EUROPE AGRICULTURE TECHNOLOGY AS A SERVICE MARKET FORECAST 2023-2032

The Europe Agriculture Technology as a Service market growth assessment covers a detailed study of the United Kingdom, Germany, France, Italy, Spain, the Netherlands, and Rest of Europe. The United Kingdom imports more than 46% of the food the nation consumes. Additionally, it depends on imports and the agricultural sector to feed its population and drive economic growth. In recent years, the United Kingdom has been facing a seasonal labor shortage, with producers needing only 25% of workers to harvest crops. Therefore, smart agriculture approaches are being used to overcome these obstacles. Additionally, the $22.4 million in government funding for 31 new sensors, robots, and analytics is set to aid farmers in deploying Industry 4.0 technology in order to reduce waste, increase food production, and minimize pollution.

On the other hand, Germany is a pioneer in the field of digital technology, including precision agriculture and smart agriculture. About 51% of the country’s total land area is used for agriculture, making it the first nation to fully embrace the potential of digital transformation. According to the Federal Statistical Office, estimates depict that Germany’s agriculture GDP grew to $12.15 billion in the second quarter of 2022, from $9.17 billion in the first quarter. Hence, the region’s Agriculture Technology as a Service market is expected to have a lucrative future owing to the supportive ecosystem and the notable presence of companies engaged in the development of smart agriculture.

The Europe Agriculture Technology as a Service market is segmented into technology, type, and application. The type segment includes Software as a Service (SaaS) and Equipment as a Service (EaaS). The emergence of new technologies and variations in income among farmers has given rise to a service model termed Equipment as a Service (EaaS). In this model, agricultural technology equipment is made available through leasing or a pay-per-use payment structure, often at a more affordable rate than an upfront purchase. 

EaaS typically includes a set time period for usage and offers additional services such as remote diagnostics, predictive maintenance, and consulting. However, EaaS has not gained widespread adoption, especially compared to Software as a Service (SaaS). This is primarily due to concerns related to equipment reliability and unpredictability in the event of equipment failures.

Leading players operating in the Europe Agriculture Technology as a Service market include CNH Industrial NV, CLAAS KGaA mbH (CLAAS), Agrivi Ltd, etc. 

CLAAS KGaA mbH, headquartered in Germany, is one of the major manufacturers of combine harvesters as well as self-propelled forage harvesters. The company specializes in the business of agricultural engineering with agricultural balers, tractors, and green harvesting machinery. Its product portfolio includes transplanters, tractors, wheel loaders, telehandlers, square and round balers, balers, forage harvesters, and front loaders.