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The crop production software market size is projected to increase by USD 2.22 billion, at a CAGR of 17.59% between 2023 and 2028. Market growth hinges on several factors: the increasing adoption of precision farming techniques, the mounting pressure to meet global food demand amidst resource constraints, and rising demands for efficient data management in agriculture. Precision farming enhances productivity by optimizing resource use and reducing environmental impact through precise application of inputs. Concurrently, global food demand challenges necessitate innovative agricultural practices to ensure sustainable food production. Moreover, the escalating need for data management solutions in farming supports decision-making processes and enhances operational efficiency. These dynamics underscore a transformative shift towards technology-driven agriculture, where precision, sustainability, and data-driven insights play pivotal roles in addressing global food security challenges and driving market growth in the agricultural sector.
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The market is pivotal for modern agribusinesses, enabling farmers, ranchers, and growers to optimize food production amidst challenges like urbanization and climate change. Emphasizing sustainable agriculture, the industry integrates real-time data from smart greenhouses, sensors, and IoT devices to monitor microclimate conditions. Data collection and analysis aid in predictive modeling for efficient monitoring and control. Companies like Astrocast and Avirtech leverage Satellite IoT (SatIoT) and satellite imaging for precise insights, while artificial intelligence and machine learning refine planting schedules in both developed and developing regions. Government investments bolster technological advancements, ensuring robust solutions for sustainable crop management.
Rising pressure to meet global food demand with limited resources available is the key factor driving market growth. According to the World Bank data, the global population grew from 7.82 billion in 2020 to 7.95 billion in 2022. Rising at the same rate, the global population is expected to reach 8.6 billion by 2030, according to the United Nations. The increasing global population will lead to boosted demand for food, which will have to be supplied using the limited resources available, like land and water.
Additionally, the use of crop production software will help in better yield management in agriculture. Different mathematical models in crop production software are used to predict the yield of a crop. The software assists in increasing yields, which will result in better food security for the rising global population. Therefore, the increased need to adopt technological measures for farmers to cater to the rising global demand for food will drive market growth during the forecast period.
Strategic partnerships and acquisitions among market players are the emerging trends shaping the market. Align with market trends and analysis, companies are undertaking acquisitions and establishing strategic partnerships with stakeholders in the market, including farmers. Strategic partnerships and acquisitions help market players grow their geographic reach and enable them to gain access to the latest technological expertise. Furthermore, acquisitions allow vendors to explore potential new markets and generate revenue from a wider customer base.
For example, in October 2023, Zuari FarmHub announced its collaboration with CropX Technologies Ltd. to boost precision farming practices in India. In addition, the adoption of crop production software is significantly enhancing the efficiency of the Argentina agriculture market, driving growth and innovation in the region's farming practices. The rising number of strategic partnerships, acquisitions, and collaborations between market participants and other stakeholders is expected to have a positive impact on the growth of the market during the forecast period.
Lack of technically skilled farm labor is a challenge that affects market growth. Factors such as the lower social, technological, and financial background of most farmers, particularly in developing and low-income countries are a major challenge to the market growth. The lack of technological skills encourages farmers to use conventional ways, like traditional farming techniques. The shortage of technically skilled labor is a significant issue that leads to the low adoption of crop production software and, in turn, hinders market growth.
Moreover, the lack of technical skills among workers employed in the agriculture sector even makes the cost of services higher. Consequently, this workforce with poor technical skills cannot fully gain from the benefits of crop production software and tools. Illiterate or technically untrained farmers find it challenging to use the vast amount of data and access valuable information using crop production software. Hence, such factors pose a challenge and affect market growth during the forecast period.
The market share growth by the on-premises segment will be significant during the forecast period. The on-premises deployment of crop production software involves the procurement of hardware and software by farmers deploying the required infrastructure in their farms. Farmers ought to buy or rent hardware (like servers for application deployment; network equipment such as routers, switches, and cables for Internet and local connectivity; and antivirus, firewall, or specialized hardware for security) as per the requirements of the software companies.
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The on-premises segment showed a gradual increase in the market share of USD 465.49 million in 2018. Additionally, on-premises crop production software is considered highly secure as it is managed and maintained by the end-users (farmers) that use it. Farm enterprises also have complete control over their on-premises solutions because of the monitored and restricted nature of access. Furthermore, for on-premises crop production software, farm enterprises need to buy software licenses, maintain a dedicated IT staff to manage the software, regularly upgrade the software, and install data protection solutions. This is expected to restrict the growth of the on-premises segment of the market during the forecast period.
The small farm size segment of the market in focus is expected to grow during the forecast period. The use of crop production software in small-scale farms ensures a safer farming environment. Some prominent market players that offer crop production software for small-scale farms are Trimble Inc., Agrivi d.o.o., and Croptracker, among others. Nevertheless, the small farm size segment of the global market is expected to witness certain challenges during the forecast period. Small-scale farming involves the production of crops on a small piece of land. In addition, the adoption of crop production software depends on the land area. For example, farmers that have small land holdings find it difficult to match the level of investments with the crop production levels in their fields. Hence, increasing manual intervention and conventional farming techniques in farms can have a negative effect on the potential growth in demand for crop production software in small-scale farms, which, in turn, is anticipated to restrict the growth of the small farm size segment of the market in focus during the forecast period.
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North America is estimated to contribute 43% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The regional market is poised for growth due to increased government initiatives supporting modern agricultural technologies. The National Institute of Food and Agriculture (NIFA) in the US, under the USDA, is implementing projects involving geospatial and precision technology to raise awareness among farmers.
Moreover, the adoption of smart farming tools and techniques, especially in the highly mechanized US farming sector, is contributing to increased productivity. The use of cloud-based technology and collaborations between software companies, such as Farmers Edge Inc. and Merit Functional Foods, further enhance integrated software solutions. Initiatives in Canada, like the AgriInnovate program, supporting precision agriculture, are driving the regional market's growth.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is essential for farmers, ranchers, growers seeking to optimize yields on arable land through advanced technologies. Utilizing smart greenhouse, sensors, actuators, devices, the industry focuses on data collection, analysis for precise monitoring, control of agricultural operations. Innovations like Avirlink offer smart agriculture solutions integrating in-field sensors and drones for effective inventory and pest management. Advanced analytics and automation capabilities streamline processes, while cloud services and mobile applications provide access to real-time insights. High-speed imagery services data analysis tools enhance decision-making concerning crop quality, resource use, and input costs, promoting sustainability amid fluctuating weather conditions, temperatures, moisture levels, and crop prices.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.59% |
Market Growth 2024-2028 |
USD 2.22 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
17.29 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
Key countries |
US, China, Australia, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aerobotics Pty Ltd., AgriApp, Agrivi d.o.o., BASF SE, CNH Industrial NV, Conservis, Cropin Technology Solutions Pvt. Ltd., Croptracker, CropX Technologies Ltd., DeHaat, Farmonaut Technologies Pvt. Ltd., FRONTIER AGRICULTURE LTD., HELM AG, Kynetec, OneSoil, Syngenta Crop Protection AG, Topcon Corp., Traction Ag, Trimble Inc., and Farmers Edge Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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