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Farm Management Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Farm Management Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • May 2021
  • 125 pages
  • ID: 6074761
  • Format: PDF
  • Mordor Intelligence LLP
Up to $750 off Until Aug 10th 2021


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The farm management software market is projected to witness a CAGR of 11.2% during the forecast period. During the COVID-19 outbreak, the supply chain of the agriculture industry has disrupted. Companies are focusing on new strategies to develop more convenient tools to cater to the demand for food. Hence, the farm management software industry is playing a critical role to cater to the unprecedented situation caused by COVID-19 by providing predictive analytics and insightful outputs to assist efficient crop growth and animal health.

The adoption of farm management software is increasing every year, with farmer needs shifting toward high productivity and return on investments. The cloud-based farm management type software segment of the market is the largest segment in the global market. Among the different cloud-based software types, the software as a service (SaaS) is anticipated to be the fastest-growing in the market. The advanced satellite data and the latest crop scouting software was made available to farmers at no cost. Thus, considering the aforementioned factors, there seems to be an incremental trend in the adoption of this software as a service technologies, contributing to the market growth.

The adoption of farm management software is increasing every year with farmers’ needs shifting towards high productivity and return on investments. This has attracted many startups to enter the market making it a fragmented market. North America is the largest market as the adoption rate of farm management software by the farmers in this region is high. Asia-Pacific is the fastest-growing market as agriculture in Asian countries is in the transition phase, towards the implementation of the latest technologies.

Key Market Trends
Farm Labor Shortage and Decreasing Arable Land

As precision agriculture needs skilled laborers, who are an acute shortage of availability, precision farmers admire and tend to consume software that can be productive, considering the current challenge. This scenario is one of the major factors that drive the market forward. Decreasing arable land and the increasing global population are among the major reasons driving the market. According to the World Bank, the area of arable land per person decreased to 0.19 hectares in 2016. This has pushed growers to increase their productivity per hectare of land available to meet the growing demand for food. The United States has been witnessing an acute shortage of farm laborers, and a survey by the California Farm Bureau revealed that more than 40% of the farmers faced a consistent labor shortage in various farm operations in the state in the past five years, which led to an increased adoption rate of precision farming technologies for ensuring the better management of farm resources. According to the World Bank’s database, the employment in agriculture out of the total employment fell drastically from 29.43% in 2014 to 26.75% in 2019.

Additionally, rising issues, such as environmental safety pertaining to the usage of crop protection chemicals, have led the government of various countries to impose strict regulations over the use of crop protection chemicals. All these changes in the agriculture field are boosting the use of farm management software, which helps farmers increase their productivity and the return on investment.

North America Dominates the Market

The larger farms and awareness among the farmers lead to the quick adoption of modern technologies in developed countries comparing to the developing nations. This makes the North America region as the largest market for farm management software technologies and followed by Europe holds the second largest market share. For instance, companies like Deere & Company are providing software to control farm equipment and tractors to help farmers practice precision farming. Over the years, the United States has been at the forefront in deploying precision technology to farming techniques. As per a report by the Economic Research Service, the US Department of Agriculture (USDA), large-holding farms are more likely to adopt smart agriculture technologies and software. With an increase in the average farm size and the shortage of farm laborers, the large-holding farmers are well-positioned to use farming software, to gain data-driven insights for optimizing crop yields. ?

Furthermore, the government of Canada has invested USD 49.5 million in the Canadian Agri-Food Automation and Intelligence Network (CAAIN) to digitize and automate agriculture. The CAAIN is working to strengthen artificial intelligence, robotic, and precision agriculture to deliver improved farming solutions. Hence, the large-sized farms, high adoption rate by farmers, and the government initiatives are boosting the market studied, during the forecast period.

Competitive Landscape
The farm management software market is fragmented. Raven Industries Inc., Trimble Inc., AG Junction, Ag Leader Technology, Dickey-john Corporation, and Agrivi are some of the major players in the market. Mergers and acquisitions, partnerships, expansions, and product innovations are the major strategies followed by the major players to hold a consistent share in the market.

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