Agriculture and Forestry Services Market – Global Industry Size, Share, Trends, Opportunity, & Forecast, Segmented By Type (Timber Production, Wood Technology, Forestry Economics, Others), By Nature (Organic, Conventional), By Application (Construction, Industrial Goods), By Region and Competition, 2020-2030F

Market Overview

Global Agriculture and Forestry Services Market was valued at USD 358.61 billion in 2024 and is expected to reach USD 489.36 billion by 2030 with a CAGR of 5.32% during the forecast period. Global agriculture and forestry services market has emerged as a dynamic and essential sector, playing a pivotal role in sustaining global food production and fostering sustainable forestry practices. As the world grapples with increasing population, climate change, and the need for resource optimization, the services within this industry are evolving to meet new challenges and opportunities.

Agriculture and Forestry services market encompasses a wide range of activities, including crop cultivation, pest control, precision farming, and forestry management. It serves as a critical support system for farmers, landowners, and forestry enterprises, offering expertise, technology, and solutions to enhance productivity and sustainability. Global agriculture and forestry services market is at the forefront of addressing the complex challenges facing the world's food and timber production. As the industry continues to evolve, a holistic approach that combines technology, sustainability, and collaboration will be key to navigating the path towards a more resilient and productive future. With a focus on innovation and responsible practices, the agriculture and forestry services market is poised to play a crucial role in shaping the sustainable future of global food and resource production.

Key Market Drivers

Global Population Growth

In agriculture, the need for increased food production is steering the adoption of cutting-edge technologies. Precision farming, data-driven decision-making, and the integration of artificial intelligence are becoming indispensable tools to maximize yield and optimize resource utilization. As arable land becomes scarcer, the emphasis on sustainable practices is rising, prompting a surge in demand for services that facilitate eco-friendly farming techniques. Simultaneously, in forestry, the expanding global population is driving an uptick in the demand for wood and paper products. Sustainable forestry management practices are gaining prominence, and forestry services are evolving to balance the extraction of resources with long-term environmental preservation. The forestry sector is witnessing a heightened focus on responsible logging, reforestation initiatives, and ecosystem conservation.

According to the United Nations, The world's population is more than three times larger than it was in the mid-twentieth century. The global human population reached 8.0 billion in mid-November 2022 from an estimated 2.5 billion people in 1950, adding 1 billion people since 2010 and 2 billion since 1998. Moreover, Governments and businesses are recognizing the imperative to invest in advanced agricultural and forestry services to ensure food security and sustainable resource management. As the world's population continues its upward trajectory, the agriculture and forestry services market stands at the forefront of innovation and adaptation, poised to meet the challenges and opportunities presented by this demographic surge.

Government Policies and Subsidies

In recent years, the agriculture and forestry services market has experienced a significant boost, thanks to the proactive role of government policies and subsidies. Governments worldwide recognize the critical importance of these sectors in ensuring food security, promoting sustainable practices, and supporting rural economies. Government policies play a pivotal role in shaping the landscape of agriculture and forestry services. Initiatives that encourage sustainable farming practices, promote technological adoption, and ensure responsible resource management have become key drivers of market growth. Subsidies provided to farmers and forestry operators incentivize the adoption of modern technologies, such as precision farming and sustainable forestry practices, leading to increased efficiency and productivity.

Moreover, financial support from governments acts as a catalyst for innovation in the sector. Subsidies for research and development initiatives encourage the introduction of advanced tools, seeds, and equipment, enhancing the overall quality of services offered in agriculture and forestry. The impact of government policies and subsidies goes beyond the immediate economic gains. By promoting environmentally friendly practices and conservation efforts, these initiatives contribute to the global commitment to combat climate change. Farmers and forestry professionals, encouraged by supportive policies, are more likely to invest in practices that enhance resilience to climate variability. A study published by the International Labor Organization (ILO) titled "Improving Market Access for Smallholder Farmers" found that farmers who implemented FaaS (Farming as a Service) techniques experienced significant improvements in both the quality and quantity of their produce. The report revealed that farmers who participated in the 'Out Grower' scheme saw an income increase of USD 274 per farm annually, compared to just USD 31 per farm for those who continued using traditional farming methods.

In conclusion, the symbiotic relationship between government interventions and the agriculture and forestry services market is evident. As governments continue to prioritize these sectors through strategic policies and financial support, the industry is poised for sustained growth, ensuring a harmonious balance between economic development, environmental stewardship, and social well-being.

