The Global Carbon Farming market is projected to grow at a CAGR of around 11.58% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The surging adoption of precision agriculture practices with the use of sensors & analytics tools, to effectively use crop inputs & boost their products is one of the key factors expected to augment the market’s revenue growth. Additionally, this farming is becoming more popular among farmers as a result of the technologies' ability to offer more precise & affordable methods for measuring & verifying carbon sequestration as well as access to carbon credits & several other financial incentives.
In response, various companies that offer digital farming services, including Indigo Ag, BASF, Bayer, etc., are progressively expanding into the global market by launching new solutions & fostering collaborations & partnerships. Further, the growing propensity of farmers towards accumulating carbon credits to reduce operational costs & subsequently earn revenues is expected to continue to boom the demand for this farming, further states the research report, “Global Carbon Farming Market Analysis, 2023.”
Services to Hold a Significant Share of the Market
Based on the Component, the market is segmented into Hardware, Software, and Services. Of them, the Services segment held a substantial share of the Global Carbon Farming market. The market growth is attributed to the surging demand for technical consulting among farmers to implement digital farming practices & earn carbon credits to reduce costs. Further, the incessant need for farmers to stay up-to-date, in terms of new government programs, financial incentives, etc., is expected to continue to enhance the demand for technical consulting in the upcoming years as well.
Agriculture to Attain a Considerable Growth in the Upcoming Years
Based on the end users, the market is further bifurcated into Agriculture & Forestry. Of them, the Agriculture segment is expected to witness a significant growth rate in the upcoming years. The rising adoption of digitalized farming tools to boost carbon sequestration in agriculture fields & increase crop production, etc., are a few factors leading to a higher share of agriculture in the market. Additionally, a sizable portion of global greenhouse gas emissions is attributable to agriculture, particularly from the production of livestock & the use of nitrogen fertilizers, as a result, farmers are increasingly making use of rotational farming, grazing management, etc., to reduce GHG emissions. Hence, this leads to a substantial demand for Carbon farming services, such as farm management, consulting, financial services, etc., in the agriculture sector.
North America to Gain Notable Traction in the Market
Geographically, North America is anticipated to hold a dominant position in the market during the forecast years. One of the major factors leading to a substantial revenue share in the region is the rising focus of the government to implement sustainable agricultural practices to increase agricultural productivity, reduce agricultural emissions, etc. Additionally, the rowing propensity towards organic agriculture produce among the residents & the global market is further leading to significant adoption of digital farming to enhance carbon sequestration & boost produce, utilizing methods such as crop rotations, biochar, etc.
Further, with the rising availability of financial incentives, and surging availability of efficient digitalized services by companies such as Indigo, BASF, etc., the adoption of digitalized carbon farming is expected to boom in the upcoming years, making the region the most prominent regional landscape for the market.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Etrans Solutions, Qualcomm, Cisco Systems Inc., Delphi Automotive Plc., Autotalks, DENSO Corporation, Kapsh Group, Savari Inc., Infenion Technologies AG, and Lear Corporation, etc., are looking forward to strengthening their market position.
Key Questions Answered in the Research Report