The Agriculture Technology-as-a-Service (ATaaS) market is expected to grow due to its increasing adoption in the agricultural sector. The market is segmented into four categories: application, service type, pricing, and region. Crop health monitoring is expected to generate the highest revenue in the ATaaS market, while software-as-a-service is projected to drive market growth. Subscription pricing models have become increasingly popular among farmers in the ATaaS market due to their cost-effectiveness and flexibility. North America generated the highest revenue in 2021 and is expected to remain the largest region by 2027. The market is expected to face limitations, including cyber and online data security, reluctance to adopt and lack of technical awareness among farmers, and limited infrastructure and workforce to provide EaaS solutions. The report provides end users with valuable information about product/innovation strategy, growth/marketing strategy, and competitive strategy. The top companies profiled in the report include AGRIVI, IBM Corporation, Hexagon Agriculture, Microsoft Corporation, Topcon, and Deere & Company.
Global Agriculture Technology-as-a-Service Market Expected to Reach $3,438.6 Million by 2027 with 16.43% CAGR During 2022-2027
According to a recent report by ReportLinker, the global agriculture technology-as-a-service (ATaaS) market was valued at $1,606.9 million in 2022 and is expected to reach $3,438.6 million by 2027, growing at a compound annual growth rate (CAGR) of 16.43% during 2022-2027.
Growing Demand for Precision Agriculture Solutions Driving Market Growth
The report attributes the growth of the global agriculture technology-as-a-service market to the increasing demand for precision agriculture solutions from small-scale farmers. The need for more advanced and efficient solutions to manage farm operations has led to a surge in demand for ATaaS solutions, resulting in an increase in the number of companies offering ATaaS solutions and investment in the industry.
ATaaS Market in Growth Stage with Increasing Adoption by Farmers and Agribusinesses
The report indicates that the agriculture technology-as-a-service market is currently in its growth stage, with the market expected to mature further leading to increased adoption by farmers and agribusinesses. As the market matures, new technologies and customer needs will emerge, leading to continued growth and development in the ATaaS market.
Positive Impact of ATaaS on Agricultural Operations
Agriculture technology-as-a-service solutions enable farmers to streamline their operations and increase efficiency by automating tasks such as crop monitoring, soil analysis, and resource management. This results in improved yields and lower costs. The technology also provides farmers with real-time and detailed information about their crops, helping them make informed decisions about planting, fertilizing, and pest control. This leads to a more precise and targeted application of resources, resulting in higher yields and a reduction in waste.
Impact of COVID-19 on ATaaS Market
The COVID-19 pandemic has disrupted the supply chain, causing delays in product delivery and installation. The pandemic has also resulted in reduced consumer spending and a slowdown in economic activity, impacting the demand for ATaaS solutions. However, the pandemic has also accelerated the adoption of digital technologies in the agricultural sector, including ATaaS, as farmers have had to rely more on digital solutions for farm management due to social distancing measures. This has led to an increase in the demand for ATaaS solutions.
Market Segmentation
The report further analyses the global agriculture technology-as-a-service market based on product, application, and country, providing a comprehensive view of the market.
Segmentation Analysis of the Global Agriculture Technology-as-a-Service (ATaaS) Market
The global agriculture technology-as-a-service (ATaaS) market is segmented by application, service type, pricing, and region. The segmentation analysis provides a comprehensive view of the market and enables stakeholders to understand the growth potential of each segment.
Application Segmentation
The ATaaS market is segmented by application into Yield Mapping and Monitoring, Soil Management and Testing, Crop Health Monitoring, Irrigation, and Others. According to the report, crop health monitoring is expected to generate the highest revenue in the ATaaS market. This is due to the importance of crop health monitoring in ensuring the overall health and productivity of crops. With ATaaS, farmers can monitor the health of their crops in real-time and make informed decisions about their management practices. This results in increased crop yield and profitability. The segment is expected to grow further with the increasing adoption of ATaaS in the agricultural sector.
Service Type Segmentation
The ATaaS market is segmented by service type into Software-as-a-Service (SaaS) and Equipment-as-a-Service (EaaS). The report suggests that SaaS will drive the growth of the ATaaS market due to its advantages such as ease of deployment, low cost, and user-friendly interfaces. SaaS platforms allow farmers to access technology-driven agriculture solutions and services remotely, reducing the need for large capital expenditures. With cloud computing and IoT technologies becoming more popular, SaaS-based ATaaS is expected to gain traction, thereby driving the market’s growth.
