Farming as a Service (FaaS) is a business model that allows farmers to procure a service on a pay-per-use or subscription basis offering advanced, professional, & user-friendly solutions in agriculture. While some solutions are upgrades in the existing farming ecosystem, others include technologically-driven innovations. With an escalating need to suffice the food requirements of the rapidly growing population worldwide, FaaS solutions are introducing efficiency to farmers & swiftly gaining momentum globally.
Furthermore, FaaS provides farmers with easy accessibility in crop production, on-time availability of labor, equipment rental for the desired time, and utility services like irrigation facilities & power supply, among others. Moreover, the facility of employing preferred service allows farmers to access upgraded equipment which helps them enhance productivity.
Besides, since these solutions are integrated with technologies like Artificial Intelligence (AI), remote sensing, & data analytics, the gathered information empowers the farmers to make better & informed decisions and strategies beforehand. It, in turn, also prevents the over-exploitation of resources and enables better crop yield.
The Global Farming as a Service (FaaS) Market is projected to grow at a CAGR of around 15.3% during the forecast period, i.e., 2022-27. The growth of the market attributes primarily to the growing adoption of technologically advanced solutions in agricultural practices to enhance farm productivity & prevent wastage of various resources, such as labor, capital, seeds, fertilizers, water, electricity, etc.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, UK, France, Italy, Spain, Russia|
|Asia-Pacific: China, India, Japan, South Korea, Australia and Others|
|South America: Brazil, and Argentina|
|Middle East & Africa: UAE, Saudi Arabia, South Africa, Nigeria, Turkey, Egypt|
|Key Companies Profiled||Trimble, Em3, Apollo, John Deere, Accenture, SGS, Taranis, Precision Hawk, IBM|
|Unit Denominations||USD Million/Billion|
Moreover, the utilization of FaaS projects enables farmers to convert capital expenditure into operational expenditure. As a result, several large & small producers are making better use of these services & state-of-the-art machinery to boost farm productivity, which, in turn, is driving the global market.
Furthermore, an increasing number of investments & initiatives by governments of different countries worldwide to bring improved technologies in agriculture for aiding farming activities and creating better infrastructure with upgraded facilities are other crucial aspects anticipated to generate profitable opportunities for the leading players & contribute to the overall market growth during the forecast period.
Key Trend in the Global Farming as a Service (FaaS) Market
Emerging Ag-Tech Start-ups
The collaboration of technology with the agricultural sector emerging the market demand for farming as a service. To increase awareness regarding farming services, solutions, and technology among small-scale and mid-sized farm businesses, various start-ups around the world has established. The start-ups provide farming services based on a pay-per-use model that provides an economical option for farmers and reduces high investment risk. Also, these start-ups support farmers by providing technology and analytical support to low-income farmers on a loan basis that would boost their output yield.