Farm Management Software Market Size, Share & Trends Analysis Report By Agriculture Type (Precision Farming, Livestock Monitoring, Smart Greenhouse), By Deployment Model, By Solution, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global farm management software market size was estimated at USD 3.30 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 16.2% from 2023 to 2030. The growth of the market can be attributed to the increasing implementation of cloud computing for real-time farm data management. Farm Management Software (FMS) involves the use of Information Communication Technology (ICT), particularly IoT and big data analytics, to address resource constraints such as shortage of energy, water, and labor and social issues such as environment, animal welfare and use of fertilizers, which negatively influence the agricultural production.

The adoption of remote sensing technology in the agriculture industry has increased due to the emergence of drones and GIS. The images captured through a device featuring remote sensing technology can be used for the detection of cop water stress, monitoring weeds & crop diseases, classification of crop species, and mapping of soil properties. Some open-source remote sensing software includes Quantum GIS Semi-Automatic Classification Plugin (SCP), Optical and Radar Federated Earth Observation (ORFEO) toolbox, Opticks, and PolSARPro.

The increasing use of site-specific crop management is expected to reduce pesticide use, increase crop yields, and provide greater insight for farm management decisions. Farm management software equipped with advanced data analytics capabilities can process historical and real-time data to generate predictive models, enabling farmers to forecast crop performance under different environmental conditions. By analyzing factors like weather patterns, soil quality, and crop health, the software can offer valuable insights to make informed decisions regarding fertilization, pest control, and irrigation. Forecasting crop performance under various environmental situations can assist farmers in boosting their yield. Phenotyping aids in the understanding of several elements affecting crop growth, such as nitrogen depletion and soil pH levels. It is used to determine crop growth under various situations.

The players in the agriculture industry are acknowledging the need for technology infusion to increase the production of crops. The growing farm mechanization has increased the profitability of the agriculture sector in developed countries. Modern agriculture involves the use of software and hardware components. Equipment manufacturing requires embedded application software and hardware, along with network services.

COVID-19 Impact

The COVID-19 pandemic significantly impacted the farm management software market. As the agricultural sector faced supply chain disruptions and challenges, there was a notable surge in the demand for digital solutions. Farmers sought to minimize physical interactions and optimize farm operations remotely, driving the adoption of farm management software with data analytics and remote monitoring capabilities. Precision agriculture also gained momentum, with farmers leveraging software-integrated tools like GPS-guided equipment and sensors to enhance resource utilization and efficiency.

For instance, the United States Department of Agriculture (USDA) has launched programs like the Precision Agriculture Initiative to provide funding and support for farmers to adopt smart farming technologies. These initiatives encourage innovative practices and provide financial incentives for farmers to invest in smart agriculture. Larger farms, already invested in technology, were quick to embrace these advancements, contributing to market growth. However, smaller farms faced constraints due to financial limitations and technological barriers.

Despite supply chain disruptions, the farm management software experienced expansion, fueled by the increasing demand during the pandemic. Competition intensified as more companies entered the market to meet the rising needs of the agricultural sector. Governments also offered incentives and support to promote technology adoption in agriculture, bolstering the market further. While the situation evolved rapidly, the impact on the market persisted, with digitalization and data-driven decision-making becoming integral aspects of modern farming practices.

Agriculture Type Insights

Based on agriculture type, the market has been segmented into precision farming, livestock monitoring, smart greenhouses, and others. The other segment includes horticulture and fish farming. The precision farming segment dominated the overall farm management software market with a share of 43.5% in 2022 and is expected to remain dominant over the forecast period.

Precision farming involves using IoT and Information Communication Technologies (ICT) to preserve resources and optimize yields. It will help the growers control the amount of fertilizers to be applied to the farm field by measuring conditions within a field and adapting the harvesting strategy accordingly. Both hardware and software tools are used to analyze the naturally occurring conditions in every field and are treated accordingly. The key application of precision farming includes yield monitoring, crop scouting, irrigation management, inventory management, and weather tracking.

Precision livestock monitoring facilitates real-time determination of livestock health, production, and welfare for ensuring optimal yield. The increasing size of dairy farms and several technological advancements, such as precision livestock monitoring, have encouraged the market players to focus on new product launches and reducing costs associated with livestock monitoring management. The rise in urban population has led to the growth of the smart greenhouse segment.