Pricing Segmentation
The ATaaS market is segmented by pricing into Subscription and Pay-Per-Use. The report suggests that subscription pricing models have become increasingly popular among farmers due to their cost-effectiveness and flexibility. Farmers can subscribe to these services on a monthly or annual basis and receive regular software updates and technical support. This eliminates the need for large upfront investments in equipment and technology, allowing farmers to better manage their costs and stay up-to-date with the latest advancements in the industry. Subscription models provide the ability to scale up or down based on their needs and production goals, offering greater flexibility and cost savings compared to traditional pay-per-use models.
Regional Segmentation
The ATaaS market is segmented by region into North America, Europe, China, U.K., Asia-Pacific, South America, and the Middle East and Africa. According to the report, North America generated the highest revenue of over $547.0 million in 2021 and is expected to remain the largest region by 2027. The presence of major players in the agriculture sector, strong government support, and a high adoption rate of advanced technologies such as VRT, UAVs, and robots are expected to contribute to North America’s lead in ATaaS. The region has a large number of well-established agribusinesses and farmers looking for innovative and cost-effective ways to improve their operations. The region also has a well-developed infrastructure and a high level of awareness about the benefits of ATaaS, which is further driving the market growth.
Recent Developments
The report highlights some recent developments in the ATaaS market. In November 2022, Small Robot Company launched a new generation of monitoring robots called Tom v4, which can detect early signs of disease outbreaks and see individual water droplets on leaves. In October 2021, Kubota and Topcon signed a collaborative research agreement in smart agriculture. Naïo Technologies announced plans to expand internationally in the agricultural robotics market, while Deere & Company acquired Bear Flag Robotics, an agriculture technology startup based in Silicon Valley. These developments are expected to drive the growth of the ATaaS market further.
Demand – Drivers and Limitations
The report identifies some drivers and limitations that will impact the demand for ATaaS. The increasing global
Agriculture Technology-as-a-Service (ATaaS) Market Demand and Challenges
The global agriculture technology-as-a-service (ATaaS) market is expected to grow at a compound annual growth rate (CAGR) of 16.43% during 2022-2027, from $1,606.9 million in 2022 to $3,438.6 million in 2027. The market is expected to be driven by the growing demand for precision agriculture solutions from small-scale farmers. The growth in the ATaaS market is expected to generate the highest revenue from crop health monitoring, followed by yield mapping and monitoring, soil management and testing, and irrigation.
The market is expected to face some challenges, including cyber and online data security, reluctance to adopt and lack of technical awareness among farmers, and limited infrastructure and workforce to provide Equipment-as-a-Service (EaaS) solutions.
One of the major demand drivers for the ATaaS market is the decreasing agriculture workforce, which leads to a need for more advanced and efficient solutions to manage operations. Another demand driver is the increasing area under permanent crops, which requires more advanced and precise solutions for managing crops. Additionally, increased yield and low capital investment for customers are also expected to drive the market growth.
Key Market Players and Competition Synopsis
The report provides insights into the product, growth, and marketing strategy of the key players operating in the ATaaS market. The favored strategy for the companies has been partnerships, collaborations, mergers and acquisitions, and joint ventures to strengthen their positions in the market. Some of the key players in the ATaaS market include precision agriculture and smart agriculture solution providers, which offer solutions on a pay-per-use or subscription basis.
The report also provides a competitive benchmarking of players operating in the global ATaaS market, and the companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the company’s coverage, product portfolio, and market penetration. The top segment players who are leading include micro-irrigation solution providers, which capture a significant chunk of share in the market.
Key Companies Profiled
The report profiles key companies operating in the global ATaaS market, including DJI Agriculture, Syngenta Japan, and micro-irrigation solution providers. The study provides forecast demand for each product and detailed information regarding major manufacturers. Additionally, the report offers a detailed understanding of the products needed to be used for particular applications, as well as the services (SaaS and EaaS) primarily provided through ATaaS. The report will help end users to understand the market’s untapped revenue pockets through comprehensive competitive strategies, such as partnerships, agreements, and collaborations.
The report covers several key players in the global agriculture technology-as-a-service (ATaaS) market, such as IBM Corporation, Trimble Inc., and DJI. The study analyzes the coverage and product portfolio of these companies and profiles them based on inputs from primary experts. The report also covers several countries, including the U.S., Canada, Mexico, Brazil, France, Germany, Switzerland, Turkey, Ukraine, and China, among others. The countries are segmented based on their region, such as North America, South America, Europe, Asia-Pacific, and the Middle East and Africa. Reportlinker is an award-winning market research solution that organizes the latest industry data to provide market research instantly and in one place.
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