The agriculture technology-as-a-service market is expected to generate about $932 million in revenue in 2019. The market is expected to increase to about $2.5 billion by 2024, according to market analyst BIS Research.
Market growth is attributed to an increasing need to adopt agriculture technologies, conversion of capital expenditure into operational expenditure for customers and customer retention for service providers. Decreasing costs, scalability, integration and accessibility associated with agriculture technology-as-a-service also are expected to be responsible for increased growth.
A few challenges could restrict adoption of agriculture technology. One constraint is the large capital investment required for acquisition and operation. Due to the seasonality of farming, farmers also are apprehensive of purchasing technology with upfront costs. That prompts technology-industry stakeholders to incorporate other payment and business models such as the agriculture technology-as-a-service business model.
The model enables customers to procure technologies as services with different pricing structures rather than acquiring them as a one-time purchase. Two popular pricing models are pay-per-use and subscription. The models provide growers easier scalability, accessibility, quick deployment and data backup, according to BIS Research. Visit bisresearch.com for more information.