The global population is growing exponentially. The U.N. expects the world population of 7.79 billion in 2020 to reach 9.8 billion by 2050. With an estimated 80 million people being added to the world’s population every year, the demand for basic ingredients that fulfill their daily needs, such as food, is expected to grow manifold. Subsequently, improvement in the standard of living of the rising urban population across the world has led to an increased demand for fresh crop produce and animal protein as well. Rising demand for global food production, along with the pressure of providing a continuous supply of high-quality farm produce, has created an alarming situation for the growers across the world, who are struggling to increase production per hectare. Furthermore, shrinking agricultural lands and scarcity of availability of natural resources raises the urgency to resolve the concern.
As agriculture becomes a lucrative high-technology industry, professionals with new-age skill sets, companies, and investing bodies are being drawn in rapidly. The development in smart agriculture technologies has not only led to advancements in the production capabilities of farmers but has also introduced transformative business models in the industry.
ATaaS is a business model that allows the customers to procure their desired agriculture technology (equipment or software) as a service under different affordable pricing models rather than acquiring them as a one-time purchase. Two of the most popular pricing models under ATaaS include the pay-per-use (PPU) and subscription models. While the PPU model provides the customers the complete freedom and responsibility of acquiring the agriculture technology as per their requirement, the subscription model asks the customers to use the agriculture technology as per the duration package set by the service providers, for instance, monthly or annually.
Apart from affordable pricing, ATaaS business models provide the growers with certain features such as easy scalability and upgradation, convenient accessibility, quick deployment, and reliable data backups. By relieving the customers of ownership of agriculture technologies through the service model, the entire responsibility of ownership of assets relies on the service providers, leading to a higher cost of operations for them. Despite these additional costs, by adopting the ATaaS model, service providers are expected to experience better customer retention and recurring revenue. A service model allows the providers to remain in direct contact with their customers continually and receive constant feedback to be able to make their services a better experience for the customers and also retain them for a longer duration.
However, there are certain challenges, which prove to be a restraint in the growth of the global agriculture technology-as-a-service market. As per the preceding figure, the awareness and knowledge about newer technological advancements in agriculture technologies are yet to spread extensively, especially in emerging countries. Price inflation of agricultural produce due to the costly investment of agriculture technologies also brings restraint in the market.
The global agriculture technology-as-a-service market is projected to grow from $849.8 million in 2020 to $3,031.1 million by 2026, at a CAGR of 24.42% from 2021 to 2026. High growth in the market is expected to be driven by the growing need to adopt agriculture technologies across the industry, conversion of capital expenditure into operational expenditure for customers, and greater customer retention for service providers. The added benefits of lower costs, scalability, integration, and accessibility associated with ATaaS are also expected to be responsible for the reported growth of the business model. Agriculture is the source of livelihood and sustenance of the economy in several regions of the world. Hence, the need to adopt advanced technologies in the agriculture industry has driven favorable initiatives, policies, and support shown by governments in countries such as the U.S., Canada, the U.K., Germany, France, Australia, India, and China.
North America Leads the Global Agriculture Technology-as-a-Service Market Regionally:
The governing trends of the global agriculture technology-as-a-service market vary across different regions. The agriculture robots market holds a prominent share in various countries of North America, Europe, Asia-Pacific, China, the U.K., Middle-East and Africa, and South America. North America is expected to generate the highest revenue in 2021. The large market share of the region has been attributed to the increased application of automation and control systems in most of the countries and the rising adoption rate of smart farming practices leading to increased adoption of agriculture technology-as-a-service. Constantly increasing farm sizes and the rise in global food demand from limited arable land shall ensure future market growth. The North America market for agriculture technology-as-a-service is expected to witness a moderate growth of CAGR 21.93% in the forecast period.
Key Questions Answered in the Report
• What is the estimated global agriculture technology-as-a-service market size in terms of revenue for the forecast period 2021-2026, and what is the expected compound annual growth rate (CAGR) during the forecast period 2021-2026?
• What are the key trends, market drivers, and opportunities in the market pertaining to agriculture technology-as-a-service?
• What are the major restraints inhibiting the growth of the global agriculture technology-as-a-service market?
• What kinds of new strategies are being adopted by the existing market players to strengthen their market position in the industry?
• What is the competitive strength of the key players in the agriculture technology-as-a-service market based on an analysis of their recent developments, product offerings, and regional presence?
• How is the competitive benchmarking of the key agriculture technology-as-a-service companies in the agriculture market based on the analysis of their market coverage and market potential?
• How much revenue is each segment expected to record during the forecast period, along with the growth percentage?
• What is the type of players and stakeholders operating in the market ecosystem of agriculture technology-as-a-service, and what is their significance in the global market?
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