot of effort but also incur high costs. Farmers are adopting farm management software to reduce the cost incurred in such processes and obtain higher returns.

On-cloud offering holds the largest market share during the forecast period

On-cloud system tends to hold the largest market share during the forecast period due to increased convenience of data storage on a single cloud system for any given field by any farm operator across the globe. The maintenance and infrastructure cost is reduced when on-cloud systems are adopted; due to which its demand increases.

Small farms segment is expected to witness higher CAGR growth during the forecast period

The small farm segment of the farm management software market will grow at a higher rate during the year 2023 – 2028. Due to reduction in the prices of such farm management software as well as various technologies related to it, even the farmers in small farms have started to adopt these technologies, hence, resulting in the growth of this market segment.

APAC likely to witness highest growth in overall farm management software market between 2023 and 2028

Asia Pacific is likely to be the fastest-growing farm management software market during the forecast period. The growth prospects of the market in Asia Pacific are very high as farm management software is still a nascent technology in many countries in the region. The Asia Pacific region comprises many emerging economies, such as China, India, and Indonesia, to name a few. Relatively high availability of inexpensive labor, smaller farm sizes, low internet connectivity, and lack of awareness were responsible for the low adoption rate of farm management software initially. India has an average farm size of less than five acres. However, farmers frequently adopted farm management software and other smart farming techniques to increase productivity, making Asia Pacific the fastest-growing market for farm management software globally.

To know about the assumptions considered for the study, download the pdf brochure

Key Market Players

The farm management software market is dominated by a few globally established players such as Trimble Inc. (US), Raven Industries (US), Topcon (US), Granular Inc. (US), AGRIVI (UK).

These companies have adopted both organic and inorganic growth strategies such as product launches and developments, partnerships, contracts, expansions, and acquisitions to strengthen their position in the market.

Get online access to the report on the World's First Market Intelligence Cloud

• Easy to Download Historical Data & Forecast Numbers
• Company Analysis Dashboard for high growth potential opportunities
• Research Analyst Access for customization & queries
• Competitor Analysis with Interactive dashboard
• Latest News, Updates & Trend analysis

Request Sample

Click on image to enlarge

Scope of the Report

This research report categorizes the Farm Management Software market, by farm size, farm production planning, offering, application and region.

Based on Farm Size:

• Small
• Medium
• Large

Based on Farm Production Planning:

• Pre-production Planning
• Production Planning
• Post-production Planning

Based on Offering:

• On-Cloud
• On-premise
• Data Analytics Services

Based on the Application:

• Precision Farming
• Precision Livestock
• Precision Aquaculture
• Precision Forestry
• Smart Greenhouses
• Others (Vertical Farming, Floriculture, Cannabis, Indoor Farming)

Based on the Region:

• Americas (North America, South America)
• Europe
• Asia Pacific
• RoW (Africa, Middle East)

Recent Developments

• In January 2023, AGRIVI partnered with Agrowex to offer premium digital agriculture solutions to South African countries. AGRIVI’s digital agriculture solutions along with AGROWEX’s knowledge and presence are expected to lead to a transformation in digital agriculture in countries such as South Africa, Botswana, Namibia, Angola, Zambia, Malawi, Mozambique, Swaziland, Lesotho, and Zimbabwe.
• In December 2022, AKVA Fusion aims to connect all parts of the industry, the new and the old, and create a new standard for communication, control, and data collection across platforms. Through AKVA Fusion, the AKVA ecosystem enables a set of APIs that enable seamless integration across solutions in the industry. The APIs make it possible to integrate AKVA Fishtalk and 4th generation AKVA connect with other digital solutions.
• In November 2022, AGRIVI launhed Field Ops, which is a new module, developed to provide an integrated overview of farmer’s fields, including growth, nutrition, yield, harvest. 
• In October 2022, Trimble Inc. launched its digital displays – GFX-1060 and GFX-1260 for precision agriculture.  This helps farm operators to view to complete in-field view and operations efficiently.
• In August 2022, Trimble and CLAAS entered into a strategic alliance to develop a next-generation precision farming system for CLAAS agriculture equipment. The alliance is expected to result in the combination of CLAAS' machine interface and Trimble's guidance capabilities into one common in-cab user experience.
• In March 2022, Granular Inc. enhanced its Granular Insights by integrating an additional Map Tab within the Granular Insights web application and select 2022 Crop Season from the dropdown menu in the Field List. It surfaces weather data within Granular Insights, so you can monitor how your crop is progressing or whether or not a farmer can work a field on a given day. It gives precipitation data, data of precipitation since planting, etc.
• In March 2022, AGRIVI partnered with Eviit GmbH (Germany) in order to expand its presence in Germany.
• In October 2021, AGRIVI launched SpaceSense, which delivers the most accurate precision farming maps for precision farming.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst