Farm management software to reach $ 4.07 bn by 2022

According to a newly published report “Farm Management Software Market- Global Forecast to 2022”, the farm management software market is expected to grow from USD 1.14 Billion in 2015 to USD 4.07 Billion by 2022, at a CAGR of 17.2% between 2016 and 2022.

Farm management software provides agricultural technology services to growers. Its applications include crop management, financial management, farm inventory, weather forecasting, and others. Farm management software has revolutionized the way agriculture was done before. This software provides insights for farming operations. The growth of information communication technologies (ICT) enabled the companies to reach their customers worldwide through this software. Farm management software represents the common data platform in the entire value chain of the agriculture industry, ranging from buying and selling of grains to maintaining farm records.

The farm management software market has been segment on the basis of farming type, delivery model, service, application, and geography. The market on the basis of farming type has been segmented into crop farming and livestock farming. The market is dominated by crop farming, and the market livestock farming is expected to grow at high rate during the forecast period. The penetration of livestock farming software is lesser compared to that of the crop farming software since livestock farming software is mostly used in mature markets such as the Americas, Europe, and Australia.

Currently, the on-premise delivery model is dominating the overall farm management market; however, in the coming years, the cloud-based delivery model is expected to lead the market. The estimated growth in new software installations was made considering the growing markets in APAC and RoW and supportive business environment for agri-tech companies.

Factors such as growth of the market for cloud-based delivery model and increasing demand for real-time services have led to the growth of the market for managed services. These services include farm data and analytics, which are expected to shape the farm management software industry in the future. The companies are developing farm management information systems, in which the managed services are expected to play a key role.

Record keeping applications dominated the market in 2015; however, the market for farm economics applications is expected to grow at a high rate during the forecast period since the current trend is to automatize farm financial records, and budgeting is playing an essential role in this.

The Americas holds the largest share of the global farm management software market. This can be attributed to the presence of a number of major farm management software providers in the region. In addition, the supportive government regulations play a major role in the growth of this market. The Americas is a major market for farm management software as this region has a high penetration of ICT technologies compared to other regions. Economy modernization initiatives in emerging countries and government support are the major factors contributing to the growth of the farm management software market in APAC. The presence of most populous countries such as India and China in APAC make the region a lucrative market as rapid urbanization in this region is likely to pave new growth avenues for the providers of farm management software

The most significant restraining factor for the growth of the farm management software market is the high price of devices and equipment used for precision farming. Also, farm management software solutions are expensive and complex to use. Farmers need to pay an additional cost for the integration of software with the hardware devices and further consultation. 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 database require high initial investments. In the developing countries, this restraining factor is even more significant since the land holdings are fragmented and the number of marginal farmers is more. However, government intervention and technological developments are expected to reduce the prices of the farm management solutions, which would reduce the impact of this restraining factor on the market

The farm management software market ecosystem comprises software companies, cloud service providers, and farm analytics service providers among others. The established players in the market are SST Development Group, Inc. (U.S.); The Climate Corp. (U.S.); Iteris, Inc. (U.S.); Deere & Co. (U.S.); and Trimble Navigation Ltd. (U.S.). Some of the key emerging companies are Conservis Corp. (U.S.); Granular, Inc. (U.S.); Agrivi Ltd. (U.K.); FarmerEdge (Canada); and New Science Technologies Ltd. (Cyprus).