Agriculture Supply Chain Management Market Size, Share, Competitive Landscape and Trend Analysis Report by Component, by Solution Type, by Deployment Model : Global Opportunity Analysis and Industry Forecast, 2023-2032

Agriculture SCM Market - 2032

The global agriculture supply chain management market size was valued at $358.6 million in 2022, and is projected to reach $954 million by 2032, growing at a CAGR of 10.1% from 2023 to 2032.

Report Key Highlighters:

• The report covers the market size for agriculture supply chain management market for the year 2022 & is forecasted till the year 2032 with a CAGR of 10.1% from 2023 to 2032.
• The report covers segments such as component, solution type, deployment model, and region.
• The report is studied across different regions such as North America, Europe, Asia-Pacific and Latin America.
• The report covers a detailed analysis on the customized part such as the units of cold chain management services in the research study.

Supply chain management manages the flow of goods and services and includes all processes that transform raw materials into final products. Similarly, agriculture supply chain management involves managing interaction between companies responsible for effective production and supply of products from farms to consumers to reliably satisfy consumers in terms of quantity, quality, and price requirements. This generally includes managing horizontal and vertical alliances and business-to-business relationships and processes. Thus, agricultural supply chains enforce internal mechanisms and develop chain-wide incentives to ensure the timely performance of production and delivery commitments. Although the differentiation of goods, increased efficiency, more cost-effective transport, and timely distribution have led to the growth of supply chains from the farm gate to the retail level. For instance, in May 2022, Intellync announced a partnership with Star Index, a provider of supply chain management solutions, to combine Star Index’s broad knowledge of supply chain insights with the expertise of Intellync in agricultural supply chains. It develops a software solution that will work to capture & report data, reduce resource requirements, assess risk, and facilitate improvements across the supply chains of the agri-food businesses.

Currently, agriculture supply chain management companies are employing new technologies such as blockchain ledger technology to improve efficiency and minimize transportation costs. For instance, in June 2021, Geora Ltd. announced a partnership with AgriDigital, a developer of software solutions for agricultural supply chains, to develop and integrate blockchain technologies into their products. This helped develop the tools to empower farmers to manage finances and efficiently track the supply chain variables.

The factors such as an increase in the need for demand management solutions among agri-business organizations, an increase in use of cloud-based SCM software, and surge in need for improved supply chain visibility supplement the growth of the agriculture supply chain management market. However, high cost associated with the implementation and maintenance of supply chain management solution and uncertainty in regulations & lack of standards are the factors expected to hamper the growth of the market. In addition, rise in urbanization & globalization and integration of blockchain technology in agriculture supply chain management creates market opportunities for the key players operating in the agriculture SCM industry.

The global agriculture supply chain management market is segmented on the basis of component, solution type, deployment model, and region. By component, the market is divided into solution, and services. By solution type, it is fragmented into inventory management solutions, fleet management solutions, supplier management, market intelligence, food safety & compliance and others. By deployment model, it is categorized into on-premise and on-demand/cloud-based. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The leading players operating in the agriculture supply chain management market are Chainpoint, Proagrica, IBM, SAP, Agri Value Chain, AirDAO, BEXT360, FCE Group AG, Intellync, EKA, KPMG, Geora Ltd, Grainchain, Inc., BlueCircle, Sustainable Agriculture Initiative Platform (SAI Platform), AgriDigital, Vesatogo Innovations Pvt. Ltd.

Increase in use of cloud based SCM software

Adopting cloud-based software in agriculture drives the supply chain management software market. The cloud-based supply chain management software offers several benefits over the on-premises supply chain management software. Cloud SCM offers pay-per-usage licenses and requires minimal IT setup, which businesses adopt to minimize operational costs and transform their processes. Also, cloud SCM vendors are working on upgrading their portfolio, which is expected to reduce the solutions’ costs further. For instance, in October 2021, FCE GROUP AG announced a partnership with Synergos-Nigeria, a non-profit organization working to bring improvements to smallholder farmers. The partnership worked to improve the agricultural produce in Kaduna State of northwest Nigeria. The project saw around 450,000 farmers receiving digital tools and access to a cloud platform for digital identification, supply chain traceability, and a payment system with traditional and alternative payment methods to transform agricultural practices, improve living conditions and increase the food security in Nigeria. Apart from this, it offers several advantages to agri-based organizations for faster deployment, minimal risk, greater flexibility, increased visibility, and others, which are positively impacting on the agriculture supply chain management market growth.