Deployment Model Insights

Based on deployment model, the market has been segmented into web-based and cloud-based. The cloud-based segment is anticipated to witness the highest CAGR of 17.7% over the forecast period. The cloud-based software solution does not require users to purchase a server to run the farm software. Adopting these solutions is expected to reduce the costs of administering servers, purchasing the servers, software licensing, backups, and security. Furthermore, the solutions can be accessed from mobile phones, PCs, and tablets.

Smart sensors capture data about irrigation, lighting, plant growth, and pest usage, which is transferred to cloud-based or web-based servers. The farmers can configure the system's settings that collect data using a web admin console and integrate the system with other solutions.

Solution Insights

Based on solution, the market has been segregated into software and services. The software segment dominated with a revenue share of 63.9% in 2022. The growth of the segment can be attributed to the increasing recognition of the advantages that digital solutions bring to the agriculture industry. Farm management software offers various key benefits to agricultural businesses, such as streamlining farm operations, efficient resource management, improved decision-making through data analytics, enhanced crop planning, and better inventory tracking.

Additionally, real-time monitoring and remote access capabilities increase productivity and overall profitability for farmers. As technology advances, farm management software providers are continuously innovating to meet the changing needs of the agricultural sector, driving further expansion. For example, in July 2023, Bushel Inc. announced the introduction of an innovative feature in Bushel Farm−automated grain contract entry. This functionality significantly benefits farmers by reducing manual data entry, providing valuable marketing insights, offering comprehensive financial overviews, streamlining processes, and empowering more informed decision-making within the agriculture sector.

The services segment is divided into system integration & consulting, maintenance & support, assisted professional services, and managed services. The managed services segment dominated the market with a share of 34.8% and is expected to remain dominant over the forecast period. The managed services segment is further split into data services, farm operation services, and analytics services. Assisted professional services are categorized into climate information services and supply chain management services. Farmers are increasingly adopting smarter and more efficient agricultural methods for delivering quality products to the market while maintaining quantity to gain profits.

Regional Insights

North America dominated the overall market in 2022, with a revenue share of 33.7%. North America has prominent market players such as AgJunction LLC; Farmers Edge Inc.; CropZilla Inc.; and Deere & Company. The region's adoption of precision agriculture practices, efficient resource management, and focus on sustainability drive the demand for farm management software solutions. Additionally, the growing emphasis on data-driven decision-making and advancements in technology contribute to the high market share in North America. These factors enable farmers to optimize their operations, improve productivity, and stay competitive in the evolving agricultural landscape.

The Asia Pacific regional market is expected to witness the highest CAGR of 16.7% over the projected period. It is spearheading the revenue growth with China & Japan at the forefront. Companies in the region are increasingly investing in R&D to introduce advanced drones to improve productivity. Drones are integrated with farm management software to enhance agricultural productivity through data collection and analysis. These advanced drones equipped with various sensors capture valuable information about crop health, soil conditions, and field mapping, which is then processed and analyzed by the farm management software to provide actionable insights for optimized farm management decisions and improved productivity. Market players such as Yamaha Motor Co., Ltd. (Japan) and DJI (China) are trying to tap the market by introducing drones with better sensors and imaging capabilities.

Key Companies & Market Share Insights

The market is competitive and has the presence of several key market players. These players are adopting strategies such as partnerships and collaborations to gain a competitive edge. For instance, in January 2021, Farmers Edge, Inc. announced a partnership with Google Cloud to promote the company’s services and boost the implementation of artificial intelligence, machine learning, and predictive analysis in its program. Some prominent players in the global farm management software market include:

• Ag Leader Technology

• AgJunction LLC

• BouMatic

• CropX, Inc.

• CropZilla Inc.

• DeLaval

• DICKEY-john

• Deere & Company

• Corteva

• CNH Industrial

• Trimble Inc.

• Climate LLC.

• Gamaya

• GEA Group Aktiengesellschaft

• Farmers Edge Inc.

• Gronetics

Farm Management Software Market Report Scope

Global Farm Management Software Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments over the forecast period. For this study, Grand View Research has segmented the global farm management software market report based on agriculture type, deployment model, solution, and region:

• Agriculture Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Precision Farming

  • Livestock Monitoring

  • Smart Greenhouse

  • Others

• Deployment Model Outlook (Revenue, USD Million, 2017 - 2030)

  • Web-based

  • Cloud-based

• Solution Outlook (Revenue, USD Million, 2017 - 2030)

  • Software

  • Services

    • System Integration & Consulting

    • Maintenance & Support

    • Managed Services

      • Data Services

      • Analytics Services

      • Farm Operation Services

    • Assisted Professional Services

      • Supply Chain Management Services

      • Climate Information Services

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa