Agriculture Supply Chain Management Market Size, Share, and Trends 2024 to 2034

Agriculture Supply Chain Management Market Size and Forecast 2024 to 2034

The global agriculture supply chain management market size is estimated at USD 1 billion in 2024 and is anticipated to reach around USD 2.6 billion by 2034, expanding at a CAGR of 10% between 2024 and 2034.

Agriculture Supply Chain Management Market Key Takeaways

• Asia Pacific dominated agriculture supply chain management market in 2023.
• By components, the hardware segment dominated the market in 2023.
• By solution, the manufacturing execution system segment led the market in 2023.
• By deployment model, the on-premise segment led the market in 2023.

Market Overview

Increased production efficiency, timely distribution, cost-effective transportation, and differentiation of products are driving the growth of the agriculture supply chain management industry. Additionally, the increasing demand for better supply chain visibility is a vital growth factor for market development. Increasing demand for agricultural products has boosted the market size significantly. 

The agriculture supply chain management industry mainly manages the execution of services and goods by including various processes which help transform raw materials into final products. A symbiotic relationship must exist between multiple companies across the agriculture supply chain management value chain to deliver high-quality products from farms to direct customers.

Maintaining the product price, quality, and quantity forms the main components of the delivery process. Various companies and industries work together to ensure successful delivery by preserving the integrity of perishable products. A coordinated business-to-business (B2B) interaction between different vendors satisfies potential consumers. Production, if managed promptly, helps fulfill the delivery commitments made to the consumers.  

Market Scope

Market Dynamics

Key Market Drivers

• Cloud-based software to drive the growth of the global agriculture supply chain market - The utilization of cloud-based software for various agricultural demand and supply chain processes has recently experienced a steady rise. Consumers gain several benefits with the help of a cloud-based supply chain. The total cost of solutions reduces to a great extent when various cloud vendors upgrade their portfolios. The multiple advantages provided to agriculture-based organizations include minimal risk, increased visibility, faster deployment, and greater flexibility, among others.

Key Market Restraints

• High cost to restraint the growth of the global agriculture supply chain market - The cost associated with utilizing an agricultural supply chain management system imposes an additional charge on the final product that is delivered. The cost of processing information and managing transactions between companies is considerably higher, and small-scale industries often lack the budget.
• Extended time for installation - The software installation and implementation time are considerably long, hampers the delivery process by making it uncertain on the receiver's end. An increase in time for these processes also results in overhead costs, thus, adversely impacting the final price of agricultural goods. 

Key Market Opportunities

• Increasing demand for enhanced supply chain visibility - Supply chain managers monitor the real-time status of various operations performed by the agricultural supply chain management systems. This constant monitoring enables supply chain managers to be prepared and deal with minor problems created during the process. The continual monitoring provides adequate supply and production of products from the producer to the consumer. The system helps maintain the products' price requirements, quality, and quantity.

Key Market Challenges

• High maintenance cost of supply chain management - The cost of maintaining various solutions provided by a supply chain management system is considerably higher, creating obstacles to the market's growth. Small-scale industries need support to afford the maintenance cost of agriculture supply chain management systems, which is another challenge for market growth. Furthermore, the customization of various services and solutions provided by the supply chain management system is comparatively costly, which emerges as a significant obstacle to market growth. 

Component Insights

Based on components, the hardware segment has emerged as the highest contributor due to the increasing demand accounting for approximately 70% of the total agriculture supply chain management market share. This segment is expected to perform well during the forecast period due to the increasing demand for advanced technology and hardware. 

Key market players and leading producers demand various advanced components to increase the supply capacity. The increasing demand for advanced technology and equipment has dramatically boosted this segment's size. 

The various features that have been offered by advanced hardware have been successful in attracting potential consumers and hence contributing to the size of the market considerably. However, faster growth is expected in the services segment over the next few years due to the rapid shift to supply chain management systems and software.

Solution Insights

Based on the solution, the manufacturing execution system segment emerged as one of the fastest-growing segments in 2023 due to the increasing demand for advanced agricultural equipment and the rising need for agricultural products among people. Transportation is the primary requirement for fulfilling the demand and supply chain and providing consumers with the necessary goods. The management of transportation facilities helps manufacturers to complete the delivery within a given time frame. 

The warehouse management system has also emerged as one of the leading segments because of the increasing need for storage spaces for the various agricultural products which need to be protected from external environmental effects. Managing warehouses require proper coordination and rotation as the goods tend to perish over time.

Deployment Model Insights

Based on the deployment model, the on-premise segment is expected to show tremendous growth, accounting for approximately three-fifths of the total global agricultural supply change management market share by 2030. On-premise provides services to clients in real-time at their sites, which will help bolster the segment's growth. The major contributing factors to the growth include organizing critical data and analyzing it for the consumer with the help of emails and calls. 

The tools included in the on-premises model can collect and display the data during the procedure. The form is expected to utilize its information technology infrastructure with the help of chatbots. The increasing demand for cloud-based management solutions has been attributed to the growth of this segment during the forecast period.

End-User Insights 

Based on the end-user, the large enterprise segment has emerged as the leading market segment due to the availability of disposable income, allowing advanced services and solutions to be implemented. The large enterprise segment is expected to contribute significantly to the market growth due to expanding companies' operations due to the growing consumer demand. 

Faster growth is expected in the medium and small-sized business segments during the forecast period. A rapid shift has been observed toward consumer satisfaction, boosting the adoption of agricultural supply chain management systems and equipment that help obtain deep insights by processing real-time data.

Regional Insights

Based on geography, Asia Pacific will likely emerge as the largest market during the forecast period. Its extensive global contribution to the agricultural supply chain management market has contributed to its leading position. The strong growth of the Asia Pacific economy is driven by the development of various new businesses and enterprises investing heavily in agriculture. Productivity is expected to increase rapidly due to the increasing demand for modern technology and equipment. 

The increasing demand for agricultural products worldwide is contributing to the growth of the agricultural supply chain management market. The regions of Latin America, Middle East, and Africa have also contributed significantly to developing the agriculture supply chain management market. 

Agriculture Supply Chain Management Market Companies

• FCE Group AG
• Agri Value Chain
• Bext360
• Ambrosus
• ChainPoint
• AgriDigital
• eHarvestHub
• Eka
• GrainChain, Inc.
• Geora Ltd.
• IBM
• Trellis Ltd.
• Intellync
• SAP SE
• Proagrica
• Sustainable Agriculture Initiative Platform

Recent Developments

• In May 2022, a partnership took place between star index and Intellync, providers of management solutions for the supply chain. The combined expertise of the respective companies aims to provide maximum benefits to the potential consumers by reducing resource requirements, facilitating improvements, reporting data, capturing data, and assessing the risk involved across the various supply chains involved in the food and agricultural businesses.

Segments Covered in the Report

By Component

• Solution
• Hardware
• Services

By Solution 

• Transportation Management System
• Supply Chain Planning
• Warehouse Management System
• Procurement and Sourcing
• Manufacturing Execution System

By Deployment Model

• On-Demand and Cloud-Based
• On-Premise

By End-User

• Large Enterprises
• Small and Medium Enterprises

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)