Surge in need for improved supply chain visibility

Agriculture supply chain management allows supply chain managers to monitor where their current operations are performing or underperforming so they can be prepared for minor problems and redirect resources for significant outcomes. In addition, it generates data-driven, reliable solutions for effective production and supply of products from farms to consumers to satisfy consumers in terms of quantity, quality, and price requirements. For instance, in June 2021, AgriDigital announced a partnership with Genesis Feed Technologies, a developer of software solutions for real-time data management, to participate in the Seed to Feed supply chain and traceability project. This allowed for further improvement in the field of supply chain logistics by enabling real-time insights across the entire supply chain. This fuels the adoption of real-time data management software by end users with the surge in need for improved supply chain visibility, fostering the agriculture supply chain management market growth.   

High cost associated with the implementation and maintenance of supply chain management (SCM) solution

The efficient use of SCM solutions requires high investments for agriculture supply chain management by end users, which can’t be afforded by small or medium-sized organizations related to the agriculture industry. Meanwhile, the small firms find it difficult to afford such systems as they have limited budgets and cannot justify long payback periods. In addition, this software's implementation and installation efforts and time can take as long as several months, which is a primary concern as some organizations cannot operate for long periods. Also, the support, maintenance, and further customization in software costs are high, restraining the adoption of agriculture supply chain management software as these services can be more than the price of the software, which depends upon the type of customizations. In addition, the lack of internal IT expertise for agri-based industries requires training to maximize the efficiency of various solutions, thus adding to the cost of ownership of the systems. Therefore, such factors related to maintenance & high cost hinder the market growth.

Integration of blockchain technology in agriculture supply chain management

Companies in the agriculture supply chain management market are employing new technologies to improve efficiency and minimize transportation costs. The use of blockchain is one of these technologies. Blockchain is a distributed ledger technology that can record transactions between parties safely and permanently. Blockchain eliminates the need for intermediaries, previously required to function as trusted third parties to verify, record, and coordinate transactions by ‘sharing’ databases amongst multiple parties. Furthermore, the use of blockchain in the agricultural supply chain promises to give a reliable source of truth about the status of farms, inventories, and agricultural contracts, which is quite expensive. Blockchain applications for logistics/supply chain purposes can also generate energy, financial and environmental advantages. Furthermore, blockchain can save costs by supporting more agile, automated, and error-free processes. Hence, the increasing adoption of these advanced technologies will allow for more organized operations and is expected to drive agriculture SCM industry growth.

RECENT DEVELOPMENTS:

• In June, 2021, AgriDigital announced a partnership with Genesis Feed Technologies, a developer of software solutions for real time data management, to participate in the Seed to Feed supply chain and traceability project. This allowed for further improvement in the field of supply chain logistics by allowing real-time insights across the entire supply chain.
• In June, 2021, AgriDigital announced a partnership with Geora Ltd., a developer of software solutions for agricultural supply chains, to develop and integrate blockchain technologies into its products. This helped develop the tools to empower farmers with the capabilities to manage finances and track the supply chain variables with ease.
• In October, 2021, FCE GROUP AG announced partnership with Synergos-Nigeria, which was a non-profit organization working to bring improvements to smallholder farmers. The partnership worked to improve the agricultural produce in Kaduna State of northwest Nigeria. The project saw around 450,000 farmers receiving digital tools and access to a cloud platform for the digital identification, supply chain traceability, and a payment system with traditional and alternative payment methods to transform the agricultural practices, improve living conditions and increase the food security situation in Nigeria.
• In May, 2022, Intellync announced a partnership with Star Index, a provider of supply chain management solutions, to combine Star Index's broad knowledge of supply chain insights with the expertise of Intellync in agricultural supply chains to develop a software solution that will work to capture and report data, reduce resource requirements that will assess risk, and facilitate improvements across the supply chains of the agri-food businesses.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the agriculture supply chain management market analysis from 2022 to 2032 to identify the prevailing agriculture supply chain management market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the agriculture supply chain management market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global agriculture supply chain management market trends, key players, market segments, application areas, and market growth strategies.

  Agriculture Supply Chain Management Market Report Highlights

Aspects	Details
Market Size By 2032	USD 954 million
Growth Rate	CAGR of 10.1%
Forecast period	2022 - 2032
Report Pages	280
By Component	Solution Services
By Solution Type	Inventory management solutions Fleet management solutions Supplier management Market intelligence Food safety and compliance Others
By Deployment Model	On-premise On-Demand/Cloud-Based
By Region	North America  (U.S., Canada, Mexico) Europe  (UK, Germany, France, Rest of Europe) Asia-Pacific  (China, Australia, New Zealand, Rest of Asia-Pacific) Latin America  (Brazil, Argentina, Colombia, Rest Of World)
Key Market Players	GRAINCHAIN, INC., KPMG, INTELLYNC, SAP, BEXT360, EKA, Chainpoint, GEORA LTD, FCE GROUP AG, IBM, Sustainable Agriculture Initiative Platform, BlueCircle, Vesatogo Innovations Pvt. Ltd., AirDAO, AgriDigital, AGRI VALUE CHAIN, Proagrica

Author Name(s) : Abhay Singh | Lalit Janardhan Katare

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