Download Free Sample Report

Key Market Challenges

Climate Change Uncertainties

The Agriculture and Forestry Services market, a key player in passive fire protection, is grappling with a significant challenge—escalating raw material costs. The cost dynamics of essential components such as fire-retardant additives and resins are presenting a complex landscape for manufacturers. In this article, we explore the multifaceted repercussions of high raw material costs on the Agriculture and Forestry Services market and the strategies being employed to overcome these challenges. The inherent volatility in the prices of raw materials poses a direct challenge to Agriculture and Forestry Services manufacturers. Fluctuations in the costs of fire-retardant additives and resins directly impact production expenses, creating a scenario where profit margins may be squeezed. The challenge is not merely one of cost, but also the unpredictability that comes with it, making strategic planning and financial forecasting a demanding task.

In a market characterized by intense competition, high raw material costs amplify the pressure on manufacturers to remain competitive. Companies must strike a delicate balance between maintaining product quality, adhering to stringent fire safety standards, and managing production costs. Failure to navigate these challenges can result in a loss of market share to competitors who can adapt more effectively to the cost dynamics.

Rising Input Costs

In the intricate tapestry of agriculture and forestry services, the persistent upward trajectory of input costs has emerged as a formidable challenge, casting a shadow over the economic viability of industry operations. Fluctuations in the prices of fertilizers, pesticides, and other essential inputs are disrupting the delicate equilibrium that sustains both farming and forestry endeavors. The surge in input costs poses a direct threat to the profitability of farmers and forestry enterprises. As operational expenses escalate, the margins for these businesses diminish, necessitating a careful reassessment of budget allocations and resource management strategies. Small-scale operators, in particular, find themselves grappling with the delicate balancing act of maintaining production efficiency while mitigating the financial strain induced by escalating input costs.

Furthermore, the agricultural and forestry services market faces the intricate task of adapting to the evolving landscape of global trade dynamics. Importantly, the cost challenges in input procurement can be exacerbated by trade disruptions, tariffs, and fluctuations in currency exchange rates, amplifying the complexity of managing operational budgets. In response to these challenges, industry stakeholders are increasingly exploring sustainable and cost-effective practices. Precision agriculture technologies, which optimize input usage, and integrated pest management strategies are gaining prominence. Additionally, collaborative initiatives and government interventions that address the affordability of inputs are becoming critical elements in ensuring the resilience of the agriculture and forestry services market in the face of the rising cost conundrum. As the industry navigates this landscape, strategic financial planning and innovative solutions are becoming indispensable in sustaining productivity and fostering long-term growth.

Key Market Trends

Smart Forestry

In the ever-evolving landscape of agriculture and forestry services, the emergence of smart forestry is revolutionizing traditional practices, presenting a paradigm shift that goes beyond mere technological integration. Smart forestry harnesses cutting-edge technologies such as remote sensing, drones, and Geographic Information System (GIS) tools to optimize forest management, ensuring a delicate balance between economic viability and environmental stewardship. One of the key drivers propelling the adoption of smart forestry is the need for efficient resource management. Remote sensing technologies provide real-time insights into forest health, enabling early detection of diseases, pest infestations, and environmental stress factors. Drones equipped with high-resolution cameras navigate dense canopies, offering a bird's-eye view that enhances monitoring precision and aids in timely decision-making.

Moreover, GIS tools play a pivotal role in spatially mapping forest ecosystems, facilitating informed planning and sustainable land use. This data-driven approach enables forestry services to identify optimal locations for logging activities, reducing ecological impact and promoting responsible forestry practices. The integration of smart forestry technologies extends beyond environmental considerations; it also addresses economic and operational challenges. Automated timber inventory management systems streamline the tracking and monitoring of wood resources, enhancing supply chain efficiency. Additionally, smart forestry contributes to workforce safety by utilizing automation for hazardous tasks, ensuring a safer working environment for forestry professionals.

Digital Farming

In the ever-evolving landscape of agriculture and forestry services, the emergence of digital farming stands as a transformative force, reshaping traditional practices and unlocking new realms of efficiency and productivity. At the heart of this revolution lies a suite of technologies that includes farm management software, IoT (Internet of Things) devices, and precision agriculture tools, collectively propelling the industry into a new era of innovation. Digital farming has become a linchpin for farmers and forestry managers, offering real-time insights and data-driven decision-making capabilities. Farm management software, equipped with features ranging from crop monitoring to inventory management, empowers stakeholders to streamline operations and optimize resource allocation. This not only enhances productivity but also contributes to cost-effectiveness in the face of rising operational expenses.

Precision agriculture, a subset of digital farming, leverages technologies such as GPS, sensors, and automated machinery to maximize the efficiency of farming practices. Accurate data on soil health, weather patterns, and crop conditions enable farmers to tailor their approaches, minimizing resource wastage and environmental impact. In the forestry sector, digital tools are revolutionizing traditional forest management practices. Geographic Information System (GIS) applications and remote sensing technologies provide a bird's-eye view of forested areas, aiding in monitoring, planning, and sustainable resource management.

Segmental Insights

Nature Insights

Based on the nature, The organic category has emerged as a dominant segment in the market due to growing consumer awareness and preference for healthier, more sustainable products. As people become increasingly concerned about the environmental and health impacts of conventional farming practices, the demand for organic products, which are grown without synthetic pesticides, fertilizers, or genetically modified organisms (GMOs), continues to rise. This shift towards organic farming is driven by a desire for cleaner, more natural food sources, as well as the benefits of organic farming for soil health and biodiversity.

Additionally, government support and certifications for organic farming, along with the increasing availability of organic products in mainstream retail outlets, have further fueled the growth of the organic category. As consumers prioritize sustainability and health-conscious choices, the organic segment is expected to remain a key driver in the market.

Download Free Sample Report

Regional Insights

Based on the region, Asia-Pacific region stands at the forefront of agricultural innovation and transformation. Rapid population growth and increasing urbanization have fueled the demand for food and timber products, prompting a surge in agricultural and forestry services. Countries like China, India, and Japan are investing heavily in precision agriculture technologies, smart forestry practices, and sustainable farming methods. The adoption of modern machinery and equipment, coupled with government initiatives supporting rural development, is propelling the agriculture and forestry services market in the region. Additionally, the Asia-Pacific market is a hotbed for research and development in biotechnology, contributing to the development of genetically modified crops and disease-resistant plant varieties. Governments across various regions are promoting the adoption of Farming-as-a-Service (FaaS) models and encouraging farmers to use advanced technologies to help close the food gap, which is expected to drive growth in the regional industry during the forecast period. For example, Mahindra has established over 1,000 demonstration plots across India to showcase the benefits of using Krish-e, its FaaS branch. So far, Mahindra has observed an increase in income per acre ranging from USD 63 to USD 186 for farmers who have adopted Krish-e-assisted farming techniques.

Recent Developments

• In September 2024, the European Court of Auditors, a Luxembourg-based government agency, reported that the European Commission aims to have 25% of the EU's agricultural land farmed organically by 2030, a significant increase from 10.5% in 2022. As a result, growing environmental concerns are fueling the expansion of the agriculture and forestry services market.
• In January 2023, Taranis officially launched AcreForward, a new solution designed to help agricultural retailers maximize value from each acre of land. The solution provides exceptional leaf-level data about growers' crops at a higher frequency throughout the season, unlocking the full potential of each acre, including new insights into carbon sequestration and soil health.
• In July 2022, ITC Limited introduced ITCMAARS (Meta Market for Advanced Agricultural Rural Access to Markets), a comprehensive agritech app aimed at enhancing the company's agri-business sector. The app is designed to offer farmers personalized crop advisories based on Farming As A Service (FaaS) and machine learning (ML), helping them optimize their farming practices.
• In January 2020, CLAAS KGaA mbH successfully launched a state-of-the-art high-bay warehouse, spanning an expansive 11,700 sq.m. This strategic initiative, following an intensive two-year planning and construction phase, was implemented to address the escalating storage demands of our expanding product range and, consequently, the surge in spare part numbers.
• In February 2020, Deere & Company augmented its range of air-seeding equipment with the introduction of the C650 Air Cart, available in both tow-behind and tow-between configurations. This equipment is designed to enhance operational efficiency for small grains producers and custom farmers, enabling them to seed more acres per day in a shorter timeframe.

Key Market Players

• Cargill Incorporated
• Arbor Forest Management Ltd
• Dairy Farmers of America
• Bayer AG
• West Fraser Timber
• Hancock Victorian Plantations Holdings Pty Limited
• Forestry corporation of NSW
• Rayonier Inc
• China Forestry Group Corporation
• Tilhill Forestry

Report Scope:

In this report, the Global Agriculture and Forestry Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Agriculture and Forestry Services Market, By Type:

o   Timber Production

o   Wood Technology

o   Forestry Economics

o   Others

• Agriculture and Forestry Services Market, By Nature:

o   Organic

o   Conventional

• Agriculture and Forestry Services Market, By Application:

o   Construction

o   Industrial Goods

• Agriculture and Forestry Services Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Agriculture and Forestry Services Market.

Available Customizations:

Global Agriculture and Forestry Services market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

Global Agriculture and Forestry Services Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com