North America Agriculture Technology As A Service Market: Growth Prospects 2024-2032

North America Agriculture Technology As A Service Market: Growth Prospects 2024-2032

Triton’s research analysis states that the agriculture technology as a service market in North America is expected to garner revenue at a CAGR of 15.13% during the forecast period 2024-2032.

As per EPA, US farms provide nearly 25% of the world’s supply of grains, including wheat, corn, and rice, thereby contributing around $300 billion to its economy each year. This uptrend contributes to the development of the agriculture sector in North America. Thus, the demand for advanced agricultural technologies in this region is driven by trends favoring the adoption of IoT systems and advanced farming equipment. Additionally, a steady increase in hybrid crop production and AI-enabled precision farming techniques offer significant opportunities for market expansion.

The countries researched in this region include the United States and Canada.

The United States holds the largest market share, achieving around $590.23 million in 2023.

A recent USDA Economic Research Service survey reported 1.89 million farms in 2023 within the US, which reflects the pivotal role of adopting smart farming practices in the country.

In recent years, the US government has introduced a strategy for sustainable agriculture, including a $146 million investment through the USDA’s National Institute of Food and Agriculture (NIFA) Sustainable Agriculture System program.

This funding aims to support research projects that will develop and enhance a climate-smart food and agriculture system in the country, thereby widening the scope of the reviewed market.

Agriculture Technology as a Service Market Forecast for Canada

With 62.2 million hectares of farmland, the agriculture and agri-food sector is a significant contributor to the Canadian economy, accounting for approximately 6.8% of the country’s GDP. In previous years, the federal, provincial, and territorial (FPT) governments launched the Canadian Agricultural Partnership, a $3 billion five-year investment aimed at strengthening and expanding the agriculture and agri-food sector. Additionally, in February 2022, the government, through the Ontario Soil and Crop Improvement Association, invested $182.7 million in partner organizations to help farmers reduce emissions and mitigate the climate impact of agricultural activities. Such government initiatives have boosted the demand for agricultural technology as a service in Canada.

The studied market is categorized into type, technology, and application. The type segment comprises Software as a Service (SaaS) and Equipment as a Service (EaaS). EaaS is a business model where agricultural technology equipment is leased or offered under a pay-per-use payment plan at a lower cost than a one-time purchase. This service is provided for a set duration and includes remote diagnostics, predictive maintenance, and other related services like consulting and deployment.

Contender Analysis in the Agriculture Technology as a Service Market:

IBM is a leading provider of hybrid cloud, AI, and consulting services. It assists clients in leveraging data insights, streamlining business processes, reducing costs, and gaining a competitive edge in their industries. Several government and corporate entities utilize IBM’s hybrid cloud platform and Red Hat OpenShift for rapid, efficient, and secure digital transformations. It has business operations in over 175 countries and is headquartered in Armonk, New York, US.

IBM recently consulted Kubota, a Japan-based services and technology provider in the agriculture, water, and environmental sectors. IBM deployed the IBM Maximo Application Suite, running on Microsoft Cloud, to support the development of the Kubota Smart Infrastructure System (KSIS) BLUE FRONT. This new system aims to enhance the operating efficiency and maintenance of water and wastewater facilities.

The other important contenders in the agriculture technology as a service market are Trimble Inc, IBM Corporation, Microsoft Corporation, Agco Corporation, Topcon Corporation, CLAAS KGaA mbH, Raven Industries Inc, Fujitsu, Hexagon AB, and Deere and Company.