India Farming as a Service (FaaS) Market Research Report: By Type (Farm Management Solutions, Services, Market Access Solutions), Model (Subscription, Pay-Per-Use) - Industry Analysis and Growth Forecast to 2030

Market Overview

The agriculture sector contributed 17.8% to the gross domestic product (GDP) of India in 2020, and its contribution is expected to rise in the coming years. As a result, the Indian farming as a service (FaaS) market is expected to observe steady growth in the forecast period. This can be credited to the initiatives of the government, such as the Soil Health Card Scheme and Prime Minister Kisan scheme, and those of private players to improve agricultural productivity and efficiency. For instance, ITC Ltd. and Mahindra & Mahindra Ltd. have entered the market with e-Choupal and Krish-e centers, respectively.

The effect of the COVID-19 pandemic on the agriculture industry is quite low compared to other industries, and the Indian farming as a service market is growing steadily due to the stable demand for agricultural products. Moreover, the heavy funding raised by many startups, such as Clover Ventures Private Limited and LeanCrop Technology Solutions Pvt. Ltd., in the recent past is helping them maintain the cash flow.

Farm Management Solutions To Hold Major Revenue Share

In 2020, the farm management solutions category held the largest revenue share in the India Farming as a Service market, based on type, owing to the presence of numerous market players and huge investments by public and privately owned businesses. Moreover, the rapid developments in products and solutions for farming activities are driving the interest in farm management solutions.

Funding to Promote Agricultural Startups Is Major Trend in Market

With the rapidly increasing government support for the agricultural sector, many investors and organizations are finding a great opportunity here, which has resulted in huge investments in agricultural technology startups. For instance, in 2021, $20 million were invested in Cropin Technology Solutions Pvt. Ltd. by ABC World Asia, while $4 million were invested in RML Information Services Pvt. Ltd. by Nandan Nilekani in 2017. Thus, the adoption of the FaaS concept is expected to display significant growth in India in the forecast period.

Government Initiatives to Support Farmers Drives Market

Various initiatives have been taken by the central and state governments to provide benefits and security to farmers, such as preventing fraudulent activities, including the Paramparagat Krishi Vikas Yojana (PKVY) and the setting up of the Agricultural Technology Management Agency (ATMA). Thus, the agritech market is gaining the interest of many investors and large organizations. The government is also improving the infrastructure and promoting innovations in farming, such as FaaS and digital transactions, which would propel the market in the upcoming years.

Bettering Internet Connectivity in Rural Areas To Help in Growth of Market

There are many benefits that good internet connectivity can offer to farmers, such as cost reduction by minimizing the waste and optimizing the use of the various inputs in farming activities, such as fertilizers, seeds, and soil. With the improving internet connectivity in rural areas, the adoption of FaaS would increase, as it provides numerous benefits, including increased productivity and efficiency via data-driven decisions.

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Large Organizations and Startups Entering Market

Established players, along with startups, are entering the market owing to its vast potential. Some of the players operating in the Indian farming as a service market are Mahindra & Mahindra Ltd., Tractors and Farm Equipment Limited (TAFE), ITC Ltd., Cropin Technology Solutions Pvt. Ltd., Ulink Agritech Pvt. Ltd., Em3 Agriservices Pvt. Ltd., Utkal Tubers India Pvt. Ltd., Intello Labs Pvt. Ltd., RML Information Services Pvt. Ltd., KhetiBuddy Agritech Private Limited, and Deere & Company.

In February 2021, Mahindra & Mahindra Ltd. launched its FaaS business in Karnataka by opening Krish-e centers in five locations. Krish-e centers are now present in many major states, including Gujarat and Uttar Pradesh. These centers offer many solutions and support to farmers, such as offering rentals for advanced farming equipment and agronomy advice.

In June 2020, KhetiBuddy Agritech Private Limited launched a free mobile app, via which it offers farm management solutions for farmers. It assists farmers in managing the fields, sowing, and harvesting. This app also guides farmers in personalizing the crop schedule based on weather, inventory data, and soil data, with localized information

Key Players in India Farming as a Service Market Include:

Market Size Breakdown by Segments

The India farming as a service market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Type

• Farm Management Solutions
• Services
  • Equipment rental
  • Labor service
  • Utility service
• Market Access Solutions
  • Supplier to farmer
  • Farmer to end market

Based on Model

• Subscription
• Pay-Per-